Category: IPO

Dixon Tech makes strong debut; lists at 54% premium

Dixon Tech makes strong debut; lists at 54% premium

18/09/2017 12:53

Electronic manufacturing firm Dixon Technologies (India) kicked-off trading on the Bombay Stock Exchange on strong note by listing at Rs 2725.00, a 54 per cent premium against its initial public offer (IPO) price of Rs 1,766 per share.

The shares of the company, which had got overwhelming response for its initial public offering, listed at premium at Rs 2,725 on the National Stock Exchange.

Extending its early gains, shares of company gained as much as 69.81 per cent to trade at intra-day high of Rs 2998.90 on the BSE. In the day’s trade so far, stocks hits intra-day high and low of Rs 2998.90 and Rs 2725.00, respectively.

“The equity shares of Dixon Technologies (India) Ltd (Scrip Code: 540699) are listed and admitted to dealings on the Exchange in the list of ‘B’ Group Securities,” said the company in a filing to the Bombay Stock Exchange.

The IPO, which was opened for public subscription from September 6-8, had fixed a price band of Rs 1,760-1,766 per equity share.

The company intends to use fund proceeding for setting up LED TV capacity in Tirupati, expansion of backward integration of lighting business, debt repayment, IT infrastructure and the rest will be used for general corporate purposes.

Meanwhile, the broader benchmark BSE Sensex was trading at 32,484.01, up 211.40 points, or 0.66 per cent, at 13:00 hours.

SBI Life gets final approval for IPO from SBI central board

SBI Life gets final approval for IPO from SBI central board

12/07/2017 12:47

State Bank of India said its central board approved dilution of its stake in its life insurance arm through an initial public offer for which it has already secured the sectoral regulatory approval, reported PTI.

“The executive committee of the central board of the bank at a meeting, accorded the final approval for divestment of SBIs stake in SBI Life through an IPO,” SBI said in an exchange filing.

Earlier, the insurance regulator Irdai approved SBI Lifes Rs 7,000 crore IPO application, making it the largest share sale by a life insurer in the country. But the company is awaiting the final approval from the markets watchdog Sebi.

Pending all the approvals from all regulators, the board has decided to go ahead with the share sale of up to 8 crore equity shares, the price of which will be fixed later in consultation with selling shareholders-the parent SBI, and the foreign partner BNP Paribas Cardiff, the filing said.

SBI Life has hired BNP Paribas, Citi, Kotak Investment Bank and Axis Capital to manage the initial share sale.

SBI Life is a joint venture between State Bank and BNP Paribas Cardiff in which SBI holds 70.1 per cent and BNP Paribas Cardiff 26 per cent. Private equity firm KKR and Singapore-government owned investment company Temasek hold 1.95 per cent each in the life insurer.

The company is expected to file draft share sale documents with the Sebi in the next few weeks.

SBI Life is the second largest private life insurer after ICICI Prudential. In December, KKR and Temasek bought 1.95 per cent each at Rs 460 per share, which valued the insurer at Rs 46,000 crore.

Last year, ICICI Prudential mopped up Rs 6,057 crore through an IPO and became the first life insurer to go public, valuing the company at Rs 48,000 crore.

Federal Bank launches Rs 2,000-cr QIP

Federal Bank launches Rs 2,000-cr QIP

22/06/2017 11:32

South-based Federal Bank said that it has launched a institutional sale of shares, aiming to raise around Rs 2,000 crore or USD 310 million in capital. There is an option to upsize the issue by Rs 500 crore or USD 77 million, sources said.

In a regulatory filing, the bank said its credit committee, and investment and raising capital committee has authorised the opening of the qualified institutional placement (QIP) of shares on June 21.

The floor price has been set at Rs 117.04 per share and it can sell shares at a discount of not more than 5 per cent, it said in the filing.

Investment banking sources put the indicative price band of the share sale at between Rs 111.50 to Rs 116.70.

The bank is looking at issuing between 214.2 million to 224.2 million shares in the issue.

The bank scrip shed 1.81 per cent to close at Rs 116.85 at the BSE, as against a 0.04 per cent correction in the benchmark.

German lender Deutsche Bank, Kotak Mahindra Capital and IIFL Holdings are bankers to the issue.

Meanwhile, shares of the Bank were trading at Rs 118.20 apiece, up 1.16 per cent from the previous close at 11:0 hours on BSE.

BSE SME platform receives 214 draft prospectus

BSE SME platform receives 214 draft prospectus

20/06/2017 12:06

BSE’s small and medium enterprise (SME) platform seems to be generating significant interest from investors with as many as 214 firms filing draft papers to raise funds through IPOs since the launch of the segment, nearly five years ago.

Out of 214 companies, 183 of them are already listed and have raised Rs 1,440 crore from the market. Currently, these firms have a market capitalisation of Rs 18,832 crore.

Of these 183 firms listed on BSE SME platform, 29 have migrated to BSE main board. Asia’s oldest bourse is the leader in this segment with more that 80 per cent market share.

