The long-awaited IPO of Bajaj Housing Finance will hit the market on September 9th, 2024. This IPO will also be the most closely watched on the street in terms of subscription rate and listing gains. After all, it carries the legacy of Bajaj Finance and will be one of the biggest IPOs in the Indian market in 2024.
In this article, we will review Bajaj Housing Finance IPO and provide key insight to help you make an investment decision about whether to subscribe to it.
Bajaj Housing Finance IPO Details
The Bajaj Housing Finance IPO is being launched following the revised RBI regulatory framework, which requires upper-layer NBFCs to be listed on the stock market. It has an issue size of ₹6,560 crore, consisting of a fresh issue of equity shares totaling ₹3,560 crore and an offer for sale, which means the promoter entity is selling shares worth approximately ₹3,000 crores. For more details, check the DRHP here.
Bajaj Housing Finance was initially incorporated as Bajaj Financial Solutions Limited on June 13th, 2008, as a subsidiary of Bajaj Finserv Limited. Later, on November 1st, 2014, the company became a wholly-owned subsidiary of Bajaj Finance Limited to start a housing finance business in India.
With its aggressive growth model, it became India’s second-largest housing finance company, with a total loan book size exceeding Rs 97,000 crores and the most diversified mortgage lending products. It offers mortgage lending products, including home loans, Loan Against Property, Lease Rental Discounting, and Developer Financing.
Leadership Team
Atul Jain is the Managing Director of Bajaj Housing Finance. He has been with the Company for over a decade and has held numerous senior management roles, including Chief Collection Officer and Enterprise Risk Officer.
Jasminder Singh Chahal is the President of the Home Loan division and joined the company on August 19th, 2024. Earlier, he was associated with ICICI Personal Financial Services Company Limited.
Kumar Gaurav is the Executive Vice President of debt Management Services, managing the company’s debt profile. Earlier, he was in charge of the Personal and Business Loan vertical at Bajaj Finance Limited.
CA Gaurav Kalani has been the Chief Financial Officer of Bajaj Housing Finance since 2018 and has spent nearly 15 years with the Bajaj Group of companies. In the company’s early phase, he played a significant role in driving key strategies, including capital raising, AOPs, LRS planning and execution, and investor relations.
Gagandeep Malhotra is the Chief of the Credit and Operations department. He manages a Residential and Commercial Real Estate Portfolio that involves lending to Developers and HNIs. He also oversees Construction Finance, Lease Rental Discounting, and Loans Against Property. Earlier, he held top leadership positions at Citibank.
Financials of Bajaj Housing Finance
Total Income
The company’s total income has increased by 26.5% annually over the last three fiscal years. According to Screener data, LIC Housing Finance reported 11%, and Can Fin Homes reported 20% annualized growth during the same period.
Net Profit
The company’s net profit has increased by nearly 35% annually over the last three financial years, among the best in the industry.
According to screener data, LIC Housing Finance reported 20% annualized growth, and Can Fin Homes reported 18%.
Net Interest Margin
Speaking about the Net Interest Margin, which is like the operating margin for banks and NBFCs, Bajaj Housing Finance reported a net interest margin of 4.1% in FY24, slightly lower than the 4.5% recorded for FY23.
While LIC Housing Finance reported a Net Interest Margin of 3.2% in FY24, PNB Housing Finance reported 4.5%, and Can Fin Homes reported 3.9% during the same period.
Asset Quality
Among peers, Bajaj Housing Finance has the best asset quality metrics. In FY24, its Gross Non-Performing Asset (GNPA) ratio was 0.28% of the total loan book, and its Net Non-Performing Asset (NNPA) ratio was 0.11%.
While the industry leader, LIC Housing Finance, has the highest nonperforming asset in its book, with a GNPA ratio of 3.29%.
What will Bajaj Housing Finance Do with IPO Money?
Out of the total proceeds of ₹6560 crores, the promoter entity is selling shares worth ₹3,000 crores to comply with regulatory guidelines.
The remaining funds are coming through fresh share issuances, augmenting the capital base to meet the company’s future business requirements and expand lending activities.
Valuations
Now, let’s look at the most crucial aspect of this IPO- the valuations.
The price band of this IPO is ₹66-70. The book value per share at the end of June 30th, 2024, is ₹18.8. This makes the Price-to-Book ratio 3.7 times.
LIC Housing Finance has a P/B ratio of 1.2 times, and Can Fin Homes has a P/B ratio of 2.7 times, so Bajaj Housing Finance is somewhat expensive compared to its peers.
Pros & Cons of Bajaj Housing
In a short span, Bajaj Housing Finance has emerged as India’s second-largest housing finance company, beating established players like PNB Housing, Can Fin Homes, GIC Housing Finance, and many more.
The company’s strengths include industry-best revenue and profitability growth metrics, strong asset quality, the use of technology to identify customers with good credit behavior, cross-channel sales, and experienced leadership, all of which drive business growth.
Also, the current government policies and initiatives towards the housing mission for all drive the growth of housing finance companies in India. The company’s loan book is concentrated in just five states: New Delhi, Maharashtra, Karnataka, Telangana, and Gujarat. Any adverse development in these regions or failure to expand to smaller cities may adversely impact the company’s growth and financials.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Is Bajaj Housing Finance part of Bajaj Group?
Yes, Bajaj Housing Finance is a wholly-owned subsidiary of Bajaj Finance Limited.
When will the Bajaj Housing Finance IPO come?
Bajaj Housing Finance’s IPO issue opens on September 9, 2024, and closes on September 11, 2024. It is expected to be listed on September 16, 2024.
Is Bajaj Housing Finance profitable?
Yes, Bajaj Housing Finance is a profitable company. In the last three years, revenue and profitability have increased at a CAGR of 26.5% and 35%, respectively.
If you have been following the booming retail fashion industry, gear up, as the much-awaited IPO of Bazaar Style Retail is set to hit the market today. This book-built issue, which will raise a substantial ₹834.68 crore, has already generated significant interest, with ₹250 crore mobilized from anchor investors before the launch. This positive development has further heightened anticipation for the IPO.
Let’s understand the key factors that the Bazaar Style Retail IPO has to offer.
₹250 crore Mobilized from Anchor Investors
Rekha Jhunjhunwala-backed Bazaar Style Retail successfully secured ₹250 crore in anchor investments ahead of its initial public offering (IPO). On August 29th, the company allocated 64,29,372 shares to anchor investors at a price of ₹389 per share. This allocation was finalized in consultation with the IPO Committee and the book-running lead managers.
The Baazar Style Retail IPO consists of a total issue size of 21,456,947 shares, raising up to ₹834.68 crores. The offer includes a fresh issuance of 3,804,627 shares and an offer for sale of 17,652,320 shares. Employees are eligible for a discount of ₹35 per share. The IPO will be listed on both BSE and NSE. Post-issue, the company’s shareholding will increase from 70.81 million to 74.62 million.
The minimum lot size for an application is 38 Shares, and the minimum investment required by retail investors is ₹14,782. For High-Net-Worth Individuals (HNIs), the minimum lot size investment is 14 lots (532 shares) for sNII and 68 lots (2,584 shares) for bNII, amounting to ₹206,948 and ₹1,005,176, respectively.
