Tag: One97 Communications

IPO rush continues; Paytm, 2 other public issues to open next week, BFSI News, ET BFSI

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New Delhi, Hectic fundraising through IPOs will continue next week, with three firms — One97 Communications, owner of Paytm; Sapphire Foods India, which operates KFC and Pizza Hut outlets; and Latent View Analytics — are set to launch their initial share-sales to collectively mop up about Rs 21,000 crore. This comes after five companies successfully concluded their public offerings (IPOs) this week.

Those five firms are – FSN E-Commerce Ventures, which runs online marketplace for beauty and wellness products Nykaa; Fino Payments Bank; Policybazaar parent entity PB Fintech; decorative aesthetics supplier SJS Enterprises; and microcrystalline cellulose maker Sigachi Industries.

The three-day IPOs of Paytm, Sapphire Foods India and Latent View Analytics are scheduled to open on November 8, November 9 and November 10, respectively.

So far in 2021, as many as 46 companies have floated their IPOs to raise Rs 80,102 crore and market experts believe that the year should close with the Rs 1-lakh crore primary market fundraising.

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 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.

Digital firm One97 Communications, which operates under the Paytm brand name, is set to come out with its Rs 18,300-crore IPO on November 8.

The IPO comprises fresh issuance of equity shares worth Rs 8,300 crore and Rs 10,000 crore from an offer for sale (OFS) by existing shareholders.

The company has fixed a price band of Rs 2,080-2,150 apiece, implying a valuation of around Rs 1.48 lakh crore.

The Rs 18,300-crore offer, if successful, will be the biggest in the country after Coal India’s IPO in 2010, wherein the state-owned company had garnered Rs 15,200 crore.

“The biggest merit for Paytm’s IPO would be that they have so much more diversified regulatory access under one roof.

“This focus on diversification means that none of their particular business books has depth, unlike other major players who focus more on specialising,” Nikhil Kamath, co-founder of True Beacon and Zerodha, said.

On Wednesday, Paytm raised Rs 8,235 crore from anchor investors.

Sapphire Foods India’s public issue will be entirely an offer of sale (OFS) of 17,569,941 equity shares by promoters and existing shareholders.

As part of the OFS, QSR Management Trust will sell 8.50 lakh shares, Sapphire Foods Mauritius Ltd will offload 55.69 lakh shares, WWD Ruby Ltd will divest 48.46 lakh shares and Amethyst will offer 39.62 lakh shares.

In addition, AAJV Investment Trust will sell 80,169 shares, Edelweiss Crossover Opportunities Fund will offload 16.15 lakh shares and Edelweiss Crossover Opportunities Fund-Series II will divest 6.46 lakh shares.

The company has fixed a price band of Rs 1,120-1,180 a share for its IPO. At the upper end of the price band, the initial public offering is expected to fetch Rs 2,073 crore.

Latent View Analytics’ IPO comprises a fresh issue of equity shares worth Rs 474 crore and an offer of sale of equity shares to the tune of Rs 126 crore by a promoter and existing shareholders.

As part of the OFS, promoter Adugudi Viswanathan Venkatraman will offload shares worth Rs 60.14 crore, shareholder Ramesh Hariharan will sell Rs 35 crore shares and Gopinath Koteeswaran will offload Rs 23.52 crore shares among others.

Currently, Venkatraman owns a 69.63 per cent stake in the company, Koteeswaran holds a 7.74 per cent stake and Hariharan has a 9.67 per cent holding in the firm.

The company has set a price band of Rs 190-197 a share for its IPO.

The proceeds from the fresh issue will be used for funding inorganic growth initiatives, working capital requirements of the subsidiary LatentView Analytics Corporation, and investment in subsidiaries to augment their capital base for future growth and general corporate purposes.

The company provides services ranging from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions. PTI SP HRS hrs



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D-Street to raise record Rs 31,000 crore from deluge of IPOs in 2 weeks, BFSI News, ET BFSI

Personal Finance

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MUMBAI: The Indian capital market is set to witness one of the busiest fortnights in its history as six companies have lined up to together raise about Rs 31,400 crore by November 10.

