Category: IPO Watch

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IPO Watch

Strong Market Debut of Devyani International at 57% premium over issue price

At the issue price, the company commanded a market capitalisation of Rs 10,823 crore and was valued at an EV/ EBITDA of 62.39.

It was subscribed 116.71 times, with qualified institutional buyer (QIB) category being subscribed 95.27 times, non-institutional investors 213.06 times, and retail individual investors 39.51 times. 

On 16th August 2021, Monday, the shares of Devyani International got listed on BSE at Rs. 141 at 56.66 per cent premium and on NSE, it got debuted at Rs. 140.90, up by 56.55 per cent.

In FY21, Devyani’s business from the core brands (India & Internationally) contributed 94.19 per cent to its revenues from operations. Delivery sales represented 70.20 per cent of revenues in FY21 in comparison to 51.15 per cent in FY20.

The company opened 40-50 stores across its brands in the last 2-3 quarters and expects to sustain this momentum. It also opened 43 stores in June quarter and 109 stores across core brands in the second half of FY21.

Company Profile

Devyani International is an associate company of RJ Corp, which is the largest bottling partner of food and beverages (F&B) major PepsiCo. It has interests in the Indian retail F&B sector. The company is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee. The company operates 284 KFC stores, 317 Pizza Hut stores, and 44 Costa Coffee stores in India as of June 30, 2021. The company also owns brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar and has operations in Nigeria and Nepal.

(Source: Economic Times, Financial Express)

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Sapphire Foods IPO: Another KFC, Pizza Hut operator files draft papers with SEBI to raise funds

Sapphire Foods’ initial public offering (IPO) consists of 1,75,69,941 equity shares and is a full offer for sale by shareholders. QSR Management Trust (QMT) owns 8.5 lakh equity shares, Sapphire Foods Mauritius owns 55,69,533 equity shares, and WWD RUBY owns 48,46,706 equity shares, Amethyst has 39,61,737 equity shares, AAJV Investment Trust has 80,169 equity shares, Edelweiss Crossover Opportunities Fund has 16,15,569 equity shares, and Edelweiss Crossover Opportunities Fund – Series II has 6,46,227 equity shares.

Sapphire Foods’ potential IPO was initially reported by Moneycontrol on December 17. Sapphire Foods, which is backed by Samara Capital, raised Rs 1,150 crore from private equity investors Creador, NewQuest Capital Partners, and TR Capital earlier this week. As of March 2021, Sapphire Foods runs 437 restaurants in India, Sri Lanka, and the Maldives under the KFC, Pizza Hut, and Taco Bell brands. Investors such as Samara Capital affiliates, Goldman Sachs, CX Partners, Creador, and Edelweiss are backing an omnichannel restaurant operator.

Due to the increased demand for delivery and takeaway services as a result of the Covid-19 outbreak, and depending on market dynamics and adjacent catchments, the company is contemplating smaller formats for new restaurants in order to cut down on one of the company’s biggest expenses – rent. 

Colonel Harland D Sanders started KFC in Corbin, Kentucky, in 1939; the first Pizza Hut restaurant opened in Wichita, Kansas, in 1958; and the first Taco Bell restaurant opened in Downey, California, in 1962. YUM! and its franchisees operated more than 50,000 locations worldwide as of December 31, 2020.

The book running lead managers for Sapphire Foods’ IPO are JM Financial, BofA Securities India, ICICI Securities, and IIFL Securities. Devyani International, another KFC, Pizza Hut, and Costa Coffee quick service restaurant operator, recently collected Rs 1,838 crore through a public offering that was oversubscribed 116.7 times.

Company Profile 

SAPPHIRE FOODS INDIA PRIVATE LIMITED COMPANY, is an entity incorporated on 10 November 2009 under Ministry of Corporate Affairs (MCA). SAPPHIRE FOODS INDIA PRIVATE LIMITED COMPANY is also an entity listed under Class as a Private organization having Registration Number for the Company or Limited Liability Partnership as 197005. SAPPHIRE FOODS INDIA PRIVATE LIMITED COMPANY is a Non-govt company and further SAPPHIRE FOODS INDIA PRIVATE LIMITED COMPANY is Classified as a Company limited by Shares. The concerned entity is incorporated and registered under its relevant statute by the Registrar of Companies (i.e. R.O.C), RoC-Mumbai. The official address for the Registered office of the organization in question i.e. SAPPHIRE FOODS INDIA PRIVATE LIMITED COMPANY is 131, 13th Floor Free Press House Building Mumbai Mumbai City MH 400021 IN.

