Category: IPO Watch

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IPO Watch

ACDC Metals on the highway to ASX listing

The explorer is seeking to raise $8 million through an initial public offering (IPO) of 40 million shares at $0.20 each, which would give it a market capitalization on listing of $14.5 million.

Mineral sands projects

ACDC’s three Murray Basin projects have been discovered across two styles: strandline, which are narrow, long and high-grade deposits containing zircon and titanium; and Wimmera industrial minerals (WIM) style, which sit as planar and extensive, with significant monazite (REE) content.

Previous work was undertaken in the late 1980s and early 1990s at Goschen Central, located 50km south-southwest of Swan Hill in northern Victoria, with early drilling targeting high-grade coarse-grained strandline style deposits. A large WIM-style heavy minerals deposit was defined within the south-west quadrant of the exploration licence.

ACDC notes another explorer reviewing a similar area in 2002 had estimated zircon grades of 20-27% with additional REE and titanium minerals.

ACDC’s Douglas project comprises two exploration licences: Acapulco and Chetwynd, which had planned to be mined by historical owners by projects were halted due to prevailing commodity prices at the time.

Post-listing, the company plans to define a JORC 2012-compliant resource and undertake scoping and feasibility studies at both Goschen Central and Douglas.

A drilling program is also planned at ACDC’s third project, Watchem, a strandline-style deposit that lies in close proximity to the Donald mineral sands project owned by Astron Corporation (ASX: ATR).

Medallion monazite process

Under a definitive agreement signed in October, ACDC was granted the right to use Medallion’s proprietary monazite processing technology to extract REE from monazite sourced as a by-product of heavy mineral sand production.

The licence agreement included the issue of 4.5 million ACDC shares to Medallion, bringing Medallion’s shareholding in ACDC to about 15% (pre-IPO). Upon successful completion of a pilot plant utilising the Medallion monazite process, the company will receive an additional 2.5 million ACDC shares by converting performance shares.

To take advantage of this technology, ACDC plans to construct a mineral sand monazite processing plant for south-eastern Australia

Upon commercial production, Medallion will be able to convert other performance rights into an additional 750,000 ACDC shares. Following full conversion, Medallion would own 8.05 million shares of ACDC.

Medallion also has the right to purchase or place up to 20% of the ACDC shares issued in the IPO subject to approval of the lead underwriter and Medallion’s diluted ownership not exceeding 19.9% of ACDC’s issued share capital (including the conversion of all performance rights).

In addition, ACDC will pay Medallion a 2% royalty on the sale of mixed REE compounds and other minerals produced by the company’s projects and processed using the Medallion monazite process.

Company Profile

ACDC holds three mineral sand projects on the edge of the Murray Basin in western Victoria – Goschen Central, Douglas and Watchem – where past drilling has demonstrated zircon, leucoxene, rutile and monazite mineralization.

Raised funds from the IPO will be divided between the three projects for drilling and further exploration studies, in addition to monazite processing, which involves extracting and separating REE from monazite mineral sands using technology exclusively licensed from Canada-based Medallion Resources (TSX-V: MDL). Proceeds will also be allocated to corporate and working capital.

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

Categories
ipo IPO Watch

Orpheus Minerals launches $6m IPO to fund domestic uranium Exploration to ASX listing

Orpheus has launched a $6 million initial public offering to kick-start exploration and provide funds for it to chase high-grade sandstone or sediment-hosted and unconformity (hard rock) deposits.

Portfolio of assets

Argonaut has compiled a portfolio of assets within Orpheus and its wholly-owned subsidiary Trachre through direct application as well as corporate transactions with tenement holders.

It includes early-stage projects at Frome/Erudina and Cummins (in South Australia) and Mount Douglas (Northern Territory) and new applications at Ranger-North East (30 kilometers from the decommissioned Ranger uranium mine), T-Bone (the broader area containing at least 13 uranium deposits and 15 occurrences) and Woolner.

The project generation initiative will focus on areas which have seen limited exploration since Australia’s uranium boom of the 1970s, with Orpheus targeting paleochannel and unconformity uranium deposits that are amenable to simple and economic extraction methods.

Orpheus said an opportunity exists to achieve “science-led exploration success” by leveraging new geophysical datasets in terrains which have lacked modern, systematic uranium exploration.

Uranium production

Last year, South Australia and the Northern Territory were responsible for the production of 4,192 tons of uranium, or approximately 8.7% of total world output.

Orpheus aims to capitalize on this success, led by an executive team with experience in the application of advanced techniques for uranium exploration and a track record of financing and developing resource projects around the world.

