IPO Financial News

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Sagility India and Senores Pharmaceuticals have received approvals from the Securities and Exchange Board of India (Sebi) for their proposed initial public offerings (IPOs). The regulator issued its final observations on the draft papers last week. When a company receives a final observation from Sebi, it’s a signal from the regulator to go ahead with the IPO process. Sagility India’s IPO consists solely of an offer for sale (OFS) of 984.4 million shares by promoter Sagility BV. The company provides technology-driven services to insurance settlement entities and healthcare providers.

mutual funds now hold stocks worth more than $8 billion, or almost Rs 69,000 crore, in a dozen new-age companies including Zomato, Paytm, PB Fintech, Nykaa, Delhivery and Mamaearth on account of the rising valuations of some of these companies and many of them having gone public in recent years. The value of startup holdings by mutual fund companies such as ICICI Prudential, Axis Mutual Fund, Kotak Mutual Fund, HDFC Mutual Fund, Nippon Mutual Fund, Invesco India and Mirae Asset Mutual Fund was $2.7 billion a year ago, but only with six companies versus 12 now, calculations made by ET show. Besides the steady climb in stock prices that companies such as Gurgaon-based Zomato and Policybazaar-parent PB Fintech have witnessed in the last year, a clutch of new-age companies doing their initial public offerings (IPO) has led to the increased exposure by domestic mutual funds to this asset class.

Edtech unicorn Upgrad cofounder and managing director Mayank Kumar has stepped down from his executive role to start a new venture, sources briefed on the matter said. Starting this month, he has significantly reduced an operating role at the Mumbai-based firm while pitching to investors for his new startup which is focused on placing skilled Indian labour abroad—especially in healthcare. Coinciding with his departure is the company’s founder and chairman Ronnie Screwvala taking a more active role at the firm, these people said. Temasek-backed Upgrad is also in the final stages of closing $50-$60 million in funding from existing investors at a flat valuation of $2.25 billion, people in the know told ET. Screwvala holds 44% stake in the company, while Kumar has 8% and there are no changes in the shareholding pattern because of Kumar’s departure from the company.

Cipla and Alkem Laboratories have emerged as the frontrunners to acquire a controlling stake in Sahajanand Medical Technologies (SMT), India’s largest cardiac stent maker, said people in the know. This follows the withdrawal of rival private equity contenders KKR, TPG Capital and Apax Partners after showing initial interest. The deal is expected to value SMT at Rs 3,500-4,000 crore, and binding offers are due by next week, the people said. Promoters of SMT—the Kotadia family— plan to keep a minority stake after the transaction that would see other shareholders also divest their holdings. “They could retain about 15-20% stake post the deal,” said one of the persons cited above.

IPO has opened for subscription, but investors might have to brace for losses on debut, going by the grey market trends. The GMP is on a continuous slide and is currently trading at just 1.6% premium over the issue price. It would not surprise anyone if the GMP falls to negative before the listing, given the sharp fall over the past few days.

Globe Civil Projects Ltd on Tuesday said it has filed preliminary papers with markets regulator Sebi to raise funds through an initial public offering. The initial public offering (IPO) is entirely a fresh issue of 1.9 crore equity shares with no offer-for-sale component, according to the DRHP filed with Sebi. The company plans to list the shares on BSE and NSE.

Garuda Construction will debut on the exchanges on Tuesday. Going by the grey market trends, the stock is expected to see a negative to flat listing. The IPO received a decent subscription of 7.5 times amid strong demand from retail investors. The company's financial performance was robust in FY23, however the election year in FY24 led to a slowdown in revenue and profit growth.

₹1,865 to ₹1,960, with a minimum investment of ₹13,055 for a lot of 7 shares. The projected issue size stands at ₹27,870.16 crore, making it one of the largest IPOs of the year.

Pashupati Advani, Founder, Global Foray, says long-term, Avenue Supermarts is a good place to be in and a well-run company and the promoter and the CEO have done very well and have made fantastic things that are making it happen. It is unfortunate that temporary blips have meant that brokerage houses have lowered their weights, but it is just a matter of time before it does well again. Advani also says that Avenue Supermarts is making a large amount of net profit now from non-food items in the sense of making money on garments and underwears and socks and all the other things, kind of like Costco and Walmart in the US. The financialisation theme is not a short-term theme, it is not a matter of a few months or even a few years at that. Definitely a long-term theme for India. With respect to that and the fact that the NSE IPO is expected to be around the corner, which are the names from the financial ancillary setup that you would recommend? Pashupati Advani: Obviously, because the NSE IPO is coming, then CDSL and BSE obviously would be participating because the NSE IPO is coming currently at a higher PE than the BSE one. People would look at BSE as a cheaper alternative and go for a convergence to mean. The bank index is doing well, and is being pulled up by HDFC Bank, which is a very large part of it.

