Were you one of the investors eagerly awaiting the allotment status of NTPC Green Energy’s IPO? The allotment has been finalized, and the IPO has garnered significant attention due to its focus on renewable energy and its strong financial performance.
In this article, we’ll explain how to check your allotment status, share insights on the latest grey market premium (GMP), and update you on the company’s listing date.
NTPC Green Energy IPO Details
The IPO of NTPC Green Energy, a Delhi-based renewable energy company, opened for bidding between November 19 and November 22, 2024. With a price band of ₹102-₹108 per share and a lot size of 138 shares, the company raised a total of ₹10,000 crore. This IPO was an entirely fresh issue comprising 92,59,25,926 equity shares.
Subscription Status
The IPO received decent interest from investors, with an overall subscription of 2.55 times by the final day:
Retail Investors: Subscribed 3.59 times the allotted quota.
The strong response from retail and institutional investors reflects confidence in NTPC Green Energy’s renewable energy initiatives.
NTPC Green Energy IPO GMP Today
The Grey Market Premium (GMP) for NTPC Green Energy IPO currently stands at ₹111 per share, approximately 2.78% higher than the upper price band ₹108. While the GMP fluctuates based on market sentiment, it suggests a modest premium over the issue price, pointing to a steady listing outlook.
Company Overview
Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited, India’s largest power producer. The company focuses on renewable energy projects through both organic development and acquisitions.
As of August 31, 2024, NTPC Green Energy operates:
3,071 MW from solar projects
100 MW from wind projects across six states
By June 30, 2024, the company’s portfolio expanded to 14,696 MW, including:
2,925 MW of operational projects
11,771 MW of contracted and awarded projects
With strong backing from NTPC Limited and an experienced team, NTPC Green Energy is well-poised to lead India’s renewable energy transition.
The company has shown remarkable growth. Revenue increased by 1,094.19% between FY23 and FY24, indicating its capability to scale operations and generate significant profits in a competitive renewable energy sector.
Listing Date
NTPC Green Energy’s shares are scheduled to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Wednesday, November 27, 2024. Investors eagerly await this listing to assess its market performance.
Select NTPC Green Energy Limited in the dropdown menu.
Choose a mode to check the status:
Application Number
Demat Account Number
PAN ID
Specify your application type: ASBA or Non-ASBA.
Enter the required details and complete the captcha verification.
Click Submit to access your allotment status.
What to Expect After Allotment
If you have been allotted shares, you will receive a confirmation from your broker or the registrar. Once the shares are listed on the stock exchange, you can start trading them. Remember to watch the stock market news and announcements from NTPC Green Energy for any updates or important information.
Conclusion
The NTPC Green Energy IPO has drawn significant attention for its focus on renewable energy and robust financial performance. With allotment finalizations completed and listing just days away on November 27, 2024, investors can look forward to observing its market debut.
The modest Grey Market Premium (GMP) hints at stable market sentiment, reflecting cautious optimism and confidence in the company’s long-term potential.
For investors, staying updated on listing day developments and carefully monitoring the stock’s performance post-listing will be crucial. As NTPC Green Energy continues to expand its renewable energy footprint, its IPO marks a significant milestone in India’s green energy journey.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
The Indian SME IPO market is heating up! This week, six companies are set to make their public market debut, including Rajesh Power Services, Rajputana Biodiesel, Apex Ecotech, Abha Power and Steel, Agarwal Toughened Glass India, and Ganesh Infraworld. With a combined target of ₹410 crores, these IPOs offer a diverse range of investment opportunities. Let’s explore what each IPO has to offer and why they could be worth your attention.
Rajesh Power Services IPO
Rajesh Power Services IPO is a public offering to raise ₹160.47 crores. This involves a fresh issue of shares worth ₹93.47 crores and an offer for sale of shares worth ₹67.00 crores. The IPO will open for subscription on November 25, 2024, and close on November 27, 2024. The shares are expected to list on the BSE SME on December 2, 2024. Investors can apply for a minimum of 400 shares, with a minimum investment of ₹134,000.
Purchase of cable identification, testing, and fault location equipment.
Setting up a 1300 KW DC Solar Power Plant.
Development of expertise in Green Hydrogen production and associated equipment like Electrolysers.
Additional Working Capital Requirements.
General Corporate Purposes.
Grey Market Premium Rajesh Power Services IPO (GMP)
As of November 25, 2024, the GMP for Rajesh Power Services IPO is ₹90. This indicates a potential listing price of ₹425 per share, offering a potential return of 26.87%.
Overview of Rajesh Power Services IPO Company
Established in 1971, Rajesh Power Services Limited is a leading provider of consultancy services to state transmission and distribution companies, private utilities, and industries. The company specializes in:
EHV Underground Cables and Transmission Lines
EHV AIS/GIS Substations
HV/MV/LV Underground Cable Laying and Overhead MVCC Conductor Installation
Distribution Network Revamping
Power Supply Arrangements for Solar Power Plants
Operation and Maintenance Services
Rajesh Power Services has a strong client base, including prominent names such as GIFT City, Gujarat Metro Rail Corporation, IFFCO, Adani Renewables, Reliance Industries, Torrent Power, and more.
Financial Strength
Rajesh Power Services has demonstrated strong financial performance in recent years. Between FY23 and FY24, the company’s revenue increased by 39.72%, and its profit after tax (PAT) surged by 285.44%. This growth trajectory highlights the company’s robust financial position and its potential for future growth
SWOT Analysis of Rajesh Power Services
STRENGTHS
WEAKNESSES
Long-standing presence in the power sector since 1971
Diverse client base, including government entities and private giants.
Strong revenue and profit growth trajectory. Expertise in renewable energy and IT-driven energy solutions.
Focus on project-based revenue, which can be cyclical.
High capital expenditure requirements for scaling operations.
OPPORTUNITIES
THREATS
Expansion in renewable energy with growing demand for solar and green hydrogen projects.
Rising government focus on infrastructure development and sustainability.
Potential for growth in IT-based power management solutions.
Competitive market with several established players in EPC and power consulting.Regulatory risks in the energy sector.
Volatility in raw material and operational costs.
Rajputana Biodiesel IPO
Rajputana Biodiesel is set to raise ₹24.70 crores through its IPO. The entire issue is a fresh issue of 19 lakh shares. The IPO will open for subscription on November 26, 2024, and close on November 28, 2024. The shares are expected to list on the NSE SME on December 3, 2024. Investors can apply for a minimum of 1000 shares, with a minimum investment of ₹130,000.
The funds raised from the IPO will be utilized for:
Loaning to a subsidiary company for expansion of its manufacturing facility
Funding working capital requirements
General corporate purposes
Grey Market Premium of Rajputana Biodiesel IPO (GMP)
As of November 25, 2024, the GMP for Rajputana Biodiesel IPO is ₹70. This indicates a potential listing price of ₹200 per share, offering a potential return of 53.85%.
Company Overview
Founded in 2016, Rajputana Biodiesel is a biofuel producer and supplier. The company’s primary products include bio-diesel, glycerine, and fatty acids. Its manufacturing facility, located in Rajasthan, has an approved capacity of 30 kiloliters per day and a current installed capacity of 24 kiloliters per day.
Financial Strength
Rajputana Biodiesel has demonstrated strong financial growth. Between FY23 and FY24, the company’s revenue increased by 128%, and its profit after tax (PAT) surged by 168%. This i growth trajectory highlights the company’s robust financial position and its potential for future growth.
SWOT Analysis of Rajputana Biodiesel
STRENGTHS
WEAKNESSES
Significant growth in revenue and profitability.
Strong and diverse product portfolio in biofuels and related products.
Established manufacturing facility with significant production capacity.
Single production facility.
High reliance on subsidiary (NEPL) for scaling operations.
OPPORTUNITIES
THREATS
Consistent growth in demand for biofuels due to environmental concerns and government policies.
Potential for expansion into international markets for biodiesel and by-products.
Increasing adoption of waste-to-energy solutions, such as used cooking oil.
Rising competition in the biofuels market.
Price volatility in raw materials like cooking oil and methanol.
Regulatory and policy risks in the renewable energy sector.
APEX Ecotech IPO
Apex Ecotech is set to raise ₹25.54 crores through its IPO. The entire issue is a fresh issue of 34.99 lakh shares. The IPO will open for subscription on November 27, 2024, and close on November 29, 2024. The shares are expected to list on the NSE SME on December 4, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹116,800.
The funds raised from the IPO will be utilized for:
Meeting working capital requirements
General corporate purposes
Meeting public issue expenses
Grey Market Premium (GMP)
As of November 25, 2024, the GMP for Apex Ecotech IPO is ₹0. This indicates a potential listing price of ₹73 per share.
Company Overview
Founded in 2009, Apex Ecotech specializes in providing water and wastewater treatment solutions. The company offers a range of services, including:
Raw water treatment
Effluent and sewage treatment
Sludge dewatering
Wastewater recycling
Zero Liquid Discharge (ZLD) systems
Operation and maintenance services
Apex Ecotech has a strong customer base, including renowned companies like Aditya Birla Group, Ashok Leyland, Apotex Research, and many more. The company has successfully implemented ZLD systems achieving high recovery rates for water reuse.
Financial Strength
Apex Ecotech has achieved significant financial growth. Its revenue and profit after tax (PAT) witnessed impressive growth rates of 53.1% and 88.31%, respectively, between FY23 and FY24. This strong financial performance positions the company for future success.
SWOT Analysis of Apex Ecotech
STRENGTHS
WEAKNESSES
Strong expertise in water and wastewater treatment
Diversified client base, including reputed companies
Proven track record in delivering complex projects Focus on sustainable and eco-friendly solutions Strong financial performance and growth prospects
Availability of a limited number of key personnel Potential exposure to regulatory changes and environmental risks
Competition from established players in the industry.
OPPORTUNITIES
THREATS
Growing demand for water and wastewater treatment solutionsIncreasing focus on environmental sustainability
Expansion into new markets and geographies Potential for partnerships and collaborations with other companies
Economic slowdown or recession Fluctuations in raw material prices
Intense competition from established players Potential for technological disruptions
Abha Power and Steel IPO
Abha Power and Steel is set to raise ₹38.54 crores through its IPO. This involves a fresh issue of shares worth ₹31.04 crores and an offer for sale of shares worth ₹7.50 crores. The IPO will open for subscription on November 27, 2024, and close on November 29, 2024. The shares are expected to list on the NSE SME on December 4, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹120,000.
The funds raised from the IPO will be utilized for:
Modernizing and upgrading manufacturing facilities
Funding working capital requirements
General corporate purposes
Grey Market Premium (GMP)
As of November 25, 2024, the GMP for Abha Power and Steel IPO is ₹0. This indicates a potential listing price of ₹75 per share.
Company Overview
Founded in 2004, Abha Power and Steel manufactures iron and steel products. The company’s product range includes mild steel, manganese steel, stainless steel, and low—and high-alloy castings.
The company’s manufacturing facility, located in Bilaspur, Chhattisgarh, has an installed capacity of 14,400 metric tonnes per annum. It caters to various industries, including steel, power, cement, and railways.
Financial Strength
Abha Power and Steel’s financial performance has been mixed. Between FY23 and FY24, the company’s revenue decreased by 6%, while its profit after tax (PAT) increased by 170%. This indicates potential growth opportunities but also highlights challenges in revenue growth.
SWOT Analysis of Abha Power and Steel
STRENGTHS
WEAKNESSES
Experienced management team
Diverse product rangeStrong customer base in various industries ISO 9001:2015 certification
Dependence on a few key customers
Exposure to fluctuations in raw material prices Potential for operational challenges
OPPORTUNITIES
THREATS
Growing demand for steel products in IndiaGovernment initiatives to boost the manufacturing sector
Potential for expansion into new product segments and markets
Intense competition from established players
Economic slowdown or recession
Changes in government policies and regulations
Agarwal Toughened Glass India IPO
Agarwal Toughened Glass India is set to raise ₹62.64 crores through its IPO, which is a fresh issue of 58 lakh shares. The IPO will open for subscription on November 28, 2024, and close on December 2, 2024. The shares are expected to list on the NSE SME on December 5, 2024. Investors can apply for a minimum of 1200 shares, with a minimum investment of ₹129,600.
The funds raised from the IPO will be utilized for:
Purchasing machinery for the existing manufacturing unit
Repaying borrowings
Meeting working capital requirements
General corporate expenses
Grey Market Premium (GMP) of Agarwal Toughened Glass IPO
As of November 25, 2024, the GMP for Agarwal Toughened Glass India IPO is ₹10. This indicates a potential listing price of ₹118 per share, offering a possible return of 9.26%.
Company Overview of Agarwal Toughened Glass IPO
Incorporated in 2009, Agarwal Toughened Glass India is a manufacturer of tempered glass products. The company’s products find applications in various industries, including:
Shower doors
Refrigerator trays
Mobile screen protectors
Bulletproof glass for diving masks
Plates and cookware
The company is ISO 9001:2015 certified and caters to a diverse clientele, including offices, hotels, institutions, banks, and more.
Financial Strength
Agarwal Toughened Glass India’s financial performance has been mixed. Between FY23 and FY24, the company’s revenue decreased slightly by 0.25%, while its profit after tax (PAT) surged by 795.66%, indicating significant improvement in profitability. However, revenue growth remains challenging.
SWOT Analysis of Agarwal Toughened Glass India
STRENGTHS
WEAKNESSES
Extensive product portfolio catering to diverse industries.
ISO 9001:2015 certification, ensuring quality management standards.
Strong profitability growth (nearly 8x PAT increase year-on-year).Established testing and quality control processes.
Decline in revenue growth in FY 2023-24, reflecting possible challenges in market demand or pricing.
Dependency on industrial clients, making it vulnerable to economic cycles.
OPPORTUNITIES
THREATS
Growing demand for tempered glass across residential and commercial projects.
Expansion opportunities in international markets for specialized glass products.
Increasing usage of glass in innovative applications, such as smart homes and automotive technology.
Fierce competition from numerous players in the glass manufacturing industry.
Vulnerability to fluctuations in raw material costs, which can erode profit margins.
Potential impact of evolving regulations on industrial glass applications.
Ganesh Infraworld IPO
Ganesh Infraworld is set to raise ₹98.58 crores through its IPO, which is a fresh issue of 118.77 lakh shares. The IPO will open for subscription on November 29, 2024, and close on December 3, 2024. The shares will list on the NSE SME on December 6, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹132,800.
The funds raised from the IPO will be utilized for:
Meeting long-term working capital requirements
General corporate purposes
Grey Market Premium (GMP) of Ganesh Infraworld IPO
As of November 25, 2024, the GMP for Ganesh Infraworld IPO is ₹9. This indicates a potential listing price of ₹92 per share, offering a potential return of 10.84%.
Company Overview
Incorporated in 2017, Ganesh Infraworld is a construction company offering a wide range of construction services. The company specializes in:
Civil and Electrical Infrastructure Projects: Construction of residential, commercial, and industrial buildings, as well as electrical infrastructure projects like substations and power lines.
Road and Rail Infrastructure Development Projects: Construction of roads and railway infrastructure, including OHE installation.
Water Infrastructure Development Projects: Construction of water distribution systems, water treatment plants, and reservoirs.
Ganesh Infraworld has a diverse client base, including government organizations and private companies. The company operates in various states across India.
Financial Strength
Ganesh Infraworld has demonstrated strong financial growth. Between FY23 and FY24, the company’s revenue increased by 116%, and its profit after tax (PAT) surged by 198%. This growth trajectory highlights the company’s robust financial position and its potential for future growth.
STRENGTHS
WEAKNESSES
Diverse expertise across civil, electrical, rail, and water infrastructure projects.
Strong financial performance with significant revenue and profit growth.
Established relationships with key clients in multiple industries.
Dependence on government projects like Har Ghar Jal Mission, which are subject to policy changes.
High operational costs in EPC services, potentially impacting margins.
OPPORTUNITIES
THREATS
Increasing demand for infrastructure development in India, especially in water distribution and railways.
Potential for expanding operations into untapped states and regions.
Opportunities to secure contracts under government initiatives promoting infrastructure development.
Competition from established players in the construction and EPC sectors.
Regulatory and environmental approvals could delay project timelines.
Vulnerability to economic cycles impacting infrastructure investment.