Underpinning the company’s strategy is a forecast increase in mid to long-term global demand for uranium in an environment where supply from stable jurisdictions (such as Australia) is currently in structural decline.

The World Nuclear Association has predicted demand will jump 27% from now until 2030 and a 38% from 2030 to 2040, with this demand expected to come mostly from the US, Europe or North Asia.

These regions use uranium in the production of zero-emissions power (meaning they do not directly output carbon dioxide during electricity production) and are considered to be viable and safe options for nuclear generation to meet increasing energy needs.

Company Profile

The company, which is a spin-out of Argonaut Resources (ASX: ARE), will also have a significant project generation budget with the aim to expand and build its pipeline.

Orpheus’ IPO will be based on the issue of a minimum 30 million shares at $0.20 each and will comprise a $3 million priority offer for Argonaut shareholders and a $3 million broker firm and general public offer. Argonaut will retain a 26.9% interest following completion of the offer. The offer is being led by Adelaide based broker Taylor Collison and Becketts Lawyers. Orpheus is expected to list on the ASX before month end using the ticker code ‘ORP’.

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

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IPO Watch

Tiger Tasman Minerals seeks ASX listing to advance battery metal and industrial mineral projects

The company is especially hopeful that funds from its initial public offering (IPO) will enable it to advance a feasibility study at its flagship Iron Skarn polymetallic project in North Queensland.

ESG focus and battery metals demand

In a roadshow presentation, Tiger Tasman described its focus on multi-commodity metals essential to electrification and decarbonization as its point of difference. It has an environmental, social and corporate governance (ESG) centric business strategy targeting carbon-neutral status for its operations and a goal of joining the United Nations Global Compact.

The company presented data forecasting rapid growth in the battery market each year as the world continues to transition to electric vehicles, renewable energy generation and energy storage. It also pointed to a 100,000-times increase in demand for raw materials with charging station storage batteries containing more than 600kg of copper alone.

In the chairman’s letter of the prospectus, Tiger Tasman non-executive chairman Richard Beazley said demand for the minerals and metals the company is focusing its exploration efforts on is expected to be “strong” as they are essential to the electrification and decarbonisation of the global economy.

“The company has brought together a board and exploration team with a proven track record and diverse range of skills in the resources industry of Australia and abroad,” he added.

“This uniquely qualified team offers experience and success across the realms of exploration, development, finance and acquisitions and is poised to aggressively explore and develop the projects.”

Iron Skarn pre-development project

Tiger Tasman’s flagship pre-development Iron Skarn polymetallic project comprises one granted exploration permit located 40km from Townsville in the Barringha region of Queensland.

The 12sq km tenement is considered prospective for base metals and hosts the Iron Glen polymetallic skarn deposit, which has an existing JORC 2012 inferred mineral resource estimate of 1.92 million tonnes at 29.3% iron, and 2.9Mt at 13.1 grams per ton silver (outside of the magnetite skarn).

Significant exploration upside has been identified at the Lead Belly prospect, which Tiger Tasman believes could potentially expand the resource inventory.

Up to $1.03 million of the IPO funds (at maximum subscription) have been allocated to undertaking a feasibility study at the Iron Skarn project in the first two years following the company’s ASX listing.

Further exploration planned for the project includes geochemical studies and mapping of Lead Belly, as well as tenement compliance exploration.

Copper Canyon project

Another exploration priority for Tiger Tasman is the underexplored Copper Canyon copper-gold project, made up of 502 sq km under application in WA’s Paterson Province. It is regarded as a tier one exploration destination with neighbors including major companies such as Rio Tinto (ASX: RIO), Newcrest Mining (ASX: NCM) and Cyprium Metals (ASX: CYM).

More than $800,000 of the IPO funds has been earmarked for the Copper Canyon project with planned exploration to include mapping, surface geochemical sampling, heritage surveys, induced polarisation (IP) survey and data processing, as well as drilling of targets identified from the surveying.

Tiger Tasman considered the project “very favorable” in prospectivity, with two anomalies identified on the eastern and western boundaries of the tenement, as well as the number of tier one operating mines and discoveries within a 60km radius of the project (Nifty, Telfer, Winu, Havieron).

Other WA Exploration projects

Additionally, Tiger Tasman also plans to use a portion of its IPO funds for exploration at its three other early-stage projects in WA including detailed mapping, surface geochemical sampling, heritage surveys, IP survey and data processing, and planned drilling and assays in the first 12 months from IPO.

