Joyalukkas plans Rs.3,000 crore IPO
One of India’s largest jewellery chains, Joyalukkas, is planning an IPO in the last quarter of FY22. The company is expected to file the DRHP with SEBI in the last week of November or early December. While details of the IPO are to be officially announced, it is reported that Joyalukkas may look to raise $400 million through the IPO (Rs.3,000 crore).
Joyalukkas has apparently sounded out a slew of top investment bankers to handle the mandate for the issue. It is apparently looking at an overall indicative valuation in the range of $4.8-4.9 billion. If it works out then it would be the second most valuable jewellery company in India after Titan. Currently, while Titan has a market cap of $24 billion, the next most valuable is Kalyan Jewellers, with market cap below $1 billion.
Joyalukkas has 130 jewellery outlets spread across 11 countries and is especially strong in India and Middle East. Joyalukkas is looking to expand to tap the revenge buying that is expected to emerge in the post-pandemic demand revival. Also, the IPO will give them ammunition to tap the next festive season, when most gold purchases happen.
Incidentally, this is the second time Joyalukkas will be attempting an IPO. It had finalized plans for the IPO in 2018 but shelved it after the Nirav Mode scam hit PNB. Most jewellery companies had come under the scanner and even credit to jewellers tightened. Under the changed circumstances, Joyalukkas had opted to put off IPO plans in April 2018.
Currently, Joyalukkas sees a number of favourable triggers. The IPO markets are buoyant with the capacity to absorb large amounts of capital. Secondly, gold is emerging as a portfolio asset class and many Indians still prefer to hold physical gold. The World Gold Council has projected a sharp revival in gold demand in India. The IPO gives Joyalukkas the stock currency to grow.
Open Demat Account
Free Demat account, No conditions apply
- 0%* Brokerage
- Flat ₹20 per order
Vijaya Diagnostics IPO Subscription Day-3
The Rs.1,895 crore IPO of Vijaya Diagnostics consists entirely of an offer for sale. It got a tepid response at the end of Day-1 and not much changed at the end of Day-2. As per the combined bid details put out by the BSE, Vijaya Diagnostics IPO was subscribed 4.54X overall at the close of Day-3, with solid traction from QIB demand. The issue has closed for subscription on Friday, 03 September.
As of close of 03 September, out of the 250.27 lakh shares on offer, Vijaya Diagnostics saw bids for 1,136.44 lakh shares. This implies an overall subscription of 4.54X. The granular break-up of subscriptions is as under.
Vijaya Diagnostics IPO Subscription Day-3
|Qualified Institutional (QIB)||13.07 Times|
|Non-Institutional (NII)||1.32 Times|
|Retail Individual||1.09 Times|
The QIB portion saw 13.07X subscription with demand for 928.63 lakh shares against 71.08 lakh shares available; net of anchor placement. On 31 August, Vijaya Diagnostics did anchor placement of Rs.566 crore to QIB investors like Fidelity, Aberdeen, Abu Dhabi Investment Authority, Government Pension Fund, ICICI Pru MF, Nippon MF, SBI MF and Kotak Life.
The HNI portion got subscribed just 1.32X (getting applications for 70.60 lakh shares against the quota of 53.31 lakh shares). Funded applications and corporate applications, managed to get the HNI portion fully subscribed.
The retail portion got subscribed 1.09X at the end of Day-3, showing relatively tepid retail appetite. Among retail investors; out of the 124.38 lakh shares on offer, valid bids were received for 135.75 lakh shares, of which bids for 108.81 lakh shares were at the cut-off price.
The IPO is priced in the band of (Rs.522-Rs.531) and has allocated a quota of 35% for retail and 50% for QIBs.
HDFC Life Acquires Exide Life Insurance for Rs.6,687 cr
HDFC Life Insurance announced the purchase of the life insurance unit of Exide Industries for a consideration of Rs.6,687 crore or nearly $916 million. The consolidation in the life insurance sector has just started picking up as the large private players look to consolidate their market share through rapid inorganic growth. The idea is to tap an ever-growing insurance market. Life insurance penetration in India is very low at 2.82%.
HDFC Life has already emerged as the largest private sector insurer in India followed by SBI Life and ICICI Prudential Life in that order. This acquisition will help them consolidated their position. The planned acquisition of Max Life by HDFC Life had to be called due to regulatory approval reasons. This gives the added ammunition to HDFC Life to take on the competition from LIC, as the PSU insurance giant plans India’s biggest IPO in history.
As part of the deal, HDFC Life will issue 870.22 lakh shares to Exide at a price of Rs.685 per share. In addition, it will also pay a cash consideration of Rs.726 crore taking the total consideration for the acquisition to Rs.6,687 crore. While the board of directors of HDFC Life, Exide Life and Exide Industries have approved the deal, the final approval from IRDAI and other regulatory approvals are still pending.
Exide Life gives lateral value addition to HDFC Life as it brings 12 lakh customer base plus assets under management of Rs.18,781 crore. For the financial year FY21, Exide Life had total premium income of Rs.3,325 crore. Once the transaction is completed, Exide Life will be fully merged into HDFC Life.
For HDFC Life, it looks like a synergistic deal as it expands their presence in South India. Even for Exide Industries, it looks like good deal. Exide has invested Rs.1,680 crore so far in Exide Life and they are getting good value for that investment. This also allows Exide to focus on its core business of batteries.
Chemplast Sanmar rallies smartly post tepid IPO
Chemplast Sanmar IPO, part of the Sanmar group of Tamil Nadu, had recently closed its mega Rs.3,850 crore IPO in the month of August. The response had been tepid at just about 2.17 times subscription and the stock had dipped to a discount to the issue price post listing.
