Tag: IPO Listings

IPO Watch: Global Surfaces, Divgi TorqTransfer — some top IPOs and their performance after listing

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

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The initial share sale of companies with a robust management and financial track record finds huge number of buyers in the primary market, which results in higher subscription. Initial Public offering (IPOs) are the main route for a company to get listed and enjoy the opportunities offered on the Indian stock exchanges.

The higher demand of shares in an IPO is adequate for the companies counting on for listing day gains and for long-term bets as well.

“Out of Divgi Torqtransfer Systems and Avalon Technologies Limited IPOs, which were for partially or fully offer for sale (OFS), only Global Surfaces has given tremendous return to the investors. Whereas Divgi Torqtransfer Systems has given only 10 % return and Avalon Technologies has not performed as per investor’s expectations,” said Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio.

“We believe that OFS or fresh issue does not have any direct impact on the performance of the IPOs. OFS just is a route for existing investors / promoters to sell their holdings from the company, which doesn’t mean that the future outlook of the company is not good,” Sinha said.

The OFS or offer for sale mechanism is a simpler method of share sale through the exchange platform for listed companies. Unlike a follow-on public offering (FPO), where companies can raise funds by issuing fresh shares or promoters can sell their existing stakes, or both, the OFS mechanism is used only when existing shares are put on the block. Only promoters or shareholders holding over 10 percent of the share capital in a firm can come up with such an issue.

Below are some top IPOs and their performance after listing:

1) Global Surfaces Limited: Shares of Global Surfaces Ltd made their positive market debut on stock exchanges with the stock listing at Rs 164 apiece on the NSE, a premium of more than 17 percent as compared to its IPO issue price of Rs 140 per share.

The initial share sale comprised of fresh issuance of 85.20 lakh equity shares and an OFS of up to 25.5 lakh equity shares by promoters — Mayank Shah and Sweta Shah.

The current share price of the stock is Rs 214.20 on NSE, up 36.73 percent in the last one month.

Global Surfaces Ltd’s IPO was subscribed 12.21 times by the final day of the offer on March 15, 2023. The offer received bids for 9.46 crore equity shares against 77.49 lakh shares on offer.

2) Sah Polymers Limited: The IPO of polymer manufacturer Sah Polymers was subscribed over 17 times on the last day of subscription. The initial share-sale received bids for 9,79,44,810 shares against 56,10,000 shares on offer. The offer had opened for public subscription on December 30, 2022 and concluded on January 4, 2023.

Sah Polymers IPO consisted of a fresh issue of 1,02,00,000 equity shares, with no OFS component.

It debuted on January 12, 2023 on the stock exchanges. The stock is currently priced at Rs 72.72 on the BSE and Rs 72.30 on the NSE, up nearly 11.88 per cent since listing.

3) Divgi TorqTransfer Systems Limited: The share of Divgi TorqTransfer Systems made a decent debut on the bourses. At present, the stock is commanding Rs 647.85 per share on BSE and 647.05 apiece on the NSE.

The company’s initial public offering or IPO opened on March 1 and concluded on March 3 with a subscription of 5.44 times.

Divgi TorqTransfer Systems IPO comprised of fresh issue aggregating up to Rs 180 crore and an OFS of up to 39,34,243 shares.

4) Radiant Cash Management Services Limited: Shares of Radiant Cash Management Services had a good debut on Dalal Street. The stock opened at Rs 103, up 9.57 percent from its issue price of Rs 94 per share on the NSE. It opened at Rs 99.30 on the BSE, up 5.6 percent.

The IPO consists of fresh issue of Rs 60 crore and an offer for sale of Rs 327.9 crore by the founders and other investors.

The issue was subscribed 53 percent during December 23-27, but the IPO sailed through after the company significantly reduced its offer-for-sale component.

5) Avalon Technologies Limited: Shares of Avalon Technologies made its flat market debut with the stock listing at Rs 436 per piece on the NSE, as compared to its issue price of Rs 415-436 per share. On the BSE, Avalon Technologies shares started trading at Rs 431 apiece.

The IPO had a fresh issue aggregating up to Rs 320 crore and an OFS of up to Rs 545 crore by promoters and existing shareholders.

“Avalon Technologies Ltd made its debut in the market at a listing price of 436. The company’s issue price was ₹415-436, so shares are listed at par with no profit and no loss. Investors with a high-risk tolerance may consider holding Avalon Technologies Ltd. shares long-term, with a recommended stop loss of around 405, which is lower price band of the issue,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

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

Landmark Cars shares end 10% lower on stock market debut

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

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Shares of Landmark Cars ended 10 percent lower on their stock market debut. The stock listed at a 7 percent discount to its IPO price of Rs 507 before extending its losses.

The stock has joined the list of companies that have listed at a discount to their issue price.

