Vijaya Diagnostics IPO Subscription Day-2

Vijaya Diagnostics IPO Subscription Day-2
IPO
02/09/2021

The Rs.1,895 crore IPO of Vijaya Diagnostics consists entirely of an offer for sale. It got a tepid response at the end of Day-1 and not much has changed at the end of Day-2. As per the combined bid details put out by the BSE, Vijaya Diagnostics IPO was subscribed 0.47X overall at the end of Day-2, with retail demand showing some signs of traction. The issue closes for subscription on Friday, 03 September.

As of close of 02 September, out of the 250.27 lakh shares on offer, Vijaya Diagnostics saw bids for 118.62 lakh shares. This implies an overall subscription of 0.47X. The granular break-up of subscriptions is as under.

Vijaya Diagnostics IPO Subscription Day-2
 

Category

Subscription Status
Qualified Institutional (QIB) 0.32 Times
Non-Institutional (NII) 0.05 Times
Retail Individual 0.74 Times
Employee 0.52 Times
Total 0.47  Times

 

QIB Portion

The QIB portion saw 0.32X subscription with demand for 22.46 lakh shares against 71.08 lakh shares available; net of anchor placement. On 31 August, Vijaya Diagnostics did anchor placement of Rs.566 crore to QIB investors like Fidelity, Aberdeen, Abu Dhabi Investment Authority, Government Pension Fund, ICICI Pru MF, Nippon MF, SBI MF and Kotak Life. 

HNI Portion

The HNI portion got subscribed just 0.05X (getting applications for 2.91 lakh shares against the quota of 53.31 lakh shares). Funded applications and corporate applications, come in on last day, so we have to wait for that to get a clear picture.

Retail Individuals

The retail portion got subscribed 0.74X times at the end of Day-2, showing relatively better retail appetite. Among retail investors; out of the 124.38 lakh shares on offer, valid bids were received for 92.47 lakh shares, of which bids for 74.13 lakh shares were at the cut-off price. 

The IPO is priced in the band of (Rs.522-Rs.531) and has allocated a quota of 35% for retail and 50% for QIBs.
 

 

Also Read: 

Upcoming IPOs in 2021

IPOs in September

7 Interesting Facts to Know About Vijaya Diagnostics IPO

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Vijaya Diagnostics IPO Subscription Day-3

Vijaya Diagnostics IPO Subscription Day-3
IPO
by 5paisa Research Team 02/09/2021

The Rs.1,895 crore IPO of Vijaya Diagnostics consists entirely of an offer for sale. It got a tepid response at the end of Day-1 and not much changed at the end of Day-2. As per the combined bid details put out by the BSE, Vijaya Diagnostics IPO was subscribed 4.54X overall at the close of Day-3, with solid traction from QIB demand. The issue has closed for subscription on Friday, 03 September.

As of close of 03 September, out of the 250.27 lakh shares on offer, Vijaya Diagnostics saw bids for 1,136.44 lakh shares. This implies an overall subscription of 4.54X. The granular break-up of subscriptions is as under.

Vijaya Diagnostics IPO Subscription Day-3
 

Category

Subscription Status
Qualified Institutional (QIB) 13.07 Times
Non-Institutional (NII) 1.32 Times
Retail Individual 1.09 Times
Employee 0.98 Times
Total 4.54  Times

 

QIB Portion

The QIB portion saw 13.07X subscription with demand for 928.63 lakh shares against 71.08 lakh shares available; net of anchor placement. On 31 August, Vijaya Diagnostics did anchor placement of Rs.566 crore to QIB investors like Fidelity, Aberdeen, Abu Dhabi Investment Authority, Government Pension Fund, ICICI Pru MF, Nippon MF, SBI MF and Kotak Life. 

HNI Portion

The HNI portion got subscribed just 1.32X (getting applications for 70.60 lakh shares against the quota of 53.31 lakh shares). Funded applications and corporate applications, managed to get the HNI portion fully subscribed.

Retail Individuals

The retail portion got subscribed 1.09X at the end of Day-3, showing relatively tepid retail appetite. Among retail investors; out of the 124.38 lakh shares on offer, valid bids were received for 135.75 lakh shares, of which bids for 108.81 lakh shares were at the cut-off price. 

The IPO is priced in the band of (Rs.522-Rs.531) and has allocated a quota of 35% for retail and 50% for QIBs.
 

Also Read: 

Upcoming IPOs in 2021

IPOs in September

7 Interesting Facts to Know About Vijaya Diagnostics IPO

Next Article

Joyalukkas plans Rs.3,000 crore IPO

Joyalukkas plans Rs.3,000 crore IPO
IPO
02/09/2021

One of India’s largest jewellery chains, Joyalukkas, is planning an IPO in the last quarter of FY22. The company is expected to file the DRHP with SEBI in the last week of November or early December. While details of the IPO are to be officially announced, it is reported that Joyalukkas may look to raise $400 million through the IPO (Rs.3,000 crore).

