Tag: initial public offer

Hexaware picks 5 i-banks for mega IPO at $5-6-billion valuation, India’s biggest in IT services since TCS

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

US private equity giant Carlyle has finalised a syndicate of five investment banks as it gears up to take portfolio firm Hexaware Technologies public and unlock value through a big-bang IPO this fiscal, multiple industry sources told Moneycontrol.

“Carlyle has shortlisted Kotak Mahindra Capital, Citi and JP Morgan as the lead banks, along with IIFL Capital and HSBC Securities . The IPO will provide a partial exit window for Carlyle,” said one of the persons above.

Two other persons confirmed the making of the syndicate.

“The deal is likely to be kicked off this week. These are early days and no size and valuations have been finalised as yet, but the plan is to raise around a $1 billion (Rs 8,350 crore) at a valuation ranging between $5 billion and $6 billion (Rs 41,750 crore to Rs 50,100 crore), though this might change later depending on market conditions,” a fourth person told Moneycontrol.

If the listing plans fructify, it would be India’s biggest IT services IPO in rupee terms since the Rs 4,713-crore issue of TCS back in 2002.

All the four persons above spoke to Moneycontrol on condition of anonymity.

In response to an email query from Moneycontrol, Carlyle, which holds more than 95 per cent in Hexaware Technologies and HSBC Securities, declined to comment.

Moneycontrol is awaiting a response from Hexaware while the other investment banks could not be reached for an immediate comment.

Carlyle acquired Hexaware in 2021 from rival private equity firm Baring Private Equity Asia (now EQT) for around $3 billion.

A successful listing attempt would mark the return of Hexaware Technologies to the domestic bourses after 22 years. According to NSE data, it first listed on June 14, 2002.

The earlier promoter Baring Private Equity Asia had delisted the firm in 2020.

A closer look at Hexaware

Hexaware Technologies is a global technology and business process services company based out of Mumbai with 50 offices across 19-plus countries and a workforce of more than 30,000 and a client base of more than 370 . According to its website, the firm has clocked $1.3 billion in annual revenues.

Earlier this month, in a bid to bolster its data and analytics capabilities, the firm announced the acquisition of Softcrylic, a data consulting firm headquartered in Minneapolis.

“Gen AI, coupled with old-fashioned AI, will open myriad opportunities for every business to become more efficient and create disruptive new business models. However, some fundamentals don’t change. Every business in every industry wants to transform into a platform-based business. While gen AI will help accelerate that journey, it will not replace human talent, problem-solving, and creative capabilities,” R Srikrishna, CEO of Hexaware Technologies, said in the firm’s 2023 annual report, alluding the impact of artificial intelligence (AI).

“We are rapidly pivoting Hexaware to an AI-first world. We’ve trained over 15,000 tech employees (approximately 80 percent of our tech talent) and created transformative solutions that redefine every facet of our operations,” he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Veefin Solutions IPO to open on June 22: Check price, issue size, key details

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Veefin Solutions Limited (formerly known as Veefin Solutions Private Limited), a digital Lending and Supply Chain Finance (SCF) technology product solutions company, will launch its initial public offering (IPO) on Thursday i.e. June 22. The issue price of the Rs 4,673.34-lakh IPO has been fixed at Rs 82 a share and will be open till June 26.

Proceeds of the public issue will be used for global sales and marketing expenditure, developing new products or enhancement and maintenance, upgrading or updating existing products and general corporate purposes, the firm stated.

Following the IPO, company’s shares will be listed on the on BSE SME, SME Platform of Bombay Stock Exchange. Shreni Shares Pvt. Ltd. is the lead manager of the issue.

The initial public offering will comprise of 56,99,200 equity shares of face value Rs 10 each at a price of Rs 82 per share (including a premium of Rs 72 per equity share) aggregating Rs 4,673.34 lakh. Minimum lot size for the application is 1,600 shares which translates in to Rs 1,31,200 per application. As part of the IPO, 50 percent of the shares are allocated for retail investors. Market maker reservation portion is 2,88,000 equity shares, the company said.