Conclusion:
As the Indian SME IPO market continues to gain momentum, this week’s offerings present a diverse range of investment opportunities. While these IPOs hold promise, investors must conduct thorough research or consult with financial advisors to make informed investment decisions. By understanding the fundamentals of each company, their growth potential, and the risks involved, investors can navigate this exciting market and potentially reap significant rewards.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
What goes into building smarter systems for defense, security, and aerospace? Companies like C2C Advanced Systems lead the charge with their innovative platforms and global competitiveness. From combat management systems to digital transformation initiatives, they’re carving a unique space in cutting-edge technology.
With their Rs.99.07 crore IPO making headlines, let’s explore what sets them apart and why the buzz around C2C Advanced Systems is hard to ignore.
The C2C Advance Systems IPO is a fresh issue of 43.846 lakh shares. The allotment of shares is expected to be finalized on 27 November 2024, and the shares will tentatively be listed on 29 November 2024 on NSE EMERGE, a platform started by NSE SME. The platform offers emerging businesses a streamlined way to raise equity capital from a broad range of investors, helping them unlock value and scale.
C2C Advance Systems IPO Allotment
The C2C Advance Systems IPO issue is expected to raise Rs.97.07 crore, with Rs.2,19,600 shares reserved for the market maker. Market makers are brokers registered with the stock exchange who ensure the continuous buying and selling of securities at set prices. The remaining 41,64,000 shares make up the Net Issue. The Public and Net issues will represent 26.34% and 25.02% of the company’s post-issue equity capital, respectively.
The minimum lot size for the issue is 600 shares. Retail investors must invest at least ₹135,600, while HNI investors must apply for 1,200 shares (₹271,200). Mark Corporate Advisors Pvt. Ltd. and Beeline Capital Advisors Pvt. Ltd. are the lead managers for the C2C Advanced Systems IPO. Link Intime India Pvt. Ltd. is the registrar, and Spread X Securities is the market maker for the issue. The allotment proportions for the issue are as follows-
Qualified Institutional Buyers (QIBs)
Not more than 50% of the net issue (20,82,000)
Non-Institutional Investors
Not less than 15% (6,24,600 shares) of the net issue
The company plans to utilize the net proceeds from the IPO for various purposes, including purchasing fixed assets (hardware and software) for its current operations and Dubai Experience Centre (₹1,473.10 lakhs).
Additionally, ₹458.00 lakhs will be allocated towards fit-outs for its new Bengaluru premises and Dubai Experience Centre, ₹160.00 lakhs for a security deposit at the new Bengaluru premises, and ₹4,600.00 lakhs to meet its working capital requirements. Source: Company RHP
Grey Market Premium
The Grey Market Premium (GMP) for the C2C Advanced Systems SME IPO indicates strong demand before its listing. As of 22nd November 2024, the GMP stood at ₹245, reflecting an upward trend from ₹200 on 14th November, based on nine sessions of grey market activity.
This marks ₹200 as the lowest and ₹245 as the highest GMP recorded. With the current GMP of ₹245, the estimated listing price is ₹471 per share, representing a 108.41% premium over the IPO price of ₹226. Source: Live Mint
Company Overview
C2C Advanced Systems Limited, formerly C2C – DB Systems Private Limited, was founded in 2018. The company specializes in defense electronics, focusing on indigenously developed defense products in India. Its core strengths include C4I systems for situational awareness, AI/ML-based analytics, real-time data integration, and embedded/FPGA designs. C2C’s business model centers on four main services:
Virtual Maintenance: Creating systems that integrate subsystems, providing real-time data for defense leaders to act upon.
Virtual Logistics: Delivering systems with COTS electronic boards and custom engineering designed to survive harsh conditions.
AI/ML Technology: Applying AI/ML in all products and as standalone solutions.
Virtual Supply Chain: Developing software that turns real-time sensor data into actionable insights.
The company’s products include Combat Management Systems, C4I Systems, Anti-Drone Command Systems, Air Defense Subsystems, and Integrated Platform and Vessel Management Systems.
Financial Overview Of C2C Advance Systems Limited:
The company’s revenue has increased since its operating revenue of Rs.34.69 lakhs in FY2022. The operating income for the financial year ending March 2024 was Rs.41.05 crore.
2. Profit Trend:
The company’s net profit has risen since its loss of Rs.2.38 crore in FY2022. As of FY2024, it earned a net profit of Rs.12.39 crore.
Others:
As of FY2024, the company’s net worth stands at Rs.76.45 crore, which rose to Rs.86.18 crore as of the half-year period ending September 2024. Its Earnings per Share (EPS) was Rs.15.85, and the net asset value per equity share was Rs.62.38 for the same year (FY2024).
SWOT Analysis:
STRENGTHS
WEAKNESSES
Technological Expertise: C2C Advance Systems possesses strong expertise in defense electronics and cutting-edge technologies like AI/ML.
Focus on Indigenous Development: The company’s focus on indigenously developed defense products aligns with the government’s “Make in India” initiative.
Diversified Product Portfolio: The company’s diverse product portfolio, from combat management systems to anti-drone systems, positions it for growth in various defense segments.
Strong Financial Performance: The company has recently shown significant revenue and net profit growth.
Government Support: The Indian government’s increasing focus on defense modernization and indigenization creates favorable market conditions.
Limited Market Presence: As a relatively new company, C2C Advance Systems may face challenges expanding its market presence and customer base.
Dependency on Government Contracts: The company’s revenue may rely heavily on government contracts, subject to budgetary constraints and policy changes.
Competition from Established Players: The defense industry is dominated by established players, both domestic and international, which can pose competition for C2C Advance Systems.
OPPORTUNITIES
THREATS
Growing Defense Budget: The Indian government’s increasing defense budget allows the company to secure new contracts.
Emerging Technologies: AI, ML, and IoT advancements can be leveraged to develop innovative products and solutions.
Global Expansion: The company can explore opportunities in international markets, particularly in countries with growing defense budgets.
Joint Ventures and Partnerships: Collaborating with established players can help the company access new markets and technologies
Geopolitical Risks: Geopolitical tensions and conflicts can impact the demand for defense products and services.
Economic Slowdown: An economic slowdown can affect government spending on defense and impact the company’s revenue.
Regulatory Hurdles: Stringent regulatory requirements and compliance issues can hinder the company’s growth.
Cybersecurity Threats: The company operates in a technology-intensive sector, making it vulnerable to cyberattacks and damaging its reputation and operations.
Bottomline:
The company provides digital transformation systems and services with specialized features tailored to client needs. Its focus on critical product development and servicing allows it to maintain strong margins. The management is confident it can continue its success after completing its ongoing expansion. However, before considering the IPO, it’s important to research the company’s financials and industry factors thoroughly. Consulting a registered advisor can help you make the best decision for your portfolio.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Have you been tracking developments in the renewable energy sector? If you’re interested in green energy or the stock market, you may want to know more about NTPC Green Energy Limited’s upcoming IPO.
With an issue size of ₹10,000 crore, it has caught the attention of many industry watchers and market participants. This IPO marks a significant move for NTPC Green Energy, offering investors an opportunity to engage with a company focused on renewable energy solutions. Here’s a detailed breakdown of everything you need to know about this offering.
NTPC Green Energy IPO Details
NTPC Green Energy’s ₹10,000 crore IPO is a fresh issue of 92.59 crore shares, opening for subscription from November 19, 2024, to November 22, 2024. The price band is set at ₹102 to ₹108 per share, with a minimum lot size of 138 shares, requiring a retail investment of at least ₹14,904.
For small non-institutional investors (sNII), the minimum investment is 14 lots (1,932 shares), amounting to ₹208,656, while big non-institutional investors (bNII) need to invest in a minimum of 68 lots (9,384 shares), totaling ₹1,013,472. The shares are scheduled to list on the BSE and NSE on November 27, 2024.
Qualified Institutional Buyers (QIBs)
Not less than 75% of the Net Issue
Non-Institutional Investors (HNIs)
Not more than 15.00% of the Net Issue
Retail Investors
Not more than 10% of the Net Issue
Objectives of the IPO
The company intends to use the net proceeds from the IPO for the following purposes:
Investment in NTPC Renewable Energy Limited (NREL): To fund the repayment or prepayment of certain borrowings availed by NREL.
General Corporate Purposes: To strengthen the company’s financial position and operational flexibility.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for NTPC Green Energy’s unlisted shares stood at ₹1, translating to a premium of 0.93% over the upper end of the price band. This is a dip from the ₹3 premium recorded on November 14, 2024, reflecting fluctuating investor sentiment in the grey market. Source: Business Standard
Company Overview
Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited, India’s largest power producer. Focused on renewable energy, the company undertakes projects through both organic development and strategic acquisitions. As of August 31, 2024, NTPC Green Energy has an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states.
By June 30, 2024, its portfolio had expanded to 14,696 MW, comprising 2,925 MW of operating projects and 11,771 MW of contracted and awarded projects. The company is currently constructing 31 renewable energy projects across seven states, totaling 11,771 MW. With 15 off-takers engaged across 37 solar and 9 wind projects, NTPC Green Energy has established a strong market presence.
Backed by NTPC Limited’s extensive experience in large-scale project execution and supported by a highly skilled team, NTPC Green Energy is well-positioned to deliver on its vision of advancing renewable energy solutions.
Financial Strength
NTPC Green Energy has demonstrated strong financial growth:
Revenue Growth: A staggering increase of 1,094.19% between FY23 and FY24.
Strong Backing: Supported by NTPC Limited, ensuring financial and operational reliability.
Large Portfolio: A diversified renewable energy portfolio of 14,696 MW across solar and wind projects.
Execution Expertise: Proven track record in large-scale renewable energy projects.
Sector Dependency: Heavily reliant on the renewable energy sector, making it vulnerable to sector-specific risks.
Revenue Concentration: A significant portion of revenue depends on key off-takers.
OPPORTUNITIES
THREATS
Rising Demand for Renewable Energy: With increasing global focus on sustainable energy, the company is well-positioned to capitalize on the demand.
Government Support: Strong government push towards renewable energy adoption and infrastructure development.
Market Competition: Intense rivalry from established and emerging players in the renewable energy space.
Regulatory Risks: Changes in government policies or tariffs could impact revenue streams.
Conclusion
NTPC Green Energy’s ₹10,000 crore IPO is a significant step for the renewable energy arm of NTPC Limited. With its expansive portfolio and backing from India’s largest power producer, the company is poised to make a mark in the renewable energy sector. However, market conditions and competitive dynamics will play a crucial role in determining the IPO’s success.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Are you ready for an action-packed week in the stock market? This week, three IPOs are set to open, aiming to raise a total of ₹1,160 crores, with Blackbuck leading the way in the mainboard category, targeting ₹1,114.72 crores. Meanwhile, two SME IPOs — Mangal Compusolution and Onyx Biotec — seek to raise ₹16.23 crores and ₹29.34 crores, respectively.
Not only will investors have these new opportunities, but four highly anticipated listings, including Swiggy, will also hit the bourses, offering a fresh wave of excitement. Let’s look into the details to see what these IPOs and listings store for investors this week.
Blackbuck IPO
The BlackBuck IPO is structured as a book-built issue, seeking to raise a total of ₹1,114.72 crores. This includes a fresh issue of 2.01 crore shares worth ₹550 crores and an offer for sale (OFS) of 2.07 crore shares amounting to ₹564.72 crores. Investors are required to apply for a minimum lot size of 54 shares. The final allotment is expected on November 19, 2024, with a tentative listing date set for November 21, 2024, on the BSE and NSE.
The funds raised through the IPO will be utilized for:
Sales and marketing expenses
Capital infusion into its NBFC subsidiary, Blackbuck Finserve
Product development
General corporate purposes
GMP (Grey Market Premium)
As of November 11, 2024, BlackBuck’s IPO has a GMP of ₹24. Given the IPO’s upper price band of ₹273 per share, the expected listing price is approximately ₹297, reflecting a potential gain of 8.79% per share. The GMP is subject to market sentiment, and investors may find this indicator useful for estimating the stock’s initial market interest.
Company Overview
Founded in April 2015, Zinka Logistics Solution Limited, through its BlackBuck app, provides a comprehensive digital platform for truck operators in India. BlackBuck connects 963,345 truck operators, representing 27.52% of India’s trucking market, facilitating streamlined logistics and transportation services. The app offers various services, including payments, telematics, a freight marketplace, and vehicle financing, empowering truck operators to optimize their business operations.
Regarding financial transactions, BlackBuck processed a Gross Transaction Value (GTV) of ₹173,961.93 million in payments as of March 31, 2024. The platform also had an average of 356,050 active telematics devices each month, indicating widespread adoption of its fleet management solutions. Additionally, BlackBuck facilitated 4,035 loans valued at ₹1,967.88 million for vehicle financing across 48 districts in seven Indian states, extending crucial financial support to its users.
SWOT Analysis of Zinka Logistics Solutions Ltd.
STRENGTHS
WEAKNESSES
Market Leadership: BlackBuck is India’s largest digital platform for truck operators, commanding a significant market share and a vast network.
Diverse Offerings: Its range of services, from telematics to vehicle financing, addresses the varied needs of truck operators, enhancing customer loyalty.
Financial Growth: Strong revenue and PAT growth highlight the company’s scalable business model and financial stability.
Reliance on the Indian Market: BlackBuck’s operations are concentrated in India, and its growth is tied to the local logistics sector, limiting global expansion potential.
High Customer Acquisition Costs: Increasing sales and marketing expenditure, a key IPO objective, indicates higher customer acquisition costs in a competitive market.
OPPORTUNITIES
THREATS
Expanding Digital Adoption: As the Indian logistics industry undergoes digitization, BlackBuck has significant opportunities to increase its user base and product offerings.
Growth in Financing Services: Demand for vehicle financing and other NBFC services offers BlackBuck the potential for diversification and revenue growth.
Regulatory Risks: Changes in financial and logistics regulations could impact BlackBuck’s business operations and revenue streams.
Competition: Increased competition in logistics and digital platforms could challenge BlackBuck’s market share, affecting profitability.
Financial Strength
The company’s financials reflect strong growth. Between FY 2023 and FY 2024, Zinka Logistics Solution Limited reported a 62.24% increase in revenue and a 33.24% rise in profit after tax (PAT). This growth demonstrates BlackBuck’s expanding market footprint and its capacity to leverage operational efficiencies for profitability.
The Mangal Compusolution IPO is a fixed-price issue, aiming to raise ₹16.23 crores entirely through a fresh issue of 36.06 lakh shares. This IPO, set to be listed on the BSE SME platform, has a minimum lot size of 3,000 shares, making the minimum investment required for retail investors ₹135,000. High Net-worth Individuals (HNI) must invest in at least two lots (6,000 shares), totaling ₹270,000. The allotment of shares for this IPO is expected on November 18, 2024, with a tentative listing date of November 20, 2024.
The funds raised from the Mangal Compusolution IPO will be used for:
Capital expenditure to enhance infrastructure and service capabilities
General corporate purposes to strengthen overall business operations
GMP (Grey Market Premium)
The most recent Grey Market Premium (GMP) for Mangal Compusolution’s IPO is ₹3 as of November 11, 2024. Given the issue’s fixed price of ₹45 per share, the estimated listing price is around ₹48, which suggests a potential gain of 6.67% per share on the listing. This GMP estimate offers investors an initial indication of market interest in the IPO, although final prices may vary based on market sentiment.
Company Overview
Founded in April 2011, Mangal Compusolution Limited is a hardware rental service provider. The company offers rental solutions catering to businesses’ IT hardware needs across various industries. Mangal Compusolution’s extensive product offerings include servers, laptops, desktops, projectors, router switches, workstations, Plasma/LCD TVs, PA systems, and various other accessories. This allows the company to provide customizable rental IT solutions to small and large enterprises tailored to meet specific client needs.
While Mangal Compusolution serves clients across India, its major clients are in Maharashtra. The company divides its revenue into three primary segments: rental income from leased IT equipment, sales of IT equipment, and IT equipment maintenance service fees. Mangal Compusolution has established itself as a customer-centric provider with services that minimize client operational disruption.
SWOT Analysis of Mangal Compusolution Ltd.
STRENGTHS
WEAKNESSES
Varied Product Range: Mangal Compusolution offers a wide variety of IT products from well-known brands like HP, Dell, and Lenovo, allowing it to meet the diverse needs of different industries.
Customer Focus: The company’s customer-centric approach includes 24/7 support and maintaining backup equipment to ensure zero client downtime.
Reliable Support: The company offers dedicated support teams and maintains an inventory of extra equipment to minimize service interruptions.
