Hariom Pipe surges 50% on debut, ends at Rs 231 vs offer price of Rs 153

 

Portions of Hariom Pipe Industries bounced more than 50% over their issue cost during their securities exchange debut on Wednesday. The stock finished at Rs 231, up 51 percent over its issue cost of Rs 153. The stock was secured in the 5% upper circuit on the two trades.

The solid presentation of new postings, for example, Harirom and Ruchi Soya will help retail opinion towards approaching IPOs, said specialists.

The Hyderabad-based company's IPO gathered almost multiple times more interest than shares on offer. The retail part of the issue is bought in 12.15 times, high networth individual (HNI) segment 8.9 times and qualified institutional purchaser (QIB) segment 1.91 times.

Through the IPO, Hariom Pipe brought Rs 130 crore up in new capital. At the last close, the organization had a market cap of almost Rs 572 crore. Hariom Pipe is a coordinated producer of gentle steel pipes, platform, HR strips, MS billets and wipe iron. In FY21, the organization had timed net benefit of Rs 15.13 crore on all out pay of Rs 254.82 crore.

Sebi tightens IPO valuation scrutiny, jolts startups eyeing listing: Report

 

India has tightened scrutiny of IPO-bound firms by questioning how key internal business metrics are used to arrive at valuations, unsettling bankers and companies which fear delays in listing plans, sources with direct knowledge told Reuters. India's push comes after the flop listing of SoftBank-backed payments firm Paytm's $2.5 billion IPO in November which sparked criticism of lax oversight of how loss-making companies price issues at what some say are lofty valuations.

The Securities and Exchange Board of India (SEBI) last month flagged concerns in proposing stricter disclosures, saying more and more new-age tech firms which "generally remain loss making for a longer period" were filing for IPOs, and traditional financial disclosures "may not aid investors." But even before the proposal is finalised, SEBI has in recent weeks asked many companies to get their non-financial metrics -- KPIs, or key performance indicators -- audited, and then explain how they were used to arrive at an IPO's valuation, five banking and legal sources said. Typically for a tech or app-based startup, KPIs could be figures like the number of downloads or average time spent on a platform -- metrics sources said are disclosed but difficult to audit or link to a company's valuation. SEBI is asking us to "justify the valuation," said one Indian lawyer advising several companies eyeing IPOs, adding it was "creating uncertainty and increasing cost of compliance." SEBI did not respond to a request for comment.

Paytm Money rolls out feature to help people invest in IPOs instantly

 

Paytm Money, an entirely claimed auxiliary of computerized monetary administrations stage Paytm, has revealed an IPO speculations highlight, which will permit speculators to take an interest in open contributions immediately.

Through this, speculators will have the option to apply for most recent IPOs by means of UPI ID, connected to their financial balances to finish the application cycle. The organization is utilizing the UPI foundation to offer a turnaround season of 3-4 days for consummation of the whole cycle.

"The Indian startup environment has a developing hunger for entering the capital market with more organizations needing to raise capital from a more extensive arrangement of financial specialists through open posting. In like manner, financial specialists are likewise progressively ready to enhance their portfolio. This presents a major chance and we expect to make the cycle more available to our kinsmen," said Varun Sridhar, CEO, Paytm Money.

The administration, which is accessible on both the Paytm Money site and the application, offers an interface to make changes, drop or resend the offering application inside the IPO window. It is furnished with highlights which assist financial specialists with following impending IPOs, see organization history and subtleties, download plan, and check the presentation of past IPOs.

"Sooner rather than later, we intend to dispatch IPO subsidizing, subordinates exchanging, edge money and a large group of other worth added highlights to make contributing consistent and advantageous," added Sridhar.

SBI Cards lists 12% below issue price of Rs 755; recovers later

Current Affairs
Portions of SBI Cards and Payment Services (SBI Cards) recorded at Rs 661, 12.45 percent beneath its issue cost of Rs 755 on the National Stock Exchange (NSE) on Monday. On the BSE, it opened at Rs 658, 13 percent lower against issue cost.
Be that as it may, at 10:09 am, the stock was exchanging at Rs 751, in the wake of hitting a high of Rs 754 on the BSE. A consolidated around 26 million offers have changed hands on the counter on both the trades up until now.
The stock saw a frail introduction because of winning economic situation as the vulnerability with respect with the impact of the coronavirus plague kept on holding financial specialist notion in line. The benchmark files Nifty50 and S&P BSE Sensex have declined 16.6 percent since the SBI Card starting open offer (IPO) opened for membership on March 2, 2020. The records have failed almost 21 percent, since the charge card arm of the State Bank of India (SBI) documented Draft Red Herring Prospectus (DRHP) for its IPO with Sebi on February 26.
Practically all financiers were certain on the underlying open offer (IPO) and some had anticipated up to 60 percent upside from the IPO value scope of Rs 750-755, given its prevailing situation in the Mastercard showcase and solid parentage, SBI Cards is very much set to profit by the rising pattern of advanced installments and internet business.

