Paras Defence & Space Technologies IPO Subscription Day-1

Paras Defence IPO subscription Day 1
IPO
by 5paisa Research Team 21/09/2021

The Rs.170.78 crore IPO of Paras Defence & Space Technologies, consisting of a fresh issue of Rs.140.60 crore and an offer for sale or OFS of Rs.30.18 crore, was heavily oversubscribed on Day-1 itself. As per the combined bid details put out by the BSE, Paras Defence & Space Technologies IPO was subscribed 16.57X overall, with bulk of the demand coming from the retail segment followed by HNI segment. The issue closes on 23rd September.

As of close of 21 September, out of the 71.41 lakh shares on offer in the IPO, Paras Defence & Space Technologies saw bids for 1,182.92 lakh shares. This implies an overall subscription of 16.57X. The granular break-up of subscriptions were tilted in favour of retail investors but HNI investors were surprisingly robust on the first day of the IPO. QIB bids will typically come in only on the last day of the IPO.

 

Paras Defence & Space Technologies IPO Subscription Day-1

 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.01 Times

Non Institutional Investors (NII)

3.77 Times

Retail Individuals

31.36 Times

Employees

N.A.

Overall

16.57 times


QIB Portion

The QIB subscription was subscribed just 0.01 times at the end of Day-1. On 20 September, Paras Defence & Space Technologies did an anchor placement of 29.275 lakh shares at the upper end of the price band of Rs.175, raising Rs.51.23 crore. The list of QIB investors including a number of marquee names like Ashoka India Equity, Abakkus Emerging Opportunities Fund, Saint Capital, Nippon India Fund and HDFC Mutual Fund. 

The QIB portion (net of anchor allocation) has a quota of 20.18 lakh shares of which it has got bids for just 0.24 lakh shares, implying a subscription ratio of just 0.01X for QIBs at the end of Day-1. QIB bids typically get bunched on the last day, but anchor response does show good interest.

HNI Portion

The HNI portion got subscribed 3.77X (getting applications for 57.94 lakh shares against the quota of 15.37 lakh shares). This is a surprisingly robust response on Day-1 and could be due to the small size of the IPO. Bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better.

Retail Individuals

The retail portion was subscribed a whopping 31.36X at the end of Day-1, showing strong retail appetite. For retail investors; out of the 35.86 lakh shares on offer, valid bids were received for 1,124.74 lakh shares, which included bids for 848.87 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.165-Rs175) and will close for subscription on 23rd September.

Also Read:-

Paras Defence IPO - 7 things to know

Upcoming IPOs in 2021

Upcoming IPOs in September 2021

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Goldman Sachs bets on India becoming 5th largest by market cap

Goldman Sachs bets on India becoming 5th largest by market cap
by 5paisa Research Team 21/09/2021

One of the world’s most formidable investment banks, Goldman Sachs, is bullish on India. In fact, Goldman sees India in the same sweet spot of growth and value explosion as China a decade ago. As Goldman Sachs highlighted, China created immense wealth for those who believed in the China story and India would be no different. It also predicts that Digital IPOs would lead the way.

Let us look at some numbers. If the BSE market cap at $3.50 trillion looks lofty, Goldman Sachs has loftier predictions. They expect India’s market cap to grow from $3.50 trillion to $5 trillion in the next 3 years. That is a phenomenal 43% appreciation over 3 years. Goldman Sachs expects that by 2024, India would be the fifth largest in the world by market cap after the US, China, Japan and UK. 

The big story, according to Goldman is that this capital appreciation will be driven by digital IPOs. Nearly $400 billion of market cap accretion will come from digital IPOs. The successful IPO of Zomato opened the floodgates for a stream of big ticket digital IPOs including Paytm, Ola, Policybazaar and Nykaa; all of which are expected in the current fiscal year.

The big digital push in India has come from 80 crore internet users and 50 crore smart phones who spurred the digital economy backed by solid bandwidth. The pandemic also pushed scores of sectors online. According to Goldman, Zomato IPO proved that Indian retail investors and QIBs have a strong appetite for long-gestation digital stories.

One of the big stock market trends that Goldman foresees is the shift in the composition of the Nifty with many more digital plays included in the index. Today, the Nifty is dominated by banks, financials, oil, IT and automobiles. That could shift largely in favour of digital plays. Goldman also projects India’s share of global market capitalization to increase 90 bps to 3.7% by 2024, although GDP share may go up by just 40 bps.

Also Read:

1. Paytm IPO Update

2. 8 Interesting facts about Paytm

3. Zomato IPO – Fun Facts and the Serious Truth

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BTST Trading Tips for Today: 22nd September, 2021

BTST Trading Tips for Today: 22nd September, 2021
by 5paisa Research Team 21/09/2021

5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide buy today sell tomorrow (BTST) ideas.
 