Geographical Dependence: While Mangal Compusolution has a nationwide reach, its client base is concentrated in Maharashtra, which could pose a challenge in diversifying geographically.
Dependence on Equipment Leasing: A significant portion of its revenue relies on IT equipment rentals, leaving the company vulnerable to shifts in demand for leased IT hardware.
OPPORTUNITIES
THREATS
Growing Demand for IT Hardware Rentals: With more companies opting for IT hardware rentals over direct purchases, Mangal Compusolution can expand its client base across various sectors.
Expansion Potential: By increasing its presence in additional states, the company could increase revenue and further its growth.
Market Competition: The IT hardware rental industry faces competition from several established and emerging players, which could impact Mangal Compusolution’s market share.
Technological Advancements: Rapid technological changes could lead to higher maintenance costs or the need for frequent upgrades, impacting profitability if not managed effectively.
Financial Strength
For the fiscal year ending March 31, 2024, Mangal Compusolution saw a 62.24% increase in revenue, with a 33.24% rise in profit after tax (PAT) compared to the previous fiscal year ending March 31, 2023. This financial growth underscores the company’s effective expansion and growing client demand for IT hardware rental solutions.
Onyx Biotec IPO is a book-built issue seeking to raise ₹29.34 crores through a fresh issue of 48.1 lakh shares. The minimum application lot size is 2,000 shares, which requires an investment of ₹122,000 for retail investors.
High Net-Worth Individuals (HNI) can invest in a minimum of two lots (4,000 shares), amounting to ₹244,000. The share allotment for this IPO is expected on November 19, 2024, with the tentative listing date on the NSE SME set for November 21, 2024.
The proceeds from the Onyx Biotec IPO are earmarked for the following purposes:
Upgrading the existing manufacturing Unit I to support large-volume parentals for intravenous use
Installing a high-speed cartooning packaging line at manufacturing Unit II for Dry Powder Injections
Prepayment or repayment of certain loans
General corporate purposes
GMP (Grey Market Premium) of Onyx Biotec Ltd
Onyx Biotec IPO’s last recorded GMP is ₹5, as of November 11, 2024, which puts its estimated listing price at ₹66, considering the IPO price band of ₹61. This suggests a potential gain of 8.20% on the listing price per share. The GMP reflects initial interest in the IPO, but the actual listing price may differ based on demand and market conditions.
Company Overview
Founded in May 2005, Onyx Biotec Limited operates within the pharmaceutical manufacturing sector. The company primarily produces Sterile Water for Injections and is a contract manufacturer for pharmaceutical companies specializing in Dry Powder Injections and Dry Syrups.
Onyx Biotec has a robust production capacity, which is supported by two manufacturing units in Solan, Himachal Pradesh. Unit I has a daily production capacity of 638,889 Sterile Water for injection units. In comparison, Unit II produces 40,000 dry powder injections and 26,667 dry syrup units per day in a single shift.
The company’s clients include well-established pharmaceutical brands like Hetero Healthcare Limited, Mankind Pharma Limited, Sun Pharmaceutical Industries Limited, Aristo Pharmaceuticals Private Limited, and Reliance Life Sciences Limited. Through partnerships with these major players, Onyx Biotec has positioned itself as a reliable contract manufacturer, serving domestic and international markets.
SWOT Analysis of Onyx Biotec Ltd.
STRENGTHS
WEAKNESSES
Established Production Capacity: Onyx Biotec operates two high-capacity manufacturing units, allowing it to meet large-scale production demands.
Reputable Client Base: The company partners with well-known brands, enhancing its market credibility and stability.
Growing Revenue and Profitability: Onyx Biotec’s recent revenue and profit growth reflects a solid financial position and operational efficiency.
High Dependency on Contract Manufacturing: Relying heavily on contract manufacturing might limit the company’s control over its revenue sources and expose it to fluctuations in client demand.
Geographic Concentration of Production Facilities: Both manufacturing units are located in Solan, Himachal Pradesh, which could present logistical challenges if expansion or diversification becomes necessary.
OPPORTUNITIES
THREATS
Increased Demand for Injectable Pharmaceuticals: The rising demand for injectable drugs offers growth potential for Onyx Biotec’s current product lines.
Expansion of International Market Reach: Expanding the company’s client base in overseas markets could enhance revenue growth and diversify income streams.
Regulatory Compliance and Industry Standards: The pharmaceutical industry faces stringent regulatory scrutiny, and any non-compliance could lead to operational disruptions or financial penalties.
Intensified Competition: The contract manufacturing sector is competitive, with many players vying for market share, which may pressure pricing and margins.
Financial Strength
Onyx Biotec has demonstrated significant financial growth in recent years. For the fiscal year ending March 31, 2024, the company’s revenue increased by 35.99%, and its profit after tax (PAT) grew by 64.35% compared to the fiscal year ending March 31, 2023. This financial growth underscores the company’s effective management and increasing demand for its products in the pharmaceutical sector.
Healthcare-focused solution provider Sagility India will be the first to list on the mainboard next week, debuting on November 12, following a 3.2x subscription during the November 5-7 bidding period.
Food delivery giant Swiggy and electricity producer ACME Solar Holdings are set to list on November 13, having garnered 3.59 times and 2.75 times subscriptions, respectively. Meanwhile, trading in shares of Niva Bupa Health Insurance Company will commence on November 14.
With three new IPOs and four notable listings, this week’s activity highlights continued momentum in the public market. Each offering presents opportunities for investors to observe, with companies like Blackbuck and Swiggy capturing significant attention. As these firms take their first steps into the public sphere, this week is a key moment in the IPO landscape. Remember, doing your research is important before investing in any IPO.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Did you ever dream of striking gold in the stock market through an IPO? Don’t be reluctant if you say “Yes”. You are not alone. Remember the Zomato IPO from 2021, when the retail portion was oversubscribed by 2.69 times. This means that for every 100 shares available, 269 applications were received. Huge, right?
Getting in early on a promising IPO can feel like winning the lottery. It’s about much more than luck; strategy is the key.
Here are five tried-and-true strategies for increasing your chances of receiving that coveted IPO allotment. Ready to play and win?
Getting in on the ground floor of a promising initial public offering is like catching a rising star. However, to succeed in the IPO game, you must first understand the process.
Remember, when a company goes public through an Initial Public Offering (IPO), it is offering shares to the public for the first time. This is how they raise capital for a variety of purposes viz. Business diversification, discharging market liabilities, or for other general corporate purposes.
Step 1: Appointing Lead Managers and Advisors
Companies select lead managers (underwriters) and legal advisors to guide them through the IPO process. These experts help with documentation and regulatory compliance.
Step 2: Drafting and Filing the Draft Red Herring Prospectus (DRHP)
The company, with its advisors, drafts the DRHP, detailing the business model, financials, and the purpose of the IPO. This document is then submitted to SEBI for approval.
Step 3: SEBI Review and Approval
SEBI reviews the DRHP to ensure all regulatory requirements are met. SEBI might request clarifications or additional information. Once their queries are resolved, they issue an observation letter.
Step 4: Marketing and Roadshows
The company conducts roadshows to generate interest among potential investors. This involves presentations and Q&A sessions, showcasing the company’s growth potential.
Step 5: Pricing the IPO
Based on investor feedback and market conditions, the company, along with its lead managers, sets the IPO price or price band.
Step 6: Book Building Process
Investors bid for shares within the price band during the book-building period. This process establishes the final share allotment price.
Step 7: Allocation of Shares
Investors receive shares according to their submitted bids. Retail investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs) all get their respective portions.
Step 8: Listing on the Stock Exchange
Once shares are allocated, the company lists its shares on stock exchanges like BSE and NSE. Shares start trading publicly, and the IPO process culminates with the listing day.
Researching the Right IPOs
To ensure success in IPO allotment, you cannot afford to pick any random company just by being driven by its publicity or marketing gimmicks. You have to do highly skilled and strategic research.
Now, let’s quickly scan through the process of finding the right IPO-
Know the Company Inside Out:
Dig into its business model, revenue streams, and growth potential. Also, its key promoters, and the management of the company.
Read the DRHP (Draft Red Herring Prospectus) Like a Detective:
Look beyond the surface. Analyze financial statements, and check their fundamental and technical parameters, risk factors, and plans.
Market Trends and Industry Analysis:
Is the industry booming or busting? Align your picks with sectors on the rise. An emerging industry can boost a company’s IPO potential.
Peer Comparison: Compare the IPO company with its peers on the aspects of their valuation, Price-to-earning (P/E), Price-to-Sale (P/S), EBITDA, etc. Analyse how their financials stack up.
Investor Sentiment: Gauge the buzz around the IPO. Strong investor interest can drive demand, but don’t fall for hype alone—back it up with solid data.
Meaningful research is vital to winning the IPO game.
5 Proven Strategies You Can Use To Maximize Your Chances of IPO Allotment
Leverage Your Demat Account
Maintain an active Demat account with a reputable brokerage. High-volume transactions and a long-standing relationship can improve your chances. Brokerage firms may prioritize loyal customers.
2. Spread Out Your Bids
Instead of placing a single bid for a large number of shares, submit multiple applications using different Demat accounts, maybe be of your close relatives. Particularly in the case of oversubscribed IPOs, scattered investments always obtain higher chances of allotment. This can increase your chances of getting at least one allotment, especially if demand is high.
3. Opt for Full Payment Bids
When given a choice, opt for a full payment bid rather than part payment. This shows serious intent and can sometimes be favoured during allotment, making it less likely your bid will be overlooked.
4. Target Undersubscribed IPOs
Keep an eye on less popular or undersubscribed IPOs. These might have lower demand, increasing your chances of securing shares. But, don’t forget to check the fundamentals of the company before investing.
5. Apply as a Retail Investor
Confine your application amount to the retail investor limit of Rs. 2,00,000. Retail investors often have a reserved portion of shares in many IPOs.
Applying within this quota can be beneficial, especially for smaller investors, as the competition may be less intense compared to institutional bids.
The Key Takeaways
You will be amazed to know that in FY 24, retail investor participation skyrocketed, pushing IPO retail oversubscription to an impressive 30 times—far beyond FY23’s 7 times and FY22’s 14 times.
So, cracking the IPO code requires more strategic thinking and planning than chance or luck. To increase your chances of IPO allotment, use your Demat account, spread bids, opt for full payments, target undersubscribed IPOs, and leverage the retail investor advantage.
To make informed decisions, conduct thorough research on the company’s fundamentals and market trends. Developing strong broker relationships and staying informed keeps you one step ahead.
Following these suggestions will transform you from a mere participant in the IPO game to a winner. Ready to take on the IPO landscape? Go forth and secure your allotments!
FAQs
What’s the advantage of applying through multiple Demat accounts?
Applying through different Demat accounts increases your chances of allotment. Spreading your investment in various offerings applied through various accounts boosts your odds of success and at the same time impact of the risk is reduced when spread.
Moreover, bifurcated investment policy allows you to participate in many other IPOs thereby enhancing your chance of higher allotments.
Why is it beneficial to build a strong relationship with brokers?
Brokers can offer priority allotment to long-term, high-volume customers. A solid relationship might mean you get favoured during high-demand IPOs, giving you an edge over casual or less-interested investors.
How does choosing a full payment bid improve my chances?
A full payment bid shows your commitment and seriousness. This often leads to higher priority during the allotment process, as it indicates you’re ready to invest without hesitation.
What’s the risk of targeting undersubscribed IPOs, and is it worth it?
Undersubscribed IPOs might suggest lower demand, which could signal potential issues with the company. However, thorough research can reveal overlooked opportunities, making it a calculated risk worth taking.
Can retail investors have an advantage in IPO allotments?
Yes, many IPOs reserve a portion specifically for retail investors. This means less competition within this category, giving smaller investors a fairer chance at getting an allotment.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Niva Bupa Health Insurance’s recent ₹2,200 crore IPO has sparked significant interest among investors. With a strong first-day subscription of 65%, the market is buzzing with anticipation. Let’s look deeper into the details of this IPO and explore what it offers to potential investors.
The Niva Bupa Health Insurance IPO, launched on November 7, 2024, is open for subscription until November 11, 2024. This IPO, structured as a book-built issue, aims to raise ₹2,200 crores by combining a fresh issue and an offer for sale (OFS) component. Specifically, the fresh issue consists of 10.81 crore shares valued at ₹800 crores, while the OFS includes 18.92 crore shares amounting to ₹1,400 crores.
Investors must apply for a minimum lot size of 200 shares, translating to a minimum retail investment of ₹14,800. Meanwhile, the minimum investment required for small non-institutional investors (sNII) is set at ₹207,200 for 2,800 shares, and for big non-institutional investors (bNII), the minimum is ₹1,006,400 for 13,600 shares.
After the allocation, which is expected to be finalized by November 12, 2024, Niva Bupa’s shares are slated to list on both the BSE and NSE on November 14, 2024. Source: SEBI
The Niva Bupa Health Insurance IPO attracted solid attention on its opening day, achieving a 65% subscription. Investors bid for 11.19 crore shares against the 17.28 crore shares available. Here’s how the different investor categories contributed on Day 1:
The company aims to allocate the IPO proceeds to achieve two primary objectives:
Augmentation of Capital Base: To strengthen the company’s solvency levels, supporting its financial stability and long-term growth.
General Corporate Purposes: Funds may also be used for other corporate needs as determined by management.
Grey Market Premium (GMP)
The GMP for Niva Bupa Health Insurance IPO is currently ₹0 (as of November 8, 2024). With the price cap at ₹74, the estimated listing price is also expected to be around ₹74, indicating no anticipated premium or discount. This stable GMP suggests market confidence in the company’s valuation, though the premium could change in the days leading to listing based on demand. Source: Livemint
Company Overview
Founded in 2008, Niva Bupa Health Insurance is a joint venture between Bupa Group and Fettle Tone LLP, established to serve the health insurance needs of individuals and families across India. With a strong focus on technology and customer service, the company’s key offerings include:
Retail Health Products: Tailored for individuals and families.
Group Health Products: Designed for corporate clients.
As of March 31, 2024, the company served 14.73 million active insured lives and operated in 22 states and four union territories. Recent initiatives, including a mobile application and website, emphasize digital tools for customer convenience.
Financial Strength
Niva Bupa Health Insurance has demonstrated consistent financial growth in recent years, supported by increasing demand within India’s health insurance sector. Between the fiscal years ending March 31, 2023, and March 31, 2024, the company’s revenue surged by 44.05%, and its profit after tax (PAT) grew substantially by 552.73%.
This growth reflects Niva Bupa’s strategic expansion and operational improvements, including a focus on retail and group health products. Gross written premiums (GWP), a key measure of growth in the insurance industry, also expanded significantly, growing at a compound annual growth rate (CAGR) of 41.27% from fiscal years 2022 to 2024. Retail health premiums alone recorded a CAGR of 33.41%, underscoring the company’s increasing foothold in the individual and family health insurance markets. Source: SEBI
Diverse Product Portfolio: A broad range of products catering to individual and group health insurance needs.
Strong Digital and Automated Systems: Uses AI-driven technology, including machine learning lead scoring, CRM, and telemarketing tools, to enhance customer engagement and service efficiency.
Trusted Brand Parentage: Bupa Group’s established reputation in healthcare and health insurance lends credibility to Niva Bupa.
Experienced Claims Management: The company brings expertise in handling claims and managing provider relationships, which are critical in health insurance.
Heavy Dependence on Technology: While advantageous, high reliance on digital tools can lead to operational vulnerabilities, particularly in data security and technical issues.
Relatively Young in Market Tenure: Compared to some competitors, Niva Bupa is a younger player, which could impact brand loyalty and customer acquisition in some segments.
OPPORTUNITIES
THREATS
Increasing Demand for Health Insurance: Rising healthcare costs and awareness about health insurance in India present an expanding market opportunity.
Potential to Penetrate Untapped Markets: With a presence in 22 states and four union territories, Niva Bupa can still expand to other regions within India.
Innovation in HealthTech: There is scope to leverage AI, mobile apps, and digital platforms further for personalized health solutions, which could lead to increased customer retention.
High Competition in Health Insurance: The Indian health insurance market is competitive, with established players and new entrants vying for market share.
Regulatory Changes: Any changes in health insurance regulations could impact pricing, operational costs, and growth.
Economic Downturn: Customers may prioritize essential expenditures during financial slowdowns, impacting premium collection and profitability.
