What is IPO in Share Market And Is it Worth Investing in IPOs cover

What is IPO in Share Market? And Is it Worth Investing in IPOs?

Understanding what is IPO in Share Market: Everyone gets excited about new things. The new clothes, new bike, new car, new job, etc always attract the public. Investors are also like ordinary people and hence they are also tempted by the word ‘NEW’. Be it new technology, a new industry or a new company. And hence, listing on new companies in stock market always excites investors.

In this post, we are going to discuss what is IPO in share market and whether it’s worth investing in these new companies which enter the market for the first time.

What is IPO – Initial Public Offering?

When a privately held company offers its shares for the first time to the public, then it is called Initial public offering (IPO). It is a way for companies to enter the stock market. Until a company offers IPO, the public is not able to buy the company’s share.

Before the IPO of a company, its shareholders include limited people like founders, co-founders, relatives, friends and initial investors (like an angel investor, venture capitalist etc). However, after the company offers its IPO, anyone (public, institutional investors, mutual funds etc) can buy the shares of the company.

A few of the popular IPOs listed in the Indian share market in 2021 are Kalyan Jewellers, Craftsman Automation, Ease my trip, Indigo Paints, IRFC, etc.  You can get more details about the latest IPOs in India here.

what is IPO and how do ipo works

What does ‘Going public’ mean?

Going public means that a ‘privately owned company’ is conducting an initial public offer (IPO) to the public in order to enter the stock market as a ‘public company’. In short, when a company is offering an IPO, it is said that the company is going public.

Also read: #27 Key terms in share market that you should know

Why do companies conduct IPOs?

The basic reason why companies issue their shares or go for an IPO is to raise capital or funds.

Stock exchanges facilitate the exchange of shares for capital. The process involves shares being offered, shares being allotted to investors, and finally the shares being listed on an exchange where they can be bought and sold. By doing so companies can get access to a wider pool of investors which includes retail and domestic/foreign institutional investors.

There can be a number of reasons why any company offer an IPO. Here are a few of the top ones:

  1. For a new project or expansion plan of the company
  2. To raise capital (financial benefit)
  3. For carrying out new research and development works
  4. To fund capital expenditures
  5. To pay off the existing debts or reduce the debt burden
  6. For a new acquisition
  7. To create public awareness of the company
  8. For the group of initial investors desiring to exit the company by selling their stakes to the public.

In addition, IPOs generate lots of publicity for the company and hence helps in creating market exposure, indirect exposure, and brand equity.

Why are the Disadvantages of Conducting IPOs?

Here are the few disadvantages for the companies who offer their IPOs:

  1. Public disclosure: When a privately held company offers its IPO, it has to disclose a number of documents to the public like its financials, promoters list, debts etc.
  2. Entering a regulated market: Indian stock market is highly regulated by Securities and exchange board of India (SEBI) and hence the newly public company has to play by the rules of SEBI. There has been a number of cases of companies getting delisted by SEBI as they do not follow the norms of the market.
  3. Market pressure: The companies performance are closely scrutinized by the public and investors. Hence, the company’s management is consistently is pressure. Sometimes the companies focus more on short-term performance over long-term due to market pressure.
  4. Loss of control: As the shares are distributed among the investors, the decision making power is now in the hands of the shareholders.
  5. Failing of IPO: Many companies fail to attract investors during its IPO and the offered shares might remain under-subscribed. In such a scenario, the company is not able to raise enough capital that is expected to achieve the goal of IPO.

Why do most IPOs come in the bull market?

bull market ipo

The promoters of the company sell their stakes only when they are confident of getting a good price. This generally happens only in a bull market. During a bull market, the owners of the company can raise enough fund for their cause as the public is optimistic. People are willing to pay good prices to buy shares of the company.

Why do not many IPOs come in bear market?During bear market, people are pessimistic and are not willing to pay a good price for the shares of a newly public company. The owners feel that they won’t be getting the right price for their shares and hence most owners do not introduce their IPO during a bear market

Also read: What is Bull and Bear market? Stock Market Basics

Who gets MOST Benefits from IPOs?

There is a common myth that the company’s shares are undervalued during its IPO and hence the early subscribers of the IPO feel that they have made a very good deal.

However, IPOs are the by-products of a bull market and they are generally over-priced.

The owner and the initial investors of the company (like angel investors, venture capitalist etc) are the ones who get maximum profits during an IPO as they are able to sell the shares at a good price.

Why are people excited about IPOs?

There are a few common reasons why people are excited about IPOs. They are:

  1. Under-pricing myth: When a company announces its IPO, it’s presumed that the offered price is less than its true value. People are excited about the fact that they are the first one to buy the stock and will be rewarded handsomely when the company’s true price will be realized by the market. However, it’s very rare that the owners will be willingly underpricing the shares.
  2. Herd-mentality: As everyone they know will be applying for the IPO, people do not want to be missed out.
  3. Overhype by media/ underwriters: Media gets a high advertisement fee for the promotion of the IPO. Moreover, IPOs are intentionally overhyped by the investment banker and the underwriters. They make sure that these IPO’s get enough attention as this is their job to promote and sell the shares.
  4. ‘The Next …’ strategy: People compare the upcoming IPO with the Winners in the same industry and conclude that it will perform the same. ‘The next Eicher motors’, ‘The next symphony’, ‘The next Infosys’ etc. This ‘Next’ philosophy makes a lot of people excited about the upcoming IPO.

Is it worth investing in IPOs?

A lot of investors have made huge wealth by investing in IPOs. Had you invested in ‘INFOSYS’ when it got listed, you might have been sitting at a huge pile of wealth today.

Also read:

However, the performance of the majority of the IPOs in the Indian stock market is under-satisfactory. The number of IPOs underperforming in long-term are comparatively quite larger than the number of IPOs that performs well in the market.

Further, IPOs are never priced in the benefits of the public. In the case where few IPOs are fairly priced, it gets a lot of demand from the public during its offerings and gets over-subscribed. Moreover, it soon becomes over-priced once it starts trading in the market. A few IPOs might give you a good return in the one or two months of its listing as they are introduced in the bull market, however, in the long run, their performance is quite poor.

If you are willing to invest in the long-term, then be cautious about investing in IPOs. Focus on the quality of the company, not the hype generated by media or underwriters.

Nevertheless, you can always pick these companies from the secondary market once the hype is over and the price is attractive. There are over 5,000 companies listed in Indian stock market. It’s better if you pick a good one among them than picking the upcoming hyped company.

Lodha Developers IPO review cover

Lodha Developers IPO Review 2021 – IPO Price, Offer Dates & Details!

Macrotech Developers (Lodha Developers) IPO Review 2021: The Macrotech Developers IPO opens on 7th April and closes on 9th April 2021. In this article, we cover the Macrotech Developers (Lodha Developers) IPO review and look into important IPO information and find out the possible prospects of the company.

 

Lodha Developers logo

 

Lodha Developers IPO Review – About the Company

The Lodha Group was founded in 1980 and incorporated in 1995 by Mangal Prabhat Lodha as a real estate developer based in Mumbai. The company mainly focused on developing residential projects for affordable and mid-income. Its projects however were mainly concentrated in the Mumbai Metropolitan Area (MMA).

As the company kept growing they also took up projects in Pune and Hyderabad. The company also ventured into luxury housing and was well known for providing world-class standards. Their luxury projects include the Trump Towers in Mumbai.

In 2010, they set a record for India’s biggest land deal when they bought a plot from the  Mumbai Metropolitan Region Development Authority for Rs. 4,053 crores. The area is currently being developed as New Cuffe Parade.

They also went global when they entered the UK market in 2013 with an investment of 400 million pounds. They have developed the Lincoln Square project and the Grosvenor Square located in Mayfair.

Lodha – India’s largest Real Estate Developer

Lodha Developers Total Assets over the years

By 2014 they were already India’s largest real estate developer by residential sales value. They continue to be at the top to date. The flats offered by them are priced in the range of 35 Lacs to 59 Cr.

Their properties are sold under various brands. These include CASA, Crown – Lodha Quality Homes for affordable and mid-income housing projects. Lodha Luxury for luxury housing projects. However, it is the affordable and mid-income housing projects which accounted for 57.77% of their revenue in 2020. 

Much of their success is owed to their strong sales network. They are spread out across India and also in GCC countries, UK, Singapore, and the US. This is done to gain access to the NRI customers. 

Profit over the years | Lodha Developers IPO review

The company is currently implementing its plans to enter the development of logistics, industrial parks, and commercial real estate. Its logistics and industrial parks are currently being developed in Pallava over 800 acres of land.

Its commercial real estate projects include corporate offices, IT campuses, and boutique office spaces. These are sold under their brand names ‘iThink’, ‘Lodha Excelus’ and ‘Lodha Supremus’.

Lodha Developers IPO Review – Key IPO Information

The promoters of the company are Mangal Prabhat Lodha, Abhishek Mangal Prabhat Lodha, Rajendra Narpatmal Lodha, Sambhavnath Infrabuild, and the Sambhavnath Trust. Its founder Mr. Mangal Prabhat Lodha has played an important role in Lodha’s success so far. He has also served as the Member of the Legislative Assembly in Mumbai for five consecutive terms.

They have appointed Axis Capital, JP Morgan India, Kotak Mahindra Capital Company, ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities (India), SBI Capital Markets, and BOB Capital Markets as the book running lead managers to the issue. 

Link Intime India Pvt. Ltd. has been appointed as the registrar to the issue. 