SBI Card's IPO had figured out how to pull in offers worth Rs 2 trillion, disregarding testing economic situations. The 100-million offer contribution created near 2.7 billion offers (multiple times). The certified institutional purchasers (QIBs) segment of the IPO was bought in multiple times, trailed by high networth individual (HNI) (multiple times) and investors (25.4 occasions). The representative fragment enrolled 4.7 occasions membership, while the retail partition being bought in 2.5 occasions...Read More

Burger King India to file for Rs 1,000-crore IPO this week: Details here

The logo of Burger King is seen outside a shop in Vienna in Vienna, Austria, October 1, 2016. REUTERS/Leonhard Foeger/File Photo

International News
Burger King India, a major player in the domestic quick service restaurant (QSR) space, will file a document for an initial public offer (IPO) this week with the Securities and Exchange Board of India (Sebi), said people with direct knowledge of the development.
The issue will comprise a secondary share sale worth Rs 600 crore by private equity major Everstone Capital and fresh fundraising worth Rs 400 crore, which will be used to fuel the burger chain’s expansion plan.
Assuming the regulatory approval process takes the usual time, Burger King India would list early next year, joining rivals Jubilant FoodWorks (operator of the Domino’s Pizza chain) and Westlife Development (master franchisee of McDonald’s in the western and southern markets) in going public. Typically, Sebi takes between four and six weeks to vet and clear an IPO document.Everstone owns and operates Burger King’s branded restaurants across India and Indonesia, as part of its food and beverage Asia portfolio. Everstone has invested in more than 30 portfolio companies in the consumer and consumer-led sectors across India and Southeast Asia.
Investment bankers said taking Burger King India public was part of Everstone’s strategy to liquidate its investment. In May, Everstone-backed non-banking financial company IndoStar Capital Finance had raised Rs 1,844 crore through an IPO. In 2017, the PE firm's education sector-focused publishing company S. Chand and Co got listed in a Rs 729-crore IPO. An email sent to Everstone seeking comment remained unanswered.

Edelweiss, Kotak Mahindra Capital, JM Financial, and CLSA are the investment bankers managing the Burger King IPO.Market players said Burger King India could command attractive valuations, given the investor preference for consumer-oriented brands. Also, the listed QSR players trade at lofty price-to-earnings multiples. Jubilant Foodworks now trades at 51 times its estimated one-year forward earnings....READ MORE

Aramco eyes two-stage IPO, favours Tokyo for international listing: Report

Current Affairs

Saudi oil giant Aramco is considering a two-stage initial public offering (IPO) with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported Thursday.
Aramco has said it plans to float around five per cent of the state-owned company in 2020 or 2021 in what could potentially be the world's biggest stock sale.The oil giant is now considering a plan to raise as much as $50 billion in a domestic listing, the Journal said citing unnamed sources.
It added that the world's biggest energy firm favours Tokyo as a possible venue for the second phase of the proposed plan.If confirmed, that would be a setback for London, New York and Hong Kong, which have all vied for a slice of the much-touted IPO.
Political uncertainty in Britain over its plan to exit the European Union and public protests in Hong Kong had diminished their prospects, the Journal cited Saudi officials and advisors as saying.
Aramco did not immediately respond to AFP's request for comment.
The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil.
It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but investors have long debated whether Aramco is really worth that much.

 Failure to reach a $2 trillion valuation as desired by Saudi rulers is widely considered the reason the IPO -- earlier scheduled for 2018 -- has been delayed....Read More

Uber drivers plan 12-hr protest in 6 US cities over low wages ahead of IPO

International News

Uber Technologies Inc's drivers in six US cities are planning to shut their apps for 12 hours on May 8 to protest against low wages and working conditions, two days ahead of the company's expected market debut.

