Tag: IPO

JNK India IPO allotment status expected on April 26: Here’s how to check share allocation

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

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The allocation for JNK India’s initial public offering (IPO) is expected on Friday, April 26, after the conclusion of the subscription period.

The public issue, valued at ₹650 crore, attracted significant investor interest during the public subscription period from April 23 to April 25. The public issue was booked over 28 times.

Qualified Institutional Buyers demonstrated strong demand as the portion reserved for them was booked 75.72 times, while non-institutional investors submitted bids for 23.12 times against the portion set aside for the category.

Retail investors’ portion was subscribed 4.01 times the offered shares.

JNK India IPO shares are expected to be listed on the stock exchanges on Tuesday, April 30.

Steps to check JNK India IPO share allotment status:

The investors can check the IPO share allotment status on the websites of the official registrar Link Intime India Private Ltd and the NSE as well as BSE.

Follow these steps to check IPO share allotment status on registrar website:

· Open Link Intime India Pvt ltd website at https://www.linkintime.co.in/

· Click on the ‘Investor Services and select Public Issues’ section

· Select JNK India from the dropdown list for company names

· Enter either your PAN, application No, DP/Client ID or Account No /IFSC

· Click ‘Submit’ to check status

JNK India IPO share allotment status check on NSE website

· Go to IPO allotment status page at https://www.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp

· Login with username and password

· Select JNK India Ltd IPO

· Verify PAN No

· Enter IPO application No

· Click on Submit

Alternatively, investors can check the allotment status on the official website of the BSE.

Successful bidders can expect shares to be credited into their Demat accounts by Monday, April 29, while refunds for non-allottees will also be initiated on the same day.

The JNK India IPO was a combination of fresh issue of equity shares and an offer for sale (OFS) of 84.21 lakh shares by promoters and shareholders.

At the upper end of the price band, the IPO size is projected to be ₹650 crore, with an expected post-issue market capitalization of approximately ₹2,300 crore.

The proceeds from the IPO will be used to fund working capital requirements and for general corporate purposes.

The JNK India price band was fixed in a range of ₹395 to ₹415 per share. The bidding process required a minimum application for a single lot size of 36 shares and in multiples thereof.

The company mobilised nearly ₹195 crore from institutional investors through an anchor roundon April 22.

JNK India specialises in manufacturing heating equipment for process industries like oil refineries and petrochemical plants, offering end-to-end services from design to installation. Its clientele spans both domestic and international markets.

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Swiggy receives shareholders’ green signal for a $1.2 billion IPO

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

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Swiggy has received the approval from shareholders for a $1.2-billion initial public offering (IPO), according registrar of companies (RoC) filings. The foodtech player is looking to raise up to ₹3,750 crore through a fresh issue and up to ₹6,664 crore as an offer-for-sale (OFS) component, the filings showed.

The firm is also planning to raise around ₹750 crore from anchor investors ahead of its IPO. In an exclusive conversation with CNBC-TV18 on the sidelines of the Davos World Economic Forum (WEF) 2024, Swiggy Group CEO Sriharsha Majety had said an IPO is an aspiration and the company is preparing for it.

“The last two years, we have had so many great companies go out the door and we have been learning from their experiences and understanding what the market thinks of startups,” Majety noted.

Swiggy has not responded to CNBC-TV18’s queries.

A report by Entrackr had earlier said that Swiggy will file papers for its IPO by May and ultimately list around the festive season. The firm will seek valuation in the range of $12-15 billion. The report further added that IPO-bound Swiggy is reaching out to high-net-worth individuals (HNIs) to buy its shares at a 20% discount on its current valuation.

Swiggy’s investor Prosus, which owns around 32% in Swiggy, will be seen selling shares in the company as it will aim to reduce its shareholding to below 25%, Moneycontrol reported quoting data from Tracxn. SoftBank (8%), Accel (6.2%), founder group (6.7%), Elevation Capital (4.4%), Norwest, Tencent, DST Global, Alpha Wave, are some of the other investors in the company, the report showed further.