These projects include Fraser Range, located in WA’s Yilgarn Province about 60km from IGO’s (ASX: IGO) Nova nickel mine. At Fraser Range, Tiger Tasman is targeting lithium, nickel, copper and zinc.

Recent exploration work has mapped the presence of pegmatites and samples are awaiting assay to confirm lithium mineralization.

The project is 50Km from the Bald Hill lithium mine and Buldania lithium discovery in what is regarded as the “lithium belt” in WA.

Tiger Tasman’s Mt Minnie project is prospective for high-grade manganese in the Ashburton region where a 4km strike at surface is returning grades exceeding 40% manganese.

The company has mapped the targets and completed sampling at the project.

Over at the Crater project, Tiger Tasman is targeting copper, zinc, lead, silver and gold in the Earaheedy Basin.

Company Profile

It has also assembled rights to acquire 100% interests in Western Australian projects targeting battery and precious metals including lithium, copper, nickel, manganese, zinc, silver and gold.

Tiger Tasman is seeking to raise between $5.1 million and $8 million through the issue of 25.5 million to 40 million shares priced at $0.20 per share. Upon listing, the company is anticipated to have an indicative market capitalization of $9.57 million to $12.47 million (undiluted).

The company’s IPO launched last month and is scheduled to close in October. It expects to start trading on the ASX under the ticker code ‘T1G’.

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Investor Desk. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Investor Desk and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Investor Desk and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Investor Desk and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Investor Desk and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Investor Desk and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Investor Desk and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Investor Desk and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Investor Desk and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Investor Desk and Banyan Tree.

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IPO Watch

MapmyIndia lists at 54% premium above the issue price

The company aimed to raise Rs 1,039.61 crore via the primary route, which was entirely an offer for sale of 10,063,945 equity shares, with a face value of Rs 2 each by existing shareholders and promoters of the company. Investors PhonePe India, Zenrin, and Qualcomm held 19.15 percent, 8.78 percent, and 5.07 percent shareholding, respectively, in the company.

The IPO issue date was open from 09 to 13 December 2021. The lot size consisted of 14 shares. The price range was 1000- 1033 per equity share. The minimum amount of the subscription was INR 14,462 (01 lot) and maximum amount of subscription was 188,006 (13 lots). The Book Running Lead Managers of this IPO were Axis Capital, DAM Capital Advisors Ltd., JM Financial Consultants Private Limited and Kotak Mahindra Capital Company Limited.

The public issue was subscribed 15.20 times in the retail category, 196.36 times in the QIB category, and 424.69 times in the NII category. The total subscription of the IPO was 154.71 times.  

MapmyIndia listed on the bourses on 21 December 2021, with the listing price ₹1,581, a 54% premium.

The competitive strengths of MapmyIndia are; they are the pioneers of digital mapping in India having an early mover advantage, it is a leading the B2B and B2B2C market for digital maps and location intelligence in India, proprietary technology and network effect resulting in competitive edge, independent, global geospatial products and platforms company with strong data governance, prestigious customers across sectors with strong relationships and consistent profitable financial track record.

The digital maps offered by the company cover 6.29 Mn Km of roads in India, representing 98.50% of India’s road network. The company’s digital map data provides location, navigation, analytics, and other information for 7,933 towns, 6,37,472 villages, 17.79 Mn places across many categories such as restaurants, retail shops, malls, ATMs, hotels, police stations, electric vehicle charging stations, etc., and 14.51 Mn house or building addresses. The company’s ‘RealView’ maps provide actual roadside and on-ground views based on over 400 Mn geo-referenced photos, videos, and 360-degree panoramas across India.

About the company:

MapmyIndia is a leading provider of advanced digital maps, geospatial software, and location-based IoT technologies in India. The company is a data and technology products and platforms company, offering proprietary digital maps as a service (MaaS), software as a service (SaaS), and platform as a service (PaaS). The company provides products, platforms, application programming interfaces (APIs), and solutions across a range of digital map data, software, and IoT for the Indian market under the (MapmyIndia) brand, and for the international market under the (Mappls) brand. The company serves the BFSI, telecom, FMCG, industrials, logistics, and transportation sectors. MapymyIndia has also entered into various memorandums of understanding with key government organizations such as the Indian Space Research Organisation (ISRO), NITI Aayog, National eGovernance Division, Ministry of Electronics and Information Technology, and Government of India. Some of the company’s customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, and Hyundai.

