IPO News – Latest IPO News, Upcoming IPO in India, Views and reviews http://ak57.in Primary Capital Market & Investor Awareness Wed, 18 Oct 2017 06:53:23 +0000 en-US hourly 1 Godrej Agrovet Limited – Debuts with gains of over 29% http://ak57.in/general/godrej-agrovet-limited-debuts-with-gains-of-over-29/8998/ http://ak57.in/general/godrej-agrovet-limited-debuts-with-gains-of-over-29/8998/#respond Wed, 18 Oct 2017 06:53:23 +0000 http://ak57.in/?p=8998 Shares of Godrej Agrovet Limited listed the bourses and had a stellar debut gaining over 29%. The company had launched its IPO which consisted of a fresh issue of Rs 291.51 crs and an offer for sale of Rs 300 crs by the parent and 1.23 cr shares by the PE Investor.
godrej-agrovetThe company had earlier allotted 74.17 lakh shares to 25 anchor investors comprising of 32 entities.

The issue had received excellent response and was oversubscribed over 95 times. The QIB portion was subscribed 150.96 times, HNI 236 times and retail 6.7 times.

The scrip opened for trading at Rs 621 on the BSE and Rs 615.60 on the NSE. The high was Rs 629.85 and Rs 630 respectively while the lows were Rs 563.80 and Rs 563.40. The share closed at Rs 595.55, a gain of Rs 135.55 or 29.47% on the BSE. The close on the NSE was Rs 595.65, a gain of Rs 135.65 or 29.49% on the NSE.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 621.00 629.85 563.80 595.55 135.55 29.47 599.93 3677215 1029433 27.99
NSE 615.60 630.00 563.40 595.65 135.65 29.49 600.53 24000049 8422033 35.09
Total 27677264 9451466 34.15

The traded volume was 276.77 lakh shares which was 1.10 times the IPO size of 251.58 lakh shares. The delivery volume was 94.51 lakh shares which was 34.15% of the traded volume and 37.57% of the IPO size. Considering the non-anchor portion the delivery percentage was 53.27% of the IPO.
A successful IPO and decent listing where all successful applicants have made money.

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Diwali is here http://ak57.in/general/diwali-is-here/8995/ http://ak57.in/general/diwali-is-here/8995/#respond Mon, 16 Oct 2017 07:13:58 +0000 http://ak57.in/?p=8995 NIFTY hit a lifetime high while BSESENSEX is about 250 points away during course of trading last week. India celebrates Diwali this Thursday and Friday and markets have already begun celebrating. Mood is optimistic and there is momentum as well. A note of caution needs to be observed as results and performance do not match the exuberance being witnessed.

TCS declared results which were better than what the street expected, however on comparison they were flat. Reliance Industries declared an excellent set of numbers and heartening was the fact that ‘Jio’ has made cash profit. The entire market results would certainly not follow the above trend.

The primary market saw two issues open for subscription last week. The first was from IEX or India Energy Exchange which had confusion about the subscription by FPI’s in the IPO. The anchor allotment had to be cancelled to these FPI’s and the same was added back to the QIB category. There was an exit route given to other shareholders to allow them to withdraw their application of they so decided. The issue was subscribed 2.28 times overall with QIB portion subscribed 2.56 times, HNI undersubscribed at 0.85 times and Retail subscribed 2.61 times. One wonders at the callous attitude of merchant bankers and they are taking such big calls on mere interpretations. If foreigners cant invest in a primary offering whether it is by way of an offer for sale or fresh issue is running to fine a line and risks the wellbeing of the issue.

The other issue for subscription last week was the mega insurance issue from GIC RE. The issue was subscribed 1.36 times with QIB portion subscribed 2.25 times, HNI undersubscribed at 0.22 times and Retail undersubscribed at 0.63 times. The size of the issue was over Rs 11,000 crs. There were 6.56 lakh applications and the average subscription in the retail category was about Rs 39,000 against a normal average of closer to Rs 18-20k.

