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List of Upcoming IPOs in October 2021

List of Upcoming IPOs in October 2021
IPO
by 5paisa Research Team 30/09/2021

Year 2021 has been the year of the IPOs. In the first 9 months of the year, a total of 44 IPOs hit the market (including the IPO of Aditya Birla Sun Life currently open). These 44 IPOs raised Rs.78,520 crore. This includes two non-equity IPOs of Brookefield REIT and the PowerGrid INVIT. Even if these two are excluded, the total IPO collections in 2021 so far would still stand at over Rs.67,000 crore. However, this could just be the start.

How IPOs are likely to pan out in October 2021?

October 2021 is likely to be a busy month for IPOs. While actual IPO announcements will be coming, early indications from investment bankers, indicate the following IPOs likely to hit the market in October 2021.The IPO list is broken up sector-wise.

Upcoming IPOs in October 2021

Company Name

IPO Size (Estimated)

IPO Month

PHARMACEUTICALS

Emcure Pharmaceuticals

Rs.4,500 Crores

Oct-21

DIGITAL PLAYS

Nykaa

Rs.4,000 Crores

Oct-21

MobiKwik

Rs.1,900 Crores

Oct-21

Ixigo

Rs.1,600 Crores

Oct-21

RateGain Travel Technologies

Rs.1,200 Crores

Oct-21

FINANCIAL SERVICES

Star Health And Allied Insurance Co. Ltd.

Rs.3000 Crores

Oct-21

Arohan Financials

Rs.1,800 Crores

Oct-21

Northern Arc Capital

Rs.1,800 Crores

Oct-21

Utkarsh Small Finance Bank

Rs.1,350 Crores

Oct-21

Fincare Small Finance Bank

Rs.1,330 Crores

Oct-21

ESAF Small Finance Bank Ltd

Rs.998 Crores

Oct-21

INFRASTRUCTURE PLAYS

Penna Cement

Rs.1,550 Crores

Oct-21

Sterlite Power Transmission

Rs.1,250 Crores

Oct-21

Shri Bajrang Power And Ispat

Rs.700 Crores

Oct-21

OTHERS

CMS Info Systems

Rs.2,000 Crores

Oct-21

Shriram Properties

Rs.800 Crores

Oct-21

Studds Accessories Limited

Rs.450 Crores

Oct-21


The month of October is expected to collect over Rs.30,000 crore and there is another Rs.20,000 crore of IPOs expected in November. These exclude the mega Rs.16,600 crore IPO of Paytm or the Rs.75,000 crore LIC IPO. Year 2021 would then end up being the best year for IPOs, bettering the previous record of the year 2017. Here is a quick update on the IPOs above Rs.1000 crore to hit market in October 2021.

Emcure Pharmaceuticals

The Rs.4,500 crore IPO will comprise of a fresh issue of Rs.1,100 crore and an offer for sale of Rs.3,400 crore. The company focuses on generics and active pharma ingredients and will use the fresh issue component to repay debt.

Nykaa

The Rs.4,000 crore IPO will comprise of a fresh issue of Rs.525 crore and an offer for sale of Rs.3,475 crore. Floated by former Kotak investment banking honcho Falguni Nayar, Nykaa is an online platform for fashion products. It is a unicorn and also profitable.

MobiKwik

The Rs.1,900 crore IPO will comprise of a fresh issue of Rs.1,500 crore and an offer for sale of Rs.400 crore. The company will use the fresh funds to spruce up its digital wallet and expand its franchise of merchants and customers.

Ixigo

The Rs.1,600 crore IPO will comprise of a fresh issue of Rs.850 crore and an offer for sale of Rs.750 crore. It is one of the few artificial intelligence based platforms for booking flights, trains and hotels and has been around for over 14 years now.

Rategain Travel Technologies

The Rs.1,200 crore IPO will comprise of a fresh issue of Rs.400 crore and an offer for sale of Rs.800 crore. It services marquee clients with data centres based on AI. Rategain is a subsidiary of Rategain UK and will use the funds to repay debt and deleverage.

