Tag: initial public offering

IPO rush continues; 10 cos line up public issues worth Rs 10,000 cr in Dec, BFSI News, ET BFSI

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New Delhi, Dec 1 : The IPO lane will continue to be busy in December as 10 companies have lined up initial share-sale plans worth more than Rs 10,000 crore, merchant banking sources said on Wednesday. Moreover, the initial public offerings of Star Health and Allied Insurance and Tega Industries are currently open for public subscription.

This comes after 10 firms successfully concluded their initial public offerings (IPOs) in November.

Among the companies that scheduled their IPOs in this month include RateGain Travel Technologies, travel and hospitality technology services provider, and Anand Rathi Wealth Ltd, part of Mumbai-based financial services group Anand Rathi.

RateGain’s Rs 1,335-crore initial share-sale will open for public subscription during December 7-9, and the Rs 660-crore IPO of Anand Rathi Wealth will open on December 2.

In addition, the companies that have firmed up their IPO plans are — Global Health Ltd, which operates and manages hospitals under the Medanta brand, pharmacy retail chain MedPlus Health Services and Healthium Medtech, merchant banking sources said.

Apart from these, Metro Brands, Shriram Properties, AGS Transact Technologies, Shri Bajrang Power and Ispat and VLCC Health Care may also float their public issues in the period under review, they added.

Investment bankers said these companies will raise more than Rs 10,000 crore collectively.

The companies are raising funds to support business expansion plans, to retire debt and for general corporate purposes.

Some of the IPOs are an offer for sale (OFS), where private equity players or the promoter wants to cash out part of their holding.

Prateek Singh, founder and CEO of LearnApp.com, attributed the impressive pipeline to the bull run in the equity markets.

“The best time for any company to go for an IPO is during the Bull market, which is also the reason why many companies are going for a public listing at this time. Companies look to tap into the sentiment from the public markets at such opportune times and are highly successful,” he said.

Further, initial share-sales are receiving tremendous applications from the investors and IPOs have been subscribing multifold times.This has pushed companies to raise funds through IPO.

He further said the trend will continue and more tech companies will try to go public in the immediate future until the market calms down and moves downward.

“So, if the markets fall in the future, the IPOs will also reduce,” he added.

So far in 2021, as many as 51 companies have launched their IPOs to raise over Rs 1 lakh crore, according to analysis of data with exchanges.

Apart from these, PowerGrid InvIT, the infrastructure investment trust (InvIT) sponsored by the Power Grid Corporation of India, mopped-up Rs 7,735 crore through its IPO and Brookfield India Real Estate Trust raised Rs 3,800 crore via its initial share-sale.

The fundraising so far this year is way higher than the Rs 26,611 crore collected by 15 companies through initial share-sales in the entire 2020.

Such impressive fundraising through IPOs was last seen in 2017 when firms mobilised Rs 67,147 crore through 36 initial share-sales.



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Star Health raises Rs 3,217 cr from anchor investors ahead of IPO, BFSI News, ET BFSI

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New Delhi, Star Health and Allied Insurance Company on Monday said it has raised a little over Rs 3,217 crore from anchor investors ahead of its IPO on Tuesday. The company has decided to allocate a total of 3,57,45,901 equity shares to 62 anchor investors at Rs 900 apiece, aggregating to Rs 3,217.13 crore, according to a circular uploaded on BSE website.

Monetary Authority of Singapore, Government of Singapore, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore) Pte, Goldman Sachs (Singapore) Pte, BNP Paribas Arbitrage and Societe Generale are among the anchor investors.

In addition, SBI Life Insurance Company, HDFC Life Insurance Company and Edelweiss Mutual Fund have been allocated shares.

The initial public offering (IPO) comprises fresh issue of equity shares worth Rs 2,000 crore and an offer for sale of up to 58,324,225 equity shares by promoters and existing shareholders.

Those offering shares through the offer for sale are promoter and promoter group — Safecrop Investments India LLP, Konark Trust, MMPL Trust— and existing investors Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai.

The public offer includes a reservation of shares worth Rs 100 crore for employees.

The issue, with a price band of Rs 870-900 a share will open for public subscription between November 30 and December 2.

At the upper end of the price band, the initial share-sale is expected to fetch Rs 7,249.18 crore.