In the beginning of March, Baron Capital, a US-based fund manager, revised the value of its stake in Swiggy to $87.2 million, indicating a valuation of $12.16 billion for the hyperlocal commerce unicorn as it gears up for its upcoming IPO.

Earlier this year, Invesco, a US-based asset management company (AMC), too increased Swiggy’s valuation to $8.3 billion. In October 2023, Invesco had marked up the foodtech platform’s valuation by about 42% to about $7.85 billion.

The company’s cofounders Sriharsha Majety, Nandan Reddy and Rahul Jaimini hold 4%, 1.6% and 1.2% stake, respectively, as per Tracxn. Jaimini left his operational role in 2020 to join another venture–Pesto Tech. In EGM held on April 23, Majety and Reddy were appointed executive directors of the company. Majety was designated as managing director and group CEO, while Reddy was named whole-time director and head of innovation.

Swiggy’s food delivery business had turned profitable last year, and in 2024, Majety had told CNBC-TV18 at WEF that the focus will be on growing profitably and getting better. He pointed out that Swiggy is still at the very early stage, learning what works for consumers. “Just because you can put a category doesn’t mean the consumers want it. All of us in this space are iterating, learning from each other, learning from consumers,” he said.

Now ahead of the potential run to Dalal Street, Swiggy is trying to improve its unit economics. As per an Entrackr report, the company seems to be achieving a steady 25-30% year-on-year growth in FY24. During the first nine months of FY24, Swiggy’s revenue from operations was ₹5,476 crore, according to a document drafted by an investment banker on behalf of Swiggy, which was seen by Entrackr.

The decacorn reported ₹8,265 crore in revenue in FY23 and a collection of ₹6,623 crore in the last fiscal year. The food delivery business constituted 82.65% of the total operating revenue, amounting to ₹4,526 crore. The remaining income came from Swiggy Instamart, the firm’s quick commerce vertical, the document showed.

The company’s key focus is on turning profitable and for that it has improved its EBITDA margins which registered at -1.9% and -109.5% for the food delivery biz and Instamart, respectively during the nine-month period, compared to -17.5% and -259% in FY23, as per the report.

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JNK India IPO opens today: Should you subscribe to the ₹650-crore issue?

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

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The ₹650-crore initial share sale of JNK India Ltd. kicked off for subscription on Tuesday (April 23) and will close on April 25. Ahead of the IPO opening, the heating equipment maker has mopped up about ₹195 crore from anchor investors like Goldman Sachs, Natixis International Funds, Kotak Mutual Fund, HDFC MF, among others.

Shares of JNK India were commanding a premium of ₹15 in the grey market today.

However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

JNK India IPO review

Most analysts have assigned a ‘Subscribe’ rating to the issue, considering the company’s robust order book, global parentage, skilled and experienced promoter.

SMIFS Limited: Subscribe

JNK India with its 27% market share in the Indian heating equipment’s market is well poised to grow from the rising demand in the industry, said SMIFS Limited in its research note.

The brokerage has recommended a ‘Subscribe’ rating to the IPO, as it believes with a robust orderbook and JNK’s intention to further diversify revenue growth by addressing industries like renewable energy, the company is looking at a strong double digit growth in its top line and bottom line by FY26.

Reliance Securities: Subscribe

The broking firm has a ‘Subscribe’ tag to JNK India IPO as the company has a global parentage, skilled and experienced promoter’s holding respective backgrounds in their line of business are the added advantages.

Reliance Securities expects the order book to see an improvement with new businesses and improved prospects for the oil-gas and fertilizer sectors.

Anand Rathi: Subscribe-Long term

According to Anand Rathi Research, JNK India has an established track record with a diverse customer base and is well-positioned to capture industry tailwinds.

The company also has demonstrated financial performance with a robust order book reflecting revenue visibility for last three fiscals, it said.