(Source: Fact Set)

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ipo IPO Watch

Home cooking helps Cobram Estate Olives (ASX: CBO) build a $700m

Cobram Estate debuted on the ASX on Wednesday in a compliance listing in which it did not raise new capital but transformed from an unlisted public company with 705 shareholders to a publicly traded company in full view of the public. In its first hour on the ASX, the firm traded between $1.82 and $1.89 a share, giving it a market capitalisation of $706 million at the low end.

The organization’s chairman and co-founder, Rob McGavin, said it was satisfying to have established a corporation worth more than $700 million, but the group is now focused on long-term strategic decisions.

With a market capitalization of $700 million, it is almost twice as valuable as department store chain Myer, a household name that has struggled to keep up with online shopping and the epidemic. Cobram Estate, Australia’s No. 1 extra virgin olive oil and a huge seller at Woolworths and Coles, and Red Island, a more value-oriented brand, are the two prominent brands.

Cobram Estate’s Total Production 

Mr McGavin said that during the epidemic, sales were boosted by frequent capital city lockdowns, which drove many households to look more thoroughly at the sources of items used in recipes. Cobram Estate employs 172 employees, each of whom received 500 free shares as part of the company’s ASX IPO. Cobram Estate grows 2.4 million olive trees on 6854 hectares of farmland in central Victoria, accounting for 71% of Australia’s total olive oil production.

A few weeks ago, stockbrokers tested the appetite of potential investors with a $2 issue price, but found little institutional interest at that level. The board of directors opted to forego any capital offering and instead pursue a compliance listing.

According to the prospectus, Cobram Estate’s revenue for the year ended June 30 is estimated to be $211 million, with a net profit of $33.6 million. Because of the unique characteristics of the olive producing sector, where trees only produce one large crop every two years, the company will need to conduct a substantial education drive for new shareholders.

The harvest in 2021, which lasted from late April to June, was one of the large crop years, implying that next year’s crop will be “light”. The harvest in 2021 was 16.05 million litres, which was 7% higher than expected.

Company Profile 

COBRAM ESTATE PTY LTD is located in DOCKLANDS, VICTORIA, Australia and is part of the Fruit and Tree Nut Farming Industry. COBRAM ESTATE PTY LTD has 120 employees at this location and generates $4.80 million in sales (USD). (Employees figure is estimated, Sales figure is modelled). There are 10 companies in the COBRAM ESTATE PTY LTD corporate family.

(Source: Morningstar)

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IPO Watch

Robinhood’s (HOOD) IPO publicly filed its S-1 to register

The company, which will list under the ticker name HOOD, sold 52.4 million shares for $32 billion, somewhat less than expected.

Robinhood is raising money by selling shares to the general public, allowing the company to swiftly raise a substantial sum of money. It is one of the most high-profile IPOs of 2021. 

On March 23, 2021, Robinhood filed a confidential initial public offering (IPO). Robinhood filed an amendment to its S-1 form on July 19, 2021, reporting the sale of 52.4 million shares.

It expects to raise $ 2.3 billion from its initial public offering. It plans to utilize the funds to develop new goods, increase marketing spending, and expand its business. 

Over the course of its eight-year existence, the stock trading app has raised $ 5.6 billion in 23 consecutive investment rounds.

The company has yet to finalize the listing date of Robinhood’s IPO, which will be listed on the Nasdaq stock exchange under the ticker code HOOD.

Company Profile

Robinhood (HOOD) was founded by Stanford graduates Vlad Tenev & Baiju Bhatt in 2013. A broker-dealing company named Robinhood functions similarly to any other financial institution that allows the purchase and sale of securities. The firm is FINRA-regulated, a member of the Securities Investor Protection Corporation, and registered with the Securities and Exchange Commission. The Securities and Exchange Commission (SEC) regulates the financial markets. Robinhood, founded in Silicon Valley in 2013, was the first company to offer a mobile-first stock trading experience. The company’s application is sleek and simple to use, and it has made it easier for regular investors to buy derivatives, allowing them to speculate on future stock price swings. In addition, Robinhood pioneered the zero-fee business strategy in the stock brokerage industry.

(Source: FactSet)

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True Balance plans to break even by the end of the year and list by 2024.

True Balance is seeing a lot of interest in its small loans, which has resulted in a 3x increase in revenue for the platform

True Balance’s revenue rose by 3X, and by November-December this calendar year, the company expects to be EBITDA favorable and break-even, he said. True Balance India is a completely owned subsidiary of Korea’s Balancehero Co Ltd, which owns and runs the ‘True Balance’ lending platform.