ParticularDetails
IPO Size₹2,500.00 Cr
Fresh Issue₹2,500.00 Cr
Offer For Sale(OFS)---
Opening DateApr 7, 2021
Closing DateApr 9, 2021
Face Value ₹10 per equity share
Price Band₹483 to ₹486
Lot Size30 Shares
Minimum Lot1
Maximum Lots13
Listing DateApr 22, 2021

It is also important to note that this is the third time Macrotech has attempted to float its IPO. Lodha Group earlier tried to list in 2009 and 2018 but backed out citing unfavorable market conditions for the realty sector. 

Purpose of the Lodha Developers IPO

The real estate firm plans to raise money for the following purposes;

  1. Reduce outstanding borrowings of the company on a consolidated basis. Rs 1500 cr.
  2. Acquire land or land development rights. Rs 375 cr.
  3. Meet general corporate purposes

Lodha Developers IPO Review – Grey Market Information 

The shares of Macrotech Developers traded at Rs 506-511 as of 4th April 2021. This shows a premium of Rs 20-25 i.e. 4-5% over their IPO price band. 

Macrotech Developers (Lodha Developers) IPO Review – Competitors 

Their competitors include real estate developers such as:

  • Godrej Properties Limited
  • Oberoi Realty Private Limited
  • DLF Limited
  • Prestige Estates Projects Limited
  • Wadhwa Group Holdings Private Limited
  • Dosti Realty Limited
  • K Raheja Corp Private Limited
  • Hiranandani Developers Private Limited
  • Indiabulls Real Estate Limited
  • L&T Realty Limited
  • Rustomjee Builders Private Limited
  • Kalpatru Limited
  • Tata Housing Development Company Limited.

In Closing

The IPO opens on 7th April and closes on 9th April 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Macrotech Developers.

That’s all for this post. Do let us know what you think of the Macrotech Developers (Lodha Developers) IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!

Barbeque Nation IPO Review 2021

Barbeque Nation IPO Review 2021 – IPO Price, Offer Dates & Details!

Barbeque Nation IPO Review 2021: The Barbeque Nation Hospitality IPO opens on 24th March and closes on 26th March 2021. In this article, we cover the Barbeque Nation IPO review and look into important IPO information and find out the possible prospects of the company. Stay with us for the next 5 minutes to get an answer to the question – Should you subscribe?

Barbeque Nation IPO Review – About the Company

Barbeque Nation Logo

Barbeque Nation Hospitality is the owner of the casual dining restaurant Barbeque Nation Restaurants, Toscano Restaurants and UBQ. They opened their first restaurant in the year 2008. Over the years they have grown to open 138 Barbeque Nation Restaurants in 73 cities across the country. 

The company also acquired the brand “Red Apple” which operates 9 Italian restaurants under the name Toscano and 1 restaurant by the name “La Terrace” in Bengaluru and Chennai. Their UBQ brand currently caters to the restaurant’s delivery segment.

They also have expanded globally by opening 7 outlets in the UAE, Oman and Malaysia. Its sheer size has made it one of the leading players in the organised casual dining segment.

ALSO READ

Suryoday Small Finance Bank IPO Review 2021 – IPO Price, Offer Dates & Details!

Key IPO Information of Barbeque Nation

Barbeque Nation Outlet

The promoters of the company include the Dhanani family which consists of Azhar Dhanani, Sadiya Dhanani, Sanya Dhanani, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani through their listed flagship Sayaji Hotels. They hold a 45.7% stake in Barbeque Nation through Sayaji Hotels Limited and Sayaji Housekeeping Services Limited.

Barbeque Nation Assets Over the Years | Barbeque Nation IPO Review

The company is also backed by CX Partners which owns 21.72% of the firm. They are also backed by ace investor Rakesh Jhunjhunwala‘s investment firm Alchemy Capital holds 2.07%. 

The issue comprises both an Offer for Sale and a Fresh Issue. The Offer for Sale includes a sale of 54,57,470 equity shares by shareholders Sayaji Housekeeping Services, Azhar Dhanani, Sadiya Dhanani, Sanya Dhanani.

The OFS also includes the sale of investment by other investors like Tamara, Aajv Investment Trust and Menu Private Limited. Despite the OFS forming a major portion ace investor Rakesh Jhunjhunwala has stated that he will remain invested in the company. 

Barbeque Nation Profit Over the Years | Barbeque Nation IPO Review

The promoters have appointed IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets as the lead managers to the issue. Link Intime India Private Ltd. has been appointed as the registrar to the issue. 

ParticularDetails
IPO Size₹452.87 Cr
Fresh Issue₹180.00 Cr
Offer For Sale(OFS)₹272.87 Cr
Opening DateMar 24, 2021
Closing DateMar 26, 2021
Face Value₹5 per equity share
Price Band₹498 to ₹500 per equity share
Lot Size30 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateApr 7, 2021

It is also important to note that the company had filed for an IPO in 2017 to raise Rs. 700 crores. The processing of the IPO however was kept in temporary suspension by the SEBI due to pending regulatory action for past violations.

The IPO was approved by the SEBI in 2018 but the company did not go ahead with the IPO due to unfavourable market conditions. In the meantime, the company raised capital from Rs 149.97 crore in its pre-IPO placement.

Barbeque Nation IPO Review – Purpose of the IPO

The proceeds from the IPO will be used for:

  • Repayment/Prepayment of all or a part of the company’s outstanding borrowings.
  • Expansion purposes and other general corporate purposes.
  • For offer for sale.

Closing Thoughts 

The IPO opens on 24th March and closes on 26th March 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Barbeque Nation.

That’s all for this post. Do let us know what you think of the Barbeque Nation IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!

Suryoday Small Finance Bank IPO Review

Suryoday Small Finance Bank IPO Review 2021 – IPO Price, Offer Dates & Details!

Suryoday Small Finance Bank IPO Review 2021: The Suryoday Small Finance Bank IPO opens on 17th March and closes on 19th March 2021. In this article, we cover the Suryoday SFB IPO review and look into important IPO information and find out the possible prospects of the company. Let’s get started.

Suryoday Small Finance Bank IPO Review – About the Company

Suryoday Small Finance Bank Logo

Incorporated in 2008, Suryoday Small Finance Bank is among the leading Small Finance Bank (SFBs)  in India.

Before becoming an SFB the Non-Banking Finance Corporation catered to the unbanked and underbanked sections of the population. They only started offering SFB services in 2017.

As of December 2020, the bank had 554 banking outlets which include 153 unbanked rural centers (URCs). Their customer base for the same period stood at 1.44 million.

They also have set up 661 customer service points (CSPs) as additional service from April 2020 and January 2021 and intend to continue expanding their reach

Suryoday SFB total assets over the years

Suryoday SFB beats its other SFB peers in terms of net interest margins, return on assets, yields, and deposit growth. They also have the lowest cost-to-income ratio among Small Finance Banks within India for FY20.

The bank predominantly operates in urban and semi-urban locations due to the greater income earning capabilities and employment opportunities in such areas in comparison to other rural regions. 

Profit over the years | Suryoday Small Finance Bank IPO review

Suryoday is a commercial bank that considers customers to be the most significant stakeholders. They have set up a strong credit process and a robust risk management framework.

Even though they are relatively new to the sector they have already introduced digital banking aspects and services like ATMs, phone banking, mobile banking, tablet banking, CSPs, and internet banking services.

The Bank loan portfolio stood at Rs 3,900 crore as of December 2020. Microloans formed 70% of these loans. The loans of the banks are concentrated in regions like Maharashtra, Tamil Nadu, and Odisha. These states make up  77% of the bank’s lending businesses.

ALSO READ

Kalyan Jewellers IPO Review 2021 – IPO Price, Offer Dates & Details!

Suryoday Small Finance Bank – Key IPO Information

Pomotors ownership pre and post IPO in Suryoday SFB

The promoters of the bank are Baskar Babu Ramachandran, P Surendra Pai, P S Jagdish, and G V Alankara. Together they represent 30.35% of the paid-up equity share capital of the bank.

Other investors in the bank include Axis Mutual Fund, ICICI Prudential Life, Two Aditya Birla group companies, SBI Life Insurance Company, Goldman Sachs, IDFC Mutual Fund, HDFC Holdings, Gaja Capital, and Kotak Mahindra Life Insurance.

The offer includes a fresh issue of 81.50 lakh equity shares and an offer for sale of 1.09 crore equity shares by existing investors.

ParticularDetails
IPO Size₹582.34 Cr
Fresh Issue₹248.58 Cr
Offer For Sale(OFS)₹333.76 Cr
Opening DateMar 17, 2021
Closing DateMar 19, 2021
Face Value ₹10 per equity share
Price Band₹303 to ₹305 per equity share
Lot Size49 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateMar 30, 2021

The promoters have appointed Axis Capital, ICICI Securities, IIFL Securities, and SBI Capital Markets as the book running lead managers to the issue. Kfin Technologies has been appointed as the registrar to the issue.

Suryoday Small Finance Bank IPO – Purpose of the IPO

Suryoday has opted for a public issue for the following reasons:

  • To raise funds for augmenting the Bank’s Tier-1 capital base to meet the Bank’s future capital requirements.
  • To meet the requirements set by the RBI where SFBs are required to list within 3 years of reaching a net worth of Rs. 500 crore.

In Closing 

The IPO opens on 17th March and closes on 19th March 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Suryoday Small Finance Bank.

That’s all for this post. Do let us know what you think of Suryoday Small Finance Bank IPO Review. Are you planning to apply for this IPO or not? Comment below. Happy investing!

Nazara Technologies IPO Review 2021

Nazara Technologies IPO Review 2021 – IPO Price, Offer Dates & Details!

Nazara Technologies IPO Review 2021: The Nazara Technologies Ltd IPO opens on 17th March and closes on 19th March 2021. In this article, we cover the Nazara Technologies Ltd IPO Review and look into important IPO information and find out the possible prospects of the company. Read the complete article which will take 5 minutes to answer the question, Should you subscribe?  