“At the upper price band, the company is valuing at P/E (price-earnings) of 49.38 times, EV/EBITDA 33.13 times with a market cap of ₹2,308 crore post issue of equity shares and return on net worth of 47.71%,” the brokerage said.

It also believes that the IPO is fairly priced and recommends a ‘Subscribe-Long term’ rating to the IPO.

Offer details

The company has fixed a price band of ₹395-415 per share for its ₹650-crore IPO, which closes on April 25. Investors can make bids for 36 shares in one lot and multiples thereafter.

The issue includes fresh shares worth ₹300 crore and an offer-for-sale (OFS) of up to 84.2 lakh shares by its existing shareholders and promoters.

The OFS consists of up to 11.2 lakh shares by Goutam Rampelli, up to 24.3 lakh by JNK Global, up to 44 lakh by Mascot Capital and Marketing and up to 46.8 lakh shares by Milind Joshi.

Considering the upper end of the price band, the IPO size will be ₹650 crore and the post-issue market capitalisation is expected to be around ₹2,300 crore.

As much as 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and the rest 15% for non-institutional investors.

The net proceeds from the IPO will be utilised for funding the working capital requirements and general corporate purposes.

IIFL Securities and ICICI Securities are the lead managers to the IPO, while Link InTime India is the registrar.

Basis of allotment will be on April 26, refunds and credit of equity shares will be on April 29. The shares of JNK India will list on the exchanges on April 30, according to the IPO schedule.

Business overview

JNK India manufactures heating equipment for process industries such as oil refineries and petrochemical plants. The company handles everything from design to installation, serving both the domestic and international markets.

It is one of the well-recognised heater companies in India, having a market share of approximately 27% in the segment, in terms of new order booking in financial year 2023.

Its biggest rival in India is Thermax Ltd. It has also expanded into flares, incinerator systems, and is planning to venture into the renewable sector with green hydrogen.

Also Watch | In an interview with CNBC-TV18, Arvind Kamath, Chairperson of JNK India and Dipak Bharuka, CEO of JNK India discussed more on the IPO and the way ahead.

Financials

For FY23, JNK India posted a revenue of ₹407 crore, compared to ₹296.40 crore a year ago. The company’s net profit for the fiscal came in at ₹46 crore as against ₹36 crore last year. As of the nine months ended 2023, the total debt of the company came in at ₹56.73 crore.

As of December last year, the company’s order book totalled ₹845.03 crore, with 86% from India and 13.71% from overseas.

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JNK India IPO to open on Tuesday: What GMP signals ahead of subscription?

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

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The initial public offering (IPO) of Maharashtra-based heating equipment company JNK India Ltd. will open for subscription on Tuesday, April 23. Ahead of the IPO opening, shares of the company were trading at par with their issue price with no premium or discount in the grey market.

JNK India has fixed a price band of ₹395-415 per share for its ₹650-crore IPO, which closes on April 25. Investors can make bids for 36 shares in one lot and multiples thereafter.

The issue includes fresh shares worth ₹300 crore and an offer-for-sale (OFS) of up to 84.2 lakh shares by its existing shareholders and promoters.

The OFS consists of up to 11.2 lakh shares by Goutam Rampelli, up to 24.3 lakh by JNK Global, up to 44 lakh by Mascot Capital and Marketing and up to 46.8 lakh shares by Milind Joshi.

Considering the upper end of the price band, the IPO size will be ₹650 crore and the post-issue market capitalisation is expected to be around ₹2,300 crore.

As much as 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and the rest 15% for non-institutional investors.

The net proceeds from the IPO will be utilised for funding the working capital requirements and general corporate purposes.

IIFL Securities and ICICI Securities are the lead managers to the IPO, while Link InTime India is the registrar.

Basis of allotment will be on April 26, refunds and credit of equity shares will be on April 29. The shares of JNK India will list on the exchanges on April 30, according to the IPO schedule.

Business overview

JNK India manufactures heating equipment for process industries such as oil refineries and petrochemical plants. The company handles everything from design to installation, serving both the domestic and international markets.