However, in the last two weeks since listing, the stock has recouped 21% from the lows and is currently 13.7% above the issue price of Rs.541. On 02 September, the stock had closed at Rs.615, after touching a high of Rs.621. From the recent lows of Rs.510, this represents a 20.6% bounce in the stock price. What exactly has triggered this sharp rally in Chemplast?
There were two key reasons for the rally. Firstly, as committed in the IPO filing, the company has used up the proceeds of the fresh issue to repay non-convertible debentures of Rs.1,238 crore. The fresh issue proceeds of Rs.1,300 crore was almost entirely used up as committed as on 31-Aug. This largely benefits the company’s solvency ratios.
Secondly, this NCD was backed by the promoter holdings in the shares of Chemplast Sanmar and the shares of Chemplast Cuddalore Vinyls. With the NCD being fully repaid, these shares have been released from pledge on 31 August and currently there is not a single share of the promoters that is under pledge. Pledged shares tend to make traders jittery and the combination of pledge release and loan repayment boosted the stock price.
There is also a more fundamental pitch favouring the company. It is India’s largest manufacturer of specialty paste PVC resin, which finds extensive applications in the Agro-chemical and pharmaceutical sectors.
In addition, Chemplast has a diversified product portfolio including chlor-alkali, caustic soda and chlorine, making it a de-risked chemical play. The loan repayment and pledge release has allowed markets to focus on the core strengths in the product portfolio of Chemplast Sanmar.
Ami Organics IPO subscription Day-3
The Rs.570 crore IPO of Ami Organics, consisting of Rs.200 crore fresh issue and Rs.370 crore OFS, had been fully subscribed on Day-1 itself. As per the combined bid details put out by the BSE, Ami Organics IPO was subscribed 64.54X overall at the close of Day-3, with bulk of the demand coming from the HNI and QIB segment. The issue has closed for subscription on Friday, 03 September.
As of close of 03 September, out of the 65.42 lakh shares on offer, Ami Organics saw bids for 4,222.36 lakh shares. This implies an overall subscription of 64.54X. The granular break-up of subscriptions was tilted in favour of retail investors.
Ami Organics IPO Subscription Day-3
|Qualified Institutional (QIB)||86.64 Times|
|Non-Institutional (NII)||154.81 Times|
|Retail Individual||13.36 Times|
The QIB portion saw 86.64X subscription with demand for 1,606.52 lakh shares against 18.54 lakh shares available; net of anchor placement. On 31 August, Ami Organics did anchor placement of Rs.171 crore to QIB investors like SBI MF, Nippon MF, Malabar Fund, Kuber Fund, UTI MF, IIFL Asset Management, Elara India, Birla Sun Life, Kotak Life etc.
The HNI portion got subscribed 154.81X (getting applications for 2,177.32 lakh shares against the quota of 14.06 lakh shares). Funded applications and corporate applications, contributed in a big to the last day subscription.
The retail portion got subscribed 13.36X at the close of Day-3, showing strong retail appetite. Among retail investors; out of the 32.82 lakh shares on offer, valid bids were received for 438.52 lakh shares, of which bids for 331.43 lakh shares were at the cut-off price.
The IPO is priced in the band of (Rs.603-Rs.610) and has allocated a quota of 35% for retail and 50% for QIBs.
Reliance Industries (RIL) Share Price at 52 Week High, Why?
The share price of Reliance Industries (RIL) touched a new 52 week high of ₹2,394.30 today. With today's rise in Reliance share price, the market capitalisation of the country's most cherished company rose above ₹15 lakh crore. It is the top most listed company by market capitalization on NSE and BSE.
Reliance Industries shares have seen strong buying interest as the retail arm of the company, Reliance Retail Ventures (RRVL) acquired controlling stake in Just Dial Limited.
On September 01, 2021, Just Dial, according to the preferential issue, allotted 2.12 crore equity shares of Rs10 each at a price of ₹1,022.25 per equity share (including a premium of ₹1,012.25 per equity share) representing 25.35% of the post-preferential issue paid-up share capital of Just Dial to RRVL.
Earlier, on July 20 this year, RRVL acquired 1.31 crore equity shares of Rs10 each of Just Dial at Rs1,020 per equity share from VSS Mani on the floor of the stock exchange through the block window facility. The acquisition represents 15.63% of the post-preferential issue paid-up equity share capital of Just Dial.
With that, RRVL currently holds 40.98% stake in Just Dial.
RIL closed at ₹2,388.2 up 4.12% on BSE sensex today i.e. September 3, 2021.
About Reliance Industries
Reliance Industries Limited (RIL) is one of India’s largest private sector enterprise, a vertically-integrated company with business interests in energy and materials value chain. The group’s activities span across E&P, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), retail, shale gas and telecom services.’
Reliance Industries Share Price Historical Performance:
Source: Ace Equity
The above chart shows that the stock jumped as much as 29.6% in the past one year. The stock closing low was ₹1,843.15 and closing high of ₹2,388.25 between the period September 3, 2020 to September 3, 2021. The stock generated 13.1% return from September 3, 2020 to September 3, 2021.
5paisa Stock Review on Reliance Industries
We are positive on the stock from a long-term point of view given the strong outlook for O2C businesses. Further, the increasing focus on retail business and strong performance of telecom vertical makes the investment further promising.
Technical Analysis of Reliance Industries Stock
Trend of stock is bullish, stock ended the session with big bullish candle on Friday. Prices formed higher highs and higher lows which is a positive sign for coming sessions. As per Bollinger bands, stock managed to close above its upper Bollinger band which also indicates buying may continue in stock. RSI placed above 70 level which is a overbought zone so buy on dips strategy one can use ahead.