With the IPO of GIC RE over, the last month or so has seen three issues in the insurance space and collectively they have raised about Rs 25,000 crs. The two other issues were from ICICI Lombard and SBI Life insurance. Two more issues are waiting on the side-lines with New India expected to hit the markets in early November and Reliance General Insurance in the second half of November.

Two IPO’s would debut this week with Godrej Agrovet listing on Monday and MAS Financial Services Ltd listing on Wednesday. Both issues had received excellent response and were very well subscribed. They should list with gains of around 25-30% over the issue price which incidentally is almost identical at Rs 460.

There is a trading holiday on Thursday and Friday for Diwali. There would be a special ‘Muhurat’ session held on Thursday for welcoming the new Hindu calendar Samvat 2074. It would begin with a bang irrespective whether fireworks are banned or not. Enjoy Diwali and the fireworks but be cautious as valuations have literally gone through the roof.

Wishing all readers a Happy Diwali and a Prosperous New Year.

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GIC RE Issue Subscribed 1.38 Times http://ak57.in/general/gic-re-issue-subscribed-1-38-times/8990/ http://ak57.in/general/gic-re-issue-subscribed-1-38-times/8990/#respond Mon, 16 Oct 2017 06:52:57 +0000 http://ak57.in/?p=8990 The largest IPO so far in the calendar year from state run GIC General Insurance Company Limited was subscribed. The company had launched its issue comprising of a fresh issue and offer for sale of 12.47 cr shares in a price band of Rs 855-912. Retail investors and eligible employees were entitled to a discount of Rs 45 per share. The issue received decent response from QIB’s and from retail investors.

The overall issue was subscribed 1.38 times with the QIB portion subscribed 2.25 times. HNI was undersubscribed at 0.22 times primarily because of the retail discount and grey market quoting at a discount because of the same. Retail subscription was at 0.63 times. A total of 6.56 lakh applications were received which means the retail issue was subscribed 0.24 times in terms of lots. This effectively means that the average subscription per form in the retail category was 2.62 lots or 39 shares. This is significantly higher where the average application by retail hovers around 1.5 lots.

There is talk that the issue may not be priced at the top end of the band and may happen somewhere midway. If that is done there would be significant movement when the share lists post Diwali.

The details of the subscription are given below: –

GIC RE Subscription

Bucket Size Shares applied for Times oversubscribed
QIB 62277900 140024464 2.25
HNI 18683371 4108336 0.22
Retail 43594532 27594768 0.63
Employee Reservation 144197 135568 0.94
Total 124700000 171863136 1.38
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Performance of Newly Listed Shares as on 13th October 2017 http://ak57.in/general/performance-of-newly-listed-shares-as-on-13th-october-2017/8980/ http://ak57.in/general/performance-of-newly-listed-shares-as-on-13th-october-2017/8980/#respond Mon, 16 Oct 2017 06:32:03 +0000 http://ak57.in/?p=8980 Name Date of Listing Issue Price Closing Price Closing Price % Gain Loss % Change Over 13th October 6th October Over Week lssue Price SIS (India) Limited 10th August 815.00 792.70 767.00 3.15 -2.74 Cochin Shipyard Limited 11th August 432.00 572.30 518.70 12.41 32.48 Apex Frozen Foods Limited 4th September 175.00 437.30 408.85 16.26 149.89 Dixon Technologies Limited 18th September 1776.00 2727.90 2677.60 2.83 53.60 Bharat Road Networks Limited 18th September 205.00 182.10 177.80 2.10 -11.17 Matrimony. Com 21st September 985.00 863.35 817.70 4.63 -12.35 Capacite Infraprojects Limited 25th September 250.00 343.45 335.45 3.20 37.38 ICICI Lombard Gen Ins Comp Limited 27th September 661.00 695.00 679.50 2.34 5.14 SBI Life Insurance Company Limited 3rd October 700.00 688.85 694.90 -0.86 -1.59 Prataap Snacks Limited 5th October 938.00 1218.70 1277.70 -6.36 29.85 ]]> http://ak57.in/general/performance-of-newly-listed-shares-as-on-13th-october-2017/8980/feed/ 0 Indian Energy Exchange Limited – Issue Subscribed 2.28 Times http://ak57.in/general/indian-energy-exchange-limited-issue-subscribed-2-28-times/8970/ http://ak57.in/general/indian-energy-exchange-limited-issue-subscribed-2-28-times/8970/#respond Thu, 12 Oct 2017 09:48:31 +0000 http://ak57.in/?p=8970 Indian Energy Exchange Limited (IEX) which had tapped the capital markets with its offer for sale was just about subscribed. The company was offering 60,65,009 shares through an offer for sale in a price band of Rs 1645-1650. The company had earlier allotted 18,19,501 equity shares to 25 anchor investors comprising of 28 entities.