Conclusion
With good financial performance, a diversified product portfolio, and a promising Day 1 subscription, Niva Bupa Health Insurance’s IPO has garnered investors’ attention. The absence of a Grey Market Premium may suggest a stable listing, which investors will closely watch in the coming days.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
One of the renewable energy giants, ACME Solar Holdings Limited, is set to launch its IPO today. The highly anticipated IPO aims to raise Rs.2900 crore from investors. But is the IPO worth considering? Let’s dig into the details of the IPO and the company to determine whether it fits into your investment plans.
The Acme Solar Holdings IPO includes a fresh issue of 8.29 crore shares, raising Rs.2,395 crore, and an offer for sale of 1.75 crore shares, totaling Rs.505 crore. Altogether, the IPO is sized at Rs.2,900 crore.
Kfin Technologies Ltd. has been appointed the issue’s registrar. Meanwhile, Nuvama Wealth Management Ltd., ICICI Securities Ltd., JM Financial Ltd., Kotak Mahindra Capital Company Ltd., and Motilal Oswal Investment Advisors Ltd. are the book-running lead managers.
Allocation of Shares
The ACME Solar Holdings IPO consists of 10,03,46,021 shares. Of these, 3 crore shares (29.9%) are reserved for Qualified Institutional Buyers (QIB), 1.5 crore (14.95%) for Non-Institutional Investors (NII), 1 crore (9.97%) for Retail Individual Investors (RII), 3,46,021 shares (0.34%) for employees, and 4.5 crore (44.84%) for Anchor investors.
On 5th November 2024, a day before the IPO launch, ACME Solar raised Rs.1,300.5 crore from anchor investors. Out of the 4.5 crore shares allocated to anchor investors, 1.5 crore were distributed to eight domestic mutual funds through 17 schemes.
The company has capped the maximum investment for retailers at 663 shares and 3417 shares for smaller HNIs (High-Net-Worth Investors who invest between Rs.2 lakh and Rs.10 lakh in any IPO). For the bigger HNIs (HNIs who invest more than Rs.10 lakh in an IPO), the minimum investment required is 3468 shares.
Qualified Institutional Buyers (QIBs)
Not less than 75% of the Net Issue
Non-Institutional Investors (HNIs)
Not more than 15.00% of the Net Issue
Retail Investors
Not more than 10% of the Net Issue
Anchor Investors
60% of the QIB portion
Eligible Employees
10 crore shares with a discount of Rs.27 per share
According to its red herring prospectus, Acme Solar plans to use the IPO proceeds primarily to reduce debt amounting to Rs.1,795 crore owed by its subsidiaries, either in whole or in part.
The remaining funds will be used for general corporate purposes, such as funding growth opportunities, business development, ongoing needs, or contingencies. The Offer for Sale proceeds will also go to the Promoter Selling Shareholder, ACME Cleantech Solutions Private Limited.
Grey Market Premium (GMP)
As of November 5, 2024, ACME Solar shares were trading at a 9.8% premium in the grey market over the upper price band. By November 6, the grey market premium (GMP) for Acme Solar Holdings’ IPO stood at Rs.10, reflecting a premium of approximately 3.46% over the IPO price of Rs.289.
This suggests the estimated listing price could be around Rs.299 per share. Looking at the past 13 sessions, the GMP has shown a downward trend, with the lowest recorded at Rs.0 and the highest reaching Rs.30. Source: Livemint
Company Overview
ACME Solar Holdings is one of India’s largest renewable energy independent power producers (IPP) and ranks among the top 10 in operational capacity as of June 2024. Established in 2015, the company focuses on renewable energy and has a portfolio that includes solar, wind, hybrid, and firm dispatchable renewable energy (FDRE) projects.
ACME aims to provide sustainable green energy at affordable rates while managing resourceful projects. In October 2024, ACME Solar Holdings signed a Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) for a 150 MW hybrid project. This project will combine solar power with Energy Storage Solutions (ESS).
The company has become a significant player in India’s renewable energy sector, successfully commissioning 3,668 MWp of solar power across 12 states. ACME’s solar power projects cover various services, including project development, financing, construction, and operation.
For FY2024, the company’s revenue was Rs.1466.2 crore, around 6% more than the FY2023 revenue of Rs.1361.3. However, the revenue trend has been declining since the FY2021 revenue figure of Rs.1910.2 crore and the FY2022 figure of Rs.1892.2 crore.
One reason for such fluctuations is capacity divestment. In FY24, ACME Solar sold 369 MW of capacity to financial investors at approximately Rs.3.8 cr to Rs.4.4 cr per MW. The company used the proceeds to grow its business.
The company’s net profit trend has improved over the past three years. As of FY2024, the company earned Rs.698.2 crore as net profit after incurring a loss in FY2023 (Rs.3.1 crore).
SWOT Analysis:
STRENGTHS
WEAKNESSES
Strong Market Position: ACME Solar is a well-established player in the Indian renewable energy sector, ranking among the top 10 in operational capacity.
Diversified Portfolio: The company has a diversified portfolio of solar, wind, and hybrid projects, reducing its reliance on a single technology.
Financial Performance: The company showed strong financial performance in FY2024, recovering from the previous year’s loss.
Focus on Innovation: ACME Solar is committed to innovation and is actively exploring new technologies, such as energy storage solutions.
Debt Burden: The company has a debt burden, which could impact its financial performance and ability to invest in future growth.
Regulatory Risks: The renewable energy sector is subject to various regulatory risks, which could impact the company’s operations and profitability.
Competition: The renewable energy sector is highly competitive, with several large players vying for market share.
OPPORTUNITIES
THREATS
Growing Renewable Energy Demand: As of August 2024, India’s installed renewable energy capacity has reached approximately 200 GW. The increasing demand for clean and sustainable energy, driven by climate change concerns and government policies, presents significant growth opportunities for ACME Solar.
Emerging Technologies: Technological advancements like energy storage, solar photovoltaic (PV) modules, and wind turbines offer innovation and cost-reduction opportunities.
Intense Competition: The renewable energy sector is highly competitive, with numerous players vying for market share.
Financing Challenges: Securing adequate financing for large-scale renewable energy projects can be challenging, especially in a volatile economic environment.
Grid Integration Issues: Integrating large-scale renewable energy projects into the existing grid can pose technical and regulatory challenges.
Conclusion
A global transition to green and clean energy has supported the growth of companies like ACME Solar, which offers a range of power generation services and products. In FY23, its profits declined due to amortization costs and the sale of certain projects. However, FY24 saw a sharp profit boost from higher income and exceptional items.
While profits may not be the only reason you decide to invest, they can be one factor to consider. Nevertheless, consider the information mentioned and more in-depth research before giving an IPO a chance to be part of your portfolio.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Are you ready to see Swiggy make its public debut? Swiggy’s highly anticipated IPO opens on November 6, aiming to raise ₹11,327.43 crore from investors. The IPO includes a fresh issue of 11.54 crore equity shares valued at ₹4,499 crore and an offer-for-sale (OFS) component of 17.51 crore shares worth ₹6,828.43 crore.
Priced within a range of ₹371 to ₹390 per share, this IPO places Swiggy’s valuation at around ₹1,130 Cr. (or $11.3 billion), slightly higher than its valuation in its last funding round in 2022. Here, we’ll break down all the essentials of the Swiggy IPO, covering its structure, objectives, GMP trends, company background, financial performance, and a SWOT analysis to help you make an informed decision.
The Swiggy IPO will be a book-built issue of ₹11,327.43 crore, combining a fresh issue of shares totaling ₹4,499 crore and an OFS component worth ₹6,828.43 crore. With a price band set at ₹371-₹390 per share, the IPO will value Swiggy at around $11.3 billion. Allotments are expected to be finalized on November 11, 2024, with the shares slated for listing on November 13, 2024, on the NSE and BSE.
Allocation of Shares
Swiggy’s IPO offers a 10% reservation for retail investors and allocates 7.5 lakh shares for eligible employees. The minimum investment required for retail investors starts with 38 shares per lot, amounting to a minimum of ₹14,820. High net-worth investors (HNIs) can apply in multiples of 14 lots for a minimum investment of ₹207,480, while large investors can apply for a minimum of 68 lots, amounting to ₹1,007,760.
Qualified Institutional Buyers (QIBs)
Not less than 75% of the Net Issue
Non-Institutional Investors (HNIs)
Not more than 15.00% of the Net Issue
Retail Investors
Not more than 10% of the Net Issue
Employee Reservation
Up to 750,000 shares with a discount of ₹25 per share
Swiggy aims to use the funds raised from this IPO to support various strategic objectives:
Debt Reduction: A portion of the proceeds will be used to repay or prepay borrowings for Scootsy and its subsidiary.
Expansion of Dark Stores: Swiggy plans to invest in its Quick Commerce division, mainly to expand its dark store network, which supports Swiggy Instamart’s quick grocery delivery.
Investment in Technology: Swiggy will fund infrastructure upgrades to improve efficiency and customer experience.
Marketing and Brand Promotion: A portion of the funds will be used for brand promotion to strengthen Swiggy’s presence in various segments.
Acquisitions and Growth: Swiggy also intends to explore inorganic growth opportunities through acquisitions and other corporate activities.
Grey Market Premium (GMP)
The IPO has generated notable interest, although the grey market premium (GMP) has fluctuated amid market volatility. The Swiggy IPO is trading at a GMP of ₹20 per share, suggesting a modest 5.13% potential listing gain above the upper price band of ₹390. It’s worth noting that this premium had reached ₹25 per share before the Muhurat trading session, indicating a degree of speculative interest in the unofficial market. Source: Livemint
Company Overview
Founded in 2014, Swiggy has become one of India’s leading on-demand delivery platforms. The company started with food delivery but has since diversified to include grocery delivery (Instamart), restaurant reservations (Dineout), and event bookings (SteppinOut). Swiggy’s platform also supports B2B logistics through services like Swiggy Genie and offers an extensive supply chain network for retailers.
Today, Swiggy operates in five main areas:
Food Delivery: Core business, connecting customers with thousands of restaurants.
Out-of-Home Consumption: Restaurant reservations, event booking, and dining-out options.
Quick Commerce: Fast grocery delivery via Instamart, facilitated by dark stores.
Supply Chain and Distribution: B2B delivery solutions for retailers and wholesalers.
Platform Innovation: Services like Swiggy Genie offer hyperlocal deliveries and product pickups.
Financial Highlights
Swiggy’s financial growth has shown strong momentum despite its ongoing efforts to reach profitability.
For the fiscal year ending March 2024, Swiggy’s revenue grew by 34%, while its profit after tax (PAT), though still negative, improved by 44% over the prior fiscal year. Quick commerce and logistics have been key revenue drivers, with both segments showing significant promise as Swiggy works to strengthen its core areas and improve its financial stability.
Diverse Service Offering: Swiggy offers more than just food delivery; it also offers grocery, dining-out, and event booking services, appealing to a broad consumer base.
Strong Brand Recognition: Swiggy is a household name in urban India, benefiting from its reputation and extensive user base.
Solid Partnerships and Investors: With SoftBank and other major investors backing, Swiggy has access to resources for expansion and innovation.
Loss-Making Status: Swiggy continues to report net losses, which could pose concerns for investors focused on profitability.
High Dependency on Urban Markets: While Swiggy is prevalent in urban areas, penetration in smaller towns and rural regions remains low, limiting its growth potential in these areas.
High Operating Costs: Delivery infrastructure and dark store operations are costly, which may weigh on profitability in the short term.
OPPORTUNITIES
THREATS
Quick Commerce Growth: India’s quick commerce market is expected to grow at a CAGR of 148-169% from 2018 to 2023, offering significant growth potential for Swiggy Instamart.
Untapped Rural Markets: Expanding services to rural and smaller towns could broaden Swiggy’s customer base.
Inorganic Growth Potential: The IPO funds will provide capital for acquisitions, giving Swiggy options for growth through strategic acquisitions.
Intense Competition: Competitors like Zomato, Dunzo, and Blinkit continue to vie for market share in the food and quick commerce sectors.
Regulatory Risks: Changing regulations in data protection, labor laws, and online services could impact Swiggy’s operations.
Volatile Market Conditions: Economic factors, like inflation and consumer spending shifts, may affect demand for Swiggy’s services.
Conclusion
Swiggy’s upcoming IPO represents a notable event for investors interested in India’s dynamic food tech and quick commerce sectors. With its growing user base, solid financial trajectory, and diverse offerings, Swiggy aims to leverage this public offering to fuel its next growth phase. However, the competitive landscape and Swiggy’s path to profitability will be key factors to monitor as it embarks on this journey.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Sagility India is set to launch its IPO on 5 November. This significant event allows investors to engage with a leading healthcare services provider. With a price band of ₹28 to ₹30 per share and a total issue size of ₹2,106.60 crore, this IPO is expected to draw considerable interest.
As you consider your investment options, it’s essential to understand the key aspects of Sagility India’s financial health and growth potential.
Here’s a lowdown on the IPO details and aspects investors must consider before deciding
Sagility India Limited, earlier called Berkmeer India Private Limited, provides technology-enabled solutions for U.S. healthcare payers and providers, offering services such as claims management, care management, and revenue cycle operations. The company operates across five international service locations, including India, the Philippines, the U.S., Jamaica, and Colombia.
Growth Story
Sagility India has grown significantly, expanding its client base and service offerings. In FY 2024, the company processed 105 million claims and managed 75 million interactions, adding 22 new clients. A skilled global workforce and recognition from industry analysts like Avasant and Everest support this growth.
Financial Growth
Sagility India’s financial performance has been robust, with the total income increasing from ₹423.6 crores in March 2023 to ₹478.15 crores in March 2024. The profit after tax (PAT) also saw a rise from ₹143 crore in FY2023 to ₹228 crore FY2024. The company’s earnings per share (EPS) and return on net worth (RoNW) have also improved, reflecting higher profitability and efficient operations.
Sagility India is raising funds with the aim to list its Equity Shares on Stock Exchanges, enhancing visibility and credibility. The company’s objective also includes facilitating the Offer for Sale of up to 70.2 crore cshares by the promoter selling shareholder, Sagility BV.
GMP
The Grey Market Premium (GMP) for Sagility’s IPO stands at ₹3. Given the price band of ₹30, the estimated listing price is ₹33 (price band + GMP). This indicates a potential gain of 10% per share.
Anchor Investors:
The three main investors in Sagility India include:
360 ONE (through Special Opportunities Fund – Series 8 and Monopolistic Market Intermediaries Fund): 1.07% stake for ₹150 crore.
Avendus Future Leaders Fund II: 0.9% stake for ₹126 crore.
Adani Properties (Adani Group): 0.14% shares for ₹20 crore.
Other investors who acquired 0.5% shares worth ₹70 crore collectively include Elpro International, Jasub Property Holdings, Jaya Chandrakant Gogri and Rashesh Chandrakant Gogri, PAM Family Trust, Shradha Family Trust, Unmaj Ventures, Uma Priyadarshini Kollareddy and Kollareddy Ranganayakamma.
Listing
The shares are expected to be listed on the BSE and NSE on November 12, 2024.
Shares Reservation
75% of the issue is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.
SWOT analysis of Sagility India
STRENGTHS
WEAKNESSES
Deep domain expertise in healthcare, particularly revenue cycle management and clinical coding.
Robust technology infrastructure and digital tools to enhance efficiency and accuracy.
A skilled and experienced workforce, including certified medical coders and registered nurses.
Established relationships with US-based healthcare providers and payers.
Significant reliance on the US healthcare market, exposing the company to regulatory changes and economic fluctuations.
Intense competition from other healthcare IT companies, both domestic and international
The risk of data breaches and cyberattacks could damage the company’s reputation and lead to financial losses.
OPPORTUNITIES
THREATS
Leveraging emerging technologies like AI and machine learning to improve efficiency and accuracy.
Expanding service offerings to include value-added services, such as analytics and consulting.
Exploring opportunities for global expansion, particularly in markets with similar healthcare systems
Changes in US healthcare regulations, such as HIPAA and ICD-10.
Increasingly sophisticated cyberattacks could compromise the company’s systems and data.
US economic downturns could reduce healthcare spending and impact the company’s revenue.
With Sagility India launching its IPO, investors can consider investing in the healthcare sector. The company’s focus on technology-enabled solutions and its experienced workforce position it well to capitalize on the evolving healthcare landscape.
