Nuvoco Vistas Subscription Status Day 1: Closes at 0.16X

Nuvoco
IPO
09/08/2021

The Rs.5,000 crore IPO of Nuvoco Vistas, consisting of Rs.1,500 crore fresh issue and Rs.3,500 crore OFS, was only partially subscribed on Day-1. As per the combined bid details put out by the BSE at the close of Day-1 of the issue, Nuvoco Vistas IPO was subscribed 0.16X overall, with bulk of the demand coming from the retail segment. The issue closes on 11th August.

In terms of numbers, out of the 625.00 lakh shares on offer in the IPO, Nuvoco Vistas saw applications for 97.33 lakh shares. This implies an overall subscription of 0.16X. The granular break-up of subscriptions were tilted in favour of retail investors.

Nuvoco Vistas IPO Subscription Day-1

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.00 Times

Non Institutional Investors (NII)

0.01 Times

Retail Individuals

0.31 Times

Employees

N.A.

Overall

0.16 times

 

QIB Portion

The QIB portion virtually got no response on Day-1. On 06 Aug, Nuvoco Vistas did an anchor placement worth Rs.1,500 crore. QIB portion, net of anchor allocation, was subscribed 0.00X (getting applications for negligible shares against the available quota of 178.57 lakh shares) at the close of Day-1.

HNI Portion

The HNI portion got subscribed 0.01X (getting applications for 1.89 lakh shares against the quota of 133.93 lakh shares). However, funded applications and corporate applications would typically come in on the last day only.

Retail Individuals

The retail portion got subscribed 0.31X at the close of Day-1, showing limited retail appetite. Out of the 312.50 lakh shares on offer, valid bids were received for 95.44 lakh shares, of which bids for 77.96 lakh shares were at the cut-off price. The IPO is priced in the band of (Rs.560-Rs.570) and will close for subscription on 11th August. 

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What should investors do after Zomato Q1 numbers FY22

Zomato
10/08/2021

If you are one of those investors in the Zomato IPO or in the secondary markets, you are likely to disappointed by the Q1 results. Zomato reported over 3-fold rise in net losses at Rs.356 crore for the Jun-21 quarter compared to Rs.99 crore net loss in the Jun-20 quarter and Rs.153 crore in Mar-21 quarter. Incidentally, the losses were triggered by expensing of 36.8 crore ESOPs granted to founder, Deepinder Goyal.

But what would have perhaps astounded investors is the fact that the Zomato stock is sharply up on 11th August notwithstanding higher losses and overall weak markets. In this dichotomy, lies the real story of Zomato.

What impressed the markets was the solid top-line growth. Total revenues of Zomato grew 22% on a sequential basis (despite COVID 2.0) to Rs.844 crore. The Indian food delivery business clocked gross order value of Rs.4,540 crore in the quarter, so clearly, Zomato takes a big chunk of that market. What really got impacted by COVID 2.0 was the dine-out market which was dysfunctional due to restrictions.

The moral of the story is quite clear. Investors who have invested in Zomato, either in the IPO or the secondary markets, never expected a turnaround to profit. The prospectus was quite clear that losses and cyclical pressures would continue for some more time. What the investors were really betting on, is rapid growth in revenues and market share and Zomato has delivered on both counts. 

That explains why the stock is rallying despite wider losses and in the midst of weak markets. Of course, it is always advisable that you should consult your financial advisor to ensure that the stock fits into your long term portfolio goals.

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Reliance Industries makes a Green Energy Bet with Stake in Ambri Inc

Relience
10/08/2021

The big differentiating technologies in green energy is likely to be the use of Lithium batteries and beyond. However, many of these technologies are yet to take off in a commercial way. This week, Reliance New Energy Solar, a subsidiary of Reliance Industries, joined a consortium of strategic investors to invest $144 million in Ambri Inc. Ambri is a specialized energy storage company based out of Massachusetts in the United States. 

Reliance will acquire 42.3 million preferred shares in Ambri Inc for $50 million, while other like Paulson & Company and Bill Gates will be the other strategic investors. According to a Reliance spokesperson, the big challenge in renewable energy forms is integration into electric power grids. One way is a long duration energy storage system that is safe, durable and economical. It is this type of storage system that Ambri will commercialize with the fund infusion from strategic investors. 

In its 44th AGM, Reliance Industries had laid out an elaborate green energy plan to makes its O2C (oil to chemicals) business environmentally sustainable in the future. Under the terms of the agreement, Reliance New Energy Solar and Ambri Inc will collaborate to set up a large scale battery manufacturing unit to make Reliance’s green energy plans more viable. This is likely to be part of the Giga Factory project at Jamnagar that Mr. Mukesh Ambani had announced in the Reliance Industries AGM.

Currently, Ambri’s technology can cater to projects needing energy systems ranging from 10 MWh to 2 GWh. Reliance New Energy, in association with Ambri will manufacture calcium and antimony electrode based cells, which are more economical and more flexible than lithium-ion batteries. These batteries can last up to 20 years without degrading.

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Tata Group all set for Semiconductors Foray

Tata
10/08/2021

If there is one area where the small country of Taiwan has made a mark in the global business landscape, it is in the manufacture of high-quality of semiconductor chips. Today, semiconductor chips are the brain behind most electrical and electronic equipment that require some form of computing intelligence. Apart from computers and mobile phones, even washing machines, televisions, refrigerators and cars require chips. As manufacturing becomes more complex, dynamic and connected, semiconductors or microchips play a bigger role.