Objectives of the IPO
Debt Reduction: Prepaying or repaying outstanding loans to improve financial stability and reduce interest expenses.
General Corporate Purposes: Funding working capital, operational costs, and strategic initiatives to support growth and operational efficiency.
IPO Allocation of Shares
Investors must bid for a minimum of 38 shares, with additional bids accepted in increments of 38 shares. The table below outlines the investment limits for retail investors and HNIs.
Retail investors can participate with a minimum investment of ₹14,782. High-net-worth individuals (HNIs) have tailored investment options with varying lot sizes and minimum amounts.
Based on recent market data, the Baazar Style Retail IPO is expected to list at around ₹519 per share, a premium of 33.42% compared to the issue price of ₹389. This estimate is calculated by adding the grey market premium of ₹130 to the upper price band of the IPO.
Company Overview
Bazaar Style Retail, a leading fashion retailer based in eastern India, has established a strong regional presence with its diverse apparel and general merchandise range. Operating a network of 162 stores across nine states, the company has successfully catered to the needs of customers seeking quality products at affordable prices.
Known for its commitment to customer satisfaction, Bazaar Style Retail has built a loyal customer base by focusing on providing a pleasant shopping experience. The company’s dedicated team of professionals ensures that its product offerings remain relevant and appealing to the target market. Bazaar Style Retail remains a prominent player in the fashion retail industry with a strong foothold in eastern India.
As of March 31, 2024, Baazar Style Retail Limited showcased robust financial health. The company’s total assets expanded to ₹1,165.97 crores, and revenue increased to ₹982.83 crores, reflecting steady growth. While the Profit After Tax (PAT) of ₹21.94 crores indicated moderate profitability, the company maintained a sound financial position.
A net worth of ₹212.56 crores, supported by reserves and a surplus of ₹180.2 crores, further strengthened its financial standing. Moreover, the company’s debt-to-equity ratio remained manageable at ₹178.23 crores, demonstrating a prudent approach to financing. Baazar Style Retail’s financial performance suggests a solid foundation for future growth and expansion.
SWOT Analysis of Bazaar Style Retail
STRENGTHS
WEAKNESSES
Regional Concentration: The company’s operations are concentrated in eastern India, making it vulnerable to regional economic downturns. Limited Geographical Expansion: While the company has a strong presence in eastern India, it has limited operations in other regions.
Intense Competition: The fashion and retail industry is highly competitive, with numerous players vying for market share. Supplier Disruptions: Factors such as supply chain issues or price fluctuations could disrupt the company’s reliance on third-party suppliers. Economic Downturns: Adverse economic conditions in the regions where Bazaar Style Retail operates could impact consumer spending and negatively affect sales.
OPPORTUNITIES
THREATS
Expansion into New Regions: Bazaar Style Retail can explore opportunities to expand its operations into other parts of India, capturing a larger market share. Online Retail: The company can leverage the growing e-commerce market to reach a wider customer base and increase sales. Product Diversification: Bazaar Style Retail can expand its product offerings to include new categories or brands to attract more customers.
Expansion into New Regions: Bazaar Style Retail can explore opportunities to expand its operations into other parts of India, capturing a larger market share. Online Retail: The company can leverage the growing e-commerce market to reach a wider customer base and increase sales. Product Diversification: To attract more customers, Bazaar Style Retail can expand its product offerings to include new categories or brands.
Conclusion
The company is well-positioned for continued growth with a solid regional presence, a diverse product range, and a focus on customer satisfaction. While the IPO offers promising prospects, potential investors should conduct thorough due diligence and consider their financial goals before making investment decisions. It is advisable to consult with a financial advisor to assess whether the Bazaar Style Retail IPO aligns with your investment strategy.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The Indian renewable energy sector is witnessing a surge, and Premier Energies, a leading manufacturer of solar modules and integrated solar cells, is poised to capitalize on this growth.
The company is launching its Initial Public Offering (IPO) tomorrow, seeking to raise a total of ₹2,830.40 crore. Let’s examine the IPO details, the company’s objectives, financial health, and potential future.
The Premier Energies IPO is a book-built issue, meaning the final price will be determined based on investor demand. The total size of the offering is ₹2,830.40 crore, divided into a fresh issue of ₹1,291.40 crore and an offer for sale (OFS) of ₹1,539 crore by existing shareholders.
The price band for the IPO is set between ₹427 and ₹450 per share. Retail investors can participate by bidding for at least 33 shares, translating to an investment of at least ₹14,850. The allotment is expected on August 30th, and the tentative listing date on the BSE and NSE is September 3rd
Objectives of the Premier Energies IPO
The company plans to utilize the IPO proceeds for two primary purposes:
Investing in a Solar PV Manufacturing Facility: A significant portion of the funds will be directed towards establishing a 4 GW Solar PV TOPCon Cell and Module manufacturing facility in Hyderabad. This investment will significantly enhance Premier Energies’ production capabilities and solidify its position in the solar energy market.
General Corporate Purposes: The remaining funds will be allocated for various operational purposes, including administrative expenses, marketing initiatives, potential debt reduction, and strategic growth opportunities. This flexibility allows the company to adapt to market dynamics and invest in areas that maximize shareholder value.
Premier Energies IPO Allocation of Shares
The issue is divided into two parts: a fresh issue and an offer for sale by existing shareholders. Retail investors can bid for a minimum of 33 shares and multiples thereof.
Application
Lots
Shares
Amount
Retail (Min)
1
33
₹14,850
Retail (Max)
13
429
₹193,050
S-HNI (Min)
14
462
₹207,900
S-HNI (Max)
67
2,211
₹994,950
B-HNI (Min)
68
2,244
₹1,009,800
The minimum investment amount for retail investors is ₹14,850. High-net-worth individuals (HNIs) have specific investment lot sizes and minimum investment amounts depending on their category.
Premier Energies IPO Open, Close, Allotment & Listing Dates
IPO Open Date
27th August, 2024
IPO Close Date
29th August, 2024
Basis of Allotment
30th August, 2024
Initiation of Refunds
2nd September, 2024
Credit of Shares to Demat
2nd September, 2024
Listing Date
3rd September, 2024
Premier Energies Grey Market Premium (GMP):
According to investorgain.com, the current Grey Market Premium (GMP) for Premier Energies shares is ₹330 per share. This suggests that the estimated listing price could be around ₹780, a premium of 73.33% over the issue price. It’s important to remember that GMP is an unofficial indicator, not a guarantee of future performance.
Premier Energies Company Overview
Premier Energies, established in April 1995, has a proven track record in the solar energy space. The company offers a range of products and services, including solar cells, modules, EPC (Engineering, Procurement, and Construction) solutions, and operation and maintenance (O&M) solutions.
They operate five production facilities in India and cater to a diverse clientele, including major players like NTPC and TATA Power Solar Systems Limited. As of July 31, 2024, the company boasts a strong order book of ₹59,265.65 million, showcasing significant demand for its products. Additionally, it has a global footprint, exporting its products to over 20 countries.