Proceeds from the fresh issue would be used to augment the company’s capital base.

About 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can bid for a minimum of 16 equity shares and in multiples thereof.

Star Health, leading private health insurer in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.

At present, SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company are the few insurance companies which are listed on the stock exchanges.

Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India) Private Limited, Jefferies India, Ambit, DAM Capital Advisors and IIFL Securities are the merchant bankers to the issue.

The equity shares of the company will be listed on the BSE and NSE.



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Fino Payments Bank IPO to open on October 29

Banking & Finance

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The ₹1,200 crore initial public offer of Fino Payments Bank will open on October 29 and close on November 2. “The price band for the offer has been determined at ₹560 to ₹577 per equity share,” it said on Tuesday.

The IPO size at the upper band is about ₹1,200 crore, comprising ₹900 crore through the offer for sale of 1.56 crore shares and ₹300 crore from fresh issuance of equity shares.

“The company intends to utilise the net proceeds from the fresh issue towards augmenting the bank’s tier-1 capital base to meet its future capital requirements,” it further said.

Also read: Fino Payments Bank gets SEBI nod to float IPO

The company and the selling shareholder have, in consultation with the book running lead manager to the offer, considered participation by Anchor Investors who participation will be on October 28. Axis Capital, CLSA India, ICICI Securities, and Nomura Financial Advisory and Securities (India) are the book running lead manager to the offer.

Fino Payments Bank is a wholly owned subsidiary of Fino Paytech Limited, which is backed by marquee investors like Blackstone, ICICI Group, Intel Capital Corporation, Bharat Petroleum, HAV3 Holdings (Mauritius) and World Bank Arm International Finance Corporation (IFC), among others.

The bank had received market regulator Sebi’s go-ahead for an initial public offering earlier this month. The fintech bank turned profitable in the fourth quarter of 2019-20 and has consistently made profits for seven consecutive quarters.

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Fino Payments Bank to continue its focus on ‘emerging India’

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IPO-bound Fino Payments Bank is betting big on technological innovation and customers beyond tier-2 towns to fuel its future growth.

“While innovation remains ever-present, technology and customer trust lies at the core of all that we do and forms the foundation for our entire business model. We have and will continue to strengthen our focus within ‘emerging India’, catering to a population that we believe presents a large market opportunity and has typically been overlooked by the majority of the large Indian financial institutions,” Fino Payments Bank has said in its draft red herring prospectus, adding that this section of society is often underserved and typically does not have access to basic banking services.

Training merchants

It has also said it plans to continue investing in technology throughout its business, particularly for on-boarding and training of merchants and will also enhance its ‘phygital’ delivery model.

As of March 31, 2021, Fino Payments Bank had 6.41 lakh merchants, 17,269 active BCs and 25.7 lakh CASA accounts. It also operates 54 branches and 143 customer service points.

The bank had filed draft documents with market regulator SEBI for an initial public offer in July this year. It is looking to raise about ₹1,300 crore, including a fresh issue of ₹300 crore as well as an offer for sale component

Since the beginning of the Covid-19 pandemic, the lender has also seen high levels of transactions through micro-ATM, AePS networks and BC banking operations also received an impetus with increased transactions.

Decline in domestic remittance

In its DRHP, the bank however, noted that there has been a significant decline in domestic remittance transactions as migrant workers relocated from urban areas to hometown. Although its remittance transactions have largely recovered since the initial outbreak and lockdown, it currently remains approximately six per cent below its typical domestic remittance throughput.

Its CMS temporary operations were also impacted due to moratoriums on lending and reduced cash handling requirements. But as the lockdowns eased, this has quickly returned to normal transaction levels.

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Oyo aims for India IPO in 2021, BFSI News, ET BFSI

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Oyo Hotels and Homes will soon join the list of startups launching an initial public offering (IPO) in the country.

Internally, the hospitality company has set a timeline of September for filing its IPO prospectus and wants to be a public company before the calendar year ends, people aware of the development said.

Oyo has initiated talks with multiple bankers including JP Morgan, Citi and Kotak Mahindra Capital to manage its public issue, they said.

“Work has begun and some bankers have been finalised,” a person aware of the matter told ET. “They are aiming to file the draft red herring prospectus (DRHP) by September.”