In the last few quarters, the biggest challenge to the global business community has been the shortage of semiconductors. The demand for semiconductors got a geometric boost but the supply has not been able to keep pace. Manufacturing semiconductors is complex, intricate and capital intensive and supply takes time. It is here that the Tatas are sensing a trillion-dollar opportunity to tap globally.

In a speech at the IMC, N Chandrasekharan of Tata Sons announced that the Tatas were looking to leverage on this semiconductor opportunity in a big way. Chandrasekharan added that the Tatas had pivoted high-tech projects in electronics, defence, 5G network equipment etc and was perfectly positioned to ride the semiconductor opportunity. He also added that China disrupting global supply chains opens up a huge opportunity for India to get into semiconductor manufacturing in a big way.

While Chandrasekharan did not elaborate on details, this is obviously part of restructuring of the business lines that Tatas are undertaking. In the last few quarters, Tatas have tried to integrate their defence initiatives, technology initiatives and IT initiatives under clustered baskets. Manufacturing semiconductors requires scale, technology and a powerful balance sheet and the Tatas are certainly positioned to bring in all three. We need to await details of their chip plans.

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CarTrade Tech gets subscribed 0.99X at the close of Day-2

Car trade
IPO
10/08/2021

The Rs.2,999 crore IPO of CarTrade Tech, consisting entirely of offer for sale (OFS), was almost subscribed fully at the close of Day-2. Retail showed the best traction, but action from HNIs and QIBs was still tepid. As per the combined bid details put out by the BSE at the close of Day-2 of the issue, CarTrade IPO was subscribed 0.99X overall, with bulk of the demand coming from retail segment. The issue closes on Wednesday, 11th August.

In terms of numbers, out of the 129.73 lakh shares on offer in the IPO, CarTrade Tech saw applications for 128.91 lakh shares. This implies an overall subscription of 0.99X. The granular break-up of subscriptions was tilted in favour of retail investors.

CarTrade Tech IPO Subscription Day-2

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.59 Times

Non Institutional Investors (NII)

0.27 Times

Retail Individuals

1.53 Times

Employees

N.A.

Overall

0.99 times

 

QIB Portion

The QIB portion did see some action on Day-2. On 06 Aug, CarTrade did an anchor placement worth Rs.900 crore. The QIB portion, net of anchor allocation, was subscribed 0.59X (getting applications for 21.89 lakh shares against the available quota of 37.06 lakh shares) at the close of Day-2. Strong anchor book is indicative of QIB appetite.

HNI Portion

The HNI portion got subscribed 0.27X (getting applications for 7.51 lakh shares against the quota of 27.80 lakh shares). However, the predominant funded and corporate applications come in on the last day of the issue.

Retail Individuals

The retail portion got subscribed 1.53X at the close of Day-2, showing reasonable retail appetite. Out of the 64.86 lakh shares on offer, valid bids were received for 99.51 lakh shares, of which bids for 78.00 lakh shares were at the cut-off price. The IPO is priced in the band of (Rs.1,585-Rs.1,618) and closes for subscription on Wednesday, 11th August.

 

Read More:

Upcoming IPOs in 2021

IPOs in August 2021

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Nuvoco Vistas IPO Subscription Day-2

Nuvoco
IPO
10/08/2021

The Rs.5,000 crore IPO of Nuvoco Vistas, consisting of Rs.1,500 crore fresh issue and Rs.3,500 crore OFS, was just partially subscribed on Day-2. As per the combined bid details put out by BSE, Nuvoco Vistas IPO was subscribed 0.29X overall, with demand only visible in the retail segment. The issue closes on 11th August.

In terms of numbers, out of the 625.00 lakh shares on offer in the IPO, Nuvoco Vistas saw applications for 182.55 lakh shares at close of Day-2. This implies an overall subscription of 0.29X. The granular break-up is tilted in favour of retail investors.

 

Nuvoco Vistas IPO Subscription Day-2

Category Subscription Status
Qualified Institutional (QIB) 0.11 Times
Non-Institutional (NII) 0.04 Times
Retail Individual 0.51 Times
Total 0.29 Times

 

QIB Portion

The QIB portion virtually got tepid response on Day-2. On 06 Aug, Nuvoco Vistas did an anchor placement worth Rs.1,500 crore. QIB portion, net of anchor allocation, was subscribed just 0.11X (getting applications for 18.79 lakh shares against the available quota of 178.57 lakh shares) at the close of Day-2.

HNI Portion

The HNI portion got subscribed 0.04X (getting applications for 5.43 lakh shares against the quota of 133.93 lakh shares). However, funded applications and corporate applications typically come in on the last day.

Retail Individuals

The retail portion got subscribed 0.51X at the close of Day-2, showing limited retail appetite. Out of the 312.50 lakh shares on offer, valid bids were received for 158.33 lakh shares, of which bids for 126.56 lakh shares were at the cut-off price. The IPO is priced in the band of (Rs.560-Rs.570) and closes for subscription on Wednesday, 11th August. 

 

Also Read: 

Upcoming IPOs in 2021

New IPOs in August 2021