It is one of the well-recognised heater companies in India, having a market share of approximately 27% in the segment, in terms of new order booking in financial year 2023.

Its biggest rival in India is Thermax Ltd. It has also expanded into flares, incinerator systems, and is planning to venture into the renewable sector with green hydrogen.
Financials

For FY23, JNK India posted a revenue of ₹407 crore, compared to ₹296.40 crore a year ago. The company’s net profit for the fiscal came in at ₹46 crore as against ₹36 crore last year. As of the nine months ended 2023, the total debt of the company came in at ₹56.73 crore.

As of December last year, the company’s order book totalled ₹845.03 crore, with 86% from India and 13.71% from overseas.

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Solar cell maker Premier Energies files for a ₹1,500 crore IPO

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

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Premier Energies Ltd has submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), initiating plans to raise funds through an initial public offering (IPO) at the face value of ₹1. The Premier Energies IPO comprises a fresh issue of shares worth up to ₹1,500 crore and an offer for sale (OFS) of up to 2.82 crore shares.

The offer for sale encompasses shares from various entities, including up to 2.38 crore shares from South Asia Growth Fund II Holding Llc, up to 42 lakh shares from Chiranjeev Singh Saluja, and up to 153,600 shares from South Asia EBT Trust.

The solar cell manufacturer will use the proceeds from the fresh issue primarily towards investments in its arm, Premier Energies Global Environment Pvt Ltd and for general corporate purposes. The subsidiary investment aims to partially finance the establishment of a 4 GW solar photovoltaic TOPCon cell and 4 GW solar PV TOPCon module manufacturing facility in Telangana.

Premier Energies stands as India’s second-largest integrated solar cell and solar module manufacturer, boasting annual installed capacities of 2 GW and 3.36 GW, respectively, as of March end.

The company posted a consolidated loss of ₹13.3 crore for the financial year ended March 2023 against a loss of ₹14.4 crore in the preceding fiscal, as per a Moneycontrol report. The firm turned into black for the nine-month period ended December FY24, with a profit of ₹127.4 crore on revenue of ₹2,017.2 crore, the report added.

Kotak Mahindra Capital Company, JP Morgan India, and ICICI Securities are the book-running lead managers for the issue. The shares will be listed on both the BSE and the National Stock Exchange (NSE).

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Good Glamm Group introduces new agile organisational framework Ahead of IPO

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

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The Good Glamm Group, a leader in South Asia’s direct-to-consumer beauty and personal care industry, on Thursday, unveiled its new Agile Organisational Framework. This announcement comes as the group prepares for its highly anticipated initial public offering (IPO) during Diwali 2025.

The introduction of the new framework is expected to boost the company’s organisational structure and enhance operational efficiency.

The newly introduced framework is designed to maximise customer value (internal and external) and streamline the processes across departments. This involves enhancing cross-departmental responsibilities, faster decision-making by empowering junior managers with budget responsibilities, and simplifying organisational hierarchies to eliminate redundancies, the company said in a press release dated April 18.

“This strategic initiative marks the culmination of the company’s final phase of team integration with a steadfast aim to be a profitable company in FY25,” the company said

In addition to the framework, the company has also launched an Entrepreneur in Residence programme and a GlammSOP programme for accelerated vesting of ESOPs. The GlammSOP program is an initiative designed for its high-performing employees that allows for accelerated vesting of their ESOPs at the IPO.

“The GlammSOP programme will also have an additional target based new ESOP pool being issued to senior management that also vests at the IPO. This initiative aims to provide wealth-building opportunities for employees, recognising their invaluable contributions to the company’s success,” the official release mentioned.

The company has also recently announced several changes in leadership roles to strengthen its management team as it gears up for future growth. These include elevating Manan Jain to Group Chief Operating Officer, Kartik Rao to Group Chief People Officer and SVP of Founder Initiatives, appointment of new Group CFO, Kamal Lath, among other significant role advancements within the group.