Another person said, “Directionally, they are moving towards an IPO but many details are yet to be finalised, including the offer size.”

A spokesperson of Oyo declined to comment.

Oyo is seeing a revival in business in markets such as India and Europe as the number of Covid-19 cases have been falling and vaccination rate improving. Oyo told ET last month that it was seeing stronger recovery in Europe on the back of higher vaccination rates and that India would also reflect the same once more people are vaccinated, at least once.

Currently, 43% of Oyo’s revenue comes from India and Southeast Asia while 28% comes from Europe and the rest from other global markets. The company was forced to cut down its operations in markets like the US and China amid the virus outbreak. In India, it fired a chunk of its workforce as Covid-19 hit its business hard.

Its IPO plans come at a time when the Indian public market seems to be bullish on startup IPOs following Zomato’s public offer.

Paytm, PolicyBazaar, Nykaa, Mobikwik and CarTrade are in various stages of going public in India after having filed their DRHP over the last few months.

ET had last month reported that Oyo had secured a $660-million debt financing from global institutional investors to service its existing loans. Wall Street investors like Fidelity, Citadel Capital Management and Varde Partners have subscribed to Oyo’s TLB, also referred to as Term B Loan.

The hotel aggregator is also in talks with Microsoft for financing.



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Net profit jumps 110% to Rs 175 cr; revenue declines to Rs 2,309 cr, BFSI News, ET BFSI

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SBI Cards and Payment Services on Monday reported a 110 per cent rise in net profit at Rs 175 crore for the quarter ended March 2021.

The credit card company, promoted by the country’s largest lender SBI, had posted a net profit of Rs 84 crore in the corresponding January-March period of the preceding fiscal year 2019-20.

The company, which operates under the brand name SBI Card, reported decline in revenue to Rs 2,309 crore during the fourth quarter as against Rs 2,433 crore in same period a year ago, it said in a regulatory filing.

Total income too dropped to Rs 2,468 crore from Rs 2,510 crore in the same quarter a year ago.

The total expenses were lower at Rs 2,234 crore as compared to Rs 2,398 crore earlier.

For the full year 2020-21, net profit slipped by 21 per cent to Rs 985 crore from Rs 1,245 crore in preceding fiscal.

With regard to asset quality, the company registered a deterioration with gross non performing assets (NPAs) more than doubling to 4.99 per cent at the end of March 2021, as compared to 2.01 per cent at March 2020.

Similarly, net non-performing assets rose to 1.15 per cent as against 0.67 per cent earlier.

As of March 31, 2021, the company’s capital-to-risk weighted assets ratio (CRAR) was 24.8 per cent compared to 22.4 per cent last year.

During the quarter ended March 2020, the company had come up with its Initial Public Offering (IPO) and was listed on BSE and NSE.



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Jana SFB files DRHP – The Hindu BusinessLine

Banking & Finance

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Jana Small Finance Bank has filed its draft red herring prospectus (DRHP) and is looking to raise ₹700 crore of capital through a fresh issue of shares as part of its initial public offering.

Additionally, the IPO will also include an offer-for-sale of up to 92.53 lakh equity shares from existing shareholders. These include Alpha TC Holdings, Bajaj Allianz General Insurance, Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, Badri Narayan Pilinja and Vallabh Bhanshali.

Also read: Jana SFB: Disbursements almost normal, only micro finance loans lagging

Jana SFB may also consider a pre-IPO placement of up to ₹500 crore, including by way of a proposed further issue to its promoters for an amount up to ₹400 crore and a further issue of equity shares for the remaining amount to the promoters and other investors, the DRHP said.

“We intend to utilise the net proceeds to augment our bank’s Tier-I capital base to meet future capital requirements, which are expected to arise out of growth in our bank’s assets, primarily advances and investment portfolio, and to ensure compliance with applicable RBI regulations and guidelines,” it further said.

Bengaluru-based Jana SFB is one of the 10 entities that had started SFB operations.

The Reserve Bank of India (RBI) guidelines require SFBs to list within three years of their net worth reaching ₹500 crore.

For the half year ended September 30, 2020, Jana SFB reported net profit of ₹82.43 crore.

The book running lead managers for the IPO are Axis Capital, ICICI Securities, SBI Capital Markets and KFin Technologies.

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