The six issues include the one from tech-enabled payments major One 97 Communications, operating under the Paytm brand, which aims to raise Rs 18,300 crore.

Paytm has priced its IPO shares in the Rs 2,080-2,150 band per share, indicating the company seeks a valuation of about $20 billion. This will make the Paytm IPO the largest ever in the country’s history.

Till date the biggest IPO in India was the Rs 15,500-crore offer by Coal India in October-November 2010.

According to market sources, this could have two major implications for Dalal Street and the economy. First, there are fears among traders that the deluge of IPOs could force several investors to offload part of their portfolio and divert that money to invest in these offers, especially for listing gains. Second, the inflows from foreign funds, estimated to be about 40-50% of the total offer, could mean Rs 12,000-15,000 crore of forex inflows. This, in turn, could help appreciate the rupee.

On Thursday, despite a sharp sell-off in the stock market, the domestic currency closed 11 paise stronger at Rs 74.92 to a dollar. Usually, the day the stock market slides sharply, the rupee also weakens against major currencies like the US dollar, euro, pound sterling and the Japanese yen. Thursday’s strength in the domestic currency came despite a Rs 3,819-crore net selling by foreign funds, BSE data showed. According to a note by the forex advisory firm IFA Global, the strength of the rupee was “because foreign banks sold US dollars for overseas investments into Indian companies raising funds through initial public offerings”.

According to data collated from Sebi, merchant bankers and various brokerages, FSN E-Commerce Ventures, the company that operates under the Nykaa brand name, is raising Rs 5,350 crore while PB Fintech (under Policybazaar brand name) is raising Rs 5,200 crore, Fino Payments Bank Rs 1,200 crore, SJS Enterprises Rs 800 crore and Sigachi Industries Rs 125 crore.

In addition to the big ticket listings, three more high profile IPOs are also lined up after these got the Sebi green signal in the last few weeks. Adani Wilmar is eyeing Rs 4,500 crore, One MobiKwik is expected to raise Rs 1,900 crore and the offer size for Star Health is expected to be in excess of Rs 3,000 crore, market sources said. These offers could open anytime now, merchant bankers said.

The government is also planning to list life insurance behemoth LIC before the end of the fiscal year through its IPO. This offer is expected to garner anything between Rs 70,000 crore and Rs 1 lakh crore, merchant bankers said.



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Paytm files DRHP for IPO

Banking & Finance

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One97 Communications, the parent of Paytm, has filed a draft red herring prospectus with SEBI for its initial public offering. The size of the IPO is Rs 16,600 crore.

The issue comprises a fresh issue of equity shares amounting to Rs 8,300 crore and an offer for sale by existing shareholders of Rs 8,300 crore.

The company also retains the option, in discussion with BRLMs, to undertake a pre-IPO placement of Rs 2,000 crore.

If the pre-IPO placement is completed, the fresh issue size will be reduced to that extent.

As part of the OFS, existing shareholders, including Paytm founder and CEO Vijay Shekhar Sharma, Ant Financial, Alibaba group, Elevation Capital, Saif Partners and BH International Holdings will sell their shares.

The DRHP does not disclose the share price or the stake to be diluted by any of the shareholders.

Shareholders of One97 Communications had cleared the proposal for the IPO on July 12.

Paytm’s revenue from operations was Rs 2,800 crore from 11.4 crore annual transacting users. However, it continued to be loss-making.

Its losses came down by 42.2 per cent to Rs 1,701 crore in 2020-21, from Rs 2,942 crore in 2019-20. Losses amounted to Rs 4,230 crore in 2018-19.

Marketing expenses nearly halved to Rs 532.5 crore in 2020-21 from Rs 1,397.1 crore in 2019-20.

Lead managers appointed to the issue are Morgan Stanley India, Goldman Sachs (India) Securities, ICICI Securities, Axis Capital, JP Morgan India , Citigroup Global Markets India and HDFC Bank.

The IPO is expected to be launched towards the end of November.

 

 

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