Star Health Insurance

The Rs.3,000 crore IPO will comprise of a fresh issue of Rs.2,000 crore and an offer for sale of Rs.1,000 crore. Star Health is a leading health insurance provider and is backed by marquee investors like Rakesh Jhunjhunwala and Westbridge Capital.

Arohan Financials

The Rs.1,800 crore IPO will comprise of a fresh issue of Rs.950 crore and an offer for sale of Rs.850 crore. Arohan is an NBFC and is also into microfinance serving the unpenetrated segments of the market. The IPO will help boost its capital adequacy.

Northern Arc Capital

The Rs.1,800 crore IPO will comprise of a fresh issue of Rs.300 crore and an offer for sale of Rs.1,500 crore. Northern Arc is also an NBFC and will look at the fund raising to boost its capital adequacy and expand lendable resources.

Utkarsh Small Finance Bank

The Rs.1,350 crore IPO will comprise of a fresh issue of Rs.700 crore and an offer for sale of Rs.650 crore. The company is an SFB based out of Varanasi and is very strong in Uttar Pradesh, Uttarakhand and Bihar belt. IPO will be used to boost capital adequacy.

Fincare Small Finance Bank

The Rs.1,330 crore IPO will comprise of a fresh issue of Rs.1,330 crore and an offer for sale of Rs.1,000 crore. The small finance bank will use the proceeds of the fresh issue component to augment its tier-1 capital and improve its lendable resources.

Penna Cement

The Rs.1,550 crore IPO will comprise of a fresh issue of Rs.1,300 crore and an offer for sale of Rs.250 crore. This is the second attempt of this Hyderabad based cement company and will be used to reduce debt and for expansion.

Sterlite Power Transmission

The Rs.1,250 crore IPO will comprise of a fresh issue and is part of the Vedanta group. Sterlite Power owns and manages power transmission assets and these are spread across India and Brazil.

CMS Info Systems

The Rs.2,000 crore IPO will comprise predominantly of an OFS as its 100% owner Sion Investments will look to monetize part of the holdings. CMS is into cash management services and predominantly into ATM management services.

Also Read:-

List of Upcoming IPOs in 2021

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Birla Corp to Double Cement Capacity to 30 MT by 2027

Birla Corp to Double Cement capacity to 30 MT by 2027
by 5paisa Research Team 30/09/2021

Birla Corp, the cement business of the MP Birla group, plans to undertake a massive expansion plan to double its cement manufacturing capacity to 30 million tonnes per annum (MTPA) by the year 2027. Its current cement capacity is 15.6 MTPA. Birla Corp is headed by Harsh Lodha and that had been a major bone of contention between the Birla family and Harsh Lodha after he claimed that MP Birla had bequeathed the business to him.

The expansion will happen in phases. In the first phase, the cement capacity will be enhanced from 15.6 MTPA to 20 MTPA by the end of the year 2021. This will be boosted by the 3.90 MTPA greenfield cement plant at Mukutban near Nagpur going on stream. Originally, the eventual target was only to reach 25 MTPA by 2025. However, that target has been expanded to 30 MTPA by the year 2027 due to higher demand visibility.

Birla Corp currently operates 10 cement plants across India  and some of its recent plant additions have much better efficiency and profitability compared to the legacy plants. For example, the Reliance Cement plant that Birla Corp acquired in the year 2016 is among the most efficient and profitable in India on operating parameters. The idea of this aggressive expansion is to become a more meaningful player in the Indian cement space.

Indian cement companies have seen solid demand and price traction in the last few quarters, which his also evident in the quarterly numbers. However, consolidation and national presence are the key. At 30 MTPA, Birla Corp would still be just one-fourth the size of Ultratech which has a cement capacity of 116 MTPA. Some of the top cement companies in India in terms of manufacturing capacity include Ultratech, Shree Cements, Ambuja/ACC and Dalmia Cements.

Read:- Shree Cements Plans Mega Capacity Expansion

Cement may have perpetual demand but cement companies do well when there is pricing power. Due to a spike in infrastructure spending and a likely turnaround in housing demand, cement demand is likely to take off and prices are expected to be robust. The time is clearly ripe for a massive capacity expansion spree.

Also See:- Sector Update - Cements

Next Article

Grey Market Premium of Paras Defence & Space Technologies IPO

Grey Market Premium of Paras Defence & Space Technologies IPO
IPO
by 5paisa Research Team 30/09/2021

The Rs.170.78 crore offer for sale of Paras Defence & Space Technologies consisted of a fresh issue of Rs.140.60 crore and an offer for sale of Rs.30.18 crore. The issue had been priced in the band of Rs.165 to Rs.175 per share. The issue had closed for subscription on 23-Sep and the basis of allotment had been finalized on 28-Sep.

With demat credits to eligible shareholders on 30-Sep, Paras Defence is slated to get listed on the bourses on 01-October, Friday. Ahead of listing, one of the key parameters of evaluating the potential listing is the GMP or the grey market price.

It must be remembered that 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 also gives 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 observed to be a good mirror of the real picture. More than the actual price, it is the GMP trend over time that matters.

One of the key factors that impacts the GMP in most of the cases, is the extent of oversubscription. Now, Paras Defence & Space Technologies IPO was oversubscribed a whopping 304.26 times overall. On a granular basis, it was the HNI segment that led the way with 927.70X subscription while QIBs were 169.65X and Retail was 112.81X. That has surely made the GMP premiums very robust in the informal trading market.

Check:- Paras Defence & Space Technologies IPO Subscription Day 3

As per updates on Thursday, 30-Sep, the Paras Defence & Space Technologies IPO is commanding a premium of Rs.235 over the issue price in the grey market. The GMP has been steady in the range of Rs.200 to Rs.235 over the last 10 days. 

The GMP did open at around Rs.160 but soon soared above Rs.200 and has held there ever since. That was expected after the sterling response to the Paras Defence IPO and robust oversubscription that the issue received.

The current GMP translates into a 134.29% premium over the upper band of the issue price of Rs.175. Also, it hints at a listing price of approximately Rs.410 when the stock lists on Friday 01-Oct. Of course, subsequent price performance will depend on HNI selling, since funded applications were quite high.

Also Read:-

1) Paras Defence IPO - 7 things to know

2) Upcoming IPOs in 2021

3) List of Upcoming IPOs in October 2021

Next Article

Lava International Files DRHP for Rs.1,500 crore IPO

Lava International Files DRHP for Rs.1,500 crore IPO
IPO
by 5paisa Research Team 30/09/2021

One of India’s homegrown mobile phone manufacturers, Lava International, plans to hit the IPO market and has already filed the draft red-herring prospectus with SEBI. The next steps will be undertaken after SEBI approves the DRHP and gives its observations. Lava sells mobiles and other electronic accessories under the brands of LAVA and XOLO.

The IPO will comprise of Rs.500 crore by way of fresh issue. The balance will be an offer for sale of 4.373 crore shares by the existing promoters and some early investors in the company. While three of the promoters will be offering shares in the OFS, there will also be participation in the OFS from Unic Memory Technologies and Tupperware Kitchenware.

The proceeds of Rs.500 crore from the fresh issue component will be utilized for 3 demarcated purposes. Rs.100 crore will be allocated for marketing and brand building while Rs.150 crore will be set aside for inorganic acquisitions and strategic partnerships. The company will use another Rs.150 crore to invest in subsidiaries to fund their working capital.

Lava International manufactures, distributes and services mobile handsets, tablets and other electronic accessories. Despite having a manufacturing capacity of 42.52 million handsets at Noida, Lava is more into marketing products of other originators. For example, Lava has licensing agreements with Lenovo and Nokia to distribute their handsets and also handle the post-sale servicing.

Apart from manufacturing handsets, Lava also offers its mobile handset solutions to other OEM players. These solutions encompass sourcing, design, manufacture, quality testing, embedding of software as well as distribution. This has emerged as the new growth area and Lava wants to be fully prepared for the opportunities opened by the Make in India campaign.

For the fiscal year ended March 2021, Lava announced total revenues of Rs.5,513 crore and net profits of Rs.173 crore. In the outsourcing business 2-3% net margin is the norm. Profits were up almost 66% on a YoY basis for FY21.
 