Premier Energies Financials
Premier Energies’ financial performance has shown improvement in recent years. As of June 30, 2024, the company’s total assets reached ₹3,735.5 crore, indicating significant growth compared to the previous two years. Revenue for the quarter ending June 2024 was ₹1,668.79 crore, whereas the figures had touched ₹3171.31 on March 2024. [Source: NSE]
More importantly, the company turned profitable in June 2024, with a PAT (Profit After Tax) of ₹198.16 crore, marking a significant turnaround from previous losses. From 2022 onwards, it was making a loss, but this year saw the company’s PAT surge into a positive number of ₹231.36 on March 2024. The net worth also improved to a positive ₹26.96 crore in June 2024. However, the company’s total borrowing has also increased to ₹1,200.16 crore, reflecting increased financial leverage.
Strong brand presence and established reputation in the Indian solar energy sector. Diversified product portfolio encompassing various aspects of solar energy solutions. Robust order book and established client base, including major players in the industry. Increased production capacity with the planned 4 GW Solar PV manufacturing facility.
Intense competition in the Indian solar energy market. Fluctuations in raw material prices impact production costs. Changes in government policies or subsidies may affect industry profitability.
OPPORTUNITIES
THREATS
Growing demand for renewable energy solutions driven by government initiatives and environmental concerns. Expansion into international markets for further growth. Increased focus on research and development to enhance product offerings and efficiency.
Intense competition in the Indian solar energy market. Fluctuations in raw material prices impact production costs. Changes in government policies or subsidies affect industry profitability.
Conclusion
Premier Energies’ IPO presents an opportunity for investors to participate in the growth of the renewable energy sector. The company’s strong financial performance, expansion plans, and focus on sustainable energy solutions make it an intriguing prospect. However, potential investors should conduct thorough research and consider the inherent risks associated with the industry before making an investment decision.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
It’s an IPO bonanza this week! Investors are in for a treat as five new companies are set to hit the primary market, collectively seeking to raise a substantial ₹257.32 crores. This comes hot on the heels of the much-anticipated listings of FirstCry and Unicommerce, which concluded their subscription periods last week and are now gearing up to make their debut on the stock exchanges.
With a flurry of IPOs and listings, it’s an exciting time for the Indian capital markets. Let’s dive into what investors can expect this week.
Saraswati Saree Depot is set to raise Rs 160.01 crores through its IPO. The offer includes fresh shares worth Rs 104 crores and an offer for selling shares worth Rs 56.02 crores. The IPO opens on August 12 and closes on August 14, with allotment expected on August 16. The shares are set to list on BSE and NSE on August 20.
Investors can apply for a minimum of 90 shares at a price band of Rs 152 to Rs 160 per share. Retail investors need to invest at least Rs 14,400.
Objectives of the IPO
Saraswati Saree Depot plans to use the money raised from the IPO for these purposes:
Funding working capital requirements
General corporate purposes
GMP
The IPO’s Grey Market Premium (GMP) is currently at Rs 60. Based on this, the estimated listing price is Rs 220, indicating a potential gain of 37.50% for investors.
Company Overview
Established in 1996, Saraswati Saree Depot is a leading player in the wholesale saree market. It offers a wide range of sarees and other women’s apparel. The company sources products from over 900 suppliers and caters to over 13,000 customers, primarily in Southern and Western India.
Financials
The company has shown steady growth. Revenue increased by 2% in FY24 compared to FY23, while profit after tax surged by 29%. Notably, revenue grew by 9.5% from FY22 to FY23, accompanied by an impressive 86.7% increase in profit after tax.
Sunlite Recycling Industries Limited is launching a fresh issue of 28.8 lakh shares. The IPO is expected to be finalized on Friday, August 16, 2024, and will be listed on the NSE SME, with a tentative listing date of Tuesday, August 20, 2024. The price band is between ₹100 to ₹105 per share. Retail investors can apply for a minimum of 1200 shares, which requires an investment of ₹126,000. High Net-worth Individuals (HNIs) must invest in at least two lots (2,400 shares), amounting to ₹252,000.
Objectives of the IPO
The funds raised from the IPO will be used to achieve the following objectives:
Capital Expenditure: The company plans to install new plant and machinery to enhance its production capabilities.
Debt Repayment: A portion of the proceeds will be used to repay or prepay certain borrowings, reducing the company’s debt burden.
General Corporate Purposes: The remaining funds will be allocated for general corporate purposes to support the company’s ongoing operations and growth.
GMP
As of August 12, 2024, the Grey Market Premium (GMP) for the Sunlite Recycling Industries IPO stands at ₹25. With the price band set at ₹105, the estimated listing price is ₹130 per share, reflecting an expected gain of 23.81%.
Company Overview
Sunlite Recycling Industries Limited, established in 2012, specializes in manufacturing copper products by recycling copper scrap. The company serves the power generation, transmission, distribution, and electronics industries. Operating from a 12,152-square-meter facility in Kheda, Gujarat, Sunlite Recycling produces a wide range of copper items, such as rods, wires, and conductors, tailored to customer specifications.
Financials
Sunlite Recycling Industries has demonstrated strong financial performance over the last three fiscal years. Revenue has steadily increased from ₹93,227.27 lakhs in FY22 to ₹116,655.09 lakhs in FY24, marking a consistent upward trend.
The company’s Profit After Tax (PAT) also showed significant growth, rising from ₹426.03 lakhs in FY22 to ₹890.36 lakhs in FY24, a 58.92% increase over the previous fiscal year. This growth reflects the company’s ability to manage costs effectively while scaling its operations.
SWOT Analysis
STRENGTHS
WEAKNESSES
Established presence in copper recycling with over a decade of experience. Diverse product portfolio catering to various industries. Strategically located facility in Gujarat for efficient market access. Consistent financial growth with rising revenue and PAT.
Limited geographic reach, primarily focused on Gujarat. Dependence on copper scrap exposes the company to price fluctuations. A small workforce may limit rapid expansion. High debt-to-equity ratio (1.74), indicating reliance on debt financing.
OPPORTUNITIES
THREATS
Growing demand for copper products in key industries. Potential benefits from government infrastructure and renewable energy initiatives. Technological advancements could enhance efficiency. Expansion into export markets offers new growth avenues.
Market volatility in copper prices and scrap availability. Regulatory changes, increasing compliance costs. Intense competition in the copper recycling industry. Economic downturns could reduce product demand. Currency fluctuations may impact profitability in export markets.
The IPO opens on August 12th and closes on August 14th. You can apply for a minimum of 600 shares, which will set you back ₹150,000 at the lower end of the price band. The company aims to list on the NSE SME platform on August 20th.
Objectives of the IPO
The funds raised through the IPO will be used to meet the company’s working capital requirements and for general corporate purposes.
GMP
There’s a lot of buzz around the Positron Energy IPO, with the grey market premium (GMP) currently at ₹170. This suggests that investors expect the share price to open significantly higher than the issue price.
Company Overview
The company’s expertise in the gas industry is a key strength. Their understanding of the sector and existing network give them an edge over competitors. However, the company faces challenges like competition from more prominent players and potential economic fluctuations.
Financials
Positron Energy has seen impressive growth in recent years. Revenue has jumped by a massive 160%, and profits have tripled. This suggests that the company is doing well and expanding its business.