However, potential investors should carefully consider the risks associated with the company’s reliance on the US healthcare market and the possible impact of regulatory changes and economic fluctuations. Before making an investment decision, conducting thorough research or consulting with a financial advisor to assess the risks and rewards involved is advisable.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Are you one of the investors who eagerly subscribed to Waaree Energies’ IPO? If so, you’re not alone. The initial public offering of Waaree Energies Ltd, a leading solar PV modules manufacturer, has received an overwhelming response, breaking records with the highest-ever number of applications for an IPO. Following this remarkable demand, Waaree Energies has finalized its IPO allotment, and shares are set to list at a significant premium in the grey market.
Here’s a closer look at the key details, including the IPO’s record-breaking subscriptions, the premium in the grey market, and how you can check your allotment status.
Record-Breaking Waaree Energies IPO Subscription
The Waaree Energies IPO saw stellar demand from investors across categories. The IPO was open for subscription from October 21 to October 23, during which it received bids totaling an impressive 160.91 crore equity shares, significantly higher than the 2.10 crore shares available. This demand resulted in a total oversubscription of 76.34 times, amounting to approximately ₹2.41 lakh crore in bids.
This huge response was primarily driven by institutional investors, with the Qualified Institutional Buyers (QIBs) portion being oversubscribed 208.63 times. Non-institutional investors (NII) also showed strong interest, with their category subscribed 62.49 times.
Retail investors, too, demonstrated substantial participation, with a 10.79 times subscription in the retail category. This high subscription reflects the strong interest in the renewable energy sector and Waaree Energies’ established presence in the Indian solar market.
Waaree Energies IPO GMP Today
In the grey market, Waaree Energies shares are trading at a substantial premium, indicating positive investor sentiment. Today’s grey market premium (GMP) stands at ₹1,590 per share, suggesting that the shares are trading at approximately ₹3,061 apiece—about 106% above the IPO price of ₹1,503 per share. This surge in GMP signals a strong debut for Waaree Energies shares in the unlisted market and reflects high expectations for the company’s performance post-listing.
Checking Waaree Energies IPO Allotment Status
With the allotment finalized, investors can now check if they have secured shares in the IPO. The shares are expected to be credited into the demat accounts of successful applicants on October 25, and refunds for unsuccessful bids will be initiated on the same day. To check your allotment status online, you can use the BSE website, the NSE website, or the IPO registrar’s portal, Link Intime India Private Ltd. Here’s how:
Checking Allotment Status on the BSE
1. Visit the BSE website.
2. Select ‘Equity’ under Issue Type.
3. In the dropdown menu for Issue Name, choose ‘Waaree Energies Limited.’
4. Enter your Application Number or PAN.
5. Verify by selecting ‘I am not a robot’ and click ‘Search.’
Your allotment status will then be displayed on the screen.
Checking Allotment Status on Link Intime
1. Visit the Link Intime India website: [Link Intime IPO Page](https://linkintime.co.in/initial_offer/public-issues.html).
2. Select ‘Waaree Energies Limited’ in the dropdown for Select Company.
3. Choose from PAN, Application Number, DP ID, or Account Number.
4. Enter the necessary details based on your selection.
5. Click on ‘Search’ to view your allotment status.
Details of Waaree Energies IPO
Waaree Energies Ltd launched its IPO with a price band of ₹1,427 to ₹1,503 per share, aiming to raise ₹4,321.44 crore at the upper end. The company’s goal for the funds includes establishing a 6 GW facility for ingot wafer, solar cell, and PV module manufacturing in Odisha, alongside general corporate purposes.
The IPO consists of a fresh issue of 2.4 crore equity shares, which raised ₹3,600 crore, and an offer for sale (OFS) of 48 lakh shares, contributing ₹721.44 crore. With a market valuation projected at over ₹4,300 crore post-issue, Waaree Energies is set to solidify its footprint in India’s renewable energy sector. Source: SEBI
Waaree Energies, one of India’s prominent solar PV module manufacturers, operates five manufacturing facilities in Surat, Tumb, Nandigram, and Chikhli in Gujarat and the IndoSolar Facility in Noida, Uttar Pradesh. As of June 30, 2023, the company’s production capacity stood at 12 GW, underscoring its extensive scale in the PV module industry.
Financially, Waaree Energies has demonstrated good performance. For FY24, the company’s revenue grew by 69% year-on-year to ₹11,398 crore, while its profit after tax surged to ₹1,274 crore, more than double compared to the previous fiscal year. This financial strength likely contributed to the strong response to the IPO.
Following the finalization of the IPO allotment, Waaree Energies shares are set to list on both the BSE and NSE, with a likely listing date of October 28. Investors who receive allotments can anticipate their shares to be credited to their demat accounts on October 25. Given the high GMP and the IPO’s substantial oversubscription, analysts believe Waaree Energies may have a strong debut on the stock exchange.
With its significant market presence, ambitious expansion plans, and positive reception in the grey market, Waaree Energies is positioned as a key player in India’s renewable energy landscape. Investors can eagerly await the official listing and watch for further developments as the company scales its operations to meet India’s growing demand for clean energy.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
This week, the Indian IPO market is buzzing with excitement as nine IPOs are set to open, raising a combined ₹10,566 crores. Four are mainboard IPOs, while five are SME IPOs.
So far, two mainboard IPOs and one SME IPO have opened for subscription and are generating significant interest. Waaree Energies, for example, was subscribed 4.2 times on its second day of bidding. With so many IPOs in the pipeline, investors are closely watching to see which will be the biggest winners.
Ready to know more about these upcoming ipos? Let’s go
On the second day of bidding, Waaree Energies’ initial public offering (IPO) was subscribed to an impressive 4.2 times. Retail individual and non-institutional investors (NIIs) have shown strong interest in the issue, with subscription rates of 3.8 times and 10.40 times, respectively. The qualified institutional buyers (QIBs) segment is also seeing good traction. Source: Economic Times
2. Deepak Builders and Engineering IPO Subscription Status
Deepak Builders IPO received a subscription of 4.12 times on the first day of bidding. Retail investors showed the most interest, with a subscription rate of 6.12 times. Non-institutional investors subscribed 4.26 times, while qualified institutional buyers subscribed 52%. Source: Livemint
3. Godavari Biorefineries Ltd. IPO
Godavari Biorefineries Limited is offering a book-built issue of ₹544.75 crores. The IPO includes a fresh issue of ₹325.00 crores and an OFS(offer for sale) of ₹229.75 crores. The shares will be listed on both BSE and NSE, with the allotment expected on October 25th and the listing tentatively set for October 30th. The minimum lot size is 42 shares, requiring a minimum investment of ₹14,784 for retail investors. For HNIs, the minimum lot size investment is ₹206,976 for sNII and ₹1,005,312 for bNII.
Godavari Biorefineries plans to use the IPO proceeds for:
Repayment or prepayment of outstanding borrowings
General corporate purposes
GMPGodavari Biorefineries Ltd IPO
The current grey market premium (GMP) for Godavari Biorefineries is ₹0. This suggests that the company’s shares are not trading at a premium in the grey market and are expected to be listed flat at the IPO price.
Company Overview
Godavari Biorefineries Limited manufactures ethanol-based chemicals. It operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production. The company’s product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are used in food, beverages, pharmaceuticals, flavors and fragrances, power, fuel, personal care, and cosmetics. The company has three research and development facilities registered with the DSIR and serves customers in over twenty countries.
Financial Strength
Godavari Biorefineries has shown mixed financial performance, with revenue decreasing by 15.92% and profit after tax (PAT) dropping by 37.37% between FY23 and FY24.
SWOT Analysis of Godavari Biorefineries Ltd.
STRENGTHS
WEAKNESSES
Integrated Biorefinery: The company’s integrated biorefinery allows for efficient production and utilization of byproducts.
Diverse Product Portfolio: Godavari Biorefineries offers various ethanol-based chemicals that cater to multiple industries.
Global Presence: The company is present in over 20 countries, indicating strong export markets.
Dependence on Raw Materials: The company’s operations may depend on the availability and cost of raw materials. Price Fluctuations: Fluctuations in the prices of ethanol and other chemicals can impact profitability. Competition: The market for ethanol-based chemicals is competitive, with other players offering similar products.
OPPORTUNITIES
THREATS
Growing Demand for Bio-Based Products: Increasing awareness of sustainability and the need for renewable products can drive demand.
Product Diversification: Godavari Biorefineries can explore opportunities to expand its product range or enter new markets.
Government Incentives: Government policies promoting renewable energy and biofuels can create favorable conditions for the company..
Economic Downturns: A slowdown in the global economy can impact demand for ethanol-based chemicals.
Regulatory Changes: Changes in government regulations related to biofuels or environmental standards can affect operations.
Technological Advancements: New technologies or alternative materials could impact the demand for ethanol-based products.
4. Afcons Infrastructure Ltd. IPO
Afcons Infrastructure Limited is offering a book-built issue of ₹5,430.00 crores. The IPO includes a fresh issue of ₹1,250.00 crores and an offer to sell ₹4,180.00 crores. The shares will be listed on both BSE and NSE, with the allotment expected on October 25th and the listing tentatively set for November 4th. The minimum lot size is 32 shares, requiring a minimum investment of ₹14,816 for retail investors. For HNIs, the minimum lot size investment is ₹207,424 for sNII and ₹1,007,488 for bNII.
Afcons Infrastructure plans to use the IPO proceeds for:
Funding capital expenditure for the purchase of construction equipment
Funding long-term working capital requirements
Prepayment or scheduled repayment of outstanding borrowings
GMP Afcons Infrastructure Ltd IPO
The current grey market premium (GMP) for Afcons Infrastructure is ₹70. This suggests that the company’s shares are trading at a premium of ₹70 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹533, which is 15.12% higher than the IPO price.
Company Overview
Afcons Infrastructure Limited is an infrastructure engineering and construction company that offers services in marine and industrial projects, surface transport projects, urban infrastructure projects, hydro and underground projects, and oil and gas projects. The company has a presence in Asia, Africa, and the Middle East and has completed 76 projects across 15 countries. As of September 30, 2023, the company has 67 active projects across 13 countries, totaling an order book of ₹348.88 billion.
Financial Strength
Afcons Infrastructure has shown steady financial growth, with revenue increasing by 6% and profit after tax (PAT) rising by 9% between FY23 and FY24.
SWOT Analysis of Afcons Infrastructure
STRENGTHS
WEAKNESSES
Diverse Service Offerings: Afcons Infrastructure provides various construction services that cater to various infrastructure projects.
Global Presence: The company operates in multiple countries, indicating a strong market presence.
Order Book: Afcons has a substantial order book, indicating a pipeline of future projects.
Experienced Team: The company likely has a team with extensive experience in the construction industry.
Competition: The construction industry is highly competitive, with numerous players operating
Dependence on Government Projects: The company’s revenue may depend on government contracts and infrastructure projects.
Fluctuations in Material Costs: Changes in the cost of construction materials can impact profitability.
OPPORTUNITIES
THREATS
Infrastructure Development: Government initiatives for infrastructure development can create opportunities for construction companies.
Urbanization and Industrialization: The growing urbanization and industrialization in India and other countries can drive demand for infrastructure projects.
Expansion into New Markets: Afcons Infrastructure can explore opportunities to expand its operations to new regions or diversify into other sectors.
Slowdown in Economy: A sluggish economy can significantly reduce the need for construction services.
Regulatory Changes: Changes in government regulations or policies can affect the construction industry.
Geopolitical Risks: Global political instability or conflicts can disrupt projects or increase costs.
5. Premium Plast IPO Subscription Status:
Premium Plast IPO was oversubscribed by 3.70 times on its first day. Retail individual investors were particularly enthusiastic, subscribing 7.14 times. Non-institutional investors subscribed 0.88 times, and qualified institutional buyers subscribed 1.00 times. Source: IPO Watch
6. Danish Power Ltd IPO
Danish Power Limited is offering a book-built issue of ₹527.60 crores, the biggest SME IPO this year. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 300 shares, requiring a minimum investment of ₹114,000 for retail investors and ₹228,000 for HNIs.
Funding capital expenditure for expanding the manufacturing facility
Funding working capital requirements
Repayment of outstanding borrowings
General corporate purposes
GMP of Danish Power Ltd
The current grey market premium (GMP) for Danish Power is ₹265. This suggests that the company’s shares are trading at a premium of ₹265 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹645, which is 69.74% higher than the IPO price.
Company Overview
Danish Power Limited manufactures various types of transformers, including inverter duty transformers for use in renewable power projects. It also produces oil and dry-type power and distribution transformers, control relay panels, and substation automation services. The company operates two manufacturing plants in Jaipur and is certified with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.
Financial Strength
Danish Power has shown steady financial growth, with revenue increasing to ₹335 crore and profit after tax (PAT) rising to ₹38.07 crore in FY24.
SWOT Analysis of Danish Power Ltd.
STRENGTHS
WEAKNESSES
Product Diversity: Danish Power offers a range of transformers and electrical equipment catering to various industries.
Manufacturing Capabilities: The company has two manufacturing plants and is certified with ISO standards, ensuring quality and efficiency.
Strong Customer Base: Danish Power has a client base that includes reputable companies in the renewable energy and power sectors.
Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its growth potential.
Competition: The transformers and electrical equipment market is competitive, with numerous players offering similar products.
Dependence on Renewable Energy: The company’s revenue may depend on the growth and development of the renewable energy sector.
OPPORTUNITIES
THREATS
Growing Demand for Renewable Energy: The increasing focus on renewable energy can drive demand for transformers and electrical equipment.
Product Innovation: Danish Power can explore opportunities to develop new or innovative products to stay competitive.
Expansion into New Markets: The company can expand its operations to new regions or diversify into other segments of the electrical equipment market.
Recession Risks: A downturn in economic activity may lower the demand for electrical equipment.
Fluctuations in Raw Material Prices: Changes in the cost of raw materials used in transformer manufacturing can affect profitability.
Technological Advancements: New technologies or alternative energy sources could impact the demand for traditional transformers.
7. United Heat Transfer Ltd. IPO
United Heat Transfer Limited offers a book-built issue of ₹118.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 2000 shares, requiring a minimum investment of ₹118,000 for retail investors and ₹236,000 for HNIs.
United Heat Transfer plans to use the IPO proceeds for:
Repayment of debt
Funding working capital requirements
General corporate purposes
GMP of United Heat Transfer Ltd.
The current grey market premium (GMP) for United Heat Transfer is ₹10. This suggests that the company’s shares are trading at a premium of ₹10 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹69, which is 16.95% higher than the IPO price.
Company Overview
United Heat Transfer Limited manufactures heat exchangers, pressure vessels, and process flow skids. Their products are used in various industries, including petrol and diesel engines, maritime vessels, mining trucks, and heavy machinery. The company operates two manufacturing units in Nashik and has approximately 105 employees.
Financial Strength
United Heat Transfer has shown mixed financial performance, with revenue decreasing by 9% and profit after tax (PAT) rising by 195% between FY23 and FY24.
SWOT Analysis of United Heat Transfer Ltd.
STRENGTHS
WEAKNESSES
Product Range: United Heat Transfer offers a diverse range of products that cater to various industries.
Manufacturing Capabilities: The company has modern manufacturing facilities and a skilled workforce.
Customer Base: United Heat Transfer likely has a customer base of reputable industry companies.
Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its growth potential.
Dependence on Specific Industries: Reliance on industries such as petrol and diesel engines can make the company vulnerable to fluctuations in those sectors.
Competition: The heat exchangers and process equipment market is competitive, with numerous players offering similar products.
OPPORTUNITIES
THREATS
Growing Industrialization: The increasing industrialization in India and other emerging markets can drive demand for the company’s products.
Technological Advancements: New technologies or advancements in heat transfer applications can create growth opportunities.
Product Diversification: United Heat Transfer can explore opportunities to expand its product range or enter new markets.
Impact of Economic Slumps: Economic slowdowns can lead to a drop in industrial machinery purchases.
Rising Material Costs: Increases in the cost of raw materials used in manufacturing can affect profitability.
Regulatory Changes: Changes in government regulations or industry standards can impact the company’s operations.
8. OBSC Perfection Ltd. IPO
OBSC Perfection Limited is offering a book-built issue of ₹120.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 1200 shares, requiring a minimum investment of ₹120,000 for retail investors and ₹240,000 for HNIs.
OBSC Perfection plans to use the IPO proceeds for:
Funding capital expenditure for expanding manufacturing facilities
Funding working capital requirements
General corporate purposes
GMP of OBSC Perfection Ltd.
The current grey market premium (GMP) for OBSC Perfection is ₹0. This suggests that the company’s shares are not trading at a premium in the grey market and are expected to be listed flat at the IPO price.