Moreover, a total of 26 SMEs are expected to launch their initial public offerings soon.

BSE had launched its SME platform in March 2012 and since then, several companies have got listed on them and some have even shifted to the main board.

The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.

“BSE’s SME has become the first SME platform in India where 214 companies have filed their prospectus for getting listed,” the exchange said in a statement issued today.

Indian SME sector has emerged as a highly vibrant and dynamic sector of the economy over the past few years. SMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialisation of rural areas.

SME IPOs catch investors eye, raise Rs 811 cr in FY17

SME IPOs catch investors eye, raise Rs 811 cr in FY17

24/04/2017 11:16

Small and medium enterprises (SMEs) raised a staggering Rs 811 crore through initial public offerings in 2016-17, more than two-fold jump from the preceding fiscal, reported PTI.

The huge fund-raising can be attributed to reforms and initiatives taken by the government to encourage the SME sector.

Funds raised through the issue were used for business expansion plans, working capital requirements and other general corporate purposes.

A total of 80 companies got listed with initial public offers (IPOs) worth Rs 811 crore in the last fiscal as compared to 46 firms which tapped the IPO route to garner Rs 304 crore in 2015-16.

In 2014-15, 37 firms made debut on the SME platform and raised Rs 271 crore. These companies are listed on the small and medium enterprise platforms of BSE and NSE.

“SME capital market is witnessing participation from wider class of investors and the trend is expected to continue. Even institutional investors have started showing interest in SME investing and the market looks up to them with expectation.

“Most of the listed SMEs have added value to shareholders,” Pantomath Group Managing Director Mahavir Lunawat said.

Geographically, Gujarat has proved its dominance in the SME listing by contributing 33 firms on SME bourses which is the maximum, followed by Maharashtra (15), Rajasthan (10), West Bengal (4) and Delhi (3).

Further, average issue size also increased during the past fiscal to Rs 10 crore as compared to Rs 7 crore each for the preceding two financial years.

Besides, institutional investors including banks and mutual funds have started showing interest in the SMEs public offers.

Bohra Industries, Momai Apparels, Agro Phos India, Maheswari Logistics and Nandini Creation are some of the companies that received participation from institutional investors.

“Governance structures, improved credit rating, reduced finance cost, easy finances and branding are some of key benefits for listing on the SME platform. Besides valuation has helped listed SMEs to achieve speedy growth in systematic manner at early stage of their respective business life cycle,” Lunawat added.

The companies which got listed in the past fiscal are from sectors such as finance; media and entertainment; real estate and infrastructure; manufacturing; agriculture; aquaculture; food and processing; and IT and IT-enabled service.

BSE and NSE had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country. Since then, several companies have got listed on them and some have even shifted to the main-board.

The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.

Capacit’e Infraprojects files for Rs 400-cr IPO

Capacit’e Infraprojects files for Rs 400-cr IPO

18/04/2017 12:35

Capacit’e Infraprojects Ltd, a real estate construction company, has filed Draft Red Herring Prospectus (DRHP) with markets regulator SEBI, planning to raise Rs. 400 crore through an Initial Public Offering (IPO), reported PTI.

The issue will be on book-building basis and the price band to be decided later.

The company will use the IPO proceeds for working capital requirements, purchase of capital assets (system formwork) and for general corporate purposes, it said in the filing.

Axis Capital, IIFL Holdings and Vivro Financial Services Private are the book running lead managers to the issue and Karvy Computershare Private is the registrar.

Capacit’e Infraprojects’ order book position stood at Rs. 4,000 crore as on January 31, 2017, comprising 51 ongoing projects. The Company’s consolidated revenue from operations grew to Rs. 8,53.29 crore in financial year 2016 and Rs. 8,47.37 crore for the nine month period ended December 31, 2016, from Rs. 2,14.25 crore recorded in fiscal 2014.

Yext announces pricing of initial public offering

Yext announces pricing of initial public offering

13/04/2017 12:47

Yext, Inc., the Knowledge Engine provider, today announced the pricing of its initial public offering of 10,500,000 shares of its common stock at a public offering price of USD 11.00 per share.

The shares are expected to begin trading on the New York Stock Exchange on April 13, 2017, under the symbol “YEXT,” and the offering is expected to close on April 19, 2017, subject to customary closing conditions. Yext, Inc. has granted the underwriters a 30-day option to purchase up to an additional 1,575,000 shares of common stock to cover over-allotments, if any.

Morgan Stanley, J.P. Morgan and RBC Capital Markets are acting as the bookrunners for the offering. Pacific Crest Securities, a division of KeyBanc Capital Markets, and Piper Jaffray are acting as co-managers.

Snapdeal sounds out SBI Caps, Kotak Capital, 3 others for 2019 IPO

Snapdeal sounds out SBI Caps, Kotak Capital, 3 others for 2019 IPO

03/04/2017 12:17

Snapdeal has sounded out five merchant bankers, including SBI Caps and Kotak Mahindra Capital, to work on a public offer that is likely to hit the market in the second half of 2019, reported PTI.

