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SJS Enterprises Ltd IPO - Subscription Day 2

SJS Enterprises Ltd IPO - Subscription Day 2
by 5paisa Research Team 02/11/2021

The Rs.800 crore IPO of SJS Enterprises Ltd, consisting entirely of offer for sale (OFS) of Rs.800 crore, saw a tepid response on Day-1 and that continued on Day-2 also.

As per the combined bid details put out by the BSE, SJS Enterprises Ltd IPO was subscribed just 0.51X overall at the end of Day-2, with demand coming only from the retail segment with hardly any response from the QIBs or the HNIs. The issue closes on 03rd November.

As of close of 02nd November, out of the 105.46 lakh shares on offer in the IPO, SJS Enterprises Ltd saw bids for 53.88 lakh shares.

This implies an overall subscription of 0.51X. The granular break-up of subscriptions were tilted in favour of retail investors with HNIs and QIBs hardly participating even on the second day of the IPO. QIB bids and NII bids typically come in only on the last day of the IPO.
 

SJS Enterprises Ltd IPO Subscription Day-2

 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.00 Times

Non Institutional Investors (NII)

0.06 Times

Retail Individuals

1.00 Times

Employees

N.A.

Overall

0.51 times

 

QIB Portion

The QIB portion of the IPO saw nil subscription at the end of Day-2 also. On 29th October, SJS Enterprises Ltd did an anchor placement of 44,28,023 lakh shares at the upper end of the price band of Rs.542 to 18 anchor investors raising Rs.240 crore.

The list of QIB investors including a number of marquee names like Tara Emerging Asia, Societe Generale, Nomura, Goldman Sachs, Citigroup, Axis MF, Franklin Templeton MF, Aditya Birla Sun Life Insurance, Edelweiss, Avendus; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 30.13 lakh shares of which it has got bids for Nil shares as of Day-2 of the IPO. QIB bids typically get bunched on the last day, but anchor response has been robust and that is good news.
 

Check - SJS Enterprises Ltd IPO - Subscription Day 1


HNI / NII Portion

The HNI portion got subscribed 0.06X (getting applications for 1.36 lakh shares against the quota of 22.60 lakh shares). This is a very tepid response on Day-2 and this segment normally sees response on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should get better. 

Retail Individuals

The retail portion was subscribed a robust 1.00X at the end of Day-2, showing strong retail appetite. Retail allocation for this IPO is 35% of the offer size. For retail investors; out of the 52.73 lakh shares on offer, valid bids were received for 52.52 lakh shares, which included bids for 41.96 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.531 – Rs542) and will close for subscription on 03rd November 2021.

Also Read:-

SJS Enterprises Ltd IPO - 7 Things to Know

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Sigachi Industries Ltd IPO - Subscription Day 2

Sigachi Industries Ltd IPO - Subscription Day 2
by 5paisa Research Team 02/11/2021

The Rs.125.43 crore IPO of Sigachi Industries Ltd, consisting entirely of a fresh issue of Rs.125.43 crore, saw a strong response on Day-1 and has built on that base on Day-2. As per the combined bid details put out by the BSE, Sigachi Industries Ltd IPO was subscribed 23.12X overall, with bulk of the demand coming from the retail segment which saw a robust oversubscription.

However, HNI portion also got oversubscribed and QIBs have participated too, albeit in a small way. The issue closes on 03rd November.

As of close of 02nd November, out of the 53.87 lakh shares on offer in the IPO, Sigachi Industries Ltd saw bids for 1,245.29 lakh shares. This implies an overall subscription of 23.12X.

The granular break-up of subscriptions were tilted in favour of retail investors with HNIs also participating aggressively and QIBs also chipping in on the first day of the IPO.QIB bids and NII bids typically come in only on the last day of the IPO.
 

Sigachi Industries Ltd IPO Subscription Day-2
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.82 Times

Non Institutional Investors (NII)

16.99 Times

Retail Individuals

38.49 Times

Employees

N.A.

Overall

23.12 times

 

QIB Portion

The QIB portion of the IPO saw 0.82X subscription at the end of Day-2. On 29 October, Sigachi Industries Ltd did an anchor placement of 23,08,500 lakh shares at the upper end of the price band of Rs.163 to 2 anchor investors raising Rs.37.63 crore. The 2 QIB investors that invested in the anchor placement of Sigachi Industries include 3 Sigma Global Fund and Nexus Global Opportunities Fund.

The QIB portion (net of anchor allocation as explained above) has a quota of 15.39 lakh shares of which it has got bids for 12.64 lakh shares on Day-2 of the IPO. QIB bids typically get bunched on the last day, but the start has been good enough.
 

Check - Sigachi Industries Ltd IPO - Subscription Day 1


HNI / NII Portion

The HNI portion got subscribed 16.99X (getting applications for 196.14 lakh shares against the quota of 11.54 lakh shares). This is a very strong response on Day-2 since this segment normally sees such a robust response only on the last day. In fact, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better from here on. 