This allocation was then revised to become 7,89,120 equity shares to 11 anchor investors comprising of 16 entities. The entire allotment to FPI’s was cancelled as this is an issue of an exchange. One wonders whether merchant bankers who have handled umpteen number of issues did not have any inkling of this issue. They became aware only when the custodians of the FPI’s alerted them to this issue.

When this was done to the anchor investors it would logically apply to the QIB portion as well. While the company has issued a corrigendum to that effect that the allotment has been modified, what happens to the poor retail investor who has applied in the issue? Another very important and pertinent question would be whether these FPI’s can invest when the issue lists?

One hopes that the regulator makes the company and its BRLM’s address this issue and give an opportunity to investors to take a call on this IPO as such PE multiples can only remain if FPI’s can be there.

The QIB portion was subscribed 2.56 times while the HNI portion was undersubscribed at 0.85 times. Retail portion was subscribed 2.61 times.

The issue was offered at a PE multiple of 43.81 times based on financial year ended March 2017 earnings. The issue opened on Monday the 9th of October and closed on Wednesday the 11th of October.

The details of subscription are given below: –

Bucket Size Shares applied for Times oversubscribed
QIB 2243383 5738238 2.56
HNI 909752 769608 0.85
Retail 2122754 5538357 2.61
Total 5275889 12046203 2.28
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MAS Financial Services Limited – Issue Subscribed 128 times http://ak57.in/general/mas-financial-services-limited-issue-subscribed-128-times/8968/ http://ak57.in/general/mas-financial-services-limited-issue-subscribed-128-times/8968/#respond Thu, 12 Oct 2017 08:53:15 +0000 http://ak57.in/?p=8968 MAS Financial Services Limited which had tapped the capital markets with its simultaneous offer and fresh issue received excellent support and was subscribed 18.39 times. The company which is raising Rs 460.04 crs through a fresh issue of Rs 233 crs and an offer for sale of Rs 227.04 crs had earlier allotted 29,61,057 equity shares to 15 anchor investors comprising of 21 entities. The price band was Rs 456-459 and shares were allotted at Rs 459.

The issue opened on Friday the 6th of October and closed on Tuesday the 10th of October.

The issue was subscribed 148.33 times by QIB’s, 378.53 times by HNI’s and almost 16 times by retail investors. The cost of funding at 5.5% would be Rs 183 for the leveraged HNI.

The full details of subscription bucket wise is given below:-

Bucket Size Shares Applied for Times Oversubscribed
QIB 1987028 294737952 148.33
HNI 1490270 564117088 378.53
Retail 3477296

55532512 15.97
Employee Reservation 170316 409696 2.41
Total 7124910 914797248 128.39
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GIC RE issue to propel retail investors and help market momentum http://ak57.in/general/gic-re-issue-to-propel-retail-investors-and-help-market-momentum/8965/ http://ak57.in/general/gic-re-issue-to-propel-retail-investors-and-help-market-momentum/8965/#respond Mon, 09 Oct 2017 06:59:42 +0000 http://ak57.in/?p=8965 The week gone by had four trading days and markets gained on three of them. A serious effort to regain lost ground and touch the previous highs. If that happens around Diwali and the ensuing result season does not give pleasant surprises one wonders whether Diwali 2010 would be repeated? Coal India listed at that time and markets peaked. The BSESENSEX clocked gains of 530.50 points or 1.67% to close at 31,814.22 points while NIFTY gained 191.10 points or 1.91% to close at 9,979.70 points.