Incorporated in 2020, Veefin Solutions Limited (formerly known as Veefin Solutions Private Limited) was founded by Raja Debnath and Gautam Udani. The company provides Digital Lending and Supply Chain Finance (SCF) white-labeled technology products for lenders. Veefin provides this product to a wide range of clients globally, including banks, non-banking financial institutions, fintech, and marketplaces.

For FY 21-22 the company reported total revenue of Rs 655.19 lakh and net profit of Rs. 70.01 lakh. For ten months ended January 2023 (10MFY23), the company reported revenues of Rs 1262.36 lakh and net profit of Rs 350.02 lakh. As on January 2023, net worth of the company stands at Rs 4,293.21 lakh, total assets at Rs 4,821.70 lakh and reserves and surplus at Rs 2459.43 lakh, the firm said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BYJU’s looking at raising up to $1 billion via IPO for its Aakash unit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Edtech major BYJU’s is in talks with bankers to list its offline coaching chain Aakash, in the beginning of 2023, people in the know of the matter told MoneyControl.com.

“Aakash is profitable and is a strong brand that is better understood in India. Investors were of the view that it should be listed here,” the website stated, quoting sources.

The sources also added that BYJUs has ambitions of a US listing, however it may happen after its subsidiary Aakash is listed.

The initial public offering’s (IPO) size could be in the range of a billion dollars, which would value Aakash to around $3.5-$4 billion. The company expects to file the papers in January and list by the first half of FY24.

BYJU’s has delayed its own IPO due to uncertain macroeconomic conditions that led to public shareholders dumping their shares of loss-making firms.

Shares of loss-making tech firms such as Paytm, Zomato have been down over 50 percent from the beginning of this year.

BYJU’s also reported a 20x rise in its loss for the 2020-21 fiscal year at Rs 4,589 crore and a revenue of Rs 2,428 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

eMudhra IPO subscribed 2.72 times on final day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The initial public offer (IPO) of digital signature certificate provider eMudhra was subscribed 2.72 times on the last day of subscription on Tuesday. The Rs 412.79 crore IPO got bids for 3,09,02,516 shares against 1,13,64,784 shares on offer, according to NSE data.

The portion meant for Qualified Institutional Buyers (QIBs) received 4.05 times subscription, while the category for Retail Individual Investors (RIIs) got subscribed 2.61 times and non-institutional investors 1.28 times. The IPO had a fresh issue of up to Rs 161 crore and offer for sale of up to 98,35,394 equity shares.

Price range for the offer was at Rs 243-256 per share. On May 19, eMudhra Ltd raised Rs 124 crore from anchor investors.

Also Read: Exclusive | Pepperfry likely to raise Rs 2,500 crore through IPO, may file DRHP in July 2022

Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data centre proposed to be set up in India and overseas locations, develop products, investment in eMudhra INC and for general corporate purposes. IIFL Securities, YES Securities (India) and Indorient Financial Services were the managers to the offer.

eMudhra is the largest licensed certifying authority in India with a market share of 37.9 percent in the digital signature certificates market space in the 2021 financial year, having grown from 36.5 percent in FY20. The company has been engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations.

Also Read: Delhivery makes decent Dalal Street debut as shares list at premium over issue price

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aether Industries IPO to open on May 24, price band fixed at Rs610-Rs642 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Speciality chemicals company Aether Industries on Thursday said it has fixed a price band of Rs 610-642 for its Rs 808 crore Initial Public Offering (IPO). The initial share-sale will open for public subscription on May 24 and conclude on May 26. The bidding for anchor investors will open on May 23, the company announced.

The company has cut the size of the fresh issue of equity shares to Rs 627 crore from Rs 757 crore planned earlier, following the pre-IPO placement. Apart from the fresh issue, there will be an offer-for-sale (OFS) of up to 28.2 lakh equity shares by the promoter. At the upper-end of the price band, the public issue is expected to fetch Rs 808 crore.

Proceeds from the fresh issuance will be used to fund capital expenditure requirements for the proposed new project in Surat, Gujarat, fund working capital requirements and for payment of debt.

Also Read: Ethos IPO opens and brokerage firms say subscribe for long term

Half of the issue size has been reserved for qualified institutional investors, 35 percent for retail investors and the remaining 15 percent for non-institutional investors. Investors can bid for a minimum of 23 equity shares and in multiples of 23 thereafter.