Drivers in San Francisco, Chicago, Los Angeles, San Diego, Philadelphia and Washington DC will shut their app on the day, when a separate protest will be carried out outside Uber's head office in San Francisco, a spokeswoman for Gig Workers Rising, a campaign for gig workers, told Reuters.
About "hundreds of drivers" are likely to join the protest, with Los Angeles and San Francisco expected to see a higher concentration of people, Clarkson said on Monday.

The drivers' demands also include employee benefit plans such as health care, holiday pay and representation in Uber's management structure.

Uber expects to price its IPO on May 9 and begin trading on the New York Stock Exchange the following day, people familiar with the matter have said.

"Uber's IPO will put millions in the pockets of executives, but the drivers who provide the service that is core to the company will get nothing, " Clarkson said.

To improve relations with drivers, Uber had announced plans to offer cash bonuses to some of its most active drivers with the option to purchase shares in the company's market debut.
Uber did not respond to a Reuters request for comment.

 (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

PE fund AION fully exits Varun Beverages, walks away with 2x returns

Company News

Nearly three-and-a-half years after it invested $90 million in Ravi Jaipuria-promoted Varun Beverages, the bottlers for beverage giant Pepsi, private equity fund AION has decided to completely exit the company.

In a block deal, AION has sold its 4.5 per cent stake in the company at Rs 850 a share, a slight premium over the stock’s closing price of Rs 844.75 on the National Stock Exchange (NSE) on Tuesday. According to sources, this translates into a 25 per cent return on equity per year in dollar terms, or 2x returns over the holding period. The fund generated 2x on equity invested in the company. When contacted, Parth Gandhi, senior partner and managing director of AION, declined to comment on the transaction.

AION, a joint venture between Apollo Global Management and ICICI Venture, had invested $90 million in Varun Beverages — half of that in debt and half in convertible debentures.
In 2016, Varun Beverages came up with a Rs 1,100-crore initial public offering (IPO), which was subscribed 1.8 times at Rs 445 a share. After the company was listed, AION sold its stake in various tranches.

AION has so far invested in a number of Indian companies, the latest being Monett Ispat, the steel company it acquired as part of a consortium with JSW through the insolvency route, paying Rs 2457 crore for the deal. This year, it also acquired information technology (IT) and back-office operations of InterGlobe Technologies, the Rahul Bhatia company that runs IndiGo Airlines, for $230 million. In 2016, it also bought — along with partners like former Genpact chief executive Pramod Bhasin and GE commercial finance business head Anil Chawla — the commercial lending and leasing business of GE Capital for $360 million.


 Varun Beverages, the flagship company of the Ravi Jaipuria group, in February this year cemented its long-term relationship with PepsiCo.

Metropolis Healthcare open to acquisitions; IPO to hit Street on Wednesday

Company News

Diagnostic firm Metropolis Healthcare, which is launching its Rs 1,200 crore initial public offering (IPO) next week, is open to make further acquisitions in this space. The company has used the inorganic route to growth in its initial years and made around 25 acquisitions in the past 18 years.

Sushil Shah, chairman of Metropolis Healthcare, said if a good acquisition opportunity came up, they were open to evaluate it. “We are growing at a decent pace and generating good free cash flow. With the IPO, around 50-60 per cent debt at the holding company level would be gone. It is also easier to raise funds when an entity is listed. Therefore, as and when a good opportunity comes up, we would be better prepared to crack the deal,” he said.

The Rs 650-crore company is focussing on business-to-customer (B2C) expansion in the coming years and would need to bolster its retail presence. “We have made several acquisitions in the past. These have all been leaders in the markets where they operated. It helps to make a strategic entry into a market,” said Ameera Shah, daughter of Shah.

She said that from a 43 per cent share of revenue from the B2C segment, Metropolis was targeting to take that up to 60 per cent in the coming years.

At present, it draws a significant chunk (57 per cent) of revenues from the business -to-customer, which comprises hospital outsourced pathology tests and institutional sales.


 According to Frost & Sullivan, the Indian diagnostics market was valued at about Rs 59,600 crore in the FY18, and is projected to grow at Rs 80,200 crore by FY20, driven by favorable changes in demographics, improvements in health awareness, increased spend on preventive care and wellness, increase in medical tourists, increase in lifestyle-related ailments and rising penetration of insurance in India.