Company Overview
OBSC Perfection Limited is a precision metal components manufacturer offering various products for various industries. The company operates four manufacturing facilities, three in Pune and one in Chennai. Their products are used in the automotive, defense, marine, and telecom infrastructure sectors.
Financial Strength
OBSC Perfection has shown strong financial growth, with revenue increasing by 20% and profit after tax (PAT) rising by 167% between FY23 and FY24.
SWOT Analysis of OBSC Perfection Ltd.
STRENGTHS
WEAKNESSES
Diverse Product Range: OBSC Perfection offers a wide range of precision metal components, catering to various industries.
Manufacturing Expertise: The company has manufacturing facilities equipped with modern machinery and technology.
Customer Base: OBSC Perfection has a customer base that includes leading manufacturers in the automotive, defense, marine, and telecom sectors.
Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its potential for growth.
Dependence on Automotive Industry: Reliance on the automotive sector can make the company vulnerable to fluctuations in that industry.
Competition: The market for precision metal components is competitive, with numerous players offering similar products.
OPPORTUNITIES
THREATS
Growing Automotive Industry: The growing automotive industry in India can drive demand for precision metal components.
Diversification into New Sectors: OBSC Perfection can explore opportunities to expand into new sectors or industries.
Product Innovation: The company can develop new or innovative products to differentiate itself from competitors.
Market Slowdown: A weaker economy can directly impact the demand for industrial components.
Rising Material Costs: Increases in the cost of raw materials can affect profitability.
Technological Advancements: New technologies or manufacturing processes could impact the demand for traditional metal components.
9. Usha Financial Services IPO
Usha Financial Services Limited is offering a book-built issue of ₹168.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 800 shares, requiring a minimum investment of ₹134,400 for retail investors and ₹268,800 for HNIs.
Usha Financial Services plans to use the IPO proceeds for:
Augmenting the capital base of the company
General corporate purposes
GMPUsha Financial Services IPO
The current grey market premium (GMP) for Usha Financial Services is ₹45. This suggests that the company’s shares are trading at a premium of ₹45 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹213, which is 26.79% higher than the IPO price.
Company Overview
Usha Financial Services Limited is a non-banking finance company that provides lending solutions to other NBFCs, corporates, MSMEs, and individuals, focusing on women entrepreneurs. They also offer electric vehicle financing. The company has an AUM of ₹30,695.76 lakhs and a net worth of ₹10,602.63 lakhs.
Financial Strength
Usha Financial Services has shown steady financial growth, with revenue increasing by 38% and profit after tax (PAT) rising by 32% between FY23 and FY24.
SWOT Analysis of Usha Financial Services
STRENGTHS
WEAKNESSES
Diverse Product Offerings: Usha Financial Services offers a range of financial products, catering to various customer segments.
Focus on Women Entrepreneurs: The company’s focus on lending to women entrepreneurs can differentiate it from competitors.
Financial Performance: Usha Financial Services has demonstrated strong financial growth in recent years.
Dependence on the NBFC Sector: The company’s revenue may be dependent on the performance of other NBFCs.
Competition: The NBFC sector is competitive, with numerous players offering similar financial services.
Regulatory Risks: Changes in government regulations or policies related to the NBFC sector can impact the company’s operations.
OPPORTUNITIES
THREATS
Growing Demand for Financial Services: The increasing demand for financial services, especially in rural and underserved areas, can create growth opportunities.
Digitalization: Leveraging technology and digital platforms can enhance customer experience and efficiency.
Expansion into New Markets: Usha Financial Services can explore opportunities to expand its operations to new regions or diversify into other financial products.
Economic Deceleration: A slowing economy can curb the demand for financial services.
Interest Rate Fluctuations: Changes in interest rates can affect the company’s borrowing costs and profitability.
Credit Risk: The company faces the risk of loan defaults or non-payment from borrowers.
Conclusion:
With nine IPOs in the market this week, investors have a variety of options. The strong subscription for Waaree Energies and Deepak Builders suggests significant investor interest.
However, it’s important to conduct thorough research and consider your risk tolerance before making any investment decisions. The performance of these IPOs in the secondary market will provide valuable insights into the current investor sentiment and the overall health of the Indian IPO market.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Hyundai Motor India (HMI) has dominated the automotive market since its 1996 launch in India. Understandably, when the country’s second-largest car manufacturer’s (after Maruti) IPO launched on 15 October, it was met with much anticipation. However, the ₹27,870 crore IPO, the largest in India’s history, saw merely 0.18 times subscription on its opening day. While the subscription stood at 42% on Day 2, it shot up marginally to 51% on the closing day, with its GMP sinking to below 1%. Source: Mint
Market experts are attributing the lukewarm response to many factors. Here’s a lowdown on what these are and how the IPO has performed so far:
The IPO has a price range of ₹1,865 to ₹1,960 per share
The NII portion, comprising high-net-worth individuals, was subscribed 0.13 times, while retail investors subscribed 0.26 times. The portion for employees (discounted price of ₹186 per share) was subscribed 0.8 times (80%).
35% of share reservation is for retail investors, 50% for qualified institutional buyers (QIBs), and 15% for NIIs.
₹8,315 crore (about 30% of the IPO size) was raised from 225 anchor investors, including funds owned by the Singapore government
However, despite the initial buzz, Hyundai’s IPO witnessed an unexpected slowdown. Here are the top reasons why.
4 Factors Why Hyundai IPO Didn’t Shift into Top Gear
High Offer Price
One of the biggest concerns investors have raised is the IPO pricing. Many analysts believe the offer price was at the higher end of the spectrum, discouraging potential buyers. Indian investors have become accustomed to a fair IPO bump, and the prospect of limited gains or losses has reduced the enthusiasm.
A more attractive pricing could have garnered wider support from retail and institutional investors, creating a positive buzz around the listing. Instead, the high valuation may have deterred many potential buyers, who may now wait for a more favorable entry point.
Massive Cash Outflow to Korea
Hyundai Motor India’s substantial dividend payouts to its South Korean parent company have also raised investor concerns. The large amount of money transferred from India has created a negative perception, particularly when the government actively promotes foreign direct investment (FDI) in the automotive sector.
While the company has clarified the legal nature of these transactions, the sheer amount of the cash outflow has raised questions. A more transparent communication strategy could have helped minimize concerns and highlight the positive aspects of these transactions, including Hyundai’s success in the Indian market.
Concerns About Financial Stability
The decrease in cash and bank balances due to dividend payments has also increased concerns about Hyundai’s expansion plans. Investors may be worried that the company may have to rely heavily on external borrowings to fund its future growth, potentially impacting its financial performance and stability.
While the company’s balance sheet is light on assets and the cash flow from operations is robust, which could mitigate financial stability concerns, a more proactive communication strategy would have been beneficial in addressing investor anxieties and maintaining confidence.
Prioritizing South Korean Interests
There is a perception that Hyundai Motor Company’s primary motivation for the IPO was to improve its valuation back home in South Korea. This suggests that the company may have prioritized its interests over those of Indian investors.
While the IPO could have been a win-win situation for both parties, the focus on maximizing benefits for South Korean shareholders may have alienated Indian investors. A more balanced approach considering the interests of domestic and foreign investors would have been more conducive to the IPO’s success.
Conclusion
Hyundai was among India’s most anticipated IPOs. However, its slow performance offers valuable lessons for future issuers. A well-thought-out pricing strategy, transparent communication, and a focus on aligning the interests of all stakeholders are crucial for attracting investor interest and ensuring the success of an IPO. By addressing these mistakes, Hyundai can learn from this experience and position itself for future growth in the Indian market.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQ
Why did Hyundai Motor India’s IPO not receive the expected subscription levels?
Several factors contributed to the slow subscription for Hyundai’s IPO. These include the IPO’s perceived high price, the company’s substantial dividend payouts to its South Korean parent, concerns about its financial stability, and the perception that Hyundai Motor Company prioritized its interests over those of Indian investors.
What was the subscription rate for Hyundai’s IPO on Day 3?
The subscription rate for Hyundai’s IPO on Day 3 was 51%. Source: cnbcTV 18.com
How much did Hyundai Motor India raise from anchor investors?
Hyundai Motor India raised ₹8,315 crore (about 30% of the IPO size) from 225 anchor investors.
What’s Hyundai’s IPO subscription among different investor categories?
The subscription for Hyundai’s IPO was moderate across all investor categories. Retail investors subscribed 0.26 times, qualified institutional buyers (QIBs) subscribed 0.41 times, and non-institutional investors (NIIs) subscribed 0.13 times.
What lessons can be learned from Hyundai’s IPO experience?
Hyundai’s IPO experience highlights the importance of fair pricing, transparent communication, and balancing the interests of all stakeholders. By addressing these factors, future issuers can improve their chances of attracting investor interest and ensuring the success of their IPOs.
The long-awaited IPO of Bajaj Housing Finance will hit the market on September 9th, 2024. This IPO will also be the most closely watched on the street in terms of subscription rate and listing gains. After all, it carries the legacy of Bajaj Finance and will be one of the biggest IPOs in the Indian market in 2024.
In this article, we will review Bajaj Housing Finance IPO and provide key insight to help you make an investment decision about whether to subscribe to it.
Bajaj Housing Finance IPO Details
The Bajaj Housing Finance IPO is being launched following the revised RBI regulatory framework, which requires upper-layer NBFCs to be listed on the stock market. It has an issue size of ₹6,560 crore, consisting of a fresh issue of equity shares totaling ₹3,560 crore and an offer for sale, which means the promoter entity is selling shares worth approximately ₹3,000 crores. For more details, check the DRHP here.
Bajaj Housing Finance was initially incorporated as Bajaj Financial Solutions Limited on June 13th, 2008, as a subsidiary of Bajaj Finserv Limited. Later, on November 1st, 2014, the company became a wholly-owned subsidiary of Bajaj Finance Limited to start a housing finance business in India.
With its aggressive growth model, it became India’s second-largest housing finance company, with a total loan book size exceeding Rs 97,000 crores and the most diversified mortgage lending products. It offers mortgage lending products, including home loans, Loan Against Property, Lease Rental Discounting, and Developer Financing.
Leadership Team
Atul Jain is the Managing Director of Bajaj Housing Finance. He has been with the Company for over a decade and has held numerous senior management roles, including Chief Collection Officer and Enterprise Risk Officer.
Jasminder Singh Chahal is the President of the Home Loan division and joined the company on August 19th, 2024. Earlier, he was associated with ICICI Personal Financial Services Company Limited.
Kumar Gaurav is the Executive Vice President of debt Management Services, managing the company’s debt profile. Earlier, he was in charge of the Personal and Business Loan vertical at Bajaj Finance Limited.
CA Gaurav Kalani has been the Chief Financial Officer of Bajaj Housing Finance since 2018 and has spent nearly 15 years with the Bajaj Group of companies. In the company’s early phase, he played a significant role in driving key strategies, including capital raising, AOPs, LRS planning and execution, and investor relations.
Gagandeep Malhotra is the Chief of the Credit and Operations department. He manages a Residential and Commercial Real Estate Portfolio that involves lending to Developers and HNIs. He also oversees Construction Finance, Lease Rental Discounting, and Loans Against Property. Earlier, he held top leadership positions at Citibank.
Financials of Bajaj Housing Finance
Total Income
The company’s total income has increased by 26.5% annually over the last three fiscal years. According to Screener data, LIC Housing Finance reported 11%, and Can Fin Homes reported 20% annualized growth during the same period.
Net Profit
The company’s net profit has increased by nearly 35% annually over the last three financial years, among the best in the industry.
According to screener data, LIC Housing Finance reported 20% annualized growth, and Can Fin Homes reported 18%.
Net Interest Margin
Speaking about the Net Interest Margin, which is like the operating margin for banks and NBFCs, Bajaj Housing Finance reported a net interest margin of 4.1% in FY24, slightly lower than the 4.5% recorded for FY23.
While LIC Housing Finance reported a Net Interest Margin of 3.2% in FY24, PNB Housing Finance reported 4.5%, and Can Fin Homes reported 3.9% during the same period.
Asset Quality
Among peers, Bajaj Housing Finance has the best asset quality metrics. In FY24, its Gross Non-Performing Asset (GNPA) ratio was 0.28% of the total loan book, and its Net Non-Performing Asset (NNPA) ratio was 0.11%.
While the industry leader, LIC Housing Finance, has the highest nonperforming asset in its book, with a GNPA ratio of 3.29%.
What will Bajaj Housing Finance Do with IPO Money?
Out of the total proceeds of ₹6560 crores, the promoter entity is selling shares worth ₹3,000 crores to comply with regulatory guidelines.
The remaining funds are coming through fresh share issuances, augmenting the capital base to meet the company’s future business requirements and expand lending activities.
Valuations
Now, let’s look at the most crucial aspect of this IPO- the valuations.
The price band of this IPO is ₹66-70. The book value per share at the end of June 30th, 2024, is ₹18.8. This makes the Price-to-Book ratio 3.7 times.
LIC Housing Finance has a P/B ratio of 1.2 times, and Can Fin Homes has a P/B ratio of 2.7 times, so Bajaj Housing Finance is somewhat expensive compared to its peers.
Pros & Cons of Bajaj Housing
In a short span, Bajaj Housing Finance has emerged as India’s second-largest housing finance company, beating established players like PNB Housing, Can Fin Homes, GIC Housing Finance, and many more.
The company’s strengths include industry-best revenue and profitability growth metrics, strong asset quality, the use of technology to identify customers with good credit behavior, cross-channel sales, and experienced leadership, all of which drive business growth.
Also, the current government policies and initiatives towards the housing mission for all drive the growth of housing finance companies in India. The company’s loan book is concentrated in just five states: New Delhi, Maharashtra, Karnataka, Telangana, and Gujarat. Any adverse development in these regions or failure to expand to smaller cities may adversely impact the company’s growth and financials.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Is Bajaj Housing Finance part of Bajaj Group?
Yes, Bajaj Housing Finance is a wholly-owned subsidiary of Bajaj Finance Limited.
When will the Bajaj Housing Finance IPO come?
Bajaj Housing Finance’s IPO issue opens on September 9, 2024, and closes on September 11, 2024. It is expected to be listed on September 16, 2024.
Is Bajaj Housing Finance profitable?
Yes, Bajaj Housing Finance is a profitable company. In the last three years, revenue and profitability have increased at a CAGR of 26.5% and 35%, respectively.
If you have been following the booming retail fashion industry, gear up, as the much-awaited IPO of Bazaar Style Retail is set to hit the market today. This book-built issue, which will raise a substantial ₹834.68 crore, has already generated significant interest, with ₹250 crore mobilized from anchor investors before the launch. This positive development has further heightened anticipation for the IPO.
Let’s understand the key factors that the Bazaar Style Retail IPO has to offer.
₹250 crore Mobilized from Anchor Investors
Rekha Jhunjhunwala-backed Bazaar Style Retail successfully secured ₹250 crore in anchor investments ahead of its initial public offering (IPO). On August 29th, the company allocated 64,29,372 shares to anchor investors at a price of ₹389 per share. This allocation was finalized in consultation with the IPO Committee and the book-running lead managers.
The Baazar Style Retail IPO consists of a total issue size of 21,456,947 shares, raising up to ₹834.68 crores. The offer includes a fresh issuance of 3,804,627 shares and an offer for sale of 17,652,320 shares. Employees are eligible for a discount of ₹35 per share. The IPO will be listed on both BSE and NSE. Post-issue, the company’s shareholding will increase from 70.81 million to 74.62 million.
The minimum lot size for an application is 38 Shares, and the minimum investment required by retail investors is ₹14,782. For High-Net-Worth Individuals (HNIs), the minimum lot size investment is 14 lots (532 shares) for sNII and 68 lots (2,584 shares) for bNII, amounting to ₹206,948 and ₹1,005,176, respectively.
Objectives of the IPO
Debt Reduction: Prepaying or repaying outstanding loans to improve financial stability and reduce interest expenses.
General Corporate Purposes: Funding working capital, operational costs, and strategic initiatives to support growth and operational efficiency.
IPO Allocation of Shares
Investors must bid for a minimum of 38 shares, with additional bids accepted in increments of 38 shares. The table below outlines the investment limits for retail investors and HNIs.
Retail investors can participate with a minimum investment of ₹14,782. High-net-worth individuals (HNIs) have tailored investment options with varying lot sizes and minimum amounts.