(Source: economictimes.com, chittorgarh.com)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
ipo IPO Watch

The Medplus Health Service IPO Subscribed 52.59 times on its final day

Incorporated in 2006, Medplus Health Services is India’s second-largest pharmacy retailer. The company offers pharmaceutical and wellness products .

 The IPO comprises a fresh issue of equity shares worth Rs 600 crore and an offer-for-sale (OFS) of Rs. 798.30 crore. The Medplus Health Service IPO opened at Dec 13, 2021, and closed at Dec 15, 2021 and listed on both NSE & BSE at Dec 23, 2021.The minimum lot size comprises 18 shares at a price band of Rs.780 -796 per equity share. A retail-individual investor can apply for up to 13 lots.

The objective of the issue is to fund the working capital requirement of the subsidiary, Optival; and for general corporate purposes.

Axis Capital, Credit Suisse Securities (India), Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) were the managers to the offer. 

Medplus Health Services IPO has got 50 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent reserved for non-institutional investors (NIIs). The remaining 35 per cent of the issue is available for retail investors.

The scrip got listed at Rs 1,040.00 a piece on the National Stock Exchange (NSE), thereby registering a gain of 30.65 per cent from its offer price of Rs 796.00, while on the BSE, it opened at Rs 1,015.00, up 27.51 per cent from the issue price.

Medplus IPO Subscription Status

The Medplus Health IPO was subscribed 52.59 times on Dec 15, 2021.The public issue subscribed 5.24 times in the retail category, 111.90 times in the QIB category, and 85.33 times in the NII category.

About the Company

Incorporated in 2006, Medplus Health Services is India’s second-largest pharmacy retailer in terms of the number of stores and revenue. The company offers pharmaceutical and wellness products i.e. medicines, vitamins, medical devices, test kits, and fast-moving consumer goods i.e. home and personal care products, baby care products, sanitizers, soaps, and detergents, etc. It is also the first pharmacy retailer in India to offer an omnichannel platform wherein customers can purchase products through stores, place orders over the telephone, online orders, and a Click and Pick facility.

As of June 31, 2021, the company has a strong pharmacy retail network of 2,165 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra. In fiscal 2021, its share of the organized pharmacy retail based on revenue from operations in Chennai, Bangalore, Hyderabad, and Kolkata reported at 30%, 29%, 30%, and 22% respectively. It follows a cluster-based approach for store network expansion wherein it first opens high store density in a populated residential area within a target market. The company’s warehouses are located in Bengaluru, Chennai, Hyderabad, Vijayawada, Kolkata, Pune, Bhubaneshwar, Mumbai, and Nagpur.

(Source: DRHP of Medplus Health Services Limited IPO)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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IPO Watch

Supriya Lifescience displays healthy listing with 55% premium

Money bag with the word IPO (Initial public offering; stock market launch) and a calculator. The first public sale of shares of a joint stock company. Business and finance concept

The Rs 700 crore- IPO by the API manufacturer, Supriya Lifescience was issued from December 16 to 20, 2021. The issue price was in the range of INR 265-274 per equity share. The Book Running Lead Managers were Axis Capital Limited and ICICI Securities Limited.

Overall, the issue received bids for 1,03,89,57,138 shares against 1,45,28,299 shares on offer, according to NSE data. The IPO comprised a fresh issue of up to Rs 200 crore and an offer for sale of up to Rs 500 crore.

The subscription by QIBs was 31.83 times, NII category was subscribed 161.22 times, Retail investors subscribed 56.01 times, thereby making the entire subscription 71.51 times.

The pre-issue holding of promoters was 99.98%, which after issue is 68.24%.  The scrip was listed on secondary market at INR 425 on BSE with premium of 55.11% and on NSE it was listed at INR 421.

Proceeds of the issue would be utilized for funding capital expenditure requirements of the company, repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company and general corporate purposes.

Supriya Lifescience looks forward to achieve continuous growth in coming years on account of strong fundamentals. Since past three to four years it has bee growing at the CAGR of 18%. The company has managed to maintain 40% EBITDA margin, which is due to their focus on penetrating into more regulated markets where we are able to get a much better average selling price for the existing products. They look forward to add more APIs into existing therapeutic categories apart from adding new therapeutic categories in their basket, like decongestants, anti-gout, xanthine derivatives and more vitamin derivatives. They wish to focus more on anti-anxiety therapies.