Darpan Sanghvi, Group Founder and CEO of Good Glamm Group, commenting on the elevation in top executive levels said, “With the Group on a distinctive growth trajectory and now approaching profitability, we are excited to unveil a systematic approach towards an Agile Organisational Framework that will allow us for faster execution in the run-up to our IPO.”

The content-to-commerce company in tandem with these talent developments, wealth creation and organisational changes, remains dedicated towards streamlining processes, fostering professional growth, and bolstering agility.

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Bharti Hexacom shares make a strong D-St debut; stock lists at 32% premium

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

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Shares of telecom service provider Bharti Hexacom Ltd. had a steady start on Friday, April 12, after an initial public offering (IPO) that raised ₹4,275 crore to become India’s largest in about a year.

The Bharti Hexacom stock listed at ₹755.20 on the BSE, a premium of 32.49%, which was higher than analysts’ expectations as well as a grey market premium (GMP). On the NSE, the stock made its debut at ₹755, showing a gain of 32.46%, as against its issue price of ₹570.

Ahead of the debut, shares of Bharti Hexacom were commanding a premium of ₹128 in the unlisted market today.

Market participants also expected the stock to offer double-digit return, in line with the GMP. They advised investors to retain the stock for the long term, given the company’s robust business model, strong parentage and sound financial standing.

“Bharti Hexacom is well-positioned to capitalise on the evolving market trends and consumer preferences,” said Rajan Shinde, analyst at Mehta Equities.

Prathamesh Masdekar of StoxBox expected Bharti Hexacom to list at a decent premium, roughly around 15%, following the strong oversubscription numbers. “We remain optimistic on the company’s performance going ahead and advise investors who have received allotment to hold shares from a medium to long term perspective,” he said.

Bharti Hexacom IPO subscription status

The issue was booked nearly 30 times at close on strong interest from qualified institutional buyers (QIBs). The quota for QIBs was subscribed 48.57 times, followed by non-institutional investors at 10.52 times. The category for retail investors was subscribed only 2.83 times.

Bharti Hexacon’s IPO is the country’s largest since Mankind Pharma Ltd. which raised ₹4,330 crore a year ago.

Bharti Hexacom IPO details

Bharti Hexacom’s IPO, which was open for bidding from April 3-5, was priced in the range of ₹542-570 per share.

The issue was entirely an offer-for-sale (OFS), without any fresh equity issue. Telecommunications Consultants India (TCIL), the sole public shareholder in the company, offloaded 7.5 crore equity shares or a 15% stake via the OFS.

Since the issue is an OFS, Bharti Hexacom will not receive any proceeds. All the proceeds will be allotted to the selling shareholder in the company.

The Sunil Mittal-driven telecom major Bharti Airtel holds a 70% stake or 35 crore shares, while the remaining 30% shareholding, equivalent to 15 crore equity shares, was held by non-promoter TCIL.

Company overview

Bharti Hexacom is a wholly-owned subsidiary of Bharti Airtel and was incorporated on April 20, 1995. The company runs mobile services in Rajasthan and the Northeast telecommunication circles of India, which comprise Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. It has a market share of 40% in Rajasthan and 50% in the Northeast.

Bharti Hexacom, as per its annual report, is targeting to cover all the urban areas and a few pockets of rural areas with 5G services by March this year. Airtel’s 5G Plus offers up to 30 times faster download speeds than 4G, it claimed in its annual report, adding that the 5G handset ecosystem is gradually evolving with more choices for customers at affordable price points.

For FY23, the Airtel unit recorded a net profit of ₹549 crore. Its revenue from operations remained strong, rising 22% to ₹6,719 crore.

For the six months ended September, the company posted a revenue of ₹3,420 crore, compared to ₹3,167 crore in the same period a year ago. However, its net profit declined to ₹69 crore from ₹195 crore in the year-ago period. The profit was impacted by higher tax costs and exceptional loss.

SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities were the book-running lead managers to the issue, while KFin Technologies was the registrar.