Aether Industries is a speciality chemicals manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies. It started with a research and development (R&D) unit in 2013 and began commercial production in 2017. It caters to the pharmaceutical, agrochemical, material science, electronic chemical, high performance photography and oil and gas industry segments.

The company’s operating revenue grew to Rs 450 crore in FY21, from Rs 302 crore in FY20. Its net profit climbed to Rs 71 crore in FY21, from Rs 40 crore in FY20. HDFC Bank and Kotak Mahindra Capital Company are the book running lead managers to the issue.

Also Read: eMudhra IPO to open for public subscription on May 20

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rainbow Children’s Medicare IPO to open on April 27

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Rs 2,000-crore initial share sale of multi-speciality pediatric hospital chain Rainbow Children’s Medicare Ltd will open for public subscription on April 27.

The-three day Initial Public Offering (IPO) will conclude on April 29 and the bidding for anchor investors will open on April 26, the red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI) showed on Thursday.

The public issue comprises a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares by the selling shareholders. Those selling shares in the OFS are promoters — Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla, promoter group entity Padma Kancharla and investors British International Investment plc (formerly known as CDC Group plc) and CDC India. The offer also includes a reservation of up to 3 lakh shares for subscription by eligible employees.

Also Read: Sports shoes company Campus Activewear to go public on April 26

According to market sources, the IPO size is expected to be more than Rs 2,000 crore. The company proposes to utilise the net proceeds from the fresh issue towards early redemption of non-convertible debentures (NCDs) issued by the company in full, capital expenditure towards setting up of new hospitals, purchase of medical equipment for such new hospitals and general corporate purposes.

Rainbow, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in Hyderabad in 1999.Since then, it has established its reputation as a leader in multi-speciality pediatric services, with strong clinical expertise in managing complex diseases.

As of December 20, 2021, Rainbow operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds. Its core specialities are paediatrics, which includes newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care (including multi-organ transplants) and obstetrics and gynaecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.

Also Read: Campus shoes IPO expected to hit in May, company to expand distribution footprint

Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the books running lead managers to the issue.

The equity shares are proposed to be listed on the BSE and NSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedant Fashions IPO opens today: Key things to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The initial public offering (IPO) of Kolkata-based Vedant Fashions Limited, the owner of ethnic wear brands Manyavar, will open for subscription today.

Vedant Fashions has set a price band of Rs 824-866 per share for the public issue. At the upper end of the price band, the issue is expected to fetch Rs 3,149 crore.

This will be the third public issue of the year, following AGS Transact Technologies and Adani Wilmar. The public issue will open for subscription on February 4 and close on February 8. Anchor investors will be able to bid for the issue on February 3.

According to market observers, the shares of Vedant Fashions are commanding a premium price of Rs 105 in the grey market, a Mint report earlier said. The public issue will be entirely an offer-for-sale (OFS) of 36,364,838 equity shares by existing shareholders and promoters Ravi Modi, Shilpi Modi and Ravi Modi Family Trust. It will not consist of a fresh issue of equity shares. The Ravi Modi Family Trust is expected to trim its stake in the company by selling up to 18,182,432 equity shares.

Also Read: Centre to offload at least 5 percent stake in LIC IPO: Report

Other shareholders like Rhine Holdings and Kedaara AIF are likely to offload 17,459,392 and 723,014 equity shares, respectively, Financial Express earlier reported. Vedant Fashions will not get any proceeds from the issue as it is an OFS. The Securities and Exchange Board of India (SEBI) had given its approval to Vedant Fashions to float the IPO on January 18. It filed the draft red herring prospectus on January 22.

Only 35 percent of the issue will be available for retail investors, while half of it is reserved for Qualified Institutional Buyers (QIB).

Also Read: US stock markets closing: How S&P 500, Dow Jones, Nasdaq, Russell 2000 fared on Thursday

The rest 15 percent will be available for non-institutional investors. Investors can bid in lots of 17 equity shares and in multiples.IIFL Securities, Axis Capital, ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital are acting as the book-running lead managers for the Vedant Fashions issue, while KFintech Private Limited is its registrar.

