Category: IPO Watch

According to market experts, Zomato’s IPO is likely to go through and may even list at a premium to the issue price due to interest from long-term institutional investors, but profitability concerns and the size of the offering are likely to keep subscription numbers in check.

According to brokers, the stock’s grey market premium has reduced to 10-11 per share over its IPO price band of 72-76 per share, down from 15-16 a few days ago.

Arun Kejriwal comments, founder, Kris Research.

The premium has dropped since the offer may not be subscribed as many times as expected, and if the Tatva Chintan Pharma IPO is set for next week, it is probable that market funds would be redirected to that IPO rather than only Zomato. In the funding market, the cost of per share is currently $6 plus the issue price, and in the grey market, it can be sold for $10-$11 per share, which is the grey market premium. People are making $4 per share in the grey market by selling their stock.

According to market sources, Tatva Chintan, which is expected to collect approximately 475 crore in the IPO, could go public this week. In the grey market, Tatva Chintan’s shares are trading at a 600 percent premium.

About Zomoto

Customers, restaurant partners, and delivery partners are all connected through our technological platform, which serves their various demands. Customers use our platform to find and book restaurants, read and write customer reviews, see and upload images, order food delivery, book a table, and pay for their meals when dining out. We, on the other hand, equip restaurant partners with industry-specific marketing tools that allows interaction and gain customers in order to develop their business while simultaneously providing a dependable and effective last-mile delivery service.

Source : economictimes.indiatimes

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.

The $2.3 billion IPO of the Paytm in India will be the leading and expected to be the biggest public listing in India in terms of dollar after the state-run miner coal India in 2010 and reliance power in 2008.

The timing is ideal for an IPO because competition is heating up and Paytm’s popularity is waning; the IPO could be the difference in their ability to compete.

Paytm’s Offer for Sale

Paytm extended an offer for sale (OFS) to its employees earlier this month, allowing them to sell all or portion of their equity shares in the IPO or keep them. The IPO plans were approved by Paytm’s board “in principle,” and the preliminary prospectus is anticipated to be filed in July.

According to Indian regulations, 10% of shares must be floated within two years, and 25% must be floated within five years. Paytm’s stock must be a combination of new and existing stock.

Its investors include Alibaba of China and Softbank of Japan and Paytm is seeking shareholder approval at the EGM to offer up to 120 billion rupees in new share issue and maintain an alternative to retain up to 1% of an over-subscription.

For the IPO, Paytm has enlisted the help of JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi, and HDFC Bank.

Company Profile

Paytm is one of the biggest company providing financial services that offers full-stack payments & financial solutions to consumers, offline merchants and online platforms. One97 Communications is the parent of Paytm and is established by Vijay Shekhar Sharma. It’s headquarter is in Noida, Uttar Pradesh.

(Source: THE ECONOMIC TIMES and PYMNTS.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.

The company filed papers in April seeking regulatory approval for the Rs. 7,875 crore IPO, the year’s most anticipated public offering.

The approval comes after one of the company’s largest shareholders, Info Edge India, decided to reduce its offer for sale (OFS) in the IPO to Rs. 375 crore from Rs. 750 crore previously.

Info Edge India Ltd., one of Zomato’s early investors, will sell its stake in the company in the upcoming IPO for Rs750 crore.

Zomato will raise Rs. 7,500 crore from the public offering through the issuance of new equity shares. The proceeds will be used to fund organic and inorganic growth opportunities worth over Rs. 5,500 crore by the company.

The much-awaited initial public offer (IPO) of online food delivery and restaurant discovery platform Zomato is expected to open for subscription on July 19 at a price band of Rs 70-72 per share, said people with direct knowledge of the development. The offer size will likely be as much as Rs 9,375 crore at this price.

Revenue

Zomato reported revenue of Rs 2,743 crore in FY20, a 463 percent increase from revenue of Rs 487 crore in FY18. Its revenue was Rs 1,368 crore in the nine months ending December 31, 2020. In FY18, FY19, FY20, and the nine months ended December 31, 2020, the company reported losses of Rs 106.9 crore, Rs 1,010 crore, Rs 2,385.6 crore, and Rs 682 crore, respectively.