Supriya Lifescience envisages to expand across newer geographies and focus more on regulated markets like North America, Japan and China. Currently, twelve of the existing products are backward integrated and contribute about 65% of the total revenue and it continues to be their strategy for further capacity expansion and product developments as well. About Rs 92 crore of the amount that will be raised would be utilised for capacity enhancements by adding a new production block which would add further capacity.

About the company:

Supriya Lifescience is a manufacturer and supplier of active pharmaceutical ingredients (APIs) with a focus on research and development. As of October 31, it had niche product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and antiallergic. The API maker has consistently been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India, contributing to 45-50 per cent and 60-65 per cent, respectively, of the API exports from India, between fiscal 2017 and 2021.

(Source: economictimes.com)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
ipo IPO Watch

CMS Info Systems Limited IPO subscribed 1.95 times

The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, organized retail and e-commerce companies in India.

The IPO comprises of offer for sale of equity share amounting to Rs. 1,100 crore. The CMS Info Systems IPO open date is Dec 21, 2021, and the close date is Dec 23, 2021. The issue may list on Dec 31, 2021. The mininimum lot size comprises of 69 shares at a price band of Rs.205-216 per equity share.  A retail-individual investor can apply for up to 13 lots (897 shares or ₹193,752).The IPO will be listed both on NSE as well as BSE .

The IPO aims to raise funds for the following objectives;

  • To carry out an offer for sale of equity shares by promotors aggregating upto Rs. 11,000 million.
  • To achieve the benefits of listing the equity shares on the stock exchanges.

CMS Info System Limited  IPO has got 50 per cent reserved for qualified institutional buyers (QIBs), 35% reserved for retail investor and 15 per cent reserved for non-institutional investors (NIIs). 

CMS Info Systems IPO Subscription Status (Bidding Detail)

The offering received 7,32,71,721 applications versus 3,75,60,975 shares on offer, resulting in a 1.95-to-1 subscription ratio. The part earmarked for retail bidders was subscribed 2.15 times, according to BSE data, while the institutional quota garnered 1.45 times offers. So far, the HNI section has been subscribed to 1.98 times.

Company Profile

As of March 31, 2021, CMS Info Systems Limited was India’s largest cash management firm in terms of ATM and retail pick-up points. The company instals, maintains, and manages assets and technological solutions for banks, financial institutions, organised retail, and e-commerce companies in India on an end-to-end outsourced basis.

The company is divided into three segments: 1. cash management services, 2. managed services (such as banking automation product sales, common control systems, and software solutions, and so on), and 3. others (such as financial card issuance for banks and card personalisation services). It has a network of 3,965 cash vans and 238 branches and offices covering all of India’s states and union territories as of August 31, 2021.

(Source: CMS Info Systems IPO DRHP)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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IPO Watch

Shriram Properties Limited opens up IPO on Wednesday,07, Dec,2021

The Shriram Properties IPO open date is Dec 8, 2021, and the close date is Dec 10, 2021. The issue may be listed on Dec 20, 2021.

This public issue comprises fresh issuance of equity shares worth Rs.250 crore and an offer for sale (OFS) of Rs.350 crore. The issue includes a reservation of equity shares worth Rs.3 crore for the company’s employees who will receive those shares at a discount of Rs.11 per share to final issue price. The company’s shares are expected to list on stock exchanges BSE and NSE.

The price brand for the IPO is Rs113-118 per equity share.  A retail-individual investor can apply for a minimum of 1 lot comprising 125  shares amounting to Rs.14,750 and maximum of 13 lots comprising 1625 shares amounting to Rs.1,91,750.

Objects of the Issue:

The IPO aims to utilize the net proceed towards the following purposes;

  • Repayment and/ or prepayment, in full or part, of certain borrowings availed by the company and its subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram; and
  • General corporate purposes, subject to applicable laws.

About 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Axis Securities Ltd, ICICI Securities Ltd and Nomura Financial Advisory and Securities Ltd are the book running lead managers to the issue.

About the company

Incorporated in 2000, Shriram Properties is a part of the Shriram Group and is one of the leading residential real estate development companies in South India. The company primarily focuses on the mid-market and affordable housing segments. The company is also present in the mid-market premium and luxury housing categories as well as commercial and office space categories. Bengaluru and Chennai are the key markets for the company. The company also has operations in Coimbatore, Visakhapatnam, and Kolkata.

As of September 30, 2021, the company has completed 29 projects, out of which 24 are in the cities of Bengaluru and Chennai. As of September 30, 2021, the company has a total portfolio of 35 projects in ongoing, projects under development, and forthcoming projects, stages, aggregating to 46.72 million square feet of estimated saleable area.