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Bharti Hexacom shares at ₹790? JM Financial initiates coverage on stock ahead of listing

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

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Ahead of Bharti Hexacom’s listing today, domestic brokerage firm JM Financial came out with an initiation report on the stock with a ‘Buy’ rating and a price target of ₹790 per share. This implies an upside potential of 39% from its IPO price of ₹570.

“We initiate coverage on BHL with a buy rating and a target price of ₹790 per share based on 10 times FY26 EV/EBITDA (in line with implied valuation of Bharti’s India wireless business at current market price), implying 39% upside,” JM Financial said in a report.

While one could make a case for assigning a higher multiple to Bharti Hexacom due to its potential for 2-3% higher EBITDA growth, the brokerage has opted for a 10 times multiple, factoring in potential concentration risk stemming from the company’s sole reliance on Rajasthan and North East circles, as well as its focus on wireless business.

JM Financial expects the Bharti Hexacom stock to potentially double in the next three to four years on the back of 15-17% EBITDA compounding story. It sees Bharti Hexacom as a mid-cap pure-play on wireless ARPU (average revenue per user) growth story vis-à-vis Bharti (which sees 25-30% of its value coming from other than India wireless business).

ARPU on a structural uptrend

The brokerage continues to believe that India’s wireless ARPU is on a consistent upward trajectory due to the streamlined industry structure and anticipated future investment requirements.

Over the next 3-4 years, the industry aims to achieve an ARPU of ₹275 to meet the cost of capital at 12% and ₹300 to attain a pre-tax return on capital employed (RoCE) of 15%, factoring in forthcoming investments such as those for 5G, according to JM Financials’ calculation.

Bharti Hexacom’s EBITDA margin may further improve

JM Financial expects Bharti Hexacom’s EBITDA margin to further improve to 51.4% and 57.1% in financial year 2026 and financial year 2030, respectively, after having risen to 49.3% in the first nine months of FY24, driven by strong ARPU growth on account of tariff hikes, Bharti’s premiumisation strategy and cost optimisation via its ‘war on waste’ initiative.

Additionally, it anticipates that Bharti Hexacom’s compound annual growth rate (CAGR) for EBITDA from FY24 to FY26 and FY24 to FY30 will surpass that of Bharti’s India wireless business, standing at 17% and 15%, respectively (compared to 15% and 12% for Bharti’s India wireless business).

This projection is attributed to the potential for a 2% subscriber CAGR and a 10% ARPU CAGR, driven by the relatively lower tele density and penetration of high ARPU post-paid and data subscribers in the Rajasthan and North East circles.

While Bharti Hexacom exhibits a lower EBITDA margin, its RoCE stands notably higher at 10.5% in FY23, compared to 8.6% for Bharti. This discrepancy arises from BHL’s relatively lower capital expenditure, as Bharti invests in fiber assets within the Rajasthan and NE circle, while BHL incurs costs on a usage basis.

Further, with peak capex behind it and structural ARPU growth story ahead, the brokerage expects Bharti Hexacom to turn net-cash by FY29, in contrast to its net debt of ₹7,600 crore at the end of the third quarter of FY24.

Key triggers, as per the brokerage, include structural uptrend in ARPU via regular tariff hikes and upgrades/data monetisation.

About Bharti Hexacom IPO

Bharti Hexacom’s IPO was open for bidding from April 3-5. The issue was priced in the range of ₹542-570 per share.

The issue was entirely an offer-for-sale (OFS), without any fresh equity issue. Telecommunications Consultants India (TCIL), the sole public shareholder in the company, offloaded 7.5 crore equity shares or a 15% stake via the OFS.

Since the issue is an OFS, Bharti Hexacom will not receive any proceeds. All the proceeds will be allotted to the selling shareholder in the company.

The Sunil Mittal-driven telecom major Bharti Airtel holds a 70% stake or 35 crore shares, while the remaining 30% shareholding, equivalent to 15 crore equity shares, was held by non-promoter TCIL. TCIL’s stake is now down to 15% while public investors own 15% post-IPO.