Nazara Technologies IPO Review – About the Company

Nazara Technologies Ltd logo

Founded in 1999 by Nitish Mittersain, Nazara Technologies Ltd is the leading India based gaming company. The company has offers products across interactive gaming, esports and gamified early learning ecosystems. Some of its famous games include CarromClash, World Cricket Championships and Motu Patlu series.

They have also gamified early learning in the game Kiddopia, Nodwin and Sportskeeda in eSports and eSports media, and Halaplay and Qunami in skill-based, fantasy and trivia games. Although a market leader in India the company also enjoys a good presence in Africa, South East Asia, Middle East, and Latin America.

The company is also backed by investors like Utpal Sheth and Rakesh Jhunjhunwala aka the big bull. He is known to invest in quality companies that offer multifold returns in the long run.

Earlier this month Nodwin gaming a subsidiary of Nazara where they own a 55% stake, raised Rs 164 crore from the makers of the popular game ‘PlayerUnknown’s Battlegrounds’ (PUBG)- Krafton a South Korean company.

Nazara Technologies total assets over the years | Nazara Technologies IPO Review

NazaraTechnologies have focussed on sustaining the majority of their growth through the funds they generate from their operations. This has helped them maintain positive EBITDA. They have raised Rs 12.63 crore (in two tranches – 2005 and 2007) and Rs 76.53 crore in 2018.

The company has maintained good financials with over Rs 400 crore in cash. They have invested over Rs 300 crore into other Indian gaming companies over the last 5 years.

Nazara Technologies' profit over the years

Unlike most businesses that were severely affected by the COVID-19 restriction, Nazara’s customer base boomed. They received an average of 40.17 million Monthly Active Users (“MAUs”) for Financial Year 2020. For the 9 month period ending in December, the company received an average MAU of 57.54 million.  

Nazara Technologies IPO Review- Key IPO Information

Vikash Mittersain, Nitish Mittersain, and Mitter Infotech LLP are promoters of the company. They will be taking part in the offer for sale by selling  52,94,392 equity shares or a 16.7% stake. They will rake in Rs 582.91 crore at the upper band of the IPO.

Other investors like Mitter Infotech LLP, IIFL Special Opportunities Fund, Good Game Investment Trust, IndexArb Securities and Azimuth Investments will also be selling shares in the IPO. 

Nazara Technologies IPO Review | Promotor Ownership

IIFL will be partially exiting the company. They currently hold over 21% stake and will be selling off a  14% stake in the company. Others will be selling a 2.25% stake out of their total 22.5% holdings. Rakesh Jhunjhunwala, who owns a 10.8% stake, has decided to stay invested in the company.

The promoters have appointed ICICI Securities, Nomura Financial Advisory and Securities (India) Private Limited, Jefferies India Private Limited and IIFL Securities as the lead managers to the issue. Link Intime India Private Ltd has been appointed as the registrar to the IPO.

ParticularDetails
IPO Size₹582.91 Cr
Fresh Issue---
Offer For Sale(OFS)₹582.91 Cr
Opening DateMar 17, 2021
Closing DateMar 19, 2021
Face Value ₹4 per equity share
Price Band₹1100 to ₹1101 per equity share
Lot Size13 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateMar 30, 2021

It is also important to note that this the second time that Nazara Technologies has attempted an IPO. They had earlier filed a draft red herring prospectus in 2018 but backed out citing market conditions. 

Purpose of the Nazara Technologies IPO

The company has opted for the IPO for the following two reasons:

  • To achieve the benefits of listing Equity Shares on the Stock Exchanges. 
  • To carry out Offer for Sale.

Closing Thoughts

The Nazara Technologies Ltd IPO opens on 17th March and closes on 19th Mar 2021. Before investing prospective investors must carefully consider both the future prospects and the risks associated with the company.

That’s all for this post. Do let us know what you think of Nazara Technologies Ltd IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!

Kalyan Jewellers IPO review 2021

Kalyan Jewellers IPO Review 2021 – IPO Price, Offer Dates & Details!

Kalyan Jewellers IPO Review 2021: The Kalyan Jewellers India Limited (KJIL) IPO opens on 16th March and closes on 18th March 2021. In this article, we cover the Kalyan Jewellers IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started.

Kalyan Jewellers IPO Review – About the Company

Kalyan Jewellers Logo | Kalyan Jewellers IPO review

Founded in 1993 by Mr T.S. Kalyanaraman, Kalyan Jewellers India Limited began its operations with one showroom in Thrissur, Kerala. The company designs, manufactures, and sells a variety of gold, studded and other jewellery products for various occasions like weddings, festivals, etc.

The company has come a long way in the last 28 years. Today the Jewellery company has 107 showrooms located across 21 states and union territories in India making it one of the largest gold companies in India.

Kalyan  Jewellers also boasts a strong international presence. The company has over 30 showrooms in the gulf region. They also sell jewellery through their online platform at Candere.

Growth of Kalyan Jewellers

Total Assets over the year | Kalyan Jewellers IPO review

One of the major reasons for their success has been their focus on creating a brand image that represents trust and reliability. These are paramount in the gold jewellery industry and the company focussed on this aspect ever since its inception. Once this was achieved the company focussed on its expansion needs.

Kalyan Jewellers was also the first Indian jewellery company to voluntarily opt to have all their products BIS hallmarked. In addition to this, they also ensured that all their products came with a price tag that detailed the price of various components used.

These moves enhanced customer education and transparency which was missing in the Indian markets especially in the gold jewellery industry.

Kalyan Jewellers Profit Over the Years

Keeping customers at the forefront they also have set up  750 customer support stores in India, which function as feeders to the showrooms. This has made them one of the most trustworthy brands giving them a loyal customer base. This has further enhanced their ability to operate as a hyperlocal jewellery company in the southern states. They also have out in place strong.

Kalyan Jewellers has also given emphasis to their information technology and operational management systems. These have ensured operational efficiency and best-in-class standards of controls. In addition, the company’s introduction of policies concerning inventory management and the mitigation of gold price fluctuations have been critical to their success. 

The company received investments from the Warburg Pincus Group in 2014. According to the ICRA Warburg Pincus has a 30% stake in Kalyan Jewellers. Gold Jewellery makes up 74.77% of their revenue followed by studded (diamond and precious stone) and other jewellery segments in the year 2020.

Key IPO Information of Kalyan Jewellers

The Promoters of this company are MR. T.S. KALYANARAMAN, MR. T.K. SEETHARAM AND MR. T.K. RAMESH. Mr T.S. Kalyanaraman, who has over 45 years of retail experience, of which over 28 years is in the jewellery industry.

They have appointed Axis Capital Limited, Citigroup Global Markets India Private Limited, ICICI Securities Limited, SBI Capital Markets Limited, BOB Capital Markets Limited as the lead managers to the issue. Link Intime India Private Limited has been appointed as the registrar to this issue. 

Promotors Ownership | Kalyan Jewellers IPO Review

 

Kalyan Jewellers IPO Review – Important IPO Details

ParticularDetails
IPO Size₹1,175.00 Cr
Fresh Issue₹800.00 Cr
Offer For Sale(OFS)₹375.00 Cr
Opening DateMar 16, 2021
Closing DateMar 18, 2021
Face Value ₹10 per equity share
Price Band₹86 to ₹87 per equity share
Lot Size172 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing Date:Mar 26, 2021

Purpose of the Kalyan Jewellers IPO

The net proceeds from the IPO will be used for the following purposes:

  • To finance business working capital requirements.
  • To meet general corporate purposes.

In Closing 

The IPO opens on 16th March and closes on 18th March 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Kalyan Jewellers India Limited.

That’s all for this post. Do let us know what you think of Kalyan Jewellers IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!

Craftsman Automation IPO Review 2021

Craftsman Automation IPO Review 2021 – IPO Price, Offer Dates & Details!

Craftsman Automation IPO Review 2021: The Craftsman Automation Limited IPO opens on 15th March and closes on 17th March 2021. In this article, we cover the Craftsman Automation Limited IPO review and look into important IPO information and find out the possible prospects of the company. Let’s get started. 

Craftsman Automation IPO Review – About the Company 

Craftsman Automation Limited was founded in 1986 by Srinivasan Ravi in Coimbatore in the State of Tamil Nadu. They create products for the powertrain, industrial and engineering products segment, and automotive segment. This also includes aluminium products for the automotive segment.

The company product portfolio includes material handling equipment such as hoists, crane kits, industrial gears, gearboxes, locomotive components, railway products, storage solutions, marine engines and accessories, tool room, mould base products and Special Purpose Machines (“SPM”). The SPMs also includes metal cutting and non-metal applications such as washing and leak testing solutions.

Craftsman Automation Office | Craftsman Automation IPO Review

The company has come a long way over the 32 years. They have developed strong in-house engineering and design capabilities allowing them to offer comprehensive solutions and products. Their facilities also include imported state-of-the-art computer numerical control (“CNC”) machine tools and die casting machines.

They have set up 12 manufacturing facilities across 7 cities in India, with a total built-up area of over 1.5 million square feet. These facilities have been set up in strategic locations closer to the clients in order to facilitate the clients just-in-time delivery schedules and for other logistical advantages.

The manufacturing facilities of the company include aluminium foundries, pressure die casting facilities, machining and allied facilities, heat treatment, fabrication, and assembly facilities. 

Craftsman Automation Assets over the years | IPO Review

They are currently the largest component manufacturer engaged in the machining of cylinder heads and cylinder blocks in the construction equipment industry as well as in the IMHCV segment of the commercial vehicle Industry. The company is also part of the top 4 manufacturers in cylinder block machining for the tractor industry.