Dow Jones hit yet another record lifetime high and closed at 22,773.67 points, gaining 368.58 points or 1.62% in the process.

Markets seem to be on a massive fund-raising exercise currently. There are back to back issues and last week was no exception. Last week saw two issues listing with SBI Life Insurance listing on Tuesday the 3rd October. The share closed with gains on that day but by weekend the share was trading with losses of about 3/4th of a percent. Shares were issued at Rs 700 and the company had raised through an offer for sale Rs 8,400 crs.

The second company to list was Indore based snack maker Prataap Snacks which makes potato chips, extruded products and Indian namkeen under the brand Yellow Diamond. Shares were issued at rs 938 and gained 25% on debut day and 36% by the end of the week.

The issue from Godrej Agrovet Limited opened and closed for subscription during the week and was subscribed an overall 95 times. The issue comprised of a fresh issue ad offer for sale in a a price band of Rs 450-460.

The mother of all issues from General Insurance Corporation of India Limited opens on Wednesday the 11th of October and closes on Friday the 13th of October. There would be no anchor as is the practice of the Government of India. The issue consists of a fresh issue of 1.72 cr shares and an offer for sale of 10.75 cr shares in a price band of Rs 855-912. The issue would garner between Rs 10,661.85 crs at the lower price band to Rs 11,372.64 crs at the top end of the band. There is a discount of Rs 45 per share for retail investors and eligible employees.

GIC RE is in the business of reinsurance and is a insurance company which underwrites insurance and therefore risk of other insurance companies. While a SBI Life Insurance or LIC or ICICI Lombard would issue insurance to an individual or company and take the risk on themselves, they would have the same passed on or in turn underwritten by GIC RE.

If theoretically an insurance business was to go down under it would never be a underwriter as his risk is geographically and business wise distributed. GIC RE for example does business with 162 countries and across businesses.

The issue is priced at a PE multiple of 24.97 times making it far more attractive than the recent issues from general insurer ICICI Lombard and life insurer SBI Life.

The issue size is large and there would be effectively firm allotment for retail investors based on mathematical calculation. You need 27 lakh applications for the issue to be subscribed on lot basis and the largest application size was in Cochin Shipyard which was about 20.5 lakh applications. In this issue HNI interest would not be there because of the discount offered to retail. It makes sense to apply for this reinsurer and participate in the growth story of Indian and global insurance companies.

RBI at its review meet kept policy rates unchanged. It did however tweak the SLR rates to give some relief to banks and effectively reduce their cost of borrowing.

Immediately after Diwali one will see results for the July to September quarter being declared. One hopes and prays that there are surprises this time around or the extreme valuations are likely to give way. Even the liquidity with mutual funds may not be enough to hold them thereafter.

Markets are likely to make another attempt to cross the all-time highs. Ride the rally till the same continues.

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Indian Energy Exchange Limited – Completes Allocation to Anchor Investors http://ak57.in/general/indian-energy-exchange-limited-completes-allocation-to-anchor-investors/8959/ http://ak57.in/general/indian-energy-exchange-limited-completes-allocation-to-anchor-investors/8959/#respond Mon, 09 Oct 2017 06:57:04 +0000 http://ak57.in/?p=8959 Indian Energy Exchange Limited (IEX) which is tapping the capital markets with its offer for sale completed allocation to anchor investors. The company is offering 60,65,009 shares through an offer for sale in a price band of Rs 1645-1650.
The company allotted 18,19,501 equity shares to 25 anchor investors comprising of 28 entities.

The highest allocation has been made to Smallcap World Fund who has been given 13.32% of the anchor allocation. Domestic mutual funds collectively have been given 33.38% of the total allocation.