Company Profile

Zomato is an Indian multinational restaurant aggregator and food delivery companyfound in 2008. Zomato provides online information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities.

(Source: The Economic Times)

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.

The cut in size indicates that Info Edge is confidence in the future of the company and wants to keep more of the company it bought for a low price. Many analysts and foreign investors are likewise optimistic about the situation. Zomato’s much-anticipated initial public offering is set to take place later this month. The date, on the other hand, remains unclear.

The stock is trading at Rs 80 a share in the grey market, or the unofficial market for unlisted shares, about 15% more than the projected IPO price of Rs 70. Zomato’s shares were sold at Rs 55-60 in the most recent round of investment.

If traders’ predictions are correct and Zomato offers its shares for Rs 70, Info Edge will profit 60 times its initial stake. According to the DRHP, the business led by Sanjeev Bikhchandani purchased around 18.55 % at an average cost of Rs 1.16 per share.

Source: economic times

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.

Subscription

Rs 800 crore IPO was subscribed 29.04 times between June 23 and 25. The shares reserved for non-institutional investors (NIIs) were subscribed 51.88 times, while the quota reserved for qualified institutional buyers (QIBs) was subscribed 42.95 times. The retail quota was subscribed to 11.3 times.

According to a corporate news release, India Pesticides is the only Indian manufacturer of five technicals and is among the world’s leading producers of captan, folpet, and thiocarbamate herbicides in terms of manufacturing capacity.

The agrochemical stock had a P/E of 24.5 times and an EV/Ebitda of 18.2 times at the time of issuance. From a long-term perspective, Motilal Oswal Securities, Prabhudas Lilladher, Antique Stock Broking, Anand Rathi, Angel Broking, and ICICI Direct all gave the issue “subscribe” ratings.

Analysts View

The corporation has a 34 percent return on equity (ROE) and a 45 percent return on capital employed (ROCE), respectively. Angel Broking had predicted a 15-25 percent increase in listing gains. Short-term investors were urged to book profits at Rs 350.

Registrations and Licences

India Pesticides now has two manufacturing plants in Uttar Pradesh, one in Lucknow and the other in Hardoi. The combined capacity of the two plants is 19,500 mt for technicals and 6,500 mt for formulations verticals. For sale in India, the company has registrations and licences for 22 agrochemical technicals and 125 formulations, as well as 27 agrochemical technicals and 35 formulations for export.

Source: Economic times

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.

This follows the initial public offerings (IPOs) of five companies last month: Shyam Metalics and Energy, Sona BLW Precision Forgings (Sona Comstar), Krishna Institute of Medical Sciences, Dodla Dairy, and Indian Pesticides. These companies raised a total of Rs 9,923 crore through public offerings.

Clean Science and Technology and GR Infraprojects’ three-day initial public offerings (IPOs) will begin on July 7 and end on July 9. The bidding for key investors will begin on July 6, according to data from exchanges.

Through IPOs, the two companies would raise a total of Rs 2,510 crore. The firms’ shares will be traded on the BSE and the NSE.The Rs 1,546.62-crore IPO of Clean Science and Technology is wholly an offer for sale (OFS) by current owners and other shareholders.

For its initial public offering, a speciality chemical producer has set a price range of Rs 880-900 per share. Functionally essential speciality chemicals, such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals, are manufactured by Clean Science Technology. Customers employ its goods as crucial starting materials, inhibitors, or additives in their products.

The public offering of GR Infraprojects will be a full OFS of 1,15,08,704 equity shares by promoters and investor selling stockholders. Employee reservations are also included in the package. The IPO of GR Infraprojects, which has set a price range of Rs 828-837 per share, is expected to raise Rs 963.28 crore at the top end of the pricing range.

Source: Economic times

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.