Based on recent market data, the Baazar Style Retail IPO is expected to list at around ₹519 per share, a premium of 33.42% compared to the issue price of ₹389. This estimate is calculated by adding the grey market premium of ₹130 to the upper price band of the IPO.
Company Overview
Bazaar Style Retail, a leading fashion retailer based in eastern India, has established a strong regional presence with its diverse apparel and general merchandise range. Operating a network of 162 stores across nine states, the company has successfully catered to the needs of customers seeking quality products at affordable prices.
Known for its commitment to customer satisfaction, Bazaar Style Retail has built a loyal customer base by focusing on providing a pleasant shopping experience. The company’s dedicated team of professionals ensures that its product offerings remain relevant and appealing to the target market. Bazaar Style Retail remains a prominent player in the fashion retail industry with a strong foothold in eastern India.
As of March 31, 2024, Baazar Style Retail Limited showcased robust financial health. The company’s total assets expanded to ₹1,165.97 crores, and revenue increased to ₹982.83 crores, reflecting steady growth. While the Profit After Tax (PAT) of ₹21.94 crores indicated moderate profitability, the company maintained a sound financial position.
A net worth of ₹212.56 crores, supported by reserves and a surplus of ₹180.2 crores, further strengthened its financial standing. Moreover, the company’s debt-to-equity ratio remained manageable at ₹178.23 crores, demonstrating a prudent approach to financing. Baazar Style Retail’s financial performance suggests a solid foundation for future growth and expansion.
SWOT Analysis of Bazaar Style Retail
STRENGTHS
WEAKNESSES
Regional Concentration: The company’s operations are concentrated in eastern India, making it vulnerable to regional economic downturns. Limited Geographical Expansion: While the company has a strong presence in eastern India, it has limited operations in other regions.
Intense Competition: The fashion and retail industry is highly competitive, with numerous players vying for market share. Supplier Disruptions: Factors such as supply chain issues or price fluctuations could disrupt the company’s reliance on third-party suppliers. Economic Downturns: Adverse economic conditions in the regions where Bazaar Style Retail operates could impact consumer spending and negatively affect sales.
OPPORTUNITIES
THREATS
Expansion into New Regions: Bazaar Style Retail can explore opportunities to expand its operations into other parts of India, capturing a larger market share. Online Retail: The company can leverage the growing e-commerce market to reach a wider customer base and increase sales. Product Diversification: Bazaar Style Retail can expand its product offerings to include new categories or brands to attract more customers.
Expansion into New Regions: Bazaar Style Retail can explore opportunities to expand its operations into other parts of India, capturing a larger market share. Online Retail: The company can leverage the growing e-commerce market to reach a wider customer base and increase sales. Product Diversification: To attract more customers, Bazaar Style Retail can expand its product offerings to include new categories or brands.
Conclusion
The company is well-positioned for continued growth with a solid regional presence, a diverse product range, and a focus on customer satisfaction. While the IPO offers promising prospects, potential investors should conduct thorough due diligence and consider their financial goals before making investment decisions. It is advisable to consult with a financial advisor to assess whether the Bazaar Style Retail IPO aligns with your investment strategy.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The Indian renewable energy sector is witnessing a surge, and Premier Energies, a leading manufacturer of solar modules and integrated solar cells, is poised to capitalize on this growth.
The company is launching its Initial Public Offering (IPO) tomorrow, seeking to raise a total of ₹2,830.40 crore. Let’s examine the IPO details, the company’s objectives, financial health, and potential future.
The Premier Energies IPO is a book-built issue, meaning the final price will be determined based on investor demand. The total size of the offering is ₹2,830.40 crore, divided into a fresh issue of ₹1,291.40 crore and an offer for sale (OFS) of ₹1,539 crore by existing shareholders.
The price band for the IPO is set between ₹427 and ₹450 per share. Retail investors can participate by bidding for at least 33 shares, translating to an investment of at least ₹14,850. The allotment is expected on August 30th, and the tentative listing date on the BSE and NSE is September 3rd
Objectives of the Premier Energies IPO
The company plans to utilize the IPO proceeds for two primary purposes:
Investing in a Solar PV Manufacturing Facility: A significant portion of the funds will be directed towards establishing a 4 GW Solar PV TOPCon Cell and Module manufacturing facility in Hyderabad. This investment will significantly enhance Premier Energies’ production capabilities and solidify its position in the solar energy market.
General Corporate Purposes: The remaining funds will be allocated for various operational purposes, including administrative expenses, marketing initiatives, potential debt reduction, and strategic growth opportunities. This flexibility allows the company to adapt to market dynamics and invest in areas that maximize shareholder value.
Premier Energies IPO Allocation of Shares
The issue is divided into two parts: a fresh issue and an offer for sale by existing shareholders. Retail investors can bid for a minimum of 33 shares and multiples thereof.
Application
Lots
Shares
Amount
Retail (Min)
1
33
₹14,850
Retail (Max)
13
429
₹193,050
S-HNI (Min)
14
462
₹207,900
S-HNI (Max)
67
2,211
₹994,950
B-HNI (Min)
68
2,244
₹1,009,800
The minimum investment amount for retail investors is ₹14,850. High-net-worth individuals (HNIs) have specific investment lot sizes and minimum investment amounts depending on their category.
Premier Energies IPO Open, Close, Allotment & Listing Dates
IPO Open Date
27th August, 2024
IPO Close Date
29th August, 2024
Basis of Allotment
30th August, 2024
Initiation of Refunds
2nd September, 2024
Credit of Shares to Demat
2nd September, 2024
Listing Date
3rd September, 2024
Premier Energies Grey Market Premium (GMP):
According to investorgain.com, the current Grey Market Premium (GMP) for Premier Energies shares is ₹330 per share. This suggests that the estimated listing price could be around ₹780, a premium of 73.33% over the issue price. It’s important to remember that GMP is an unofficial indicator, not a guarantee of future performance.
Premier Energies Company Overview
Premier Energies, established in April 1995, has a proven track record in the solar energy space. The company offers a range of products and services, including solar cells, modules, EPC (Engineering, Procurement, and Construction) solutions, and operation and maintenance (O&M) solutions.
They operate five production facilities in India and cater to a diverse clientele, including major players like NTPC and TATA Power Solar Systems Limited. As of July 31, 2024, the company boasts a strong order book of ₹59,265.65 million, showcasing significant demand for its products. Additionally, it has a global footprint, exporting its products to over 20 countries.
Premier Energies Financials
Premier Energies’ financial performance has shown improvement in recent years. As of June 30, 2024, the company’s total assets reached ₹3,735.5 crore, indicating significant growth compared to the previous two years. Revenue for the quarter ending June 2024 was ₹1,668.79 crore, whereas the figures had touched ₹3171.31 on March 2024. [Source: NSE]
More importantly, the company turned profitable in June 2024, with a PAT (Profit After Tax) of ₹198.16 crore, marking a significant turnaround from previous losses. From 2022 onwards, it was making a loss, but this year saw the company’s PAT surge into a positive number of ₹231.36 on March 2024. The net worth also improved to a positive ₹26.96 crore in June 2024. However, the company’s total borrowing has also increased to ₹1,200.16 crore, reflecting increased financial leverage.
Strong brand presence and established reputation in the Indian solar energy sector. Diversified product portfolio encompassing various aspects of solar energy solutions. Robust order book and established client base, including major players in the industry. Increased production capacity with the planned 4 GW Solar PV manufacturing facility.
Intense competition in the Indian solar energy market. Fluctuations in raw material prices impact production costs. Changes in government policies or subsidies may affect industry profitability.
OPPORTUNITIES
THREATS
Growing demand for renewable energy solutions driven by government initiatives and environmental concerns. Expansion into international markets for further growth. Increased focus on research and development to enhance product offerings and efficiency.
Intense competition in the Indian solar energy market. Fluctuations in raw material prices impact production costs. Changes in government policies or subsidies affect industry profitability.
Conclusion
Premier Energies’ IPO presents an opportunity for investors to participate in the growth of the renewable energy sector. The company’s strong financial performance, expansion plans, and focus on sustainable energy solutions make it an intriguing prospect. However, potential investors should conduct thorough research and consider the inherent risks associated with the industry before making an investment decision.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
It’s an IPO bonanza this week! Investors are in for a treat as five new companies are set to hit the primary market, collectively seeking to raise a substantial ₹257.32 crores. This comes hot on the heels of the much-anticipated listings of FirstCry and Unicommerce, which concluded their subscription periods last week and are now gearing up to make their debut on the stock exchanges.
With a flurry of IPOs and listings, it’s an exciting time for the Indian capital markets. Let’s dive into what investors can expect this week.
Saraswati Saree Depot is set to raise Rs 160.01 crores through its IPO. The offer includes fresh shares worth Rs 104 crores and an offer for selling shares worth Rs 56.02 crores. The IPO opens on August 12 and closes on August 14, with allotment expected on August 16. The shares are set to list on BSE and NSE on August 20.
Investors can apply for a minimum of 90 shares at a price band of Rs 152 to Rs 160 per share. Retail investors need to invest at least Rs 14,400.
Objectives of the IPO
Saraswati Saree Depot plans to use the money raised from the IPO for these purposes:
Funding working capital requirements
General corporate purposes
GMP
The IPO’s Grey Market Premium (GMP) is currently at Rs 60. Based on this, the estimated listing price is Rs 220, indicating a potential gain of 37.50% for investors.
Company Overview
Established in 1996, Saraswati Saree Depot is a leading player in the wholesale saree market. It offers a wide range of sarees and other women’s apparel. The company sources products from over 900 suppliers and caters to over 13,000 customers, primarily in Southern and Western India.
Financials
The company has shown steady growth. Revenue increased by 2% in FY24 compared to FY23, while profit after tax surged by 29%. Notably, revenue grew by 9.5% from FY22 to FY23, accompanied by an impressive 86.7% increase in profit after tax.
Sunlite Recycling Industries Limited is launching a fresh issue of 28.8 lakh shares. The IPO is expected to be finalized on Friday, August 16, 2024, and will be listed on the NSE SME, with a tentative listing date of Tuesday, August 20, 2024. The price band is between ₹100 to ₹105 per share. Retail investors can apply for a minimum of 1200 shares, which requires an investment of ₹126,000. High Net-worth Individuals (HNIs) must invest in at least two lots (2,400 shares), amounting to ₹252,000.
Objectives of the IPO
The funds raised from the IPO will be used to achieve the following objectives:
Capital Expenditure: The company plans to install new plant and machinery to enhance its production capabilities.
Debt Repayment: A portion of the proceeds will be used to repay or prepay certain borrowings, reducing the company’s debt burden.
General Corporate Purposes: The remaining funds will be allocated for general corporate purposes to support the company’s ongoing operations and growth.
GMP
As of August 12, 2024, the Grey Market Premium (GMP) for the Sunlite Recycling Industries IPO stands at ₹25. With the price band set at ₹105, the estimated listing price is ₹130 per share, reflecting an expected gain of 23.81%.
Company Overview
Sunlite Recycling Industries Limited, established in 2012, specializes in manufacturing copper products by recycling copper scrap. The company serves the power generation, transmission, distribution, and electronics industries. Operating from a 12,152-square-meter facility in Kheda, Gujarat, Sunlite Recycling produces a wide range of copper items, such as rods, wires, and conductors, tailored to customer specifications.
Financials
Sunlite Recycling Industries has demonstrated strong financial performance over the last three fiscal years. Revenue has steadily increased from ₹93,227.27 lakhs in FY22 to ₹116,655.09 lakhs in FY24, marking a consistent upward trend.
The company’s Profit After Tax (PAT) also showed significant growth, rising from ₹426.03 lakhs in FY22 to ₹890.36 lakhs in FY24, a 58.92% increase over the previous fiscal year. This growth reflects the company’s ability to manage costs effectively while scaling its operations.
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SWOT Analysis
STRENGTHS
WEAKNESSES
Established presence in copper recycling with over a decade of experience. Diverse product portfolio catering to various industries. Strategically located facility in Gujarat for efficient market access. Consistent financial growth with rising revenue and PAT.
Limited geographic reach, primarily focused on Gujarat. Dependence on copper scrap exposes the company to price fluctuations. A small workforce may limit rapid expansion. High debt-to-equity ratio (1.74), indicating reliance on debt financing.
OPPORTUNITIES
THREATS
Growing demand for copper products in key industries. Potential benefits from government infrastructure and renewable energy initiatives. Technological advancements could enhance efficiency. Expansion into export markets offers new growth avenues.
Market volatility in copper prices and scrap availability. Regulatory changes, increasing compliance costs. Intense competition in the copper recycling industry. Economic downturns could reduce product demand. Currency fluctuations may impact profitability in export markets.
The IPO opens on August 12th and closes on August 14th. You can apply for a minimum of 600 shares, which will set you back ₹150,000 at the lower end of the price band. The company aims to list on the NSE SME platform on August 20th.
Objectives of the IPO
The funds raised through the IPO will be used to meet the company’s working capital requirements and for general corporate purposes.
GMP
There’s a lot of buzz around the Positron Energy IPO, with the grey market premium (GMP) currently at ₹170. This suggests that investors expect the share price to open significantly higher than the issue price.
Company Overview
The company’s expertise in the gas industry is a key strength. Their understanding of the sector and existing network give them an edge over competitors. However, the company faces challenges like competition from more prominent players and potential economic fluctuations.
Financials
Positron Energy has seen impressive growth in recent years. Revenue has jumped by a massive 160%, and profits have tripled. This suggests that the company is doing well and expanding its business.
Deep understanding of the gas industry in India Specialized expertise to offer tailored services Strong network within the Indian gas sector Regulatory acumen to navigate complex landscapes
Limited operational area in India Market competition from established firms Need to update skills for technological advancements continuously Economic sensitivity to fluctuations in India
OPPORTUNITIES
THREATS
Market expansion to rural and underserved areas Growth in gas-related infrastructure development projects Favorable conditions from government initiatives promoting gas sector Potential to leverage expertise in overseas markets
Disruption from frequent changes in government regulations Impact of global market volatility on local gas sector dynamics Environmental Regulations Affecting Traditional Gas Demand Significant competition from large multinational consulting firms
Solve Plastic Products is set to raise ₹11.85 crores through its IPO, which opens on August 12th and closes on August 14th. The company plans to use this money to buy new machinery, manage day-to-day operations, and cover IPO expenses. The IPO price is fixed at ₹91 per share, with a minimum investment of ₹109,200 for retail investors.
Objectives of the IPO
The proceeds from this IPO will be allocated to:
Capital Expenditure: Funding the purchase of additional plant and machinery to enhance production capabilities.
Working Capital: Meeting the company’s working capital requirements to support its operations.
Issue Expenses: Covering the expenses associated with the IPO process.
General Corporate Purposes: The money will address other corporate needs to support business growth.
GMP
As of August 12, 2024, the Grey Market Premium (GMP) for the Solve Plastic Products IPO stands at ₹0, indicating that the estimated listing price is expected to remain at ₹91 per share. It reflects no expected gain or loss per share.
Company Overview
Solve Plastic Products Limited, founded in 1994, manufactures rigid PVC electrical conduits and various uPVC pipes. The company’s products are marketed under the brand name “BALCOPIPES.” Solve Plastic Products operates one well-equipped Tamil Nadu production facility and three Kerala manufacturing facilities.
The company has approvals from agencies such as the Central Public Works Departments (CPWD) in Chennai and Kochi, Military Engineer Services (MES), and the Public Works Departments (PWD) of Kerala and Tamil Nadu. It also holds certifications from the Bureau of Indian Standards (BIS) for various products, including solvent cement, water tanks, garden hoses, and PVC pipes. The company primarily serves the Kerala market.
Financials
Between the financial years ending March 31, 2023, and March 31, 2024, Solve Plastic Products Limited experienced a revenue decrease of -24.25%.
Despite this revenue decline, the company’s Profit After Tax (PAT) increased by 18.47% during the same period. This indicates that while the company faced challenges in generating revenue, it managed its costs effectively, leading to improved profitability.
SWOT Analysis
STRENGTHS
WEAKNESSES
Established brand under “BALCOPIPES” Diverse product range Certifications from reputed agencies Manufacturing presence in Kerala and Tamil Nadu
Dependence on Kerala market Intense competition in the PVC pipe industry Reliance on raw material prices Adherence to environmental and safety regulations
OPPORTUNITIES
THREATS
Expanding product range to cater to new market segments Geographical expansion to other regions in India Exploring export opportunities Leveraging government initiatives for the plastic industry
Economic slowdown in Kerala Entry of new competitors Increase in raw material costs Stricter environmental regulations
The company plans to use the net proceeds from the IPO for the following purposes:
Purchase of Machinery: Acquiring new and advanced medical equipment to enhance the hospital’s diagnostic and treatment capabilities.