Deep understanding of the gas industry in India Specialized expertise to offer tailored services Strong network within the Indian gas sector Regulatory acumen to navigate complex landscapes
Limited operational area in India Market competition from established firms Need to update skills for technological advancements continuously Economic sensitivity to fluctuations in India
OPPORTUNITIES
THREATS
Market expansion to rural and underserved areas Growth in gas-related infrastructure development projects Favorable conditions from government initiatives promoting gas sector Potential to leverage expertise in overseas markets
Disruption from frequent changes in government regulations Impact of global market volatility on local gas sector dynamics Environmental Regulations Affecting Traditional Gas Demand Significant competition from large multinational consulting firms
Solve Plastic Products is set to raise ₹11.85 crores through its IPO, which opens on August 12th and closes on August 14th. The company plans to use this money to buy new machinery, manage day-to-day operations, and cover IPO expenses. The IPO price is fixed at ₹91 per share, with a minimum investment of ₹109,200 for retail investors.
Objectives of the IPO
The proceeds from this IPO will be allocated to:
Capital Expenditure: Funding the purchase of additional plant and machinery to enhance production capabilities.
Working Capital: Meeting the company’s working capital requirements to support its operations.
Issue Expenses: Covering the expenses associated with the IPO process.
General Corporate Purposes: The money will address other corporate needs to support business growth.
GMP
As of August 12, 2024, the Grey Market Premium (GMP) for the Solve Plastic Products IPO stands at ₹0, indicating that the estimated listing price is expected to remain at ₹91 per share. It reflects no expected gain or loss per share.
Company Overview
Solve Plastic Products Limited, founded in 1994, manufactures rigid PVC electrical conduits and various uPVC pipes. The company’s products are marketed under the brand name “BALCOPIPES.” Solve Plastic Products operates one well-equipped Tamil Nadu production facility and three Kerala manufacturing facilities.
The company has approvals from agencies such as the Central Public Works Departments (CPWD) in Chennai and Kochi, Military Engineer Services (MES), and the Public Works Departments (PWD) of Kerala and Tamil Nadu. It also holds certifications from the Bureau of Indian Standards (BIS) for various products, including solvent cement, water tanks, garden hoses, and PVC pipes. The company primarily serves the Kerala market.
Financials
Between the financial years ending March 31, 2023, and March 31, 2024, Solve Plastic Products Limited experienced a revenue decrease of -24.25%.
Despite this revenue decline, the company’s Profit After Tax (PAT) increased by 18.47% during the same period. This indicates that while the company faced challenges in generating revenue, it managed its costs effectively, leading to improved profitability.
SWOT Analysis
STRENGTHS
WEAKNESSES
Established brand under “BALCOPIPES” Diverse product range Certifications from reputed agencies Manufacturing presence in Kerala and Tamil Nadu
Dependence on Kerala market Intense competition in the PVC pipe industry Reliance on raw material prices Adherence to environmental and safety regulations
OPPORTUNITIES
THREATS
Expanding product range to cater to new market segments Geographical expansion to other regions in India Exploring export opportunities Leveraging government initiatives for the plastic industry
Economic slowdown in Kerala Entry of new competitors Increase in raw material costs Stricter environmental regulations
Upcoming IPO Broach Lifecare Hospital
Offer Price
₹25 per share
Face Value
₹10 per share
Opening Date
13 August 2024
Closing Date
16 August 2024
Total Issue Size (in Shares)
1,608,000
Total Issue Size (in ₹)
₹4.02 Cr
Issue Type
Book Built Issue IPO
Lot Size
6000 Shares
Listing at
BSE SME
Source: Chittorgarh
Objectives of the IPO
The company plans to use the net proceeds from the IPO for the following purposes:
Purchase of Machinery: Acquiring new and advanced medical equipment to enhance the hospital’s diagnostic and treatment capabilities.
Development of Medical Tourism Web Portal: Creating an online platform to attract and serve international patients, boosting the hospital’s reach in the medical tourism sector.
General Corporate Purposes: Addressing the overall corporate needs to support the hospital’s growth and operations.
GMP
As of August 12, 2024, the Grey Market Premium (GMP) for the Broach Lifecare Hospital IPO stands at ₹0, which suggests that the estimated listing price is expected to remain at ₹25 per share, indicating no anticipated gain or loss per share.
Company Overview
Incorporated in 2023, Broach Lifecare Hospital Limited operates boutique hospitals under the brand name “Maple Hospitals.” The company specializes in providing 24-hour services for patients with heart ailments, focusing on non-invasive cardiology. Services offered include 2D Echocardiography, Electrocardiography, Treadmill Tests, Holter Monitoring, Ambulatory Blood Pressure Measurement, Stress Tests, and Dobutamine Stress Echocardiography.
The hospital in Bharuch features 25 ultra-luxury in-patient beds and is equipped with advanced diagnostic devices. It also boasts high-end coronary care and life-saving equipment such as Intra-aortic Balloon Pump Machines, Biphasic Defibrillators, and Ventilators.
Financials
Broach Lifecare Hospital Limited’s financial performance has shown significant growth. Revenue increased from ₹1.82 crores in FY23 to ₹2.61 crores in FY24.
The Profit After Tax (PAT) also saw a substantial rise from ₹0.14 crores in FY23 to ₹0.70 crores in FY24. This growth reflects the company’s ability to expand its operations and improve profitability.
SWOT Analysis
STRENGTHS
WEAKNESSES
Specialized in non-invasive cardiology. Equipped with advanced coronary care devices. NABH-certified for quality healthcare. Strong regulatory compliance.
High operational costs. Small workforce. Regulatory challenges.
OPPORTUNITIES
THREATS
Medical tourism expansion. Service area growth. Advanced tech integration.
Intense competition. Dependence on insurance. Economic vulnerabilities.
New Listings This Week
Get ready for a busy week on the stock market! Two highly anticipated IPOs, Firstcry and Unicommerce, will finally debut.
Firstcry (Brainbees Solutions): After a successful IPO, Firstcry will start trading on the BSE and NSE on Tuesday.
Unicommerce eSolutions: Also on Tuesday, Unicommerce will begin trading on both the BSE and NSE.
Additionally, the allotment for the Aesthetik Engineers IPO will be finalized on Tuesday, with the company set to list on the NSE SME on Friday.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Remember those IPOs that get snapped up in record time? Well, Unicommerce eSolutions just pulled off one of those. The company’s IPO opened yesterday, and, surprise, surprise, it was fully subscribed within just three hours!
That’s right, investors couldn’t resist getting a piece of this e-commerce enablement platform. Retail investors were enthusiastic, snapping up nearly 10 times their allotted shares. While other investor categories also showed interest, the retail frenzy really drove the IPO’s early success.
Unicommerce isn’t raising any new money through this IPO. Instead, it’s a way for existing shareholders to cash out. The company itself won’t see a single rupee from the IPO proceeds.
This ₹276.57 Cr IPO is an “Offer For Sale” or OFS. Two of the company’s biggest investors, AceVector and SB Investment Holdings, are selling a part of their stake to the public. So, if you invest in this IPO, you’re buying shares directly from these investors, not from the company itself.
Objectives of the IPO
Unlike most IPOs where the company receives the funds raised, Unicommerce won’t see a penny from this offering. It’s essentially a sale of existing shares by current investors to the public. The money you invest goes directly to the shareholders selling their stake, not the company itself.
You can apply for a minimum of 138 shares when investing in the Unicommerce IPO. The company is offering a total of 25 million shares to the public.
Around 30% is reserved for big institutional investors, 15% for non-institutional investors, and 10% for retail investors like you and me. A significant portion, around 45%, has already been allocated to anchor investors.