The three-day IPO of Landmark cars was subscribed 3.06 times on the final day of bidding. The Rs 552 crore IPO was a combination of a fresh issue of equity shares and an Offer for Sale of Rs 402 crore.

The portion for Qualified Institutional Bidders or QIB was subscribed 8.7 times while that for non-institutional investors was subscribed 1.32 times. However, the retail portion of the IPO was subscribed only 59 percent. Employee quota was subscribed 2.93 times.

Landmark cars ranks among the premium automotive dealerships in India. It is the top dealer in the country for brands like Mercedes, Honda, and Jeep. Apart from these three companies, it also has dealerships for Renault.

It also has a commercial vehicle dealership for Ashok Leyland in India.

In an interaction with CNBC-TV18, Sanjay Thakker of Landmark Cars said that the funds received from the IPO will be used to pay working capital debt, which is close to Rs 300 crore. He also said that the working capital debt is seasonal in nature and the company does not have any long-term debt.

The stock ended 10 percent lower at Rs 456.45.

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

Porsche debuts with $72 billion price tag in bumper IPO

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

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Porsche AG made its debut on the stock market on Thursday, with a price tag of about 75 billion euros ($72.45 billion) after Volkswagen priced shares at the top end of the range, braving turbulent market conditions.

The bumper flotation, expected to generate around 19.5 billion euros ($19.0 billion), comes as instability in European markets has deterred other share sales by carmakers, including luxury brands.

The sale values Porsche AG close to the market capitalisation of its parent Volkswagen, which is worth around 84 billion euros, and puts it ahead of rivals like Ferrari.

Books closed on Wednesday on what is one of Europe’s biggest IPOs and the second largest in Germany since Deutsche Telekom made its debut in 1996, at the top end of the 76.50-82.50 euro range it announced earlier this month.

Also Read: Jindal Steel and Power zooms after Australian unit pays off entire overseas debt

Shares opened at 84.00 euros apiece and traded at 82.88 euros by 0733 GMT.

Shares in Porsche SE fell 5.7 percent in the early Frankfurt trade. Shares in Volkswagen were down 4.9 percent in the early Frankfurt trade.

Companies in continental Europe have raised the smallest amount this year since the 2009 global financial crisis at $44 billion, of which only $4.5 billion comes from IPOs, based on Refinitiv data.

Also Read: From Rs 47 to Rs 3,547 in five years: Meet Adani Enterprises, the newest entrant to the Nifty 50

Volkswagen has said the market’s volatility was precisely why fund managers with money to invest were sorely in need of a stable and attractive stock like Porsche AG.

“Porsche was and is the pearl in the Volkswagen Group,” Chris-Oliver Schickentanz, chief investment officer at fund manager Capitell, said.

“The IPO has now made it very, very transparent what value the market brings to Porsche. That, of course, also has a positive effect on Volkswagen shareholders.”

Also Read: Nifty50 set to finish monthly F&O series in the red — key factors that influenced the market

Faced with tens of billions of costs for a radical shift towards electric mobility and software, Volkswagen executives had long mulled listing Porsche, a move executives hoped would both raise much-needed funds and lift Volkswagen’s own value.

The Porsche and Piech families, in turn, will solidify their control over the carmaker with 25 percent, plus one ordinary share — carrying voting rights — in Porsche AG, effectively giving them a blocking minority in the namesake brand.

Up to 113,875,000 preferred shares, carrying no voting rights, will be sold to investors over the course of the initial public offering.

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Big Deal: Experts discuss startup valuations in jittery markets

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

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New age company stocks have taken a hit in the recent past, mirroring the trend seen on the Nasdaq, where investors suddenly lost appetite for highly valued tech firms. What does this mean, are the valuation discoveries to be blamed or the impending liquidity tightening?

CNBC-TV18’s Nisha Poddar spoke to Rahul Arora, CEO of Nirmal Bang Institutional Equities, Safir Anand, Senior Partner at Anand & Anand, and Anurag Singh, Founder and General Partner of Ansid Capital, on how they view the future for these new stocks.

Also Read: Paytm, Zomato, CarTrade rebound from 52-week lows; here’s how other new age stocks performed

Arora said, “I think this movie comes out once every 10 years, at the turn of the century, it was IT.com bubble, at the turn of the last decade, it was real estate, and now you are having these fintechs. So, I think this will play itself out. I think sanity will return, the euphoria will die a natural death, these companies may meanwhile continue to grow. But people will start putting their money where their mouth is, and they are not going to pay any price for loss-making companies with no return on equity and capital employed.”

Singh said, “Many investors are beginning to realise a very important lesson in investing, that a stock is a price, stock is a share in company’s profits so it is only as valuable as the company’s profits are. So, be it over exuberance or be it pessimism don’t be afraid to invest. But ask the elementary questions. Where are the earnings, how will the sales growth percolate, where is the market share going to come from, what is the gross margin? These questions are timeless, and they are always valid.”