True Balance is an RBI-approved online service that arranges loans through True Credits, an RBI-licensed NBFC. Balancehero was launched in Korea in 2014 by Cheolwon ‘Charlie’ Lee and introduced the True Balance app in India in 2016 to help consumers handle their mobile recharge, bill payments, and balance check more conveniently. True Credits acquired their licence from the RBI in 2019, after which True Balance began financing.

Lee said the company is ready to listing in India and overseas when questioned about IPO ambitions. In 2021, the company is planning to treble its sales, which was USD 10 million in 2020. True Balance, which employs over 200 people, the majority of whom are located in India, is also trying to expand its workforce.

Lee found that the company has grown by 30 to 50 percent month over month, with the goal of concentrating on non-online payment and non-credit score customers.

Company profile

Develop a culture within the organisation that supports freedom of expression, fair opportunity for progress, open channels of communication, and complete transparency, all of which are guided by our 5 Core Values. Employees are at the centre of every decision, and this is what propels forwards.

Employees at Balancehero India are exposed to a neo-South Korean culture with simpler organisational structures, open office spaces, and a vibrant atmosphere that encourages everyone to contribute to the company’s ultimate goals. As a way of showing thanks where it is due, keep employees engaged and motivated through feedback and monthly prizes.

Souce: Economictimes

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Nykaa, an Indian cosmetics firm, is planning an IPO to raise $500 million

Within months, sales had risen from 60 daily orders to over 1,000 orders. Nykaa capitalised on its success by tailoring products to Indian skin tones, skin types, and weather conditions. It introduced a wide range of nail colours, which presently number over 2,700.

It also introduced customers to make-up fundamentals like foundation, which it now provides in over 1,500 hues.

According to a copy of Nykaa’s draught red herring prospectus dated Monday, the company’s IPO will include a fresh issue of shares for up to 5.25 billion rupees ($70.63 million) and an offer for sale of up to 43.1 million shares.

Nykaa, which began selling cosmetics and grooming products on its website and apps in 2012, surged in popularity before expanding into fashion, pet care, and household supplies.

According to the prospectus, the company had 43.7 million downloads across all of its mobile applications as of March 31. It also has an offline presence in India, with 73 physical outlets spread over 38 cities.

Aside from TPG, the company has investors such as Fidelity Investments and Alia Bhatt, a well-known Indian film star. According to the prospectus, Nykaa would use the IPO proceeds to open new retail outlets, support capital expenditures, and repay debts.

Nykaa’s strategy has been to spend in technology, marketing, and product extensions in order to maintain its position.

Its online offerings, similar to Netflix Inc.’s movie recommendations, use algorithms to recommend things based on what users have already purchased.

(Source: Fact Set)

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CarTrade Tech IPO price band fixed at Rs. 1,585 – 1,618to raise Rs. 2,999 crore

On August 6, a day before issue opening, the corporation will open its anchor book, if any, for a day.

The public offering of 1,85,32,216 equity shares is a full offer for current selling shareholders to sell their shares. The total value of the offer is Rs 2,998.51 crore.

Highdell Investment 84,09,364 equity shares, MacRitchie Investments Pte Ltd 50,76,761 equity shares, and Springfield Venture International 17,65,309 equity shares will be sold through the IPO by CMDB II.

Bina Vinod Sanghi (jointly held with Vinay Vinod Sanghi) will sell 1,83,333 equity shares, Daniel Edward Neary will sell 70,000 equity shares, Shree Krishna Trust will sell 2,62,519 equity shares, Victor Anthony Perry III will sell 50,546 equity shares, and Vinay Vinod Sanghi (jointly held with Seena Vinod Sanghi) will sell 4,50,050 equity shares.

Investors can bid for as few as 9 equity shares and as many as 9 equity shares after that.

The company has set aside 50% of the overall offering for eligible institutional purchasers, 35% for retail investors, and the remaining 15% for non-institutional buyers.

With 34.44 percent of the company, Mauritius-based Highdell Investment is the largest shareholder, followed by MacRitchie Investments with 26.48 percent, CMDB II with 11.93 percent, Springfield Venture International with 7.09 percent, and Vinay Vinod Sanghi with 3.56 percent.

CarTrade is a multi-channel auto platform that covers a wide range of vehicle types and add-on services. CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz are some of the company’s brands.

The company uses these platforms to make it simple and efficient for new and used car buyers, dealerships, OEMs, and other businesses to buy and sell their automobiles.

(Source: Fact Set)

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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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Sweetman Renewables Plans for Its ASX Debut with a Pre-IPO Raise

Sweetman Renewables is aiming for the biomass and green hydrogen industries with a $4 million pre-IPO capital raise ahead of its ASX launch later this year. The listing date is later this week.