The third largest marketplace majority owned by Japanese giant SoftBank has also reportedly appointed Swiss investment banking major Credit Suisse as a special advisor for the share sale, people aware of the development told PTI.

“The IPO process is on with in earnest and may open in the second half of calender 2019, depending on the market sentiment. The management has zeroed in on five i-bankers incluing SBI Caps and Kotak Mahindra Capital,”said the source as per the media reports.

The source also said out of the five i-bankers sounded out, it will pick only one lead-banker that could be either SBI Caps or Kotak. It has also sounded out top law firms Amarchand Mangaldas, AZB & Partners and Khaitan & Co to advise it on the proposed share sale plan.

The development comes within days of co-founder and chief executive Kunal Bahl writing to the employees, whose numbers have come down to under 3,000 from 7,000 a year ago, asking them to prepare for an IPO a la the hugely successful share sale by retailer D-Mart, that was oversubcribed over 100 times and made a market debut with a whopping 114 per cent premium a fortnight ago.

The Gurgaon-based Snapdeal which has been burning money to compete with its larger rivals Flipkart and the American giant Amazon, is reported to have only cash left for a year at best, and is desperately to raise funds amidst reports that existing investors led by Softbank which own 33 per cent and Kalari Capital want it to be merged with Flipkart or Paytm.

Due to cash cruch and massive write-down in valuations the company has reduced costs by 60 per cent, Bahl said in the March 27 letter and also reported slashed one-third of its employee-count in the past one year alone, is focusing on growing in profitably, which the management feels is possible through an IPO.

Snapdeal has so far raised over USD 1.7 billion, including USD 200 million in early 2016 and is desperately seeking more money, according to sources. The e-tailer has also reportedly slashed its monthly cash burn by 80 per cent, incurring a USD 4-5 million a month now, from USD 20-25 million in its bid to conserve cash.

Its early-stage investors include Kalaari Capital and Nexus Venture Partners, while the largest shareholder is Softbank wants to exit. The Japanese giant has pumped in close to USD 1 billion in the company which was valued at USD 6.5 billion in December 2016.

While Softbank owns 33 per cent in Snapdeal, Nexus owns roughly 10 per cent and Kalaari nearly 8 per cent, as per the RoC filing. Chief executive Kunal Bahl and chief operating officer Rohit Bansal, together own under 6.5 per cent in the of the company they cofounded. In the March 27 letter to employees titled ‘The DMart story and our path to profitability, Bahl has alluded to the success of the DMart IPO and said there are many lessons to be learnt from the disciplined execution and focus of the retailer.

Avenue Supermarts makes stellar debut, lists at 102% premium

21/03/2017 12:32

Shares of Avenue Supermarts made a stellar debut at the Bombay Stock Exchange (BSE) today, surging nearly 107 per cent against the issue price of Rs 299.

The stock listed on BSE at Rs 604.40, reflecting a huge jump of 102 per cent over the issue price. Later, it touched an intra-day high and intra-day low of Rs 619.75 and Rs 558.75 respectively.

On the volume front, over 5.78 crore shares of the exchange were traded so far on NSE.

The price band for the public issue of Avenue Supermarts, the operator of retail chain D-Mart, was fixed at Rs 295-299 and the IPO was open for subscription during March 8-10. Proceeds of the issue would be utilised for various purposes, including loan repayment, reported PTI.

The public issue was managed by nine merchant bankers Kotak Mahindra Capital, Axis Capital, Edelweiss Financial Services, HDFC Bank, ICICI Securities, Inga Capital, SBI Capital Markets, JM Financial Institutional Securities and Motilal Oswal Investment Advisors.

Meanwhile, the broader benchmark BSE Sensex was trading at 29,425.07, down 93.67 points or 0.32 per cent, at 12:15 hours.

CL Educate fixes price band for IPO

CL Educate fixes price band for IPO

15/03/2017 12:09

C L Educate on Tuesday fixed a price band of Rs. 500-502 per share for its upcoming initial public offer (IPO) through which it aims to raise Rs 239 crore, reported PTI.

The IPO will open on March 20 and close on March 22, said C L Educate, which operates across segments in the education industry including test preparation, K-12 and vocational training.

The issue comprises 47.60 lakh equity shares or about 33.61 per cent. It consists of fresh issue of 21,80,119 shares and an offer for sale of up to 25,79,881 scrips by existing shareholders.

At the upper end of the price band, the company would raise Rs. 238.95 crore.

Proceeds of the issue will be used for acquisitions and other strategic initiatives, repayment of loans, to fund working capital requirements and for other general corporate purposes, as per the draft papers.

Kotak Mahindra Capital Company is the sole book running lead manager to the issue.

The equity shares are proposed to be listed on bourses National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).