Retail Individuals

The retail portion was subscribed a robust 38.49X at the end of Day-2, showing strong retail appetite. Retail allocation for this IPO is 35% of the offer size. For retail investors; out of the 26.93 lakh shares on offer, valid bids were received for 1,036.51 lakh shares, which included bids for 778.63 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.161 – Rs.163) and will close for subscription on 03rd November 2021.

Also Read:-

Upcoming IPOs in 2021

Sigachi Industries IPO - 7 Things to Know

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SBI Bank - Q2 Results

SBI Bank - Q2 Results
by 5paisa Research Team 02/11/2021

For the quarter ended Sep-21, State Bank of India Ltd reported 6.05% growth in total revenues at Rs.1,01,143 crore. In terms of key verticals of SBI, the treasury and retail banking revenues were sharply higher while the revenues from wholesale banking was lower on a YoY basis. Insurance revenues were sharply higher YoY.
 

SBI Bank - Q2 Results
 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 1,01,143

₹ 95,374

6.05%

₹ 93,267

8.44%

Net Profit (Rs cr)

₹ 8,890

₹ 5,246

69.46%

₹ 7,380

20.46%

Diluted EPS (Rs)

₹ 9.96

₹ 5.88

 

₹ 8.27

 

Net Margins

8.79%

5.50%

 

7.91%

 


The operating profits of the SBI wholesale banking and retail banking business were sharply higher. However, operating profits from treasury and insurance were almost flat YoY. In the case of insurance, the revenue growth was offset by higher claims and provisions.

Net Interest income or NII grew 10.65% while the NIM expanded 16 bps at 3.50%. This is a smart improvement although it is still below private sector counterparts. Credit costs declined sharply by 51 bps in line with falling rates and better transmission to 0.43% even as cost to income ratio fell 106 bps to 54.10%.
For the September 2021 quarter, SBI reported PAT up 69.5% at Rs.8,890 crore.

This was largely triggered by the provisions for doubtful debts falling sharply to Rs.615 crore in Sep-21 quarter compared to Rs.11,221 crore in the Sep-20 quarter. This largely compensated for the exceptional loss that SBI had to take in the current quarter of Rs.7,418 crore on account of payment of family pensions under the bipartite agreement.

Asset quality has surely improved in the quarter with the gross NPAs down 38 bps at 4.90% while net NPAs were down 7 bps at 1.52%. On the positive side, the provision coverage ratio or PCR of the bank stood at 87.68%.

Slippages in the quarter fell sharply from 2.47% to 0.66% in the latest quarter. Quarterly ROA was a good 18 bps higher at 0.61% while the return on equity for SBI (a key metrics in valuations) or the ROE was up 423 bps at 13.17%.

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Delhivery Files for IPO with SEBI

Delhivery Files for IPO
by 5paisa Research Team 03/11/2021

The new age logistics start-up, Delhivery, has filed its draft red herring prospectus (DRHP) with SEBI for its proposed Rs.7,460 crore IPO. The issue is likely to be a combination of a fresh issue and an offer for sale. While Delhivery will raise Rs.5,000 crore via fresh issue of shares, Rs.2,460 crore will represent an OFS to give exit to early investors in the start-up.

Some of the early investors in Delhivery include marquee names like Softbank, Carlyle, Fosun of China and Times Internet. Delhivery would be seeking valuations in the range of $6 billion to $6.50 billion at the time of the IPO. One of the five founders of Delhivery, Sahil Barua, is the son of former IIM-Ahmedabad director Samir Barua.

Among the major OFS participants, Carlyle will sell shares worth Rs.920 crore, Softbank will sell shares worth Rs.750 crore, Fosun worth Rs.400 crore and Times Internet will sell shares worth Rs.300 crore. Some of the other institutional shareholders in Delhivery include GIC of Singapore, Tiger Global and Canadian Pensions. The founders hold 6.97% between them.

Out of the fresh issue component of Rs.5,000 crore, Delhivery will allocate Rs.2,500 crore for organic growth to expand its footprint across India in terms of logistical reach and support functions. Another Rs.1,250 crore will be allocated towards inorganic growth, principally via mergers and acquisitions of niche players in the logistical value chain.

Delhivery has been around for 10 years and provides the complete gamut of logistical services from bookings to delivery, apart from comprehensive supply chain solutions. As of June 2021, Delhivery services over 17,000 PIN codes across the length and breadth of India and the fresh issue will be used to expand this footprint still further.

For FY21, Delhivery reported revenues of Rs.3,547 crore and also reported a net loss of Rs.(416) crore. This reflects a widening of losses from Rs.269 crore in FY20. These are standalone revenues and losses as the overall financial numbers on a consolidated basis would also include the numbers of Spoton Logistics which it recently acquired for $300 million.