With the addition of three divisions covering hydrogen production, biomass supply, and the sale of high-quality timber products, the company hopes to more than tenfold its revenue base.

This potential has already been recognised, with the company recently negotiating a 20-year biomass supply contract with a Japanese conglomerate worth US$90 million.

It is also in advanced talks with Verdant Earth Technologies about becoming the primary supplier of Verdant’s $550 million biomass power project in the Hunter Valley.

Sweetman Renewables intends to raise only $4 million in the pre-IPO round. As a result, Sweetman is trying to leverage its sustainable biomass to manufacture green hydrogen, which Goldman Sachs predicts will be a US$10 trillion market by 2050.

Company Profile

Sweetman Renewables is developing a hydrogen production plan to become one of the largest true green hydrogen producers, leveraging its sawmill operation to offer biomass and green hydrogen for sustainable energy. Using sawmill operations to supply biomass and green hydrogen for long-term energy.

(Source: Morningstar)

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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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Nuix share price rises on Macquarie’s IPO review verdict

While Macquarie claims to have found no evidence of misconduct, Nuix’s IPO is still under investigation by the Australian Securities and Investments Commission (ASIC). Some of the market’s concerns appear to have subsided. Today’s closing price for Nuix was $2.53, up 1.2 percent.

According to the Australian Financial Review, Macquarie’s chairman, Peter Warne, talked to the media today ahead of the company’s annual general meeting. He reportedly stated that Macquarie’s IPO team studied Nuix’s prospectus and float and found nothing suspicious.

Nuix had Macquarie as a supporter when it went public on the ASX. Macquarie was also Nuix’s largest shareholder, owning over 70% of the IT firm prior to its IPO. Macquarie currently owns about 30% of Nuix’s stock.

ASIC suspects Doyle may have informed his brother about Nuix’s February downgrading, according to court documents. Doyle’s brother is then accused of selling 1.8 million Nuix shares to avoid a $5.7 million loss.

Despite today’s advances, Nuix’s stock remains in negative territory. Its stock is currently trading for 68 percent less than it was when Nuix went public in December. With around 317 million shares outstanding, the company has a market capitalization of around $793 million.

Company Profile

Nuix specializes in transforming massive amounts of messy data – from emails, social media, communications and other human-generated content – into actionable intelligence. With Nuix’s investigative analytics and intelligence software, you can understand the context and connections across billions of items in your data – search it, filter it, visualize it, analyze it and find the truth it holds.

(Source: FactSet)

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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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The share price of Vulcan (ASX: VUL) is being closely monitored. Following the spin-off IPO Update

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

Vulcan’s non-core, battery metal projects will be taken over by it. Kuniko will become a zero-carbon copper, nickel, and cobalt producer with properties in Scandinavia as a result of this deal.

The first offering allowed interested individuals to purchase one of 12.5 million Kuniko shares for 20 cents each. A 1:4 pro rata priority offer allowed Vulcan owners to purchase about 26.93 million Kuniko shares for 20 cents each.

The spin-off was first announced in April by the corporation. The stock price of Vulcan then dropped as a result of the announcement.

Kuniko has raised $7.88 million through its prospectus offerings to fund its operations. Kuniko plans to go public on the ASX on August 23rd.

Vulcan’s stock is now trading currently on 30th July 2021 at $9.08. The Vulcan’s recent ASX performance has been outstanding. Vulcan shares are now worth 222 percent more than they were at the beginning of 2021. They’ve also increased by 1,682 percent over the same period last year.

Vulcan Energy Resources Ltd’s current normalized EBIDTA is recorded at (889695), P/E ratio is ($0.08) and EPS is marked at (0.09). And its 1 year change is reported at +2007.53%. Vulcan has a market capitalisation of roughly $969 million at its current share price.

Company Profile

Vulcan Energy Resources Ltd (ASX: VUL) was founded by Dr. Frencis Wedin on 2nd May 2018 and it’s listed on the ASX under the ticker KNI. Vulcan Energy Resources Limited is an energy metals exploration firm established in Australia. In Germany’s Upper Rhine Valley, the company is working on a combined geothermal and lithium extraction project. The Company’s zero-carbon lithium extraction method is powered by sustainable geothermal energy and generates renewable energy as a by-product. From its combined geothermal and lithium resource in Germany’s Upper Rhine Valley, Vulcan Energy Resources Limited hopes to develop a battery-quality lithium hydroxide chemical product with a net zero carbon footprint. It is established with the intention of exploring and developing battery metals.

 (Source: FactSet)

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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.