Also Read:-

List of Upcoming IPOs in October 2021

Next Article

Waaree Energies Files DRHP for Rs.1,350 Crore Fresh Issue

Waaree Energies Files DRHP for Rs.1,350 Crore Fresh Issue
IPO
by 5paisa Research Team 30/09/2021

Waaree Energies, which specializes in solar PV (photovoltaic) module manufacturing, is planning to come out with a fresh issue of Rs.1,350 crore. In addition, the company will also undertake an offer for sale (OFS) of 40.08 lakh shares by the existing holders. Hence the actual size of the issue will be much bigger, if the OFS component is also added.

The proceeds of the fresh issue component will be predominantly used for financing the cost of setting up a 2 GW per annum of solar cells manufacturing capacity. In addition, the company will also invest in 1 GW per annum of solar PV modules manufacturing. Both, the solar cell manufacturing facility and the solar PV manufacturing facility will be located in Degam Village in Gujarat.

Currently, Waaree Energies is predominantly into solar PV manufacturing with an installed capacity of 2 GW capacity. If the new expansion plan is factored in, then Waaree Energies will have an enhanced capacity of 3 GW of PV modules. Currently, Waaree Energies has 3 manufacturing plants located at Surat, Tumb and Nandigram.

The above will be part of a continuous capacity expansion program for Waaree Energies. It is now estimated that 3 GW solar PV manufacturing facility will be fully operational by the end of financial year 2022 and the 4 GW solar cells manufacturing capacity will be fully operational and on stream by the end of fiscal year 2023.

The company is an existing profit making company. For the Financial year ended March 2021, Waaree Energies reported net revenues of Rs.1,953 crore and net profits of Rs.48.19 crore. This compares favourably with the profits of Rs.39 crore in the previous year but the top line was slightly lower on a YoY basis. However, this was more an outcome of the pandemic and the resultant lockdowns with things expected to normalize.

The issue will be lead managed by Axis Securities, HSBC Securities and ICICI Securities. The dates will be finalized after SEBI approves the DRHP.

Also Read:-

1) List of Upcoming IPOs in October 2021

2) List of Upcoming IPOs in 2021

Next Article

NCLT Instructs Zee Entertainment Board to Call for EGM

NCLT Instructs Zee Entertainment Board to Call for EGM
by 5paisa Research Team 01/10/2021

In its preliminary hearing on 30th September, the National Company Law Tribunal (NCLT) has instructed Zee Entertainment board to consider the EGM requisition put forth by Invesco Fund. Incidentally, Invesco Fund holds 17.88% stake in Zee Entertainment and is the single largest shareholder in Zee. The case is slated for its next hearing on 04-October.

After listening to the arguments put forth by both the counsels, the NCLT bench observed that holding of the EGM was not at the discretion of the board of the company. On the contrary, under Section 100 of the Companies Act, 2013, the board was obliged to call the AGM if shareholders with more than 10% of the paid-up capital demanded an EGM.

Check:- Invesco Approaches NCLT to Call EGM for Change of Zee Board

Invesco has not objected to the merger of Zee Entertainment with Sony Pictures. However, it has a problem, with the board composition. On 11-Sep, Invesco had called for the resignation of CEO Punit Goenka as well as directors; Manish Chokhani and Ashok Kurien. On 13-Sep, Zee announced that Kurien and Chokhani had resigned. However, Punit Goenka was appointed CEO of the merged entity for another five years.

Invesco has called for the AGM on two grounds. It wants Punit Goenka removed from the post of CEO and MD of Zee Entertainment. Secondly, it wants to nominate 6 directors to the board of Zee. Invesco is of the view that the Subhash Chandra family was exercising clout that was much larger than their pre-merger holding of 3.44%.

Also Read:- Invesco wants EGM to Replace Punit Goenka from the Post of MD & CEO

Invesco has demanded that the new board that is appointed based on the EGM voting should reconsider the merger proposal with Sony from ground zero. One objection that Invesco has is that the merger gives 53% stake in the combined entity to Sony and only 47% to Zee. This will substantially dilute the holding of Invesco from 18% to 8.4%. Ironically, the Subhash Chandra family will hike its stake in the combined entity from 3.44% to 4%.

Normally, any appointment or removal of directors of media companies requires the prior approval of the Ministry of Information and Broadcasting.