Garuda Construction and Engineering is set to make its stock market debut on Tuesday. While the IPO received a decent subscription response of 7.5 times, the grey market premium (GMP) currently stands at 0, indicating a potential for a flat or even negative listing. The company's financial performance was robust in FY23, but the election year in FY24 led to a slowdown in revenue and profit growth.

real estate sector saw 25 deals worth USD 1.4 billion in September quarter, driven by Qualified Institutional Placement (QIP) issues launched by developers, according to a report by Grant Thornton. Consulting firm Grant Thornton Bharat released the report 'Real Estate/ REITs Dealtracker — Providing M&A and PE deal insights' on Monday. «The quarter maintained strong deal volumes with 25 deals, marking an all-time high in terms of deal volumes and the second-highest values since Q2 2023,» the report said. The deal values were primarily driven by the QIP activity, followed by private equity funding in the residential and commercial segments, with additional activity in real estate technology companies.

Subscribe to enjoy similar stories. Hyundai Motor India (HMI), the second-largest player in the Indian passenger vehicle market since FY09, is set to make history with its massive initial public offering (IPO) on Tuesday.

Subscribe to enjoy similar stories. Mumbai: Hyundai Motor India will continue to focus on premium vehicles across traditional, electric and hybrid models that bring higher margins, the company’s management said as they formally announced the world’s largest public offering so far this year. India’s second-largest carmaker will have access to all propulsion technologies, including electric and hybrid, through its parent in Korea (Hyundai Motor Co.), they said.

Following the announcement of the price band, the company's GMP is steady at Rs 147 in the grey market. Considering the upper price band of Rs 1,960, the stock is expected to fetch marginal gains of 7% if the current trends are sustained.

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«But if you look at 21, 22, 23, if you look at the returns, they really have not as a class outperformed the markets. In fact, I would suggest that they have underperformed markets meaningfully, even if the companies are giving you a return,» says Rahul Bhasin, Baring Private Equity Partners. Do you think the class of 2024 IPOs is different from the class of 2021 wherein there was the frenzy, there were the fancied names, but there was also no path to profitability? Do you think first things first, we need to make that disconnect? Rahul Bhasin: Look, I will break that up into two parts. I mean, one part is the fact that mostly IPO markets give very good returns for investors when there has been a drought of IPOs for an extended period of time and so when you are talking about 21, there probably been a lull in the IPO market for almost a decade before that and virtually IPOs had dried up and then when you start seeing IPOs, usually it is in the first year after a drought that you usually get higher quality companies.

«If I look at the overall PE of the mid and smallcap, obviously they look expensive, but there are pockets which look reasonably good,» says Sridhar Sivaram, Enam Holdings. You make a good case for it, for sure. But what has not been stable or at least when it comes to earnings and this is something that you have also brought up is what is going on with the mid and the smallcaps. Are you still firmly of the view that largecaps is a safer place to be? Sridhar Sivaram: So, actually, mid and smallcap, it is such a big basket that we do find interesting ideas there where we can see strong earnings growth, like power sector is something that we really like, a lot of the power equipment companies are in the mid and smallcap space and they are growing at, say, 30-40%, a lot of the EMS companies are in the midcap space, they are growing at 30-40%. Obviously, these stocks have also rallied. But we think where there is earnings support, these mid and smallcaps can continue growing.

MS Dhoni has increased his investment in the drone start-up Garuda Aerospace, which is preparing for an IPO. While the exact amount of the investment has not been publicly disclosed, sources indicate that Dhoni has invested Rs 4 crore, raising his stake in the company to 1.1%. “I am proud to be part of Garuda's journey as they expand globally and make a positive impact on agriculture, defence, Industry 4.0, and the consumer drone sector,” Dhoni stated. Agnishwar Jayaprakash, the Founder and CEO of Garuda Aerospace, expressed his admiration for Dhoni, saying, «Mahi Bhai has inspired all of us at Garuda Aerospace. His encouragement and unwavering support motivate each of us to deliver our best.»

Mayuresh Joshi, Head Equity, Marketsmith India, says the markets are fearing a possible escalation in the Middle East conflict. In the Indian context, earnings might be a tad bit soft going into this quarter's numbers as well. But with good monsoon, expectations of rural recovery, second half should be relatively better as far as India Inc is concerned. So, Joshi is not looking at a structural downside. Liquidity remains strong and for any fall in the market that comes through, liquidity might come back and cushion them. It is getting bad in the market, could it get ugly? Mayuresh Joshi: There are two-three angles. One, obviously, in terms of how global macros are shaping up. The expectations in terms of the China stimulus has clearly buoyed sentiments in terms of foreign flows towards China. Again, undervalued, under-owned and therefore, the kind of move that we saw on the Chinese markets because of the stimulus was something to be watched out for.

Subscribe to enjoy similar stories. Investment banks reaped a record harvest in terms of underwriting fees in the first nine months of 2024, a year that saw companies such as Ola Electric, FirstCry, Awfis and Ixigo march to the market. Thanks to a flurry of initial public offerings, block deals and private placements, underwriting fees in the equity capital markets (ECM) rose 110% from a year earlier to touch $471 million, data from the London Stock Exchange Group (LSEG) showed, the biggest nine-month haul since records started in 2000.