Investor Category
Shares Offered
Maximum Allottees
Anchor Investor Shares Offered
11,523,831 (45.00%)
NA
QIB Shares Offered
7,682,554 (30.00%)
NA
NII (HNI) Shares Offered
3,841,276 (15.00%)
bNII > ₹10L
2,560,851 (10.00%)
1,325
sNII < ₹10L
1,280,425 (5.00%)
662
Retail Shares Offered
2,560,851 (10.00%)
18,556
Total Shares Offered
25,608,512 (100%)
If there’s more demand than supply for shares, retail investors will get 138 shares each, while smaller and bigger non-institutional investors will get a minimum of 1,932 shares.
Grey Market Premium (GMP)
Unicommerce IPO is generating a lot of buzz. The unofficial market, known as the grey market, indicates a high share demand. The current share price estimate in this grey market is around ₹24-25 higher than the issue price. This is what we call the Grey Market Premium (GMP). A 22% premium suggests investors are quite optimistic about the company’s performance post-listing.
Subscription Status
Unicommerce’s IPO was a blockbuster. Investor enthusiasm was sky-high, and the entire issue was snapped up in three hours. Retail investors were particularly eager, oversubscribing their allotment by 10 times. While other investor groups also showed interest, the general public truly drove the initial frenzy.
Company Overview
Founded in 2012, Unicommerce is a tech wizard specializing in making e-commerce operations run smoothly. They offer software tools that help businesses manage their warehouses, keep track of inventory, handle orders from different channels, and even manage their retail stores.
With over 100 logistics partners and integrations with major e-commerce platforms, Unicommerce has become a go-to solution for many big-name brands like Lenskart, PharmEasy, and Mamaearth. And they’re not just a local player; they’ve also made inroads into Southeast Asia and the Middle East.
Essentially, Unicommerce is the backbone of the e-commerce world, ensuring your online shopping experience is as seamless as possible.
Financials
The company’s revenue has steadily climbed over the past three years. From ₹613.6 lakhs in Fiscal 2022, it jumped to ₹929.7 lakhs in the following year and reached ₹1,094.3 lakhs in Fiscal 2024. This consistent growth is a testament to Unicommerce’s expanding customer base and ability to tap into the growing e-commerce market.
The company turned a profit of ₹60.1 lakhs in Fiscal 2022, which climbed to a healthy ₹130.8 lakhs in Fiscal 2024. This indicates that Unicommerce is growing its top line, managing costs efficiently, and boosting profitability.
Dominant position in Indian e-commerce enablement SaaS market Diverse customer base across various industries Scalable SaaS business model Robust technology platform for efficient operations
Intense competition in the market Reliance on a limited number of large clients Vulnerability to economic downturns
OPPORTUNITIES
THREATS
Expand product portfolio for new revenue streams Explore new geographical markets Strategic partnerships for enhanced market reach
Need for continuous technological innovation Importance of robust cybersecurity measures Economic uncertainties impacting e-commerce spending
Conclusion
The Unicommerce IPO has garnered significant investor interest, with the issue fully subscribed within hours of opening. While the company’s strong financials and market position are positive indicators, investors should conduct thorough due diligence before making investment decisions. Factors such as intense competition, economic conditions, and the company’s ability to sustain growth should be carefully considered.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FirstCry, the popular online baby and kids store, is going public. Its parent company, Brainbees Solutions, has launched an IPO worth ₹4,193 crore. This means the company is offering the public a slice of its ownership for the first time. The IPO is open for subscription until August 8th. But remember, investing involves risks, so it’s always a good idea to do your homework before diving in.
Brainbees is looking to raise a whopping ₹4,193.73 crore through its IPO. That’s a lot of money! To break it down, the company plans to bring in ₹1,666 crore by selling brand new shares to the public. This fresh cash will be used to fund the company’s growth plans.
Objectives of the IPO
Establishment of new modern stores under the “BabyHug” brand and establishment of a warehouse in India
Invest in lease payments for existing BabyHug stores.
Fund Digital Age, a subsidiary, will open new FirstCry stores and invest in existing ones.
Invest in FirstCry Trading, another subsidiary, to expand overseas with new stores and warehouses in KSA (Kingdom of Saudi Arabia).
Increase ownership stake in Globalbees Brands, another subsidiary.
Boost sales and marketing efforts.
Upgrade technology and data science infrastructure.
Pursue acquisitions and other strategic initiatives for growth.
Cover general corporate expenses.
IPO Allocation of Shares
You can apply for a minimum of 32 shares in the FirstCry IPO. Brainbees Solutions, the parent company, is offering 90 million shares to the public.
Now, let’s break down who gets what. Big institutional investors, like insurance companies and mutual funds, have been allocated nearly 30% of the shares. Non-institutional investors, which include wealthy individuals and family offices, get around 15%. Retail investors like you and me have a slice of about 10%.
A small portion is reserved for company employees, and a big chunk is earmarked for anchor investors, typically large institutional investors who agree to buy shares before the IPO opens to the public.
If there’s more demand than supply for shares (what companies usually hope for), things get a bit more complicated. Retail investors will get at least 32 shares each, while smaller and bigger non-institutional investors will get 448 shares. There’s no upper limit on how much big investors (HNIs and NIIs) can invest.
Grey Market Premium (GMP)
There’s a lot of buzz around the FirstCry IPO, and it’s showing in the grey market. This is an unofficial market where shares are traded before the official listing. Right now, people expect the FirstCry share price to be around ₹84 higher than its issue price when it finally lists on the stock exchange.
Subscription Status
The first day of the FirstCry IPO hasn’t seen a huge rush from investors. So far, only 3% of the shares on offer have been subscribed, so there’s still a long way to go before the issue is fully subscribed.
While retail investors have shown some interest, with 16% of their quota subscribed, institutional investors (especially the big players or QIBs) are yet to jump in. We’ll have to wait and see if there’s a surge of interest in the coming days.
Company Overview
Founded in 2010, FirstCry has grown rapidly to become a household name for parents. It sells everything from clothes and toys to baby gear and personal care products. The company boasts over 1.5 million products from 7,500 brands, including BabyHug.
FirstCry has a strong online presence but is expanding its offline footprint with BabyHug stores. The company has a large team of employees and contract workers dedicated to serving its customers.
Financials
While FirstCry has a strong brand and a large customer base, its financial health is a cause for concern. The company’s revenue increased by 15% in the last financial year to ₹6,575.1 crore. However, it also reported a loss of ₹321.5 crore. This is a significant jump from profit to loss.
Another red flag is the company’s debt. It has increased from ₹176.5 crore to ₹462.7 crore in a single year. This means the company is relying more on borrowed money to operate.