Development of Medical Tourism Web Portal: Creating an online platform to attract and serve international patients, boosting the hospital’s reach in the medical tourism sector.
General Corporate Purposes: Addressing the overall corporate needs to support the hospital’s growth and operations.
GMP
As of August 12, 2024, the Grey Market Premium (GMP) for the Broach Lifecare Hospital IPO stands at ₹0, which suggests that the estimated listing price is expected to remain at ₹25 per share, indicating no anticipated gain or loss per share.
Company Overview
Incorporated in 2023, Broach Lifecare Hospital Limited operates boutique hospitals under the brand name “Maple Hospitals.” The company specializes in providing 24-hour services for patients with heart ailments, focusing on non-invasive cardiology. Services offered include 2D Echocardiography, Electrocardiography, Treadmill Tests, Holter Monitoring, Ambulatory Blood Pressure Measurement, Stress Tests, and Dobutamine Stress Echocardiography.
The hospital in Bharuch features 25 ultra-luxury in-patient beds and is equipped with advanced diagnostic devices. It also boasts high-end coronary care and life-saving equipment such as Intra-aortic Balloon Pump Machines, Biphasic Defibrillators, and Ventilators.
Financials
Broach Lifecare Hospital Limited’s financial performance has shown significant growth. Revenue increased from ₹1.82 crores in FY23 to ₹2.61 crores in FY24.
The Profit After Tax (PAT) also saw a substantial rise from ₹0.14 crores in FY23 to ₹0.70 crores in FY24. This growth reflects the company’s ability to expand its operations and improve profitability.
SWOT Analysis
STRENGTHS
WEAKNESSES
Specialized in non-invasive cardiology. Equipped with advanced coronary care devices. NABH-certified for quality healthcare. Strong regulatory compliance.
High operational costs. Small workforce. Regulatory challenges.
OPPORTUNITIES
THREATS
Medical tourism expansion. Service area growth. Advanced tech integration.
Intense competition. Dependence on insurance. Economic vulnerabilities.
New Listings This Week
Get ready for a busy week on the stock market! Two highly anticipated IPOs, Firstcry and Unicommerce, will finally debut.
Firstcry (Brainbees Solutions): After a successful IPO, Firstcry will start trading on the BSE and NSE on Tuesday.
Unicommerce eSolutions: Also on Tuesday, Unicommerce will begin trading on both the BSE and NSE.
Additionally, the allotment for the Aesthetik Engineers IPO will be finalized on Tuesday, with the company set to list on the NSE SME on Friday.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Remember those IPOs that get snapped up in record time? Well, Unicommerce eSolutions just pulled off one of those. The company’s IPO opened yesterday, and, surprise, surprise, it was fully subscribed within just three hours!
That’s right, investors couldn’t resist getting a piece of this e-commerce enablement platform. Retail investors were enthusiastic, snapping up nearly 10 times their allotted shares. While other investor categories also showed interest, the retail frenzy really drove the IPO’s early success.
Unicommerce isn’t raising any new money through this IPO. Instead, it’s a way for existing shareholders to cash out. The company itself won’t see a single rupee from the IPO proceeds.
This ₹276.57 Cr IPO is an “Offer For Sale” or OFS. Two of the company’s biggest investors, AceVector and SB Investment Holdings, are selling a part of their stake to the public. So, if you invest in this IPO, you’re buying shares directly from these investors, not from the company itself.
Objectives of the IPO
Unlike most IPOs where the company receives the funds raised, Unicommerce won’t see a penny from this offering. It’s essentially a sale of existing shares by current investors to the public. The money you invest goes directly to the shareholders selling their stake, not the company itself.
You can apply for a minimum of 138 shares when investing in the Unicommerce IPO. The company is offering a total of 25 million shares to the public.
Around 30% is reserved for big institutional investors, 15% for non-institutional investors, and 10% for retail investors like you and me. A significant portion, around 45%, has already been allocated to anchor investors.
Investor Category
Shares Offered
Maximum Allottees
Anchor Investor Shares Offered
11,523,831 (45.00%)
NA
QIB Shares Offered
7,682,554 (30.00%)
NA
NII (HNI) Shares Offered
3,841,276 (15.00%)
bNII > ₹10L
2,560,851 (10.00%)
1,325
sNII < ₹10L
1,280,425 (5.00%)
662
Retail Shares Offered
2,560,851 (10.00%)
18,556
Total Shares Offered
25,608,512 (100%)
If there’s more demand than supply for shares, retail investors will get 138 shares each, while smaller and bigger non-institutional investors will get a minimum of 1,932 shares.
Grey Market Premium (GMP)
Unicommerce IPO is generating a lot of buzz. The unofficial market, known as the grey market, indicates a high share demand. The current share price estimate in this grey market is around ₹24-25 higher than the issue price. This is what we call the Grey Market Premium (GMP). A 22% premium suggests investors are quite optimistic about the company’s performance post-listing.
Subscription Status
Unicommerce’s IPO was a blockbuster. Investor enthusiasm was sky-high, and the entire issue was snapped up in three hours. Retail investors were particularly eager, oversubscribing their allotment by 10 times. While other investor groups also showed interest, the general public truly drove the initial frenzy.
Company Overview
Founded in 2012, Unicommerce is a tech wizard specializing in making e-commerce operations run smoothly. They offer software tools that help businesses manage their warehouses, keep track of inventory, handle orders from different channels, and even manage their retail stores.
With over 100 logistics partners and integrations with major e-commerce platforms, Unicommerce has become a go-to solution for many big-name brands like Lenskart, PharmEasy, and Mamaearth. And they’re not just a local player; they’ve also made inroads into Southeast Asia and the Middle East.
Essentially, Unicommerce is the backbone of the e-commerce world, ensuring your online shopping experience is as seamless as possible.
Financials
The company’s revenue has steadily climbed over the past three years. From ₹613.6 lakhs in Fiscal 2022, it jumped to ₹929.7 lakhs in the following year and reached ₹1,094.3 lakhs in Fiscal 2024. This consistent growth is a testament to Unicommerce’s expanding customer base and ability to tap into the growing e-commerce market.
The company turned a profit of ₹60.1 lakhs in Fiscal 2022, which climbed to a healthy ₹130.8 lakhs in Fiscal 2024. This indicates that Unicommerce is growing its top line, managing costs efficiently, and boosting profitability.
Dominant position in Indian e-commerce enablement SaaS market Diverse customer base across various industries Scalable SaaS business model Robust technology platform for efficient operations
Intense competition in the market Reliance on a limited number of large clients Vulnerability to economic downturns
OPPORTUNITIES
THREATS
Expand product portfolio for new revenue streams Explore new geographical markets Strategic partnerships for enhanced market reach
Need for continuous technological innovation Importance of robust cybersecurity measures Economic uncertainties impacting e-commerce spending
Conclusion
The Unicommerce IPO has garnered significant investor interest, with the issue fully subscribed within hours of opening. While the company’s strong financials and market position are positive indicators, investors should conduct thorough due diligence before making investment decisions. Factors such as intense competition, economic conditions, and the company’s ability to sustain growth should be carefully considered.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FirstCry, the popular online baby and kids store, is going public. Its parent company, Brainbees Solutions, has launched an IPO worth ₹4,193 crore. This means the company is offering the public a slice of its ownership for the first time. The IPO is open for subscription until August 8th. But remember, investing involves risks, so it’s always a good idea to do your homework before diving in.
Brainbees is looking to raise a whopping ₹4,193.73 crore through its IPO. That’s a lot of money! To break it down, the company plans to bring in ₹1,666 crore by selling brand new shares to the public. This fresh cash will be used to fund the company’s growth plans.
Objectives of the IPO
Establishment of new modern stores under the “BabyHug” brand and establishment of a warehouse in India
Invest in lease payments for existing BabyHug stores.
Fund Digital Age, a subsidiary, will open new FirstCry stores and invest in existing ones.
Invest in FirstCry Trading, another subsidiary, to expand overseas with new stores and warehouses in KSA (Kingdom of Saudi Arabia).
Increase ownership stake in Globalbees Brands, another subsidiary.
Boost sales and marketing efforts.
Upgrade technology and data science infrastructure.
Pursue acquisitions and other strategic initiatives for growth.
Cover general corporate expenses.
IPO Allocation of Shares
You can apply for a minimum of 32 shares in the FirstCry IPO. Brainbees Solutions, the parent company, is offering 90 million shares to the public.
Now, let’s break down who gets what. Big institutional investors, like insurance companies and mutual funds, have been allocated nearly 30% of the shares. Non-institutional investors, which include wealthy individuals and family offices, get around 15%. Retail investors like you and me have a slice of about 10%.
A small portion is reserved for company employees, and a big chunk is earmarked for anchor investors, typically large institutional investors who agree to buy shares before the IPO opens to the public.
If there’s more demand than supply for shares (what companies usually hope for), things get a bit more complicated. Retail investors will get at least 32 shares each, while smaller and bigger non-institutional investors will get 448 shares. There’s no upper limit on how much big investors (HNIs and NIIs) can invest.
Grey Market Premium (GMP)
There’s a lot of buzz around the FirstCry IPO, and it’s showing in the grey market. This is an unofficial market where shares are traded before the official listing. Right now, people expect the FirstCry share price to be around ₹84 higher than its issue price when it finally lists on the stock exchange.
Subscription Status
The first day of the FirstCry IPO hasn’t seen a huge rush from investors. So far, only 3% of the shares on offer have been subscribed, so there’s still a long way to go before the issue is fully subscribed.
While retail investors have shown some interest, with 16% of their quota subscribed, institutional investors (especially the big players or QIBs) are yet to jump in. We’ll have to wait and see if there’s a surge of interest in the coming days.
Company Overview
Founded in 2010, FirstCry has grown rapidly to become a household name for parents. It sells everything from clothes and toys to baby gear and personal care products. The company boasts over 1.5 million products from 7,500 brands, including BabyHug.
FirstCry has a strong online presence but is expanding its offline footprint with BabyHug stores. The company has a large team of employees and contract workers dedicated to serving its customers.
Financials
While FirstCry has a strong brand and a large customer base, its financial health is a cause for concern. The company’s revenue increased by 15% in the last financial year to ₹6,575.1 crore. However, it also reported a loss of ₹321.5 crore. This is a significant jump from profit to loss.
Another red flag is the company’s debt. It has increased from ₹176.5 crore to ₹462.7 crore in a single year. This means the company is relying more on borrowed money to operate.
Strong brand recognition and reputation in the mother and baby care segment Extensive product portfolio with over 1.5 million SKUs Large and loyal customer base Established online presence with a strong mobile app Growing network of offline stores under the BabyHug brand Presence in the UAE, the largest specialized online retail platform for maternal, baby, and kids’ products
Recent losses despite increasing revenue Significant increase in debt Dependence on third-party manufacturers Limited international presence outside of the UAE
OPPORTUNITIES
THREATS
Growing demand for mother and baby care products in India and abroad Expansion into new product categories Leverage technology to improve customer experience and operational efficiency Increase market share in the offline retail segment Potential for further international expansion
Intense competition in the online retail space Economic downturns that could reduce consumer spending Fluctuations in the price of raw materials Government regulations impacting the retail sector
FirstCry’s IPO is off to a start, with the company aiming to raise a significant amount of money to fuel its growth plans. While there’s been some initial interest from investors, the real test will be in the coming days as we see how the subscription unfolds. Whether it’s a blockbuster or a damp squib remains to be seen. Only time will tell if FirstCry can capitalize on its strong brand and market position to deliver solid returns for its investors.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The Ashapura Logistics IPO kicked off yesterday. The buzz around the IPO was quite evident even before the opening bell. And it looks like investors weren’t disappointed. The IPO, which opened for subscription yesterday, was oversubscribed by a solid 3.73 times on the first day.
This strong opening raises questions about what’s driving this investor enthusiasm and whether the momentum will continue. Let’s examine the numbers and company details to find out.
The Ashapura Logistics IPO opened for subscription on July 30th, 2024, and will close on August 1st, 2024. The company is looking to raise ₹52.66 crore through the issuance of 36.57 lakh shares. The price band for the IPO is set at ₹136 to ₹144 per share.
This translates to a minimum investment of ₹144,000 for retail investors, who must apply for a minimum lot of 1,000 shares. The share allotment is expected to be finalized by August 2nd, with a tentative listing date of August 6th, 2024, on the NSE SME platform.
Subscription Status:
Ashapura Logistics’ IPO garnered a positive response on the first day, receiving an overall subscription of 3.73 times. The breakdown reveals strong interest from retail investors, with their category oversubscribed 5.78 times. Institutional Investor (QIB) participation was moderate at 1.5 times, while Non-Institutional Investors (NII) subscribed to the issue 1.92 times.
Objectives of the IPO:
The primary objective of the IPO is to raise capital for Ashapura Logistics’ expansion plans. The company intends to utilize the proceeds for:
Fleet Expansion: They plan to purchase additional trucks and equipment to strengthen their transportation capabilities.
Warehouse Development: Funds will be directed towards building new warehouses at their Mundra facility in Gujarat.
Working Capital: The IPO will also help Ashapura Logistics meet its increased working capital needs to support ongoing operations.
General Corporate Purposes: A portion of the proceeds will be used for general corporate purposes.
Grey Market Premium (GMP):
The Grey Market Premium (GMP) for Ashapura Logistics’ IPO is currently hovering around ₹95 per share. This indicates that investors in the grey market are willing to pay a premium to own Ashapura Logistics shares pre-listing. While not a guarantee, a positive GMP can be a potential indicator of a strong listing price. As per estimates, this translates to an expected listing price of around ₹239 per share, which is 65.97% higher than the upper band of the IPO price.
Company Overview:
Founded in April 2002, Ashapura Logistics boasts over 20 years of experience in the Indian logistics industry. They offer a comprehensive suite of services encompassing cargo handling, freight forwarding, transportation, warehousing, distribution, and coastal movement across India.
Ashapura Logistics leverages technology to enhance its services and customer experience. They have developed their own software, IMPEX, to manage cargo handling and transportation operations and are continuously innovating for the transportation segment. Their technology stack focuses on various aspects like demand generation, tracking, fleet operations,
The company has a strong presence with three subsidiaries: Jai Ambe Transmovers Private Limited, Ashapura Warehousing Private Limited, and Amanzi International Private Limited. Their freight forwarding team operates from Ahmedabad, with branches in major seaports like Hazira, Mundra, Pipavav, Kandla, JNPT, and other inland container depots, ensuring efficient service delivery to existing clients.
As of March 31, 2024, Ashapura Logistics boasts a fleet of 250 commercial trucks, a mix of owned vehicles (181) by a subsidiary, and the company itself (69). Additionally, they manage 7 warehouses with a total storage capacity of around 284,000 square feet as of July 2024. Their workforce comprises over 219 employees, with a significant focus on operations and transportation (over 111 personnel).
Financials
Ashapura Logistics’ financials for FY24 (ending March 2024) reflect growth in profitability and net worth:
The slight decline in revenue might be a concern, but the consistent growth in profitability and net worth indicates a healthy financial trajectory. Additionally, the company maintains a low debt profile.
SWOT Analysis of Ashapura Logistics Limited
STRENGTHS
WEAKNESSES
Over 20 years of experience in the logistics industry. Strong client base across various industries. Diversified service portfolio. Technological capabilities to enhance efficiency. Prudent financial management with low debt.
Slight decline in revenue compared to previous years. Relatively small fleet size compared to larger logistics players. Dependence on key personnel and management expertise.
OPPORTUNITIES
THREATS
Growing Indian logistics market. Increasing demand for e-commerce logistics solutions. Expansion plans for warehouses and fleet. Potential for further technological integration.
Intense competition in the logistics sector. Fluctuations in fuel prices and transportation costs. Economic slowdown impacting customer demand. Regulatory changes in the logistics industry.
Conclusion
The strong subscription for the Ashapura Logistics IPO on its first day is undoubtedly a positive sign for the company. However, investors should conduct thorough due diligence before making an investment decision.
Factors such as the company’s financials, business model, and industry outlook should be carefully evaluated. While indicative of initial interest, the grey market premium and investor sentiment are not guarantees of future performance.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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