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Anand said, “India actually had an advantage, the meltdown in India and some of these companies had a lag effect compared to what was happening in the United States. So, somebody could have seen the meltdown there in some of these models and could have emulated that and even existed in time. So we are back to the fact that cash is supreme and everything around cash is how you should be buying the stocks.”

For full interview, watch accompanying video.

Catch all the stock market live updates here.

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

Federal Bank may sell 7% of 76% stake in FedFina in IPO: Sources

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

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Federal Bank may sell seven percent of its 76 percent stake in FedFina in the proposed initial public offering (IPO), sources said. True North will sell 40-50 percent of its 24 percent stake in FedFina in the initial share sale, they said.

CNBC-TV18 awaited a response from Federal Bank on its query on the matter.

Earlier in January, Federal Bank gave a nod to the initial public offering (IPO) of its subsidiary FedBank Financial Services or FedFina, which is eyeing a massive valuation of Rs 6,000-7,000 crore.

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“We wish to inform you that the Board of Directors of Fedbank Financial Services Limited, a subsidiary of our Bank at its meeting held today, i.e. January 11, 2022, has approved initiating the process of an initial public offering (“IPO”) by way of fresh issue and offer for sale, subject to market conditions,” Federal Bank said in a regulatory filing.

The IPO size is expected to be around Rs 2,000 crore, of which fresh issue could be around Rs 1,000 crore and the rest Rs 1,000 crore would be offered for sale by its promoters.

The company’s DRHP is expected to be filed by February 12, 2022, to the markets regulator, as per the Securities and Exchange Board of India (SEBI) rule.

At 11:25 am, shares of Federal Bank were trading at Rs  101.15, down 0.25  points, or 0.25 percent lower at BSE.

Catch all our live market updates here

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 2021: Check out what experts recommend

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

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The initial public offering (IPO) market has seen a flurry. FY21 saw the highest ever funds raised in the primary market at Rs 1.88 lakh crore and the interest it seems has not been lost. From April to August of FY22, as per data from Prime Database 20 companies have raised around Rs 45,000 crore already with Zomato garnering the lion’s share of it at over Rs 9,300 crore.

Other big IPOs during this period included the likes of Macrotech Developers, Sona BLW Precision and most recently Car Trade and Nuvuco Vistas. As most of the subscriptions for the IPOs, heady gains have been seen for many of the IPOs of 2021 with listing gains of over 100 percent to issue prices.

Also Read: Ami Organics IPO subscribed over 3 times so far on Day 2

However, while the market has been hot, a few recent issuances barring the likes of Devyani International or Rolex Rings, have seen tepid debuts.

While experts say it is more about the paper and the good quality companies will eventually seeing good returns, many have also questioned the likes of Car Trade’s only OFS issuance as well.

In fact, another only OFS IPO is Vijaya diagnostics which opened this week. While some of the recent debuts might be tepid, that doesn’t seem to have stopped the pipeline.

Also Read: Vijaya Diagnostic Centre IPO Day 2: Issue subscribed 36% so far

As per Prime Database 11 IPOs worth paper around over Rs 11,000 crore have got Securities and Exchange Board of India (SEBI) approval majority from the financial space.

A few prominent names from this list of 11 include Utkarsh Small Finance Bank, Aditya Birla Sun Life, Jana Small Finance Bank and from the pharma space there is Supriya Lifescience.

The list however doesn’t end there. Prime database indicates there is also a list of over 40 companies with paper worth a little over Rs 89,000 crore that have filed offer documents with SEBI.

A few of the prominent names which the street will keenly await include PayTM, Nykaa, Adani Wilmar, Emcure Pharma and Rakesh Jhunjhunwala backed Star Health Insurance.

A few others the street will keenly watch include Pharmeasy, Ola and hospital companies such as Cloundnine and Medanta as well.

Also Read: Glenmark Life Sciences share price falls over 3% as anchor investor lock-in period ends

V Jayasankar, Senior Executive Director and Head of Equity Capital Markets at Kotak Mahindra Capital Company and Pranav Haldea, MD of Prime Database discussed this further.

“In our conversations with institutional investors, none of them are concerned about OFS or the quantum of OFS in an IPO so long as companies are well-funded for the next two-three years,” said Jayasankar.

According to Haldea, it is unfair that we somehow expect all IPOs to deliver positive returns on listing day. It cannot be the case. Historically as well we have seen that companies that haven’t given positive returns on the listing day have continued to give positive returns from thereon.

“We cannot say on the basis of last four-five listings which have not given positive returns. The market was taking a bit of a breather. The pipeline remains extremely strong. As far as the market continues to remain bullish, you will see a continuous IPO launch,” he said.

For entire discussion, watch the accompanying video.

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