Vedant Fashions Limited is a leading retail fashion brand that sells wedding and celebration wear. ‘Manyavar’, the company’s flagship brand, is a market leader in wedding and celebration wear for men segment. The company also owns and runs other brands like Twamev, Manthan, Mohey and Mebaz. As of September 2021, the company had 546 exclusive brand outlets in India, US, Canada and the UAE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IPO-bound India1 Payments aims to deploy 20,000 ATMs in next 4-5 yrs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

IPO-bound India1 Payments Ltd, which is currently rolling out 300-400 ATMs in a month, is hopeful of deploying over 20,000 such machines in next 4-5 years to ensure cash availability to customers in semi-urban and rural areas, its MD and CEO K Srinivas said on Sunday. “The hike in interchange fees by RBI coupled with various structural growth drivers, including expected increase in cash withdrawal transactions, will accelerate White Label ATMs deployments in the country,” he said.

The ATMs which are set up, owned and operated by non-bank entities are known as White Label ATMs (WLAs). At present, the Bengaluru-headquartered company operates a network of 10,300 WLAs and deploys its ATMs under the brand name of “india1ATMs”.

It is the second largest ATM brand in the semi-urban and rural areas after State Bank of India (SBI). India1 Payments, promoted by the Banktech Group of Australia and formerly known as BTI Payments, has installed these machines mostly in semi-urban and rural areas across 14 states and union territories.

“In the calendar year 2021 India1 has rolled out in excess of 3,000 ATMs and likely to continue at the same pace in next 4-5 years given the low penetration of ATMs in semi-urban and rural India. That should put India1 in good stead to be a large ATM network with over 20,000 ATMs,” Srinivas told PTI. He further said the company will continue to focus on states like UP, Bihar and West Bengal which has low penetration of ATMs.

The company focuses on ensuring availability of cash in its ATMs, especially those located in rural areas. “We are mindful that when a customer comes to our ATMs in rural areas after travelling 8-9 kms then he should be able to withdraw money,” he said.

Srinivas said the company may consider deploying ATMs in the northeast region next year. Currently, the company has no presence in the area. “We are committed to improving financial inclusion through accessibility of our ATM services in the under-penetrated semi-urban and rural areas of the country,” he said.

According to the latest data from the RBI as of September, there were 2.4 lakh ATMs in the country, of them around 28,000 are white-label machines. The company has grown over 15 per cent over last year and accounts for more than 50 per cent of incremental ATMs deployed in this period.

It services over 72 million customer transactions and facilitates a gross transaction value of over Rs 13,600 crore every quarter on an average. On the company’s future growth strategy, Srinivas said the company will continue to expand ATM network in semi-urban and rural regions, improve local operational capabilities and drive profitability through customer engagement and cost optimization. In addition, the company will focus on offering the micro-ATM services in remotest areas among others, he added.

India1 Payments, promoted by Banktech Group, was incorporated in the year 2006 and subsequently invested by ICICI Ventures in 2013. The company, which has already received Sebi’s go-ahead to float initial share-sale, plans to come out with its public issue in coming months.

The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 150 crore and an offer of sale (OFS) of 1.03 crore equity shares by promoters and investors. The OFS consists of sale of 1 lakh equity shares by the Banktech Group, up to 25.08 lakh equity shares by BTI Payments Singapore, up to 49.94 lakh equity shares by India Advantage Fund S3 I, up to 24.86 lakh equity shares by India Advantage Fund S4 I and up to 2.16 lakh equity shares by Dynamic India Fund S4 US.

Proceeds from the fresh issue will be utilized to repay debt, for funding capital expenditure requirements of the company, setting up of ATMs in India and general corporate purposes.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IPO boom: Investment bankers collected Rs 2,200 crore in fees in 2021, say reports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Driven by a historic IPO boom, Indian investment banks collected Rs 2,200 crore in fee from public offerings and share sales last year, said reports.

The advisory fee collected by investment bankers through share sale proceeds are said to be the highest ever, said news agency PTI. In 2020, Indian I-bankers collected Rs 776.7 crore, The Economic Times reported quoting data from Refinitiv.

Despite COVID-19 uncertainties, around 110 companies, led by new-age tech firms and start-ups, listed their shares on Dalal Street last year, raising a whopping $18 billion, data compiled by Bloomberg showed.