Joyalukkas has apparently sounded out a slew of top investment bankers to handle the mandate for the issue. It is apparently looking at an overall indicative valuation in the range of $4.8-4.9 billion. If it works out then it would be the second most valuable jewellery company in India after Titan. Currently, while Titan has a market cap of $24 billion, the next most valuable is Kalyan Jewellers, with market cap below $1 billion.

Joyalukkas has 130 jewellery outlets spread across 11 countries and is especially strong in India and Middle East. Joyalukkas is looking to expand to tap the revenge buying that is expected to emerge in the post-pandemic demand revival. Also, the IPO will give them ammunition to tap the next festive season, when most gold purchases happen.

Incidentally, this is the second time Joyalukkas will be attempting an IPO. It had finalized plans for the IPO in 2018 but shelved it after the Nirav Mode scam hit PNB. Most jewellery companies had come under the scanner and even credit to jewellers tightened. Under the changed circumstances, Joyalukkas had opted to put off IPO plans in April 2018.

Currently, Joyalukkas sees a number of favourable triggers. The IPO markets are buoyant with the capacity to absorb large amounts of capital. Secondly, gold is emerging as a portfolio asset class and many Indians still prefer to hold physical gold. The World Gold Council has projected a sharp revival in gold demand in India. The IPO gives Joyalukkas the stock currency to grow.
 

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HDFC Life Acquires Exide Life Insurance for Rs.6,687 cr

HDFC Life acquires Exide Life Insurance for Rs.6,687 crore
by 5paisa Research Team 03/09/2021

HDFC Life Insurance announced the purchase of the life insurance unit of Exide Industries for a consideration of Rs.6,687 crore or nearly $916 million. The consolidation in the life insurance sector has just started picking up as the large private players look to consolidate their market share through rapid inorganic growth. The idea is to tap an ever-growing insurance market. Life insurance penetration in India is very low at 2.82%.

HDFC Life has already emerged as the largest private sector insurer in India followed by SBI Life and ICICI Prudential Life in that order. This acquisition will help them consolidated their position. The planned acquisition of Max Life by HDFC Life had to be called due to regulatory approval reasons. This gives the added ammunition to HDFC Life to take on the competition from LIC, as the PSU insurance giant plans India’s biggest IPO in history.

As part of the deal, HDFC Life will issue 870.22 lakh shares to Exide at a price of Rs.685 per share. In addition, it will also pay a cash consideration of Rs.726 crore taking the total consideration for the acquisition to Rs.6,687 crore. While the board of directors of HDFC Life, Exide Life and Exide Industries have approved the deal, the final approval from IRDAI and other regulatory approvals are still pending.

Exide Life gives lateral value addition to HDFC Life as it brings 12 lakh customer base plus assets under management of Rs.18,781 crore. For the financial year FY21, Exide Life had total premium income of Rs.3,325 crore. Once the transaction is completed, Exide Life will be fully merged into HDFC Life.

For HDFC Life, it looks like a synergistic deal as it expands their presence in South India. Even for Exide Industries, it looks like good deal. Exide has invested Rs.1,680 crore so far in Exide Life and they are getting good value for that investment. This also allows Exide to focus on its core business of batteries.
 

Also Read: 

1. Life Insurance Corporation LIC - IPO Update

2. LIC IPO gets once step closer to becoming reality

3. LIC may split its proposed IPO into 2 tranches

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5 Stocks to Buy Today: September 3, 2021

Stocks to Buy Today - 3rd September 2021
03/09/2021

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. Here is a list of five 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. Varun Beverages Ltd. (VBL)

Varun Beverages Limited is the second largest bottling company of PepsiCo's beverages around the globe. The company manufactures, bottles and distributes beverages and is a part of the RJ Corp group that caters to sectors such as hospitality, food and beverages (“F&B”), education, healthcare, diagnostic laboratories and stem cell banks.

VBL Stock Details for Today: 

- Current Market Price: 882

- Stop Loss: 868

- Target: 920

- Holding Period: One week buy

5paisa Recommendation: Uptrend is likely to continue for this stock, thus making it our top recommendation for stocks to buy today. 

 

2. Cummins India Ltd. (CUMMINSIND)

Cummins India Limited is the India's leading manufacturer of diesel and natural gas engines. The company designs, manufactures, distributes and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled power generator sets of up to 3000 kW (3750 kVA). It comprises of 3 business units - Engine, Power Systems, and Distribution.