Craftsman Automation Profit Over the Years

They have a long-standing list of domestic and international clients which includes:

Craftsman Automation Limited IPO Review – Key IPO Information

Srinivasan Ravi, the promoter of the company is a mechanical engineer and a first-generation entrepreneur with over 32 years of relevant industry experience. He owns a 52.83% stake in the auto component maker. Other investors in the company include IFC, Marina III (Singapore) and K Gomatheswaran hold 14.06%, 15.50% and 7.04% stake, respectively.

The IPO comprises a fresh issue of equity shares worth Rs 150 crore and offer-for-sale (OFS) of up to 45.21 lakh equity shares by promoters and existing shareholders.

Craftsman Automation Promotors ownership | IPO Review

They have appointed Axis Capital Ltd and IIFL Securities Ltd as the book running lead managers to the issue. Link Intime India Private Ltd has been appointed as the registrar to the issue.

Important Craftsman Automation IPO details

ParticularDetails
IPO Size₹823.70 Cr
Fresh Issue₹150.00 Cr
Offer For Sale(OFS)₹673.70 Cr
Opening DateMar 15, 2021
Closing DateMar 17, 2021
Face Value ₹5 per equity share
Price Band₹1488 to ₹1490 per equity share
Lot Size10 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateMar 25, 2021

Craftsman Automation’s Competitors

Craftsman Automation listed competitors include:

Craftsman Automation IPO Review – Purpose of the IPO

The proceeds from the issue will be used for the following purposes:

  • Repayment or pre-payment of the company’s borrowings.
  • Other general corporate purposes.

Closing Thoughts

The IPO opens on 15th March and closes on 17th March 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Craftsman Automation Limited.

That’s all for this post. Do let us know what you think of Craftsman Automation Limited IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!

Anupam Rasayan IPO Review 2021 cover

Anupam Rasayan IPO Review 2021 – IPO Price, Offer Dates & Details!

Anupam Rasayan IPO Review 2021: Anupam Rasayan IPO opens on March 12 to March 16, 2021. In this article, we cover the Anupam Rasayan IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started.

Anupam Rasayan IPO Review – About the Company

Anupam Rasayan IPO Review - About the Company

Anupam Rasayan began operations in 1984. Since then it has gone on to become one of the leading speciality chemicals manufacturers in India. The company is engaged in the production of custom synthesis and manufacturing of speciality chemicals. Its chemical products are used in agrochemicals, personal care and pharmaceuticals.

The company is also involved in the manufacture of speciality pigment and dyes, and polymer additives. It is important to note that 95.37% of its revenue comes from the agrochemical, personal care and pharmaceutical sectors. Revenue from other speciality chemicals accounted for 4.63%. 

Anupam Rasayan IPO Review - Company total assets

They currently have 6 manufacturing facilities based in Gujarat –  four facilities located at Sachin and two located at Jhagadia. The company also exports its products globally to countries like the United States, Japan and in Europe. They have maintained a strong long term relationship with MNC’s like Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Co. Ltd. and UPL Ltd. This has further helped them expand their product offerings. 

Anupam Rasayan IPO Review - Company Net Profit - Profit After Tax

Anupam Rasayan IPO Review – Key IPO Information

Mr Anand S Desai, Dr Kiran C Patel, Ms Mona A Desai, Kiran Pallavi Investments LLC, and Rehash Industrial and Resins Chemicals Private Limited are the company promoters. They have appointed Axis Capital Ltd, Ambit Private Ltd, IIFL Securities Ltd and JM Financial Ltd. as the book running lead managers to the issue.  KFin Technologies Private Ltd. has been appointed as the registrar to the issue.

Important Anupam Rasayan IPO details

ParticularDetails
IPO Size₹760.00 Cr
Fresh Issue₹760.00 Cr
Offer For Sale(OFS)---
Opening DateMar 12, 2021
Closing DateMar 16, 2021
Face Value ₹10 per equity share
Price Band₹553 to ₹555
Market Lot27 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateMar 24, 2021

Grey Market Premium

As of 8th March, the shares of  Anupam Rasayan India Ltd surged by Rs. 320 and were trading at Rs 875 in the Grey Market. This implied a premium of 58%.

Anupam Rasayan IPO Review – Purpose of the IPO

The net proceeds from the issue will be used for

  • Repayment of ₹556.20 crores in debt. As of 30 September, the company had a total debt of ₹814.48 crores.
  • Other general corporate purposes

Competitors

Anupam Rasayans listed competitors include:

Closing Thoughts

Anupam Rasayan has come a long way since its inception. The current global market trend where companies are also looking for a suitable alternative to Chinese firms could play an important role in Anupam Rasayan growth and open many doors for the company. Happy Investing! 

EaseMyTrip (Easy Trip Planners) IPO Review 2021

EaseMyTrip (Easy Trip Planners) IPO Review 2021 – IPO Price, Offer Dates & Details!

EaseMyTrip IPO Review 2021: The Easy Trip Planners IPO which opens on March 8th and closes on March 10, is one of the first digital company IPOs this year. In this article, we cover the EaseMyTrip (Easy Trip Planners) IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started.  

EaseMyTrip (Easy Trip Planners) IPO – About Company

EaseMyTrip IPO Review 2021 March

Founded in 2008, Easy Trip Planners Ltd is an online travel agency which offers a range of travel-related products and services which includes flight tickets, train tickets, holiday packages, hotel booking, bus tickets, cab booking services, and other value-added services which include travel insurance, visa processing, etc.

The company has offices throughout the country including major cities like Noida, Bengaluru, Mumbai, and Hyderabad. The company has also expanded its presence globally and has offices located in Singapore, the UAE, and the UK.

History of EaseMyTrip

 Easy Trip Planners offer their services through their website (EaseMyTrip) and their android and iOS mobile app. In its early years, the company started off with a B2B2C (business-to-business-to-customer) distribution channel. Here they provided travel agents access to their website in order to book domestic travel airline tickets to cater to the offline travel market in India.

By 2011 the company entered the B2C segment where they would directly assist clients in booking flight tickets through their website. By doing so they addressed the needs of the middle-class population of India by providing an easy-to-use alternative instead of travel agents.

Easy Trip Planners Net Assets

In 2013 the company entered the B2E (business to enterprise) segment where they would provide their services to corporates. They also introduced hotel bookings and holiday packages to their customers. The following year Easy Trip Planners launched their Android application.

The company also has developed an in-house technology team that focuses on providing a secure, advanced, and scalable technological infrastructure.

EaseMyTrip IPO Review – Achievements

EaseMyTrip Achievement - Profit after tax

Over the years the company has grown in leaps and bounds. One of their biggest USPs has been the end-to-end service that they provide for all travel needs making their platform a one-stop destination for all travel needs. This has made Easy Trip Planners the second largest online travel agency in India in terms of gross revenue. In order to achieve this, they have entered into various agreements with third parties, including airlines, GDS and API service providers, channel managers, IRCTC, corporate customers, and IATA.

The company provides its clients access to 400 international and domestic flights along with 1.1 million hotels in India or abroad. As of March 2019, it had 49,494 registered travel agents across major cities of India.

The company has also achieved the feat of being the only profitable online travel agency among the key online travel agencies in fiscal years 2018, 2019, and 2020 in terms of net profit margin. The expansion of the internet and smartphones across the country will only increase the company’s growth potential.

EaseMyTrip in the midst of COVID-19

What is even more impressive is the company’s performance in the midst of the pandemic. They reported a revenue of Rs 50 crore in the nine months period ended in December 2020. They also managed to recover 70% booking volumes in the third quarter of Fiscal 2021, in terms of segments in comparison to the third quarter of Fiscal 2020. 

EaseMyTrip IPO Review – Risks in the Company

One of the major weaknesses of the company is the industry it operates in. The operations of the Travel-related products and services get severely impacted in the case of pandemics which we already saw this year. The effects of COVID-19 are said to have a lasting impact on the industry. 

Easy Trip Planners IPO Review - Revenue segments

The table above shows the breakup of the sources of the online ticketing segment. Here you can see that the industry is majorly dependent on Airline ticketing. Similarly, Easy Trip Planners too generates more than 90% of its revenue through air tickets booked on its website and mobile application. Any impact on the airline industry will be carried on to  Easy Trip Planners. 

The company is also dependent on its website and mobile application for operations. Failure to adapt to technological advances or glitches in the systems could disrupt their operations.

Key IPO Information for EaseMyTrip

ParticularDetails
IPO Size₹510 Cr
Fresh Issue---
Offer For Sale(OFS)₹510.00 Cr
Opening DateMar 8, 2021
Closing DateMar 10, 2021
Face Value₹2 per equity share
Price Band₹186 to ₹187 per equity share
Lot Size80 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateMar 19, 2021

Mr. Nishant Pitti, Mr. Rikant Pittie, and Mr. Prashant Pitti are the company promoters. They have appointed Axis Capital and JM Financial as the leading book managers. KFin technologies Private Ltd. has been appointed as the registrar to the issue.

ALSO READ

Economic Calendar: Must Know Financial Events that Move the Market!

EaseMyTrip IPO Review – Grey Market Premium

The IPO has received a positive response in the Grey Market. As of March 4, the shares of the company traded at a 96% premium over the issue price. This shows that the investors are bullish on the IPO.

Shareholding pattern -EaseMyTrip IPO Review 2021

EaseMyTrip IPO Review – Purpose of the Issue

The net proceeds from the issue will be used for

  • The company will not receive any proceeds from the issue. The IPO is entirely an offer for sale for founders Nishant Pitti and Rikant Pitti, who hold 49.81% and 49.68% stake, respectively. They will each sell holdings of ₹255 crores in the issue. 
  • They also aim to achieve the benefits of listing the equity shares of the company on stock exchanges.