Strong brand recognition and reputation in the mother and baby care segment Extensive product portfolio with over 1.5 million SKUs Large and loyal customer base Established online presence with a strong mobile app Growing network of offline stores under the BabyHug brand Presence in the UAE, the largest specialized online retail platform for maternal, baby, and kids’ products
Recent losses despite increasing revenue Significant increase in debt Dependence on third-party manufacturers Limited international presence outside of the UAE
OPPORTUNITIES
THREATS
Growing demand for mother and baby care products in India and abroad Expansion into new product categories Leverage technology to improve customer experience and operational efficiency Increase market share in the offline retail segment Potential for further international expansion
Intense competition in the online retail space Economic downturns that could reduce consumer spending Fluctuations in the price of raw materials Government regulations impacting the retail sector
FirstCry’s IPO is off to a start, with the company aiming to raise a significant amount of money to fuel its growth plans. While there’s been some initial interest from investors, the real test will be in the coming days as we see how the subscription unfolds. Whether it’s a blockbuster or a damp squib remains to be seen. Only time will tell if FirstCry can capitalize on its strong brand and market position to deliver solid returns for its investors.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The Ashapura Logistics IPO kicked off yesterday. The buzz around the IPO was quite evident even before the opening bell. And it looks like investors weren’t disappointed. The IPO, which opened for subscription yesterday, was oversubscribed by a solid 3.73 times on the first day.
This strong opening raises questions about what’s driving this investor enthusiasm and whether the momentum will continue. Let’s examine the numbers and company details to find out.
The Ashapura Logistics IPO opened for subscription on July 30th, 2024, and will close on August 1st, 2024. The company is looking to raise ₹52.66 crore through the issuance of 36.57 lakh shares. The price band for the IPO is set at ₹136 to ₹144 per share.
This translates to a minimum investment of ₹144,000 for retail investors, who must apply for a minimum lot of 1,000 shares. The share allotment is expected to be finalized by August 2nd, with a tentative listing date of August 6th, 2024, on the NSE SME platform.
Subscription Status:
Ashapura Logistics’ IPO garnered a positive response on the first day, receiving an overall subscription of 3.73 times. The breakdown reveals strong interest from retail investors, with their category oversubscribed 5.78 times. Institutional Investor (QIB) participation was moderate at 1.5 times, while Non-Institutional Investors (NII) subscribed to the issue 1.92 times.
Objectives of the IPO:
The primary objective of the IPO is to raise capital for Ashapura Logistics’ expansion plans. The company intends to utilize the proceeds for:
Fleet Expansion: They plan to purchase additional trucks and equipment to strengthen their transportation capabilities.
Warehouse Development: Funds will be directed towards building new warehouses at their Mundra facility in Gujarat.
Working Capital: The IPO will also help Ashapura Logistics meet its increased working capital needs to support ongoing operations.
General Corporate Purposes: A portion of the proceeds will be used for general corporate purposes.
Grey Market Premium (GMP):
The Grey Market Premium (GMP) for Ashapura Logistics’ IPO is currently hovering around ₹95 per share. This indicates that investors in the grey market are willing to pay a premium to own Ashapura Logistics shares pre-listing. While not a guarantee, a positive GMP can be a potential indicator of a strong listing price. As per estimates, this translates to an expected listing price of around ₹239 per share, which is 65.97% higher than the upper band of the IPO price.
Company Overview:
Founded in April 2002, Ashapura Logistics boasts over 20 years of experience in the Indian logistics industry. They offer a comprehensive suite of services encompassing cargo handling, freight forwarding, transportation, warehousing, distribution, and coastal movement across India.
Ashapura Logistics leverages technology to enhance its services and customer experience. They have developed their own software, IMPEX, to manage cargo handling and transportation operations and are continuously innovating for the transportation segment. Their technology stack focuses on various aspects like demand generation, tracking, fleet operations,
The company has a strong presence with three subsidiaries: Jai Ambe Transmovers Private Limited, Ashapura Warehousing Private Limited, and Amanzi International Private Limited. Their freight forwarding team operates from Ahmedabad, with branches in major seaports like Hazira, Mundra, Pipavav, Kandla, JNPT, and other inland container depots, ensuring efficient service delivery to existing clients.
As of March 31, 2024, Ashapura Logistics boasts a fleet of 250 commercial trucks, a mix of owned vehicles (181) by a subsidiary, and the company itself (69). Additionally, they manage 7 warehouses with a total storage capacity of around 284,000 square feet as of July 2024. Their workforce comprises over 219 employees, with a significant focus on operations and transportation (over 111 personnel).
Financials
Ashapura Logistics’ financials for FY24 (ending March 2024) reflect growth in profitability and net worth:
The slight decline in revenue might be a concern, but the consistent growth in profitability and net worth indicates a healthy financial trajectory. Additionally, the company maintains a low debt profile.
SWOT Analysis of Ashapura Logistics Limited
STRENGTHS
WEAKNESSES
Over 20 years of experience in the logistics industry. Strong client base across various industries. Diversified service portfolio. Technological capabilities to enhance efficiency. Prudent financial management with low debt.
Slight decline in revenue compared to previous years. Relatively small fleet size compared to larger logistics players. Dependence on key personnel and management expertise.
OPPORTUNITIES
THREATS
Growing Indian logistics market. Increasing demand for e-commerce logistics solutions. Expansion plans for warehouses and fleet. Potential for further technological integration.
Intense competition in the logistics sector. Fluctuations in fuel prices and transportation costs. Economic slowdown impacting customer demand. Regulatory changes in the logistics industry.
Conclusion
The strong subscription for the Ashapura Logistics IPO on its first day is undoubtedly a positive sign for the company. However, investors should conduct thorough due diligence before making an investment decision.
Factors such as the company’s financials, business model, and industry outlook should be carefully evaluated. While indicative of initial interest, the grey market premium and investor sentiment are not guarantees of future performance.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The year 2024 has witnessed a breakneck pace of IPOs, indicating a thriving and dynamic market. In the first quarter, 21 companies raised nearly INR 15,500 crore through initial public offerings (IPOs).
This represents a significant increase over the same period last year when only four companies went public and raised INR 10,000 crore. To put this in perspective, only three companies collected INR 7,400 crore between January and March 2022.
Investors have seen an average listing gain of approximately 26% for IPOs this year. This is a slight decrease from 28% in 2023 but a significant improvement over the 10% increase in 2022. If this trend continues, 2024 is on. With the travel tech behemoth ready to hit the IPO floors, we have a few critical insights to consider before securing your share of the Ixigo IPO.
From comprehending the company’s innovative approach to decoding its financial foothold, these points will guide you through the complexities of the Ixigo IPO.
Le Travenues Technology IPO (Ixigo IPO) Details
Last year, Le Travenues Technology IPO (Ixigo IPO) filed for its IPO, which comprised new shares worth Rs. 750 Crores and an Offer for Sale (OFS) worth Rs. 850 Crores. However, the company did not proceed with the IPO despite SEBI approval.
According to the latest draft red herring prospectus (DRHP) submitted on February 14, ’24, the IPO comprises a combination of fresh issuance of shares valued at ₹120 crores and an offer-for-sale (OFS) of 6,66,77,674 equity shares by existing shareholders.
• DAM Capital Advisors Ltd • Axis Capital Limited • JM Financial Limited
Source: DRHP
Category-wise Shares Offered
Category
% Offered
Qualified Institutional Investors
Min: 75 %
Non-Institutional Investors
Min: 15%
Retail Investors
Max: 10%
Source: DRHP
The Objective of Launching Le Travenues Technology (Ixigo) IPO
The leading travel aggregator company is launching Le Traveneus Technology (Ixigo) IPO with the following significant objectives-
Capital for Growth: To secure funds that are crucial for ixigo’s expansion and growth strategies.