The issue is being offered at a PE multiple of 43.81 times based on financial year ended March 2017 earnings. The issue opens on Monday the 9th of October and closes on Wednesday the 11th of October
The full list of anchor allotment is given below: –
Indian Energy Exchange Limited – Completes Allocation to Anchor Investors

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Prataap Snacks Limited – Great Debut closes with gains of over 25% http://ak57.in/general/prataap-snacks-limited-great-debut-closes-with-gains-of-over-25/8956/ http://ak57.in/general/prataap-snacks-limited-great-debut-closes-with-gains-of-over-25/8956/#respond Mon, 09 Oct 2017 06:48:05 +0000 http://ak57.in/?p=8956 Prataap Snacks Limited better known by its Yellow Diamond brand of snacks, potato chips and extruded products listed on the bourses and had a great debut. Shares were issued at a price of Rs 938. They opened at a level of Rs 1250 on the BSE and Rs 1270 on the NSE.
The high was Rs 1317.05 and Rs 1318.80 respectively. The lows were Rs 1137 and Rs 1133.70. The final close at Rs 1178.50 and Rs 1180.65 respectively, a gain of Rs 240.50 or 25.64% on the BSE and Rs 242.65 or 25.87% on the NSE.

The company had tapped the capital markets with its simultaneous offer to raise fresh equity for Rs 200 crs and an offer for sale of 30.05 lakh shares. The company had allotted 15.28 lakh shares to 15 anchor investors comprising of 25 entities. The public issue was very well received and was subscribed an overall 47 times with the QIB portion subscribed 76.89 times, HNI 101.15 times and Retail 8.48 times.

The traded volume was 109.30 lakhs which was 2.12 times the IPO size. Delivery volume was 26.78 lakhs which was 24.50% of the traded volume and 52.13% of the IPO size. Adjusted for only non-anchor portion the delivery was a massive 74.21% which implies that even QIB’s have booked profits on day one.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 1250.00 1317.05 1137.00 1178.50 240.50 25.64 1231.36 1785742 396028 22.18
NSE 1270.00 1318.80 1133.70 1180.65 242.65 25.87 1236.14 9144860 2282236 24.96
Total 10930602 2678264 24.50

From the table above one can see that the weighted average of the day’s trade was Rs 1231.36 on the BSE and Rs 1236.14 on the NSE substantially higher than the close of the day, indicating that there was selling pressure in the last hour of trading. The days close was Rs 1178.50 and Rs 1180.65 respectively which means that the net gain for the day was a good Rs 240.50 or Rs 242.65 on the two exchanges. In percentage terms this was 25.64% and 25.87% respectively. Good performance by all standards.

In terms of institutional trade there were two on the buy side where SBI Mutual Funds bought 4.40 lakh shares at Rs 1272.68 and Smallcap Wonder Fund bought 4,25,525 shares at Rs 1245.67 respectively.

The share is likely to gain from current levels in the coming days.

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Godrej Agrovet Limited – Subscribed over 95 times http://ak57.in/general/godrej-agrovet-limited-subscribed-over-95-times/8952/ http://ak57.in/general/godrej-agrovet-limited-subscribed-over-95-times/8952/#respond Mon, 09 Oct 2017 06:23:02 +0000 http://ak57.in/?p=8952 The issue from Godrej Agrovet Limited received excellent support and was subscribed 95.41 times. The company had tapped the capital markets with its simultaneous offer.
godrej-agrovetThe issue had a fresh issue component of Rs 291.51 crs, an offer for sale by Godrej Industries of Rs 300 crs and an offer for sale by the PE investor of 1.23 cr shares. The price band was Rs 450-460, The issue had opened on Wednesday the 4th of October and closed on Friday the 6th of October.

Earlier the company had allotted 74,17,254 equity shares to 25 anchor investors comprising of 32 entities.

The issue saw subscription in the QIB category of 150.96 times, HNI 236.04 times and Retail 7.67 times. The issue received 14.75 lakh applications and on basis of lot was subscribed 5.45 times. Ths subscription by retail should be termed as excellent as most members of a large investor community did not apply because the company deals with non-vegetarian products.

Full details of the subscription is given below:-

Bucket Size Shares Applied for Times Oversubscribed
QIB 5082882 767295360 150.96
HNI 3750042 885164480 236.04
Retail 8750096 67117664 7.67
Employee Reservation 444444 373312 0.84
Total 18027464 1719950816 95.41
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