The issue was booked nearly 30 times at close on strong interest from qualified institutional buyers (QIBs). The quota for QIBs was subscribed 48.57 times, followed by non-institutional investors at 10.52 times. The category for retail investors was subscribed only 2.83 times.

Bharti Hexacom, a wholly-owned subsidiary of Bharti Airtel, runs mobile services in Rajasthan and the Northeast telecommunication circles of India, which comprise Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. It has a market share of 40% in Rajasthan and 50% in the Northeast.

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

NTPC Green picks four investment banks for proposed ₹10,000 crore IPO

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

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NTPC Green Energy, a wholly owned subsidiary of NTPC, picked four investment banks for the management of its initial public offering (IPO) valued at ₹10,000 crore, as reported by Moneycontrol. This would be only behind the Life Insurance Corporation of India (LIC) in terms of the size of the IPO by a state-owned entity.

The sources in the know told Moneycontrol that, following financial and technical bids, IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management have been chosen by the company. Of these, IDBI Capital’s bid was the lowest, they added.

Other investment banks included Axis Capital, ICICI Securities, Goldman Sachs and DAM Capital, the sources told the agency.

The proceeds from the IPO will be utilised to fund ongoing and future projects of NTPC Green in the solar energy, green hydrogen and green ammonia segments, the sources told Moneycontrol.

NTPC, which had formed NTPC Green in April 2022 to integrate its renewable energy assets, had earlier planned to sell a 20% stake in the subsidiary to a strategic investor. For this, Malaysian energy company Petronas turned up as the highest bidder with an offer of $460 million. Nonetheless, the company later opted against the sale of the stake.

On Tuesday, NTPC Green CEO Mohit Bhargava told CNBC-TV18 that the company is eyeing an IPO in FY25. He added that the company is working on a pipeline of just under 25–26 GW, of which nearly 8 GW is under construction.

In January, NTPC Green Energy signed a Memorandum of Understanding (MoU) with the Maharashtra government for the development of green hydrogen and derivatives (green ammonia and green methanol) with a capacity of nearly 1 million tonnes per annum. This includes pump hydroelectric projects of 2 GW and the development of renewable energy projects with or without storage up to 5 GW in the state. 

NTPC Green’s IPO under talks is in the footsteps of the Indian Renewable Energy Development Agency (IREDA), which sold shares worth ₹2,150 crore. The offer of IREDA, a state-owned entity that finances renewable energy projects, was subscribed 38.8 times in November 2023.

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

Swiggy offers 20% discount to HNIs in pre-IPO deal, says report

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

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IPO-bound Swiggy is reaching out to high-net-worth individuals (HNIs) to buy its shares at a 20% discount on its current valuation, according to a media report on Wednesday.

Swiggy’s appointed wealth managers are “offering shares at ₹350 a piece and at a valuation of ₹80,000 crore,” said a report on Entrackr.

CNBC-TV18 reached out to Swiggy independently, but the company refused to comment on the story.

Earlier, Invesco, a US-based asset management company (AMC), has pushed up Swiggy’s valuation by 19% to $12.7 billion in the run-up to its planned IPO, regulatory filings showed. The investor had led the food delivery startup’s $700-million round in January 2022 at a valuation of $10.7 billion.

After that, Baron Capital, one of the company’s investors, had pegged Swiggy’s fair value at $12.2 billion as of March 2024, providing a boost to the IPO-bound startup.

The series of mark-ups now push Swiggy’s valuation closer to that of its rival Zomato. Shares of Zomato settled at ₹197.30 apiece on the NSE on Wednesday, April 10. During the intra-day trade, it hit an all-time high price of ₹199.60, just shy of the psychological barrier of ₹200.

Swiggy recorded a $200 million loss for the nine months to December 2023, according to an internal company document. For the full fiscal year 2022–23, Swiggy made a loss of ₹41.8 billion ($500 million), according to the document. But the company’s lower wage payouts and cuts in marketing spending will help it trim losses for the full year 2023–24.

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