“It was an extraordinarily busy year,” Bloomberg quoted Jayasankar Venkataraman of Kotak Mahindra Capital, as saying.

Top listings included that of payments giant Paytm’s parent One97 Communications, food delivery start-up Zomato, Policybazaar’s parent PB Fintech and beauty start-up Nykaa. Other than this, CarTrade, Kalyan Jewellers, Easy Trip, Aditya Birla Sun Life AMC, Clean Science, Fino PayBank, Sona BLW, MTAR Technologies, Laxmi Organic and Nazara Technologies also listed on the bourses in 2021.

SBI Caps mopped up the maximum banking fee among I-bankers with a 7.8 percent wallet share and $86.9 million in related fees, PTI reported.

Although many more share sales are lined up for 2022, including the mega listing of Life Insurance Corporation, investors are likely to be more selective, cautious and sensitive to valuation, Atul Mehra of JM Financial told ET.

Despite the boom last year, experts feel the fee collected by I-bankers in India is lower than their global counterparts.

“Bankers have strengthened their team sizes and sharpened their expertise to cater to the diverse IPO mandates. But the fees as a percentage in India are significantly lower than the global fees,” Mehra said.

Read Also | IPO financing makes primary market riskier for small investors

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IPO craze to continue in March quarter; 23 cos line up public issues worth Rs 44,000 cr

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The IPO rush is far from over and the primary market will see frenetic activity in the March 2020 quarter with nearly two dozen companies are looking to collectively raise nearly Rs 44,000 crore through initial share-sales, merchant bankers said. Of the total fundraising, a large chunk will be garnered by technology-driven companies.

This comes after 63 companies mopped up a record Rs 1.2 lakh crore in 2021 through initial public offerings (IPOs) even as the pandemic gloom shadowed the broader economy. Apart from these firms, PowerGrid InvIT (Infrastructure Investment Trust) mopped up Rs 7,735 crore through its IPO, while Brookfield India Real Estate Trust raised Rs 3,800 crore through REIT (Real Estate Investment Trust).

Excessive liquidity, huge listing gains and increased retail investor participation spurred a persistent euphoria in the IPO market in 2021. The firms that are expected to raise funds through their IPOs during the March quarter include hotel aggregator OYO (Rs 8,430 crore) and supply chain company Delhivery (Rs 7,460 crore), the merchant bankers said.

In addition, Adani Wilmar (Rs 4,500 crore), Emcure Pharmaceuticals (Rs 4,000 crore), Vedant Fashions (Rs 2,500 crore), Paradeep Phosphates (Rs 2,200 core), Medanta (Rs 2,000 crore) and Ixigo (Rs 1,800 crore) are expected to float their initial share-sales, they added. Also, Skanray Technologies, Healthium Medtech, and Sahajanand Medical Technologies are likely to come out with their IPOs during the period under review, the merchant bankers said.

These firms are raising funds for organic and inorganic growth initiatives, debt payments and giving exits to existing shareholders. “Initial public listing by the companies is done to raise capital through the public which increases the liquidity of the share as well as helps in valuation discovery,” said Eklavya, founder, Recur Club.

LearnApp.com founder and CEO Prateek Singh said the tech companies now want to expand globally and to do that, they will require capital; and this capital is being picked up through the IPO route. Besides, anchor investors in these companies have been waiting for an exit to get rewarded, this exit is being offered to the anchor investors through the IPO route, he added.

The continued activity in the primary market comes at a time when Sebi has decided to tighten the IPO rules to tackle the extreme volatility in the stock prices on their listing day. These measures include putting a cap on the quantum of issue proceeds a company can use for unidentified inorganic growth, as well as restricting the number of shares that can be offered by selling shareholders and increasing the lock-up of shares subscribed by anchor investors.

Yash Ashar, partner and head (capital markets) at Cyril Amarchand Mangaldas, said: “Inability to raise money for future unidentifiable acquisitions would impact capital raising plans of some unicorns, particularly, where such companies may not have any other use of capital and where existing shareholders are not keen to sell.” He added that these amendments are mainly a reaction to several IPOs in 2021. “These proposed changes to the law could have a long-term impact… These changes may impact plans of issuers planning to list on Indian stock exchanges,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow