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Tarsons Products IPO - Subscription Day 3

Tarsons Products IPO - Subscription Day 3
by 5paisa Research Team 17/11/2021

The Rs.1,023.47 crore IPO of Tarsons Products, consisting of a fresh issue of Rs.150 crore and an offer for sale (OFS) of Rs.873.47 crore, saw decent response on Day-1 and Day-2 of the IPO.

As per the combined bid details put out by the BSE at the close of Day-3, Tarsons Products IPO was subscribed 77.49X overall, with good demand coming from the HNI segment followed by the QIB segment and the retail segment with all the segment getting more than fully subscribed. The issue has closed on 17th November.

As of close of 17th November, out of the 108.44 lakh shares on offer in the IPO, Tarsons Products saw bids for 8,402.82 lakh shares. This implies an overall subscription of 77.49X.

The granular break-up of subscriptions was dominated by the HNI/NII segment followed by QIBs and retail in that order. However, the QIB bids and NII bids gathered momentum only on the last day, as is the general trend in the IPO market.
 

Tarsons Products IPO Subscription Day-3
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

115.77 Times

Non Institutional Investors (NII)

184.58 Times

Retail Individuals

10.56 Times

Employees

1.83 Times

Overall

77.49 times

 

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 12th November, Tarsons Products did an anchor placement of 46,21,757 shares at the upper end of the price band of Rs.662 to 32 anchor investors raising Rs.305.96 crore.

Check - Tarsons Products IPO - Subscription Day 2

The list of QIB investors included a number of marquee global names like GIC Singapore, Monetary Authority of Singapore, First Sentier Investors, Theleme India Fund, Macquarie and Abu Dhabi Investment Authority (ADIA). Domestic anchor investors included Birla Mutual Fund, Sundaram MF, ICICI Pru MF, Kotak MF, L&T MF, Mirae MF, Reliance General Insurance; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 30.81 lakh shares of which it has got bids for 3,567.11 lakh shares on Day-3, implying a subscription ratio of 115.77X for QIBs at the close of Day-3.

QIB bids typically get bunched on the last day but the heavy demand for the anchor placement had indicated at a strong response for the Tarsons Products IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 184.58X (getting applications for 4,265.48 lakh shares against the quota of 23.11 lakh shares). This is a relatively good response on Day-3 because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, came in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed an impressive 10.56X at the end of Day-3, showing decent retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 53.92 lakh shares on offer, valid bids were received for 569.13 lakh shares, which included bids for 431.37 lakh shares at the cut-off price.

The IPO is priced in the band of (Rs.635-Rs.662) and has closed for subscription on 17th November 2021.

Also Read:-

Tarsons Products IPO - 7 Things to Know

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Go Fashion IPO - Subscription Day 1

Go Fashion IPO - Subscription Day 1
by 5paisa Research Team 17/11/2021

The Rs.1,014 crore IPO of Go Fashion India, consisting of a fresh issue of Rs.125 crore and an offer for sale (OFS) of Rs.889 crore, saw decent response on Day-1 of the IPO.

As per the combined bid details put out by the BSE at the close of Day-1, Go Fashion India IPO was subscribed 2.46X overall, with good demand coming from the retail segment but rather tepid demand from the HNI segment and the QIB segment. The issue closes on 22nd November.

As of close of 17th November, out of the 80.79 lakh shares on offer in the IPO, Go Fashion India saw bids for 199.03 lakh shares.

This implies an overall subscription of 2.46X. The granular break-up of subscriptions was dominated by the retail investors while the HNIs and QIB response were tepid. However, the QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.
 

Go Fashion India IPO Subscription Day-1
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

1.25 Times

Non Institutional Investors (NII)

0.44 Times

Retail Individuals

12.14 Times

Employees

N.A.

Overall

2.46 times

 

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 16th November, Go Fashion India did an anchor placement of 66,10,492 shares at the upper end of the price band of Rs.690 to 33 anchor investors raising Rs.456.12 crore.

The list of QIB investors included a number of marquee global names like Government of Singapore, Monetary Authority of Singapore, Nomura, Fidelity, Neuberger Berman, Volrado Venture, University of Notre Dame and Abu Dhabi Investment Authority (ADIA). Domestic anchor investors included SBI MF, HDFC MF, ICICI Pru MF, Axis MF, Birla MF, SBI Life, Mirae MF; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 44.07 lakh shares of which it has got bids for 11.02 lakh shares on Day-1, implying a subscription ratio of 0.25X for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement forebodes well for the Go Fashion India IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 0.44X (getting applications for 9.70 lakh shares against the quota of 22.03 lakh shares). This is a relatively tepid response on Day-1 but of course this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed an impressive 12.14X at the end of Day-1, showing strong retail appetite. It must be noted that retail allocation is only 10% in this IPO. For retail investors; out of the 14.69 lakh shares on offer, valid bids were received for 178.31 lakh shares, which included bids for 141.76 lakh shares at the cut-off price.

The IPO is priced in the band of (Rs.655-Rs.690) and will close for subscription on 22nd November 2021.

Also Read:-

Go Fashion (India) IPO - 7 Things to Know

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LIC to File DRHP for Mega IPO in December

LIC to File DRHP for Mega IPO in December
by 5paisa Research Team 17/11/2021

The much talked about LIC IPO may finally see the first step in the first week of December when it files the draft red herring prospectus (DRHP) with SEBI. The LIC IPO has already gone through basic processes like the statutory amendments to the Life Insurance Corporation Act, appointment of merchant bankers, appointment of legal advisors and registrars.

By first week of December, LIC is expected to file the DRHP with the actuarial valuation.

Towards the last week of November, the merchant banker are expected to start talking to the anchor investors to gauge market demand. LIC has already appointed a total of 10 merchant bankers comprising of 5 global investment banks and 5 major Indian investment banks.

LIC will be the largest Indian issue by a margin depending on how much the government eventually plans to sell to the public.

Check - LIC IPO Government Approval

Originally, the DIPAM was to offer 10% to the public but a subsequent amendment allowed the DIPAM to offer even 5% if justified. It is yet to be finalized whether the government will offer 5% or 10% but the final issue size would be based on that.

The final issue size is expected to be in the range of Rs.60,000 crore to Rs.100,000 crore depending on how much the government eventually decides to divest in the IPO.

The embedded valuation based on actuarial value is being done by Milliman Advisors. This actuarial value will form the basis of the embedded valuation of LIC and the pricing would eventually depend on that. The actuarial valuation is expected to be readied by the first week of December post which the DRHP will be filed.

The government of India is keen to push through the IPO before March this year since that would enable the divestment proceeds to be included in the current fiscal year. The government has set an aggressive divestment target of Rs.175,000 crore for this year and that would only be possible if the mega LIC IPO goes through.

There are also other big divestments like that of BPCL that are also pending and are unlikely to happen in this fiscal.

Irrespective of whether the government eventually sells 5% or 10%, this will be the largest IPO in Indian stock market history, much larger than Paytm IPO of Rs.18,300 crore that just closed last week.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in November 2021

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Akasa Air Places Order for $9 Billion Worth of Boeing Planes

by 5paisa Research Team 17/11/2021

Akasa Air, the ultra-low-cost airline backed by Rakesh Jhunjhunwala, has placed orders for a total of 72 Boeing 737 Max airplanes in an order worth $9 billion. This is the largest order that Boeing has received from India and gives them the much needed foothold in the Indian aviation markets.

It may be recollected that the Max-737 had been under regulatory ban and only recently the DGCA had allowed the 737-Max to fly again in India.

The order was finalized and announced at the Dubai Air Show. It is estimated that this price was after a large bulk discount but the exact details of the pricing were not available.

Akasa Air plans to tap the rapid growth in the Indian aviation market by offering an ultra-low-cost offering that would encourage almost every person to fly. It is not yet clear what would be the profitability trajectory or unique positioning of the model.

Check - Akasa Air Gets Approval to Launch Operations

Akasa Air is expected to have its base in Delhi and Bengaluru and will commence operations around June 2022. It is expected to induct 20 aircraft into its fleet in the first year of operation and then gradually add to its fleet.

Most low-cost airlines make money when they are able to fly at full capacity and also churn their flights quickly. In addition, the absence of frills gives them a huge cost advantage.

Akasa Air will look to design a sale and lease back arrangement with a large lessor wherein it would buy the planes from Boeing and then sell the same to an aircraft leasing company and lease it back. This allows them to reduce the capital locked into the business and improve the ROI.

The only catch is that most of these aircraft lease contracts are covered by the “Hell or High Water” clause wherein there is no provision for “Force Majeure”.

For Boeing, this order is a ticket to the lucrative and fast growing Indian aviation market. India’s largest airline, Indigo Airlines with 55% market share, has opted to stick with Airbus aircraft all through. Once the 72 aircraft are procured by Akasa, it will have the fourth largest fleet in India after Indigo, Air India and Spice Jet.

Boeing 737 Max is reputed to deliver the lowest seat mile cost and that would be a big edge in the competitive Indian market.

Also Read - Big Bull Rakesh Jhunjhunwala's Portfolio 2021

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Grey Market Premium of Latent View Analytics IPO

Grey Market Premium of Latent View Analytics IPO
by 5paisa Research Team 17/11/2021

The Rs.600 crore IPO of Latent View Analytics consisted of a fresh issue of Rs.474 crore and an offer for sale at Rs.126 crore. The issue had been priced in the band of Rs.190 to Rs.197 per share and the price has been discovered at Rs.197.

The issue opened for subscription on 10-Nov and closed for subscription on 12-Nov. The issue was subscribed 326.49 times overall. The stock is scheduled to list on Tuesday, 23rd November.

Most of the shares start trading in the grey market well ahead of the IPO opening, which offers important indicators. Ahead of the issue and ahead of listing, one of the key parameters for evaluating the potential IPO is the GMP or the grey market price.

A word of caution here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has proved to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance would be.

While the GMP is just an informal approximation, it has been generally seen to be a good mirror of the real story. More than the actual price, it is the GMP trend over time that really gives the insights about the stock being upgraded or downgraded over a period of time and which direction the wind is blowing.

Check - Latent View Analytics IPO - Subscription Day 3

One of the key factors that impacts the GMP in most cases, is the extent of oversubscription, and that is huge in this case at 326.49 times. The GMP premiums will largely predicate on the extent of oversubscription in each of the categories. That would make the GMP premiums robust in the informal trading market.

As per updates coming in on Wednesday, 17-Nov, the Latent View Analytics IPO is commanding a premium of Rs.690 over the issue price in the grey market. The GMP has doubled in just last 2 days from Rs.345 levels to Rs.690 levels. Of course, this GMP will keep changing between now and the actual listing date.

The current GMP of Rs.690 for Latent View Analytics IPO translates into a 250.25% premium over the upper price band of Rs.197, which is also the discovered price. It also hints at a listing price of approximately Rs.887 when the stock lists but this would be subject to continuous change.

GMP is an important informal indicator of likely listing price. However, investors must note that this is just an informal indication and has no official sanction.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in November 2021

Latent View Analytics IPO - 7 Things to Know

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Grey Market Premium of Sapphire Foods Ltd IPO

Grey Market Premium of Sapphire Foods Ltd IPO
by 5paisa Research Team 17/11/2021

The Rs.2,073.25 crore IPO of Sapphire Foods Ltd consisted entirely of an offer for sale of Rs.2,073.25 crore. The issue had been priced in the band of Rs.1,120 to Rs.1,180 per share and the price has been discovered at Rs.1,180. The issue opened for subscription on 09-Nov and closed for subscription on 11-Nov.

The issue was subscribed 6.6 times overall. The stock is scheduled to list on Monday, 22nd November. Most of the shares start trading in the grey market well ahead of the IPO opening, which offers important indicators.

Ahead of the issue and ahead of listing, one of the key parameters for evaluating the potential IPO is the GMP or the grey market price.

A word of caution here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has proved to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance would be.

Check - Sapphire Foods India IPO subscription Day-3

While the GMP is just an informal approximation, it has been generally seen to be a good mirror of the real story. More than the actual price, it is the GMP trend over time that really gives the insights about the stock being upgraded or downgraded over a period of time and which direction the wind is blowing.

One of the key factors that impacts the GMP in most cases, is the extent of oversubscription. The GMP premiums will largely predicate on the extent of oversubscription in each of the categories. That would make the GMP premiums robust in the informal trading market.

As per updates coming in on Wednesday, 17-Nov, the Sapphire Foods Ltd IPO is commanding a premium of Rs.85 over the issue price in the grey market.

The GMP has fallen in the last ten days from Rs.125 levels to Rs.85 levels, where it has stabilized. Of course, this GMP will keep changing on a regular basis till the actual listing happens.

The current GMP of Rs.85 for Sapphire Foods Ltd IPO translates into a 7.20% premium over the upper price band of Rs.1,180, which is also the discovered price. It also hints at a listing price of approximately Rs.1,265 when the stock lists but this would be subject to constant change. GMP is an important informal indicator of likely listing price.

However, investors must keep in mind that this is just an informal indication and has no official sanction.

Also Read:- 

Upcoming IPOs in 2021

Upcoming IPOs in November 2021

Sapphire Foods India IPO - 7 Things to Know

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