BTST Trading Ideas for Today

1. BTST : NATIONALUM SEP FUT

- Current Market Price: Rs.91.1

- Stop Loss: Rs.89.9

- Target: Rs.94.5

 

2. BTST : VINATIORGA

- Current Market Price: Rs.1,894

- Stop Loss: Rs.1,876

- Target: Rs.1960

 

3. STBT : JUBLFOOD SEP FUT

- Current Market Price: Rs.4,126

- Stop Loss: Rs.4,145

- Target 1: Rs.4,085

- Target 2 : Rs.4,050

 

4. STBT : PIDILITIND SEP FUT

- Current Market Price: Rs.2,423

- Stop Loss: Rs.2,441

- Target: Rs.2,382

 

5. BTST : BALKRISIND SEP FUT

- Current Market Price: Rs.2,685

- Stop Loss: Rs.2,670

- Target 1 : Rs.2,718

- Target 2 : Rs.2,740

Next Article

HDFC Bank to Double Retail Loan Book in Next 2 Years.

HDFC Bank doubles retail loan book.
by 5paisa Research Team 22/09/2021

With a market cap of Rs.852,000 crore, HDFC Bank is India’s most valuable bank by. In fact, the gap is so wide that HDFC Bank‘s market cap is 74% more than ICICI Bank, which is ranked second. In terms of total business (as defined by the aggregate of loans and deposits), HDFC Bank is the largest private sector bank and second only to SBI overall.

However, the HDFC Bank retail loan portfolio faced some stiff challenges in the recent past. The credit cards business lost 2% market share in the last 8 months before the RBI lifted the ban on HDFC Bank issuing fresh credit cards. The retail loan share of HDFC Bank fell sharply from 55% to 46% in the last 3 years. To an extent, this was a conscious effort by HDFC Bank, but now it is doing a rethink.

The game plan for HDFC Bank is to go aggressive on retail lending portfolio. Just 2 days back, HDFC Bank had announced a tie-up with Paytm to issue co-branded credit cards to leverage on the massive 30 crore digital client base of Paytm. This will also help HDFC Bank recoup its market share in the credit card market, where it lost 2% market share to SBI, ICICI Bank and Axis Bank.

Read more:- RBI allows HDFC Bank to issue Cards

But the real action is likely to happen on the consumer lending portfolio. Let us look at some numbers. Out of its total loan book of Rs.11,50,000 crore, the retail book is about Rs.375,000 crore. Now, HDFC plans to adopt an aggressive strategy to increase this retail book from Rs.375,000 crore to Rs.800,000 crore in next two years. This will ensure HDFC Bank recoups its 55% market share of retail, as it stood 3 years back.

The big advantage  for HDFC Bank in this retail push is that its gross NPAs are still well below the peer group. While the gross NPAs of ICICI Bank and SBI are around 5%, Kotak Bank and Axis Bank have gross NPAs of above 3.5%. In comparison, the gross NPA ratio of HDFC Bank is just about 1.6%. That is a big edge.

Also Read:-

1. Solid HDFC Bank creates bad loan scare for investors


2. 8 Interesting facts about Paytm

Next Article

5 Stocks to Buy Today: September 22, 2021

5 Stocks to Buy Today
by 5paisa Research Team 22/09/2021

Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Read on to know the momentum stocks to buy today. The average holding period could be between 7-10 days on average.

List of 5 Stocks to Buy Today

1. Brigade Enterprises Limited (BRIGADE)

BRIGADE Stock Details for Today: 

- Current Market Price: Rs.401

- Stop Loss: Rs.388

- Target 1: Rs.417

- Target 2: Rs.445

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts observe a strong volume in this stock.

 

2. Seamec Ltd.(SEAMECLTD)

SEAMECLTD Stock Details for Today: 

- Current Market Price: Rs. 1,193

- Stop Loss: Rs. 1,115

- Target 1: Rs. 1,230

- Target 2: Rs. 1,280

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts observed that sideways move in this stock is expected to end. 

 

3. MindTree Ltd (MINDTREE)

MINDTREE Stock Details for Today: 

- Current Market Price: Rs. 4,354

- Stop Loss: Rs. 4,250

- Target 1: Rs.4,435

- Target 2: Rs. 4,525

- Holding Period: 1 week

5paisa Recommendation: Uptrend expected to continue and thus recommend this as one of the stocks to buy today.

 

4. Bajaj Finserv Ltd (BAJAJFINSV)

BAJAJFINSV Stock Details for Today: 

- Current Market Price: Rs. 17,587

- Stop Loss: Rs. 17,200

- Target 1: Rs. 17,850

- Target 2: Rs. 18,300

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts have observed a positive momentum in this stock and this making this stock as one of the best stocks to buy today.