EaseMyTrip Competitors in the Industry

Their competitors in the industry include:

  • ClearTrip
  • MakeMyTrip
  • Yatra Online
  • OYO
  • Paytm

Closing Thoughts 

Easy Trip Planners is one of the first digital company IPO this year which has shown to have great potential thanks to the reach of the internet. The company also has maintained a consistent financial track record.

Dinesh Gupta, Co-founder of UnlistedZone stated “ The IPO market is in high spirits. Every company is trying to tap the primary market with an initial public offering. The liquidity rush is allowing every issue to demand whimsical valuations,” It is important that investors do not jump along on the bullish trend but invest only after careful evaluation of the offer. Happy Investing! 

How to apply for an IPO with Zerodha Account cover

How to apply for an IPO with Zerodha Account?

Steps to apply for an IPO with Zerodha Account: In this article, you’ll find out the exact process to apply for an IPO with Zerodha account. Investors can apply for IPO’s directly within the Zerodha console. And the best part is that the process is really simple.

Before you apply for an IPO

Obviously, you’ll need a Zerodha account if you want to apply to IPO’s with Zerodha. If you haven’t opened your account with Zerodha yet, here’s a detailed blog post on how to open your Zerodha Demat and trading account. Else, for shortcuts, you can use this direct link to open your account.

Next, you need is a UPI account. And this is nothing new. These days everyone uses UPI to make fast and secure payments. For example, you can use apps like Phonepe, Google pay, Bhim app, iMobile by ICICI, etc. Here is the link to the UPI apps and banks that allow IPO payment.

Also read: Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

How to apply for an IPO with Zerodha Account?

Here are the exact steps to apply for an IPO with your Zerodha account:

1. Go to Zerodha IPO Page. Here’s the quick link.

zerodha ipo login

Else, directly log in to Zerodha Console. Here’s the quick link.

2. On the top menu bar, go to Portfolio → IPO.

3. On this page, you can find the list of the active IPO’s.

1 sbi cards apply for an IPO with Zerodha Account zerodha console

4. Select the IPO that you wish to apply from the list of active IPOs and click on ‘Place bid’.

5. A pop-up screen will launch with IPO information. Here you can find details like issue date, issue price, market lot, discount (if any), minimum order quantity, etc.

2 sbi cards 1 apply for an IPO with Zerodha Account zerodha console

6. Next, enter your UPI id. Make sure to select the correct bank account.

3 sbi cards apply for an IPO with Zerodha Account zerodha console

7. Place your bid by entering the ‘Quantity’ and ‘Bid price’.

For the quantity, it should be minimum order quantity or the multiple of the lot size. For the ‘bid price’ you can enter any price between the offered issue price range. Anyways, for the maximum chances to get an allotment, it is recommended to use the ‘Cut-off’ price.

4 sbi cards apply for an IPO with Zerodha Account zerodha console

8. After filling the details, click on the ‘checkbox’ stating that you’ve read the prospectus and you’re are an eligible UPI bidder as per the applicable provisions of the SEBI.

9. Finally, recheck the details and click on ‘Submit’.

10. Besides, if you want to make any changes if the bidding later, simply click on ‘Bid details’ on the IPO page and make the changes.

5 sbi cards apply for an IPO with Zerodha Account zerodha console

Once submitted, you’ll receive the request to complete the “UPI Mandate” on your UPI app.

Please note that sometimes it may take a few hours to receive the UPI mandate request. Anyways, in my case, it was instantaneous and I received the payment request on my iMobile ICICI app as soon as I submitted the application on the Zerodha Console. Accept the request once you receive it to complete the process.

ICICI Bank UPI Mandate

Note: If you use Google Pay, Phonepe, or any other similar app for UPI payment, you’ll receive a similar message and notification on your phone to complete the payment.

On accepting the payment request, your UPI app will block the IPO funds in your bank account till the date of allotment. You’ll receive an SMS from the exchange once your application is placed successfully.

If you’re allotted the IPO shares, the amount will get debited from your account and shares will be credited to your demat account. On the contrary, if shares are not allotted, then blocked funds are released on the date of the payment. You can read more about the process of IPO share allotment to retail investors here.

That’s all. This is the exact step-by-step process to apply for an IPO with Zerodha Account.

Closing Thoughts

Zerodha is continuously innovating to provide a better investing and trading facility to its customer. The procedure to apply for IPO is a lot simpler now. You should definitely check it out. Further, comment below if you face any difficulty in applying for IPO using the Zerodha account. Happy Investing!

MTAR Technologies IPO Review 2021 ipo details

MTAR Technologies IPO Review 2021 – IPO Price, Offer Dates & Details!

MTAR Technologies IPO Review 2021: The MTAR Technologies IPO opens on 3rd March and closes on 5th March 2021. In this article, we cover the MTAR Technologies IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started. 

MTAR Technologies IPO – About Company

MTAR Technologies IPO Review 2021 - About the company

MTAR Technologies is the Indian leader in the precision engineering industry. The company manufactures mission-critical components with close tolerances (5-10 microns) in critical assemblies, to serve projects of high national importance. Precision engineering is a sub-discipline concerned with designing machines, fixtures, and other structures that have exceptionally low tolerances, are repeatable and are stable over time.

Its products are used in aviation, aerospace, space, defence, and nuclear power plants. The product’s applications in these sectors are critical as minute errors can lead to great damages. MTAR is able to specialize its products through its precision machining, assembly, specialized fabrication, testing, and quality control processes.

The company has precision engineering capabilities to build missile systems, aircraft components, nuclear and pressurized water reactors, aerospace engines, and many other vital components.

financials of MTAR Technologies IPO

History of MTAR Technologies

MTAR was founded in 1970 as a partnership firm. The same year they received their first order from Bharat Heavy Electricals Limited (BHEL).

The firm went onto manufacture products for companies like Hindustan Machine Tools (HMT), Indian Space Research Organization (ISRO), Defense Research and Development Organization (DRDO), Hindustan Aeronautics Limited (HAL), Gas Turbine Research Establishment (GTRE), and Aeronautical Development Agency (ADA). MTAR was incorporated into a company in 1999. 

history of MTAR Technologies

In 2008, the company began an export-oriented unit by manufacturing 500-watt megawatt reactors. The company also began substituting imports by developing import substitutes. Over the years, MTAR has developed a wide product portfolio catering to customers in diverse segments.

Currently, it has three kinds of products in the clean energy sector, 14 kinds of products in the nuclear sector, and six kinds of products in Space and Defense sectors. Its clients today include ISRO, NPCIL, DRDO, Rafael, Elbit, etc. In the Clean Energy sector, MTAR has supplied US-based Bloom Energy with hydrogen boxes and electrolyzers for over 9 years.

products of MTAR Technologies IPO Review 2021

Important projects of MTAR Technologies

Here are some important projects to which MTAR Technologies has contributed:

  • Supplied the first Vikas Engine( liquid-fuelled rocket engine in 1989)
  • Indian civilian nuclear power program
  • Indian space program
  • AGNI Program – MTAR manufactured base shroud, Fin assembly and pneumatic components. 
  • Liquid propulsion engines for GSLV Mark III. (A launch vehicle for crewed missions and dedicated science missions like Chandrayaan-2)
  • Actuators for LCA(Light Combat Aircraft) by HAL.

revenue profit of MTAR Technologies IPO Review 2021

MTAR operates through its 7 state-of-the-art manufacturing facilities in Hyderabad and Telangana. These facilities include end-to-end capabilities like precision machining, assembly, specialized fabrication, brazing and heat treatment, testing and quality control and other specialized processes.

The company also emphasizes on R&D of their manufacturing processes as it allows them to evolve their own process technologies thereby enabling them to achieve design specifications with accuracy irrespective of the size of the products. 

MTAR Technologies IPO Review: Risks in Company 

Although the company shows impressive financials investors must note that these revenues are sourced from a few clients in a niche industry. Clients like ISRO, DRDO, NPCIL, and Bloom Energy contribute major chunks to its revenue. From April to December 2020 Bloom Energy accounted for 49% of the company’s revenue to its fuel cell segment. NPCIL accounted for 27% of the revenue to its nuclear segment. ISRO and DRDO accounted for 21% of its revenue in the space and defence segment.

The company also operates in an industry where the margin for error is minute to nonexistent. Any errors could cause lots of damage and also lose the few clients the company has forever. Any changes in government policies towards the sectors the company functions in will have an adverse impact on the company’s earning potential.  The increased liberalization of the defence/space sector in favour of foreign and private companies could also have an adverse impact on the MTAR.     

MTAR Technologies IPO Review – Key Information

MTAR Technologies has appointed  IIFL Securities and JM Financial as the book-running lead managers to the IPO. KFintech Private Limited has been appointed as registrar to the IPO.

ParticularDetails
IPO Size₹596.41 Cr
Fresh Issue₹123.52 Cr
Offer For Sale(OFS)₹472.90 Cr
Opening DateMar 3, 2021
Closing DateMar 5, 2021
Face Value₹10 per equity share
Price Band₹574 to ₹575
Lot Size26 Shares
Minimum Lot Size1 Lot (26 Shares- ₹14,950)
Maximum Lot Size13 Lots ( 338 Shares - ₹194,350)
Listing Date:Mar 16, 2021

Their Promoters include Parvat Srinivas Reddy, P. Leelavathi, K. Shalini, D. Anitha Reddy, C. Usha Reddy, G. Kavitha Reddy, Anushman Reddy, P. Kalpana Reddy, Saranya Loka Reddy, A. Manogna, and M. Madhavi. 

shareholding pattern of MTAR Technologies IPO

The offer for sale by the company includes P Leelavathi selling 4,50,000 equity shares. Parvat Srinivas Reddy, Saranya Loka Reddy, G Kavitha Reddy and A Manogna each selling 3 lakh shares.  K Shalini selling 2.25 lakh shares, C Usha Reddy selling 2 lakh shares, Kalpana Reddy selling 1,49,970 shares, D Anitha Reddy selling 1.25 lakh shares. It also includes investor Fabmohur Advisors LLP and P Simhadri Reddy selling 57,84,300 equity shares and 90,000 shares, respectively.