Working Capital: An allocation of ₹45 Crore is earmarked to bolster the company’s working capital.
Technology and Infrastructure: To invest ₹25.8 Crore in enhancing cloud infrastructure and technology to support the growing user base and service offerings.
Strategic Acquisitions: The remaining funds raised from the IPO will be utilized for inorganic growth through acquisitions, other strategic initiatives, and general corporate purposes.
About the Company Launching the Le Travenues Technology IPO (Ixigo IPO)
La Travenues Technology, widely recognized as Ixigo, is at the forefront of the travel industry. It revolutionized how Indian travelers plan, book, and manage their journeys. This Gurgaon-based company was incorporated on June 3, 2006, with an authorized share capital of INR 50.17 crore and a strong paid-up capital of INR 37.30 crore.
The company’s EBITDA increased by 101.30% over the previous year, while its book net worth increased by 5.43%. Ixigo’s service offerings combine traditional travel assistance with cutting-edge technology.
The company offers a comprehensive mobile and online trip-planning platform where customers can book the best deals on flights, hotels, buses, taxis, trains, and travel packages to domestic and international destinations.
Ixigo’s growth is driven by its commitment to leveraging artificial intelligence (AI), machine learning, and data science. These technological advancements enable travelers to make better decisions, providing a more seamless and personalized experience.
Shareholding Pattern
Le Travenues Technology (Ixigo) is a professionally managed company with no promoters and is entirely owned by the public.
OTA Competitive Analysis of Le Travenues Technology IPO (Ixigo)
The Indian OTA industry is highly competitive, and any dynamic shift could impact Le Travenues Technology (Ixigo) IPO. The major competitors in the domestic OTA market include Make MyTrip Ltd, Yatra Online, Clear Trip, and Easy Trip Planners Ltd.
Ixigo secured its position among the top five B2C airline online travel agencies (OTAs) in the fiscal year 2023.
The number of passengers choosing ixigo witnessed a remarkable surge, climbing from 1.42 million in the first half of fiscal 2023 to 2.94 million in the same period of fiscal 2024, marking an impressive 107% increase.
In the first half of FY24, ixigo captured approximately 5.2% of India’s total airline OTA market by volume, a significant rise from its 3.3% market share in the previous fiscal year.
Source: DRHP, Sebi Website
The company’s market share within the OTA rail market in India expanded from 46.4% in H1Fiscal 2023 to 52.4% in H1Fiscal 2024.
Le Travenues IPO: Competitive Analysis of Buses OTA Players
Ixigo reported a 28% jump in bus ticket bookings, reaching 6.27 million in H1 Fiscal 2024 from 4.91 million in H1 Fiscal 2023.
In H1Fiscal 2024, RedBus, now part of GoIbibo, dominated India’s online bus market with a 75% share, while Ixigo held a 12.5% share as of Fiscal 2023.
AbhiBus, Ixigo’s bus division, is the second-largest player with an 11.5% market share in India’s OTA rail market as of Fiscal 2023. It aggregates services from over 2,000 private operators and State RTCs and covers more than 100,000 routes nationwide as of December 31, 2023.
Subsidiaries
As of the date of filing DRHP, the company floating the Le Travenues Technology IPO has three subsidiaries-
Name of the Subsidiary
Year of Acquisition
Shareholding
Freshbus Pvt Ltd (Associate)
August 2021
41.40%
Ixigo Europe
28th June 2021
100%
Freshbus Pvt. Ltd
August 2021
41.40%
Financial Analysis of Le Travenues Technology (Ixigo) IPO Company
Total assets increased from 1850.71 mn in 2021 to 5384.71mn in FY 2022 to 5,859.25 million in FY23.
The profit after tax (PAT) in 2021, 2022, and 2023 were 75.33 mn, -210.94 million, and 233.96 mn, respectively.
Adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) degree from 82.10 mn in FY21 to 62 mn in FY22 and later increasing to 443.45 mn in FY23.
SWOT Analysis of Le Travenues Technology (Ixigo) IPO
Strengths
Innovative Technology: Use of AI and machine learning for personalized experiences.
Strong Brand Presence: Ixigo is a rare, profitable tech startup in the online travel sector, having reported a net profit of ₹65 crores in Q3 of 2024.
Financial Growth: Robust revenue generation that grew by 34.78% between 2022 and 2023.
Weakness
Market Competition: Intense rivalry from established players like MakeMyTrip and Yatra.
Dependence on Third Parties: Relies on other service providers for travel inventory.
Operational Risks: Subject to fluctuations in travel industry dynamics.
Opportunities
Market Expansion: The company has a strong foothold in the rail and bus segments, commanding a >52% market share in IRCTC bookings and a 12.5% market share in bus ticketing by H1 2024.
Diversification: Ability to expand service offerings beyond travel bookings.
Strategic Partnerships: Collaborations with companies like AbhiBus and Confirmtkt could enhance service quality.
Threats
Regulatory Changes: Sensitive to alterations in travel and internet regulations.
Technological Disruptions: Risk of being outpaced by new tech innovations.
Economic Downturns: Vulnerable to economic factors affecting travel frequency.
The Bottom Line
The travel sector is projected to expand at a rate of 9% between fiscal years 2024 and 2028. However, the online travel market is anticipated to outpace this with a 13% growth rate.
Source: DRHP
The year 2024 has been bustling with a deluge of IPO listings, but it presents an interesting view for smart investors. Eight of the top ten IPOs with a market capitalization of less than INR 5,000 crore point to the importance of meticulous scrutiny beyond initial listing gains. Initial gains may be inviting but not always indicative of long-term value.
You must investigate the company’s valuation, growth strategy, competitive positioning, and market dynamics. You must also assess whether Ixigo’s business model is long-term sustainable, scalable, and able to withstand market volatility. Predicting whether the Le Travenues Technology (ixigo) IPO will work is difficult, but you must do your due diligence before you decide.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What technological innovations set Ixigo apart in the OTA market?
Ixigo differentiates itself by using AI, machine learning, and data analytics to provide personalized travel experiences, which resonates well with the tech-savvy demographic.
What is the difference between a fixed-price IPO and a book-built IPO?
In a fixed-price IPO, the company sets the share price in advance, while in a book-built IPO, the final price is determined after gauging investor demand.
What is a lock-in period in an IPO?
A lock-in period is a contractual timeframe post-IPO during which major shareholders are prohibited from selling their shares, typically lasting 90 to 180 days.
How do I know if an IPO is successful?
An IPO is considered successful if the shares are fully subscribed, the stock trades above the IPO price after listing, and the company meets its capital-raising goal.
The Indian stock market is gearing up for a week buzzing with activity, especially in the small and medium enterprise (SME) segment. While the mainboard takes a breather amid ongoing elections, the SME platform is set to witness a flurry of five new IPOs opening for subscription – that’s one every day of the week!
Upcoming IPOs This Week
Company Name
Offer Price
Opening Date
Closing Date
Issue Size
Vilas Transcore Limited
₹139 – ₹147
27-05-24
29-05-24
₹95.26 Cr
Beacon Trusteeship
₹57 – ₹60
28-05-24
30-05-24
₹32.52 Cr
Ztech India
₹104 – ₹110
29-05-24
31-05-24
₹37.30 Cr
Aimtron Electronics
₹153 – ₹161
30-05-24
03-06-24
₹87.02 Cr
TBI Corn
₹90 to ₹94
31-05-24
04-06-24
₹44.94 Cr
Let’s examine the details of these upcoming offerings and two potential listings.