(Source:   Shriram Properties IPO DRHP)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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IPO Watch

Star Health and Allied Insurance Company IPO subscribed 79% on final day

The IPO comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale (OFS) of up to 58,324,225 equity shares of Rs. 5,249 crore by promoters and existing shareholders. The Star Health IPO opened at Nov 30, 2021, and closed at Dec 2, 2021and will list on both NSE & BSE at Dec 10, 2021.The minimum lot size comprises 16 shares at a price band of Rs.870 -900 per equity share. A retail-individual investor can apply for up to 13 lots.

The objective of the issue is to  to utilize the net proceed to augment the company’s capital base and insolvency level.  The proceeds will also be used for general corporate purposes.

The Star Health IPO has got 75 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent reserved for non-institutional investors (NIIs). The remaining 10 percent of the issue is available for retail investors.

Star Health IPO Subscription Status

Star Health IPO opened for subscription on Tuesday, November 30,2021 and concluded at 5 p.m Thursday , December 2,2021.

According to the data available on the BSE, Star Health was met with a muted response as it got subscribed 79 percent on the final day.

The shares which are to be allocated for the qualified institutional buyers (QIBs) was subscribed 1.03 times, while those of non institutional investors was subscribed 0.19 times and that of retail individual investors (RIIs) was subscribed 1.10 times. Separately, shares for the employees’ segment was subscribed 0.10 times, the data showed.

About the Company

Incorporated in 2006, Star Health and Allied Insurance Company Ltd is one of the largest private health insurers in India with a market share of 15.8% in Fiscal 2021. The company primarily focuses on the retail health and group health segments which accounted for 89.3% and 10.7% of the company’s total GWP in Fiscal 2021 respectively.

The company mainly distributes policies through individual agents and also includes corporate agent banks and other corporate agents. As of Sep 31, 2021, its network distribution includes 779 health insurance branches across 25 states and 5 union territories in India. Star Health has also built one of the largest health insurance hospital networks in India with more than 11,778 hospitals.

(Source:https://www.sebi.gov.in/filings/public-issues/jul-2021/star-health-and-allied-insurance-company-limited-drhp_51323.html)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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ipo IPO Watch

GO FASHION: NEW TRENDS TO SET

Go Fashion shares made a glamorous stock market entry on Tuesday, 30th November 2021. The stock opened for trading at ₹ 1,310 on the National Stock Exchange, up 89.86 per cent from its issue price of ₹ 690 per share. On the BSE, Go Fashion shares opened for trading at ₹ 1,316, up 91 per cent from the IPO price.

Go Fashion mopped up Rs 1,014 crore from the public issue that was subscribed 135.46 times during November 17-22. Non-institutional investors had put in bids 262.08 times the portion set aside for them and qualified institutional investors’ reserved portion was subscribed 100.73 times. Retail investors bought shares 49.70 times the portion reserved for them.

Go Fashions is the first company to launch a brand exclusively dedicated to the women’s bottom-wear category. It is a play on the unorganized to the modern retail shift. At the upper end of the price band, it is valued at 9.4 times, 14.6 times EV/sales for FY20, FY21, respectively.

The company has decided to allocate a total of 66,10,492 equity shares to 33 anchor investors at ₹690 apiece, aggregating the transaction size to ₹456.12 crore. Government of Singapore, Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Fidelity, SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Axis MF, Aditya Birla Sun Life MF and SBI Life Insurance Company are among the anchor investors.

The company held an 8 percent share in the organised women’s bottom-wear market in FY20. It has a healthy, asset-light business model and had operating cash flows despite volatility in profit in the last three fiscals.

Go Colors has a strong brand value with altering revenues, while the company went into losses in FY21. As the number of working women is improving along with the advancing fashions, it is anticipated that the company can have a great growth drive. The company has a fantastic management team with a mixed bag of financials, and it is expected that it may perform good.

The business model of company looks good with strengths like efficient product portfolio and a good supply chain, but still the company is susceptible to factors like changing consumer spending patterns, unable to adjust to changing likings and a possible slowdown due to the new variant of COVID which has caused the markets to correct themselves.

Company Profile

Go Fashion (India) Limited, also popularly known as Go Colors, was incorporated on 09 September 2010. It is classified as a public limited company and is in Chennai, Tamil Nadu. The Company is one the best retail players in women’s apparel. The Company offers leggings, jeggings, palazzo, pants, tops, t-shirts, and diaper shorts. Go Fashion serves customers in India. 

(Source: Economics Times, Financial Express)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.