 

5. Maharashtra Scooters Ltd. (MAHSCHOOTER)

MAHSCHOOTER Stock Details for Today: 

- Current Market Price: Rs. 4,651

- Stop Loss: Rs. 4,550

- Target 1: Rs. 4,770

- Target 1: Rs. 4,835

- Holding Period: 1 week

5paisa Recommendation: Further buying expected

 

Share Market Today

SGX NIFTY: 

SGX Nifty indicates negative opening for Indian markets. SGX Nifty is at 17,536.80 levels, lower 25.25 points. (Updated at 7:45 AM).

International Markets:

US Market:

US markets end in the red before the Federal Reserve meet today where taper talk dominates headlines.

Dow Jones closed lower by 50 points after being up over 400 points intraday. Bond yields closed at 1.32% while Gold prices remained flat as markets await the Federal decision.

 

Asian Market:

Asian markets opened muted with the Japanese 'Nikkei' paring opening losses and trading lower by 120 points.

Most other Asian markets will reopen after 3 day’s holidays with the Chinese stocks being in the limelight after the "Evergrande" default.

Collateral selling in other markets could be the order of the day as markets brace for both events being played out today.

 

Disclaimer: The above report is compiled from information available on the public platforms.
 

Next Article

What does the Zee merger with Sony mean?

Zee Entertainment to merge with Sony Pictures
by 5paisa Research Team 22/09/2021

A few days after Zee Entertainment investors tried to oust Punit Goenka from the top job at the company, Zee has announced a strategic merger deal with Sony Pictures Network India Ltd. The combined entity created through the merger of Zee Entertainment and Sony Pictures will have a combined market cap of Rs.50,000 crore to begin with.

How will the ZEE - Sony merger be structured?

While Zee Entertainment is still struggling for cash to bankroll its expansion plans, the merger with Sony Pictures will give the combined entity greater access to cash flows and capital heft. Currently, as per the relative valuation ratios, Zee should have a stake of around 61.25% in the merged entity. However, it is Sony Pictures that will bring in the much needed cash into the combined venture. In fact, Sony will bring with it an assurance that the merged entity will have a cash chest of at least $1.5-1.6 billion or Rs.11,000-12,000 crore.

As a result, Sony Pictures will get a larger 52.93% share in the combined entity. The balance 47.07% stake will be held by Zee Entertainment. Since Zee Entertainment will cease to exist as an independent entity, the shareholders of Zee will  be issued shares of the merged entity on a proportionate basis. Sony Pictures will be the majority partner in the merged entity. 

Progress on the ZEE - Sony merger deal so far

As of now only the approximate ratios are worked out and the term sheets have been exchanged and agreed upon. There are bigger challenges like approval from the two boards, convening of an EGM to get the approval of minority shareholders; including institutional shareholders etc. For Zee, the merger will not only be based on the financial heft that Sony brings to the table but also on the strategic advantages of reach and eyeballs.

As of now, the shareholders of Zee and Sony Picture have entered into a non-binding term sheet. As per the term sheet, they will combine their linear networks, digital assets, production operations and program libraries to create a common pool with greater synergies. There will be a time limit of 90 days within which both Zee and Sony Pictures will conduct due diligence of each other through data rooms.

Since Zee is a listed entity, the deal will require the approval of the stock exchanges and SEBI. Since both the channels come under the Ministry of Information and Broadcasting, the approval of the ministry will also be mandatory. In addition, since it is a combination that will consolidate market share, the approval of the Competition Commission of India (CCI) will also be required.

Both Zee and Sony Pictures believe that the merger will be value accretive for the combined entity. The stock of Zee Entertainment has already rallied more than 70% in the last one week. Zee has advantages like expertise in content creation, regional bouquet of quality content and deep consumer connect over 30 years. Sony Pictures has been successful in various entertainment genres, especially in the highly lucrative gaming and sports segments.
 

What will the financials of the combined entity look like?

Here is a quick comparison of the sum of parts of the combined entity.

 

Financial Parameters

Zee Entertainment

Sony Pictures

Combined Entity

Annual Revenues

Rs.7,730 crore

Rs.5,846 crore

Rs.15,000 crore

Net Profits

Rs.793 crore

Rs.976 crore

Rs.2,000 crore

Cash on Books

Rs.1,800 crore

Rs.11,000 crore

Rs.12,000 crore


A quick look at the above date is sufficient to tell you that while Zee does score on revenues, it is Sony that scores on net profits, margins and in cash stash. That is what has given the advantage to Sony in the merger deal.

What role will Punit Goenka play in the merged entity?

As per the term sheet, Punit Goenka (son of Subhash Chandra) will continue as managing director and CEO of the merged entity for 5 years. In addition, Subhash Chandra family will have the leeway to increase its stake from 4% to 20% in line within extant rules. The challenge will be that INVESCO Fund and OFI Global China Fund had objected to the continuation of Punit Goenka as the CEO of Zee. They hold a combined 18% in Zee and their vote will be critical for the deal. That would be the next part of this emerging story.