Upcoming IPOs Spotlight: Five Companies Take Center Stage
1. Vilas Transcore Limited IPO
Vilas Transcore Limited (VTL), a manufacturer of power distribution and transmission components, is kicking off the IPO week. Their maiden public offering, valued at ₹95.26 crore, consists entirely of fresh equity shares, and the company seems to be aiming for strong growth.
Established in 2015, Beacon Trusteeship is a SEBI-registered debenture trustee offering various services across various sectors. Their IPO, a mix of fresh issues and offer-for-sale (OFS), aims to raise ₹32.52 crore. The debenture trustee market plays a crucial role in financial security.
Ztech India specializes in providing geotechnical solutions for infrastructure and civil construction projects. Their IPO, valued at ₹37.30 crore, consists solely of fresh equity shares. Ztech operates in a vital sector that supports India’s infrastructure development.
Ztech India IPO Objectives Include:
Working capital requirements
General corporate purposes
IPO expenses
Offer Price
₹104 – ₹110 per share
Face Value
₹10 per share
Opening Date
29 May 2024
Closing Date
31 May 2024
Total Issue Size (in Shares)
3,391,200
Total Issue Size (in ₹)
₹37.30 Cr
Issue Type
Book Built Issue IPO
Lot Size
1200 Shares
4. Aimtron Electronics IPO
Aimtron Electronics, based in Gujarat, provides products and solutions for Electronic System Design and Manufacturing (ESDM) services. Their book-built IPO is valued at ₹87.02 crore and comprises fresh equity shares. The ESDM sector is a key driver of India’s technological advancements.
Aimtron Electronics IPOObjectives Include:
Debt repayment
Plant expansion
Working capital needs
General corporate purposes
Offer Price
₹153 – ₹161 per share
Face Value
₹10 per share
Opening Date
30 May 2024
Closing Date
3 June 2024
Total Issue Size (in Shares)
5,404,800
Total Issue Size (in ₹)
₹87.02 Cr
Issue Type
Book Built Issue IPO
Lot Size
800 Shares
5. TBI Corn IPO
Rounding out the IPO lineup is TBI Corn, a manufacturer and exporter of corn meal grits. Their book-built IPO, valued at ₹44.94 crore, consists solely of fresh equity shares. Incorporated in 2000, TBI Corn Limited manufactures and exports Corn Meal Grits to various countries, such as Dubai, Oman, Jordan, South Africa, and Vietnam.
TBI Corn IPOObjectives Include:
Expansion of existing production unit
Meeting working capital requirements
General corporate purposes
Offer Price
₹90 – ₹94 per share
Face Value
₹10 per share
Opening Date
31 May 2024
Closing Date
4 June 2024
Total Issue Size (in Shares)
4,780,851
Total Issue Size (in ₹)
₹44.94 Cr
Issue Type
Book Built Issue IPO
Lot Size
1200 Shares
Potential Listings
While the IPOs garner most of the initial buzz, two potential listings are also expected this week, adding to the overall market activity. Here’s a quick look:
GSM Foils IPO Listing: The allotment for the GSM Foils IPO is expected to be finalized on May 29th, with a tentative listing date on the NSE SME platform set for May 31st.
Awfis Space Solutions IPO Listing: The allotment for the Awfis Space Solutions IPO is expected to be finalized on May 28th, with a tentative listing date on both BSE and NSE set for May 30th.
Conclusion Although this week promises a flurry of activity in the SME segment, thorough research is crucial before making any investment decisions. Carefully analyze the company’s financials, business model, future prospects, and overall market conditions. Don’t be swayed by hype—make informed choices based on your investment goals and risk tolerance.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Thinking of grabbing a piece of India’s growing flexible workspace market? Awfis Space Solutions, a leading player in this space, is opening its doors to the public through an Initial Public Offering (IPO) tomorrow. But before you hit that subscribe button, let’s take a closer look at what’s on offer and what it means for you.
Awfis Space Solutions is looking to raise ₹598.72 crore through its IPO. This includes fresh issuance of shares worth ₹128 crore and an offer-for-sale (OFS) of over 1.22 crore shares by existing shareholders. Prominent names like Amit Ramani (promoter) and Peak XV Partners Investments (formerly Sequoia Capital India) are among those looking to offload some of their holdings.
Objectives of Awfis Space Solutions IPO
The company plans to utilize a significant portion of the raised capital for growth. ₹42.03 crore will be directed towards establishing new centers, further expanding their reach in the Indian market. Additionally, ₹54.37 crore will be used to meet working capital needs, ensuring smooth day-to-day operations. The remaining funds will be used for general corporate purposes.
Investor Share Allocation
The IPO follows a book-building process, with a predetermined allocation for different investor categories. Institutional investors with a strong track record (QIBs) get the lion’s share, with 75% of the net offer reserved for them. Non-institutional buyers (wealthy individuals and corporates) get the next biggest slice at 15%, while retail investors, the general public, have access to no more than 10% of the offering. A special employee reservation portion with a discount allows them to participate in the IPO.
Awfis Space Solutions IPO GMP
As of today, May 21st, 2024, there’s a buzz surrounding the IPO with an unofficial Gray Market Premium (GMP) of ₹165 per share. This translates to a premium of 43% over the upper price band of the IPO. It’s important to remember that GMP is an unofficial indicator of pre-listing interest, not a guaranteed future price performance.
Company Overview
Founded in 2014, Awfis Space Solutions has carved a niche for itself in India’s growing flexible workspace market. They cater to a diverse clientele, offering various workspace options to startups, small and medium businesses (SMEs), and even large corporations.
Beyond providing physical space, Awfis offers a comprehensive suite of ancillary services. These include catering, IT assistance, infrastructure support, and event organization—essentially a one-stop shop for businesses seeking a ready-to-go workspace solution.
Their reach is impressive, with 169 operational centers across 16 Indian cities as of December 2023. These centers offer a total of 105,258 seats and a significant 5.33 million sq. ft. of chargeable area. The company has also started offering in-house fit-out and facility management services for its centers.
Financial Performance
Awfis Space Solutions’s revenue increased substantially by 103% between March 2022 and March 2023.
However, a key point to consider is their profitability. While their profit after tax (PAT) did show an 18.4% rise during the same period, it’s important to note that the company is still operating in the red. This raises questions about their long-term financial sustainability.
First-mover advantage in the Indian flexible workspace market A diverse range of workspace solutions and ancillary services A strong network of centers across major Indian cities
Lack of profitability despite revenue growth Reliance on real estate market conditions Competition from established players and new entrants
OPPORTUNITIES
THREATS
First-mover advantage in the Indian flexible workspace market Diverse range of workspace solutions and ancillary services A strong network of centers across major Indian cities
Economic slowdown impacting business growth Fluctuations in office space rental rates Technological advancements impacting workspace needs
The Final Word Awfis Space Solutions IPO may seem like an opportunity to invest in a growing market leader. However, considering the lack of profitability and the competitive landscape is crucial. You must carefully weigh the risks and potential rewards before deciding. Remember, thorough research and a well-defined investment strategy are key in navigating the IPO market.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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