ALSO READ

What is the Process of IPO Share Allotment to Retail Investors?

Grey Market Premium

As of 25th Feb, the shares of MTAR Technologies were trading at a price of Rs 820. This meant that its shares commanded a grey market premium of Rs 245 or 42.60% over the issue price.

MTAR Technologies IPO – Objects of the Issue

The net proceeds from the issue will be used for

  • Repayment of borrowings.
  • Financing working capital requirements
  • Other general corporate purposes

Closing Thoughts 

MTAR Technologies over the years has played a critical role in various projects of national importance. The company has several cons as seen above. It is also part of the Precision industry which is worth Rs. 4,098 Billion in India. The Auto sector forms a major component of this market followed by the Defense, Aerospace, and Aviation sectors.

The industry has grown at a CAGR of 7.1% between 2016 and 2020 and is expected to grow at a CAGR of 6-7% between 2020 and 2025. Investors must also take note of the several cons related to the niche segment the company operates in. 

That’s all for this post. Do let us know what you think of the MTAR Technologies IPO Review. Are you planning to apply for this IPO or not? Comment below. Happy Investing!

Heranba Industries IPO Review 2021 cover

Heranba Industries IPO Review 2021 – IPO Price, Offer Dates & Details!

Heranba Industries IPO Review 2021: The Heranba Ind. Ltd. IPO opens on 23rd Feb and closes on 25th Feb 2021. In this article, we cover the Heranba Industries IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started. 

Heranba Industries Review – About the Company

Heranba Industries Review - company logo

Heranba Industries Limited incorporated in 1996 is Gujarat based business engaged in the manufacturing and marketing of a range of crop protection chemicals, public health, and Animal Health solutions.

Heranba Industries Products

. Their product line also includes different types of pesticides, insecticides, fungicides, herbicides, and other pest control products. The company initially began by producing intermediate product cypermethrin acid chloride. Today the company is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, deltamethrin, lambda-cyhalothrin, etc.

Their business verticals include

(a) Domestic Institutional sales of Technicals: manufacturing and selling of Technicals in bulk to domestic companies;

(b) Technicals Exports: Exports of Technicals in bulk to customers outside India;

(c) Branded Formulations: Manufacturing and selling of Formulations under their own brands through their own distribution network in India;

(d) Formulations Exports: Export of Formulations in bulk and customer-specified packaging outside India; and

(e) Public Health: Manufacturing and selling of general insect control chemicals by participating in public health tenders issued by governmental authorities and selling to pest management companies.

Heranba Industries financials

Heranba Industries Research & Development Unit

The mission of the company is to improve crop productivity and public health. They aim to provide innovative products to farmers that enhance farm efficiency and offer better crop solutions. This is achieved by its research and product development divisions. The company is well equipped with 3 of its own in-house R&D Unit for this purpose. Two of the units are recognized by the Department of Scientific and Industrial Research (DSIR).

They also have a fully equipped in-house laboratory with all the types of laboratory equipment such as HPLC, GC’s, Polarimeters, Particle size Analysers, Spectrophotometers, and other conventional lab equipment. The company’s products; Deltamethrin and Alphacypermethrin are now recommended and included in the WHO/FAO specifications. 

Heranba Industries Manufacturing Unit

This company has 3 well-equipped manufacturing units in and around Vapi, Gujarat with an aggregate manufacturing capacity of 14,024 MTPA. Heranba is a manufacturer of Synthetic Pyrethroids and its intermediates in India.

Their products are created through advanced agro-chemical solutions based on specially developed technology. The company also has a well-balanced treatment system for the solid, liquid, and gaseous effluents and emissions generated by them.

Heranba Industries revenue

Heranba Industries Domestic and Global Markets

It has a wide network of businesses in India. Domestically it caters to customers all over India with its extensive dealership, stockist network, and skilled field sales force. It has established registrations for 18 Technicals for manufacture and sale in India, 93 Technicals & Formulations for manufacture and sale in the export markets, and 167 Formulations registered for manufacturing and sale in India. The company has more than 8,600 dealers having access to 21 depots across 16 states and one union territory in India. Their products are supplied to both Government Tenders and to Pest control companies. 

The company also has performed well in the global markets. The company exports its products to more than 60 countries through international distribution partners. The countries are spread across Latin America, CIS, Middle East, Africa, Asia, and southeast Asia. For this purpose, the company also has set up a separate registration department with qualified personnel and data support to meet each country’s regulatory requirements. This has helped its products to obtain registration in many countries.

Heranba Industries eps

Heranba Industries IPO Review – Key IPO Information

Sadashiv K. Shetty and Raghuram K. Shetty are the promoters of the company. The company has appointed Emkay Global Financial Services and Batlivala & Karani Securities India are appointed as book-running lead managers. 

Important Heranba Industries IPO details

ParticularDetails
IPO Size₹625.24 Cr
Fresh Issue₹60.00 Cr
Offer For Sale(OFS)9,015,000 Eq Shares of ₹10
Opening DateFeb 23, 2021
Closing DateFeb 25, 2021
Face Value ₹10 per equity share
Price Band₹626 to ₹627
Minimum Lot Size1 (23 Shares)
Maximum Lot Size13 (299 Shares)
Listing Date:Mar 5, 2021

Equity shares of the company will be listed on the BSE and the NSE.

Heranba Industries Review – Purpose of the IPO

The IPO proceeds will be utilized for the following purposes:

  • To meet business working capital requirements. (Rs 50 crore )
  • To meet general corporate purposes.
  • To meet public issue expenses.

Closing Thoughts

The IPO opens on 23rd Feb and closes on 25th Feb 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of  Heranba Ind. Ltd.

That’s all for this post. Do let us know what you think of Heranba Ind. Ltd. IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!

Nureca IPO Review 2021 - IPO Price, Offer Dates & Details!

Nureca IPO Review 2021 – IPO Price, Offer Dates & Details!

Nureca IPO Review 2021: The Nureca IPO opens on 15th Feb and closes on 17th Feb 2021. In this article, we cover the Nureca IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started. 

Nureca IPO Review – About the Company 

Nureca IPO Review - About the Company 

Founded in 2016, Nureca Ltd. is engaged in the distribution of healthcare and wellness products. Nureca which sells its products through the brand – Dr. Trust, Trumom, and Dr. Physio, was the first company to sell such products online through its website dr.trust.in.

The company aims to offer the best Premium quality healthcare and wellness products. It also believes in innovation and catering new products to the ever-growing Indian healthcare needs.

Nureca IPO Review - About the Company 

Nureca has a diverse product line that includes:

  • Chronic Device Products – blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifiers, and steamers.
  • Orthopedic Products – wheelchairs, walkers, lumbar and tailbone supports, and physiotherapy electric massagers.
  • Mother and Child Products – breast pumps, bottle sterilizers, bottle warmers, car seats, and baby carrycots.
  • Nutrition Supplements – fish oil, multivitamins, probiotics, biotin, apple cider, and vinegar.
  • Lifestyle Products – smart scales, aroma diffusers, and fitness tracker.

Dr trust Nureca

Over the years the company has built a strong online presence and uses this channel to sell its products to retailers, and other distributor and retail players. The company also sells its products directly to consumers through its website.

In 2019, Nureca partnered with Tata Group’s Croma to become the first company to sell healthcare and wellness products in their retail stores. Its current market includes India and its neighboring countries.

Nureca IPO Review financials

Abhay Doshi, the founder of UnlistedArena.com associated the impressive growth in sales in the first six months of FY21 to the fear of the COVID-19 pandemic and patients avoiding visiting hospitals and clinics which led to an increase in sales. He also stated that as the situation normalizes the growth trajectory will return to its previous growth trajectory.

The health market in India and its neighboring countries stood at Rs.20,757 crore in 2019 and is expected to grow to Rs.38,920 crore by 2025 at a CAGR of 11.0%.  This growth will be driven by rising awareness of Health and wellness, increasing spending power, the growing burden of chronic diseases, and the need for Healthcare stakeholders to reduce healthcare costs.

Nureca IPO Review financials

Nureca IPO Review – Key IPO Information

Saurabh Goyal is the promoter of the company. It has appointed ITI Capital as the sole book-running lead manager to the issue. 

Important Nureca Ltd. IPO details

ParticularDetails
IPO Size₹100.00 Cr
Offer For Sale(OFS)-
Opening DateFeb 15, 2021
Closing DateFeb 17, 2021
Face Value₹10 per equity share
Price Band₹396 to ₹400 per equity share
Lot Size35 Shares
Minimum Lot Size1(35 shares - ₹14,000)
Maximum Lot Size14 (490 shares- ₹196,000)

Nureca Ltd IPO Review – Purpose of the IPO

The IPO proceeds will be utilized for the following purposes:

  • To meet the working capital requirements of the business.
  • To meet general corporate purposes.

The company also expects to enhance its visibility and brand image among existing and potential customers through the IPO

Closing Thoughts

Nureca Ltd that sells its products through the brand – Dr. Trust, Trumom, and Dr. Physio, aims to offer the best Premium quality healthcare and wellness products. The IPO opens on 15th Feb and closes on 17th Feb 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and services offered by Nureca.

That’s all for this post. Do let us know what do you think of Nureca Ltd IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!

MRP Agro IPO Review - IPO Price, Offer Dates & Details! cover

MRP Agro IPO Review – IPO Price, Offer Dates & Details!