CUMMINSIND Stock Details for Today: 

- Current Market Price: 1,040

- Stop Loss: 1,010

- Target 1: 1,080

- Target 2: 1,115

- Holding Period: One week buy

5paisa Recommendation: The trend lines look very strong on chart, and this momentum keeps this stock one of our best buys of the day.

 

3. Happiest Minds (HAPPSTMNDS)

A Mindful IT Company, enables digital transformation for enterprises and technology providers by leveraging a range of disruptive technologies such as: AI, blockchain, cloud, digital process automation, internet of things, robotics/drones, security, virtual/augmented reality, etc. Happiest Minds is headquartered in Bangalore, India with operations in the U.S., UK, Canada, Australia and Middle East.

HAPPSTMNDS Stock Details for Today: 

- Current Market Price: 1,488

- Stop Loss: 1,450

- Target: 1,560

- Holding Period: One week buy

5paisa Recommendation:  Our technical analysts observe a breakout on chart, that looks promising.

 

4. IndiaMART(INDIAMART)

IndiaMART is the largest Indian online B2B marketplace that connects buyers with suppliers. With 60% market share of the online B2B Classified space in India, the channel focuses on providing a platform to Small & Medium Enterprises (SMEs), Large Enterprises as well as individuals.

INDIAMART Stock Details for Today: 

- Current Market Price: 8,153

- Stop Loss: 8,000

- Target: 8,550

- Holding Period: 5 days

5paisa Recommendation:  With very strong volumes observed on this stock, it will likely be push upward, thus featuring it on our list of stocks to buy today.

 

5. Jubilant FoodWorks Ltd. (JUBLFOOD)

Jubilant FoodWorks Limited is an Indian food service company based in Noida, Uttar Pradesh. The company holds the master franchise for Domino's Pizza in India, Nepal, Sri Lanka and Bangladesh, for Popeyes in India, Bangladesh, Nepal and Bhutan, and also for Dunkin' Donuts in India. 

JUBLFOOD Stock Details for Today: 

- Current Market Price: 4,116

- Stop Loss: 4,025

- Target 1: 4,235

- Target 2: 4,350

- Holding Period: One week buy

5paisa Recommendation:  It is likely that the buying trend will be renewed, based on technical analysis. Thus, making it to our list of top 5 stocks to buy today. 

As we promised, here's how our previous stock call recommendations have worked. 

 

Performance of our Previous 'Buy' Stock Calls

1. POLYCAB has hit its set target and is at a steady growth of 9.3% in 3 days

2. NAVINFLUOR projects a profit of 7.3% in 4 days

3. RADICO went up by 5% intra-day

4. PNCINFRA went up by 4.4% intra-day

5. UBL went up by 4.2% intra-day

6. SBILIFE went up by 2.5% intra-day

7. BTST CENTURYTEX went up by 4% over and above the recommended price

 

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Chemplast Sanmar rallies smartly post tepid IPO

Chemplast Sanmar rallies smartly post tepid IPO

Chemplast Sanmar IPO, part of the Sanmar group of Tamil Nadu, had recently closed its mega Rs.3,850 crore IPO in the month of August. The response had been tepid at just about 2.17 times subscription and the stock had dipped to a discount to the issue price post listing. 

However, in the last two weeks since listing, the stock has recouped 21% from the lows and is currently 13.7% above the issue price of Rs.541. On 02 September, the stock had closed at Rs.615, after touching a high of Rs.621. From the recent lows of Rs.510, this represents a 20.6% bounce in the stock price. What exactly has triggered this sharp rally in Chemplast?

There were two key reasons for the rally. Firstly, as committed in the IPO filing, the company has used up the proceeds of the fresh issue to repay non-convertible debentures of Rs.1,238 crore. The fresh issue proceeds of Rs.1,300 crore was almost entirely used up as committed as on 31-Aug. This largely benefits the company’s solvency ratios.

Secondly, this NCD was backed by the promoter holdings in the shares of Chemplast Sanmar and the shares of Chemplast Cuddalore Vinyls. With the NCD being fully repaid, these shares have been released from pledge on 31 August and currently there is not a single share of the promoters that is under pledge. Pledged shares tend to make traders jittery and the combination of pledge release and loan repayment boosted the stock price.

There is also a more fundamental pitch favouring the company. It is India’s largest manufacturer of specialty paste PVC resin, which finds extensive applications in the Agro-chemical and pharmaceutical sectors. 

In addition, Chemplast has a diversified product portfolio including chlor-alkali, caustic soda and chlorine, making it a de-risked chemical play. The loan repayment and pledge release has allowed markets to focus on the core strengths in the product portfolio of Chemplast Sanmar.

 

Also Read: 

Upcoming IPOs in 2021

IPOs in September