Logistics is considered the next big opportunity in India. According to a report by Redseer, the addressable direct spend on logistics is expected to grow from $216 billion in 2020 to $365 billion in FY26, implying a CAGR of nearly 9.2%. Delhivery, being a digital play, will surely take reassurance from the successful IPOs of Zomato and Nykaa.

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Tata Power Reconsider to Merger of Solar System

by 5paisa Research Team 03/11/2021

In a rather interesting move, Tata Power has announced that it would seek shareholder approval to amend its scheme of arrangement. According to the original scheme of arrangement approved by shareholders, Tata Power had sought to merge Tata Power Solar into itself.

However, now it plans to keep its solar business as an independent subsidiary or in other words, it will restore the status quo.

Tata Power Solar Systems Limited (TPSSL) is a 100% subsidiary of Tata Power and focuses largely on the installation and operation of solar power generating plants.

In the last few months, the valuation of Tata Power has seen a sharply positive re-rating largely on the back of the performance of the TPSSL subsidiary. 
 

What explains this change in strategy?


According to Tata Power, there had been a number of government policies in recent months favourable to the solar power sector.

These include production linked incentives (PLI), imposition of basic customs duty on the import of solar modules and special incentives to manufacture highly efficient solar modules in India.

Tata Power believes that these regulatory changes would substantially enhance the value of their solar business which is currently housed under TPSSL.

Merging with Tata Power would have created confusion pockets for investors and analysts as the traditional fossil fuel business is largely regulation intensive. Thus a standalone TPSSL would be more value accretive.

According to Tata Power, this move would not impact shareholder value in any way as the accounts of TPSSL are anyways consolidated with that of Tata Power.

On the contrary, creating a separate company with a demarcated solar business would make the specific business a lot more valuable for investors in the long run due to its ring-fenced valuation.

In the original scheme of arrangement of August 2020, TPSSL and Coastal Gujarat Power Limited (CGPL) were to be merged into Tata Power. According to the modified scheme of arrangement proposed by Tata Power, only CGPL will be merged into Tata Power.

However, Tata Power Solar Systems Ltd (TPSSL) will continue to remain a 100% subsidiary of Tata Power.

Also Read:- Rally in Tata Group Stocks

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Policybazaar IPO - Subscription Day 3

Policybazaar IPO - Subscription Day 3
by 5paisa Research Team 03/11/2021

The Rs.5,625 crore IPO of PB Fintech (Policybazaar & Paisabazaar), consisting of a fresh issue of Rs.3,750 crore and an offer for sale (OFS) of Rs.1,875 crore, may have seen a slow response on Day-1 and Day-2 but Day-3 made up for all that.

As per the combined bid details put out by the BSE, PB Fintech (Policybazaar & Paisabazaar) IPO was subscribed 16.59X overall at the close of Day-3, with bulk of the demand coming from the QIBs, followed by the HNIs and retail. The issue has closed on 03rd November.


As of close of 03rd November, out of the 345.12 lakh shares on offer in the IPO, PB Fintech (Policybazaar & Paisabazaar) saw bids for 5,723.84 lakh shares. This implies an overall subscription of 16.59X. The granular break-up of subscriptions were tilted in favour of QIBs as of the end of Day-3 of the IPO, followed by the HNIs and retail. QIB bids and NII bids typically came in only on the last day of the IPO.

 

PB Fintech (Policybazaar & Paisabazaar) IPO Subscription Day-3
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

24.89 Times

Non Institutional Investors (NII)

7.82 Times

Retail Individuals

3.31 Times

Employees

N.A.

Overall

16.59 times

 

QIB Portion

The QIB portion of the Policybazaar IPO saw 24.89X subscription at the close of Day-3. On 29 October, PB Fintech (Policybazaar & Paisabazaar) did an anchor placement of 2,62,18,079 lakh shares at the upper end of the price band of Rs.980 to 155 anchor investors raising Rs.2,569 crore.

The list of QIB investors including a number of marquee names like Goldman Sachs, Nomura, Blackrock, Morgan Stanley, Canadian Pensions, Fidelity, ADIA, ICICI Pru MF, SBI MF, Axis MF, UTI MF; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 193.30 lakh shares of which it has got bids for 4,810.23 lakh shares at close of Day-3 of the IPO. QIB bids typically get bunched on the last day, but anchor response had been robust and that was good news for the QIB response on the last day of the IPO.

HNI / NII Portion

The HNI portion was subscribed 7.82X (getting applications for 712.44 lakh shares against the quota of 91.10 lakh shares). This is a relatively strong response on Day-3 since this segment normally sees response on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture normally gets clear on the last day. 

Retail Individuals

The retail portion was subscribed a robust 3.31X at the close of Day-3, showing decent retail appetite. Retail allocation for this IPO is 10% of the offer size. For retail investors; out of the 60.73 lakh shares on offer, valid bids were received for 201.18 lakh shares, which included bids for 163.57 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.940 – Rs980) and has closed for subscription on 03rd November 2021.

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Upcoming IPOs in November 2021

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