MRP Agro IPO Review 2021: With the Indian markets at an all-time high with the BSE crossing a market capitalization of Rs. 200 lakh crore we review another IPO set to be launched next week.

In this article, we cover the MRP Agro Ltd. Review and look into important IPO information and find out the possible prospects of the company. The IPO opens on 8th Feb 2021 and closes on Feb 10, 2021. Let’s get started. 

MRP Agro IPO Review – About the Company

The Company was incorporated on April 13, 2018, as MRP Agro Private Limited. The name was later changed to “MRP Agro Limited” through a special resolution passed by the Shareholders in an Extra-Ordinary General Meeting held on August 27, 2020. The company is primarily engaged in trading and import/export of food grains, fly-ash, and coal products.

The business follows B2B (Business to Business) Model, in which it purchases products from the domestic market in bulk through auctions and sells it to wholesalers. Over the last few years, the company has built a strong market for the purchase of such products domestically and an extensive distribution network for supply to its consumers.

MRP Agro IPO Review - About the Company

The company has a local mandi license to purchase food grains from the local market of Tikamgarh, Madhya Pradesh. The company is also a registered dealer with the Department of Mines & Geology, Government of Jharkhand to buy coal. Sales and marketing play a key role in ensuring that the corporate and product brands communicate and reach out to the customers in the proper way.

Due to this, the company ensures compliance with quality standards. The company also regularly communicates with the consumer on various platforms to increase awareness of our products.

 

 

MRP Agro IPO Review - About the Company financials

( Total Assets – in lakhs)

Financials: The company has produced great profits in the first half of FY21 in comparison to F19 and FY20. 

The company also issued rights shares at a price of Rs. 25 and Rs. 26.64 between October 2019 and May 2020. It has also issued bonus shares in the ratio of 4 for 10 in September 2020.

MRP Agro IPO Review – Key IPO Information

Beeline Broking Ltd. is the lead manager of the issue.  Skyline Financial Services Pvt. Ltd. is the registrar of the issue and Nikunj Stock Brokers Ltd. is acting as a Market Maker.

MRP Agro IPO Review - About the Company shareholding

Mr. Manish Kumar Jain, Mrs. Raksha Jain, and Manish Kumar Jain HUF are the company promoters. They bring with them extensive industry experience.  Mr. Manish Kumar Jain the  Chairman and Managing Director of the company has 10 years of experience in the trading industry. Together they have been instrumental towards the company.

ParticularDetails
IPO Size₹3.24 Cr
Fresh Issue₹3.24 Cr
Offer For Sale(OFS)-
Opening DateFeb 8, 2021
Closing DateFeb 10, 2021
Face Value ₹10 per equity share
Price Band₹40 per equity share
Minimum Lot Size1 Lot (3000 shares - Rs. 120,000)
Maximum Lot Size1 Lot (3000 shares - Rs. 120,000)

Post issue, MAL’s current paid-up equity capital of Rs. 2.17 cr. will stand enhanced to Rs. 2.98 cr. With this IPO, the company is looking for a market cap of Rs. 11.92 cr.

MRP Agro IPO Review – Purpose of the IPO

The key objects of the MRP Agro IPO are as follows:

  • To meet working capital requirements (Rs. 2.50 cr.).
  • To meet general corporate purposes  (Rs. 0.53 cr.).
  • To meet the issue expenditure. (Rs. 0.21cr.).

Closing Thoughts 

The MRP Agro IPO is a rare SME IPO in recent times. Despite SMEs’ having great growth prospects and the ability to scale investors must keep in mind that the market includes big players and is extremely competitive with the company still being in its nascent stages.

That’s all for this post. Do let us know what do you think of MRP Agro IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!!

Frequently Asked Questions (FAQs) about IPOs

Frequently Asked Questions (FAQs) about IPOs

IPOs have always been popular and bring a lot of excitement to the markets. We have a number of IPOs lined up for the Indian markets this year. It almost seems as if we’re making up for all the lost time. In order to help investors in their understanding of IPOs, we have compiled a list of Frequently Asked Questions (FAQs) about IPOS’s:

1. What is an IPO?

An Initial Public Offer refers to the process where a company offers its shares to the public. In an IPO, the company offers shares to investors in exchange for capital. This is one of the means through which the company raises funds. Any company that fulfills the requirements of the SEBI can go public.

2. Do Companies list on stock exchanges without an IPO?

Yes. Companies can get listed on an exchange without an IPO as long as they meet the conditions set by SEBI.

3. What are the opening and closing dates?

It is between these dates that investors are allowed to apply for the IPO.

4. What is the price band?

This refers to the lower and upper limit of the share price within which the company will offer its shares to the public. The investors are allowed to bid equal to or in between these lower and upper limits.

5. What is ‘Market Lot Size’ (Minimum and Maximum)?

In an IPO the total shares offered to the public is divided into lots. In an IPO the investors are not allowed to purchase shares of any quantity. They have to do it in lots. In addition, a minimum and maximum lot size is set beforehand. For eg. say Company A going public sets a lot size of 10 shares for each lot with a minimum and maximum lot purchase set at 1 and 10 respectively. This basically means that the minimum number of shares an investor can purchase is 10 and the maximum a 100. If an investor wants 65 shares he will not be able to do so. But he can purchase 6 lots which is the closest denomination. This is one of most Frequently Asked Questions (FAQs) about IPOs

6. Does applying for an IPO guarantee investors a certain amount of shares?

  No. Applying for shares does not guarantee allotment. Applying for shares means that you are bidding for the shares. The allotment depends on the number of bids received and the price at which these bids are made. 

7. What is the life cycle of IPO?

The IPO process includes the following steps

  1. The company approaches and appoints investment banks to act as the lead managers and registrar to the IPO issue. They then register with the SEC
  2. The lead managers prepare a draft prospectus for the IPO and file the prospectus with the SEBI.
  3. The SEBI reviews and approves the prospectus. If any changes are required they revert back to the company for the changes to be made.
  4. The lead managers bring attention to the IPO.
  5. The company along with the lead managers price the IPO and release dates for the issue.
  6. The IPO is opened for public bidding.
  7. Registrar processes IPO applications allocated them to respective DEMAT accounts and processes refunds.
  8. Shares are listed on the stock exchange.

8. What are the primary & secondary markets?

The primary market is the part of the capital market where securities are first created and sold to investors. This market deals with IPO’s. 

Secondary markets refer to the part of the capital market where they buy and sell securities which they already own. Shares can only be sold and bought here-after the listing of the company opting for IPO takes place.

9. What is Follow on public offering (FPO)?

A Follow on Public Offering(FPO) refers to when the company opts to offer shares to the public when it has already issued shares in an IPO in the past. 

10. Who decides the date of the issue?

The most appropriate offering dates are decided by the company after their prospectus is approved by SEBI.

11. How many days will an IPO remain open for the public?

An IPO remains open for at least 3 working days, but not more than 10 working days.

12. What is the listing date?

IPO listing refers to the date when the shares will begin trading at the stock exchanges.

13. What is the role of the registrar of an IPO?

The registrar is appointed by the company. They are responsible for processing IPO applications and allocating the shares to the applicants. They also process refunds or transfer of shares to Demat accounts of IPO applicants. All this is done in accordance with SEBI guidelines.

14. What is the role of Lead Managers in an IPO?

These lead managers or underwriters are independent financial institutions appointed by the company. They are responsible for coordinating all the activities surrounding the issue. The activities include getting attention towards the IPO, creating draft documents, getting the draft approved by the SEBI, etc.

15. What is the difference between the Book Building Issue and the Fixed Price Issue?

These are methods through which the issue price is set in an IPO

In the Fixed Price Issue, the company fixes a price at which the shares are offered to the investors. 

In the Book Building issue, the price band is set by the company. The investors then place their bids equal to or above the floor of the price. These bids are then sent to the lead manager who enters the bids in the book. This method helps in efficiently setting the price.

16. What is the difference between Floor Price and Cut-Off Price?

The floor price is the minimum price at which bids can be made.

The cut-off price is the offer price that is finalized by the company and the lead manager after receiving the bids. This can be any price in between the price band.

17. What is the difference between RII, NII, QIB, and Anchor Investor?

RII: Retail Institutional Investor refers to investors who apply for stocks below the value of Rs.200,000.

NII: Non-Institutional Investors refer to Investors who apply for more than Rs 2 lakhs worth of IPO shares.

QIB: SEBI has defined a Qualified Institutional Buyer as Institutional investors who are generally perceived to possess the expertise and the financial muscle to evaluate and invest in the capital markets. These include Public financial institutions, commercial banks, mutual funds, and Foreign Portfolio Investors, etc.

Anchor Investors: They are QIB’s who are the first investors in an IPO and can attract investors to the IPO. They invest an amount of Rs. 10 crores or more.

18. Is it mandatory to have a PAN number to apply in an IPO?

Yes. SEBI has made it mandatory since 2006.

19. What information should I keep after I submit the IPO application form?

-Application Number

-Copy of Payment

-Copy of Application form.

20. IPO’s are less riskier than directly investing in the stock market?

IPO’s come with their own set of risks:

– There is limited data available from the company for individual investors.

– IPO’s generally take place during bullish markets where investors are optimistic.

– It is hard to predict the price movement for listing gains. Flipping IPO’s is common if the shares make a profit on a listing day.

– Retail investors may not even be allotted shares if the IPO is oversubscribed.

21. Can I apply in an IPO through multiple applications of the same name?

No. Applying multiple times does not increase the chances of allocation. In fact, if the IPO receives multiple applications with the same PAN number then all your applications will be rejected. 

22. What is the Basis of Allocation or Basis of Allotment?

In the case where bids do not exceed the offering, the investors will be allotted shares as long as they have provided accurate and appropriate applications. If the IPO is oversubscribed then the shares may be allotted on a pro-rata basis or through a draw of lots. 

23. Can I revise or cancel my IPO application?

Yes. An investor can cancel his IPO application. 

An investor may also change his bid using. This can be done using the form for changing /revising bids that comes along with the application form. 

This however must be done before the IPO issue is closed.

24. Where do I get an IPO application form?

An investor can download the online ASBA form provided by the advisories or they can download it from the BSE/NSE website. These forms are made available 2 days before the IPO.

25. Can investors sell the stock allotted to them in an IPO before the stock gets listed?

No. An investor can place a sell order during the pre-opening time and sell when the IPO trading starts at 10 am on listing day.

26. What are the tax implications of selling IPO allocated shares on listing day?

If an investor sells his shares on listing day or within one year of listing he will be subject to pay ordinary income tax on the gains. Beneficial capital gains tax rates are applicable only in case the shares are sold after one year in the case of IPO. This is the most common concern amongst traders and investors when we talk about Frequently Asked Questions (FAQs) about IPOs

27. How many days issue takes to list in the market?

It takes 6 days for a stock to get listed on an exchange after the IPO is closed. This period is expected to be reduced to 3 days by market regulators in the coming future.

28. How is the listing price calculated?

The listing price is calculated based on the market forces of demand and supply for the company shares.

To Conclude…

We hope that the list above answers most of the questions which most of the investors have. That’s it from us in this write up about Frequently Asked Questions (FAQs) about IPOs. We will see you in our next meeting.

Brookfield REIT IPO Review – IPO Price, Offer Dates & Details!

Brookfield REIT IPO Review

It almost looks like we are already making up for all the lost time from 2020. It at least seems that way in the primary markets with IPO’s every other week. In this article, we cover the Brookfield REIT IPO Review and look into important IPO information and find out the possible prospects of the company.

About the Company – Brookfield REIT IPO Review

Brookfield  Real Estate Investment Trust India is the Indian REIT wing of the Canadian asset manager Brookefield Group. The company is looking to raise Rs. 3,800 crore this week during its IPO from 3-5 Feb 2021. REITs are listed entities that invest in income-generating properties and distribute at least 90 percent of their income proceeds to unit-holders through dividends. The company has 4 large campus-format office parks strategically located in Mumbai, Noida, Gurugram, and Kolkata. They have a Committed Occupancy of 92% and leased to marquee tenants with 75% of Gross Contracted Rentals. Their clients include MNC’s like Barclays, Bank of America Continuum, RBS, Accenture, Tata Consultancy Services, and Cognizant. The company currently owns 1.4 crore square feet of its commercial properties across the country. The company is also looking to add another 1.5 crore square feet of space in the next few years.

Brookefield REIT owns $17 billion across real estate, infrastructure, renewable power, and private equity in India. The company also owns seven toll roads totaling more than 600 km of roadway, solar and wind assets,  construction business, and real estate management services.

So far there have been only two other Reit IPO’s in the Indian markets. Those being the Embassy REIT IPO launched in April 2019, the Mindspace REIT IPO which was launched in July 2020 in the midst of the pandemic. However, Brookfield REIT is the only institutionally managed public commercial real estate vehicle in India.

(Rs. in millions)

WFH and Office Parks

Investors may be concerned when it comes to responses given by companies during the pandemic. Most of the companies shifted their activities to the Work From Home(WFH) mode of functioning. This could have been a challenge to the office parks like those provided by Brookefield. But the company has stated that there is no data to suggest that the WFH concept is the new normal and exuded confidence that benefits like closely working together for productivity purposes will eventually get teams to work from offices. Brookefield REIT also stated that they have over 90% occupancy at present. All the properties have been working through the lockdown. Their collections have been over 98% and 5 lakh square feet of space has been re-leased during the pandemic.

 Experts have also stated that the IPO could not have come at a better time as the real estate markets in India have matured and there could be a correction within 3 months when the loan moratorium period ends. 

Brookefield REIT going public would also encourage more real estate owners to go for REIT listing and being a global company can also further increase the inflow of capital into the domestic real estate. 

Key IPO Information – Brookfield REIT IPO Review

BSREP India Office Holdings V Pte. Ltd is the promoter of the company. Morgan Stanley India Co., DSP Merrill Lynch Ltd, Citigroup Global Markets India Pvt, and HSBC Securities and Capital Markets (India) Pvt. have been appointed as the global coordinators and book-running managers to the issue.

Following are the key details for the IRFC IPO:

ParticularDetails
IPO Size₹3,800.00 Cr
Fresh Issue₹3,800.00 Cr
Offer For Sale(OFS)Nil
Opening DateFeb 3, 2021
Closing DateFeb 5, 2021
Face Value ₹10 per equity share
Price Band₹274 to ₹275 per equity share
Minimum Lot Size200 Shares
Maximum Lot Size-
Listing Date:Feb 17, 2021

Purpose of the IPO

The net IPO proceeds are proposed to be utilized for the following objectives:

  • To make partial or full payment of existing indebtedness of the Asset SPVs.
  • To meet general corporate purposes.

Closing Thoughts – Brookfield REIT IPO Review

 Looking back at other REIT IPOs, both Embassy Office Parks REIT and Mindspace Business Park REIT are currently trading at a premium to their issue price. These companies are worthwhile investments for long term investors who look for steady incomes. REITs receive stable rental income and this is transferred to the unitholders in the form of dividends. Let us know what you think about the Brookefield REIT IPO.

Happy Investing! 

STOVEKRAFT IPO REVIEW 2021 IPO details

StoveKraft IPO Review 2021 – IPO Price, Offer Dates & Details!

StoveKraft IPO Review 2021: A vaccine on the rollout and the financial market at an all-time high, it seems that the companies are making up for all the lost time from 2020 for IPO’s. Stove Kraft IPO will be the fourth public issue of 2021. This follows the recently concluded IRFC IPO and Indigo Paints IPO and ongoing HFFC IPO. 

In this article, we cover the Stovecraft IPO Review and look into important IPO information and find out the possible prospects of the company.

StoveKraft IPO: About the Company

Stove Kraft is an emerging global home solutions brand and is already one of the largest Kitchen appliance suppliers in India. Founded in 1999, today, the company is engaged in the manufacture and retail of over 660 kitchen solutions cookware, cooking appliances, household utilities, and others.

One would come across these products under the brand name “Pigeon” and “Gilima” in the market. The two brands have been around for 13 years and enjoy a high market recall. In 2019, the company also started manufacturing Pigeon LED products. The company is also planning to cover premium and semi-premium kitchen solutions under the brand “Black + Decker”.

Pigeon Induction Base

Stove Kraft also has a strong distribution network of 651 distributors in 27 states and 5 union territories and 12 distributors for exports and under the “Gilima” brand, it has 65 stores across 4 states and 28 cities in India. The company also has a global presence through countries like the USA, Mexico, Kenya, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait, etc.

The company has well-equipped manufacturing facilities in Bengaluru (Karnataka) and Baddi (Himachal Pradesh). The Bengaluru facility focuses on the manufacture of Pigeon and Gilima branded appliances. The Baddi facility on the other hand focuses on the Oil Company Business (OCB) to manufacture products like LPG stoves, inner lid cooker, etc.

The company has a very strong brand name in the Indian markets. The brand Pigeon was listed as one of “India’s Most Admired Brands 2016 by the White Page International. The company also has had a co-branding initiative for over 7 years with LPG companies such as Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Ltd to utilize their sale and distribution channels.

Key StoveKraft IPO Information

The promoters of the company are Rajendra Gandhi and Sunita Rajendra Gandhi. They together hold 61.31% of the pre-offer paid-up equity capital. The company also has 14.92 lakh shares held by Sequoia Capital India Growth Investment Holdings I, and 60.07 lakh shares held by SCI Growth Investments II.

Key Stove Kraft IPO Information

ParticularMarch 2018March 2019March 2020Sept 2020 (6 Months)
Revenue5,289.526,409.386,698.613,288.36
Profit/(Loss)-1207.3331.6287.73
Diluted EPS-4.950.271.059.57

(Note:  Source: RHP)

Stove Kraft filed for an IPO with SEBI in February last year. The company has appointed  Edelweiss Financial Services and JM Financial as the book running lead managers to the offer. KFin Technologies Private Ltd will be the registrar for the IPO.

Following are the important details on the IRFC IPO

ParticularDetails
IPO Size₹412.63 Cr
Fresh Issue₹95.00 Cr
Offer For Sale(OFS)8,250,000 Eq Shares of ₹10
Opening DateJan 25, 2021
Closing DateJan 28, 2021
Face Value₹10 per equity share
Price Band₹384 to ₹385 per equity share
Lot Size38 Shares
Minimum Lot Size1 i.e. ₹14,630
Maximum Lot Size13 i.e. ₹190,190
Listing DateFeb 5, 2021

StoveKraft IPO – Purpose of the IPO

The net IPO proceeds are proposed to be utilized for the following objectives:

  • To make the repayment or prepayment payment of the company’s borrowings fully or partially
  • To meet general corporate purposes.

Stove Kraft IPO – Grey market information: The shares of Stove Kraft were reported to be carrying a grey market premium of Rs 101 i.e. 26% over the IPO price.

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How to Choose an IPO for Investing? Key Things to Know!

Closing Thoughts

Stove Kraft despite being one of the largest Kitchen appliance suppliers but still has a few concerns. The brand Pigeon which contributes 80% of its sales is under dispute. The company broke even only two years ago and has been profitable for only 2 years.

Despite posting exceptional profits in the coming years especially in the first half of final year 21 these concerns are to be noted before investing in the IPO. Happy Investing!