Vijaya Diagnostics IPO Subscription Day-3
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
|Qualified Institutional (QIB)||13.07 Times|
|Non-Institutional (NII)||1.32 Times|
|Retail Individual||1.09 Times|
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.
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.
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.
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HDFC Life Acquires Exide Life Insurance for Rs.6,687 cr
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.
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.
Reliance Industries (RIL) Share Price at 52 Week High, Why?
The share price of Reliance Industries (RIL) touched a new 52 week high of ₹2,394.30 today. With today's rise in Reliance share price, the market capitalisation of the country's most cherished company rose above ₹15 lakh crore. It is the top most listed company by market capitalization on NSE and BSE.
Reliance Industries shares have seen strong buying interest as the retail arm of the company, Reliance Retail Ventures (RRVL) acquired controlling stake in Just Dial Limited.
On September 01, 2021, Just Dial, according to the preferential issue, allotted 2.12 crore equity shares of Rs10 each at a price of ₹1,022.25 per equity share (including a premium of ₹1,012.25 per equity share) representing 25.35% of the post-preferential issue paid-up share capital of Just Dial to RRVL.
Earlier, on July 20 this year, RRVL acquired 1.31 crore equity shares of Rs10 each of Just Dial at Rs1,020 per equity share from VSS Mani on the floor of the stock exchange through the block window facility. The acquisition represents 15.63% of the post-preferential issue paid-up equity share capital of Just Dial.
With that, RRVL currently holds 40.98% stake in Just Dial.
RIL closed at ₹2,388.2 up 4.12% on BSE sensex today i.e. September 3, 2021.
About Reliance Industries
Reliance Industries Limited (RIL) is one of India’s largest private sector enterprise, a vertically-integrated company with business interests in energy and materials value chain. The group’s activities span across E&P, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), retail, shale gas and telecom services.’
Reliance Industries Share Price Historical Performance:
Source: Ace Equity
The above chart shows that the stock jumped as much as 29.6% in the past one year. The stock closing low was ₹1,843.15 and closing high of ₹2,388.25 between the period September 3, 2020 to September 3, 2021. The stock generated 13.1% return from September 3, 2020 to September 3, 2021.
5paisa Stock Review on Reliance Industries
We are positive on the stock from a long-term point of view given the strong outlook for O2C businesses. Further, the increasing focus on retail business and strong performance of telecom vertical makes the investment further promising.
Technical Analysis of Reliance Industries Stock
Trend of stock is bullish, stock ended the session with big bullish candle on Friday. Prices formed higher highs and higher lows which is a positive sign for coming sessions. As per Bollinger bands, stock managed to close above its upper Bollinger band which also indicates buying may continue in stock. RSI placed above 70 level which is a overbought zone so buy on dips strategy one can use ahead.
JSPL to Separate Power Business to Worldone for Rs.7,401 crore
On 03-Sep, shareholders of Jindal Steel & Power (JSPL), approved the proposal to sell 96.42% stake in Jindal Power Limited to Worldone. It must be noted that Worldone is a promoter group company of the Jindal family. The special resolution was passed by shareholders of JSPL with 97.12% votes supporting the resolution.
The consideration of Rs.7,401 crore will entail two parts. It will entail a cash pay-out of Rs.3,015 crore to JSPL. In addition, Worldone will also assume Rs.4,386 crore worth of liabilities and obligations of JSPL which are in the form of intercorporate deposits (ICD) and capital advances given by Jindal Power to JSPL. However, the final outcome was not smooth sailing all along.
The original meeting to seek shareholder approval was set in May-21. However, that meeting was cancelled after proxy advisors strongly objected to the low pay-out. Subsequently, Worldone sweetened its offer and agreed to pay a cash component plus assumption of liabilities of JSPL. However, there are still objections on the arms-length issue since the buyer of JPL, Worldone, is a Jindal group company.
Notwithstanding the objections, the resolution has got a decisive vote of 97.12% of shareholding and the deal is now likely to be executed. There are some distinct benefits for JSPL from this sale. Firstly, the deal will eliminate Rs.6,566 crore of debt in the books of JSPL attributable to the Jindal power business. Secondly, it allows JSPL to focus on its core steel business, which is seeing strong demand at present.
Above all, this sale will help JSPL to reduce its carbon footprint, something all metal companies are trying to do. This move also gives JSPL a more favourable positioning in terms of its ESG (Environmental, Social, Governance) metrics and is expected to be valuation accretive.
Ami Organics IPO Allotment - How to Check the IPO Allotment Status
The Rs.570 crore IPO of Ami Organics, consisting of Rs.200 crore fresh issue and Rs370 crore OFS, was subscribed 64.54X overall at the close of bidding on 03 September. The basis of allotment will be finalized on 08 August. If you have applied for the IPO, you can check your allotment status online.
You can either check your allotment status on the BSE website or the IPO registrar, Link Intime. Here are the steps.
Checking the allotment status of Ami Organics on BSE website
Visit the BSE link for the IPO allotment by clicking on the link below https://www.bseindia.com/investors/appli_check.aspx
Once you reach the page, here are the steps to follow.
• Under Issue Type – Select Equity Option
• Under Issue Name – Select Ami Organics from the drop down box
• Enter the Application Number exactly as in the acknowledge slip
• Enter the PAN (10-digit alphanumeric) number
• Once this is done, you need to click on the Captcha to verity that you are not a robot
• Finally click on the Search Button
The allotment status will be displayed on the screen in front of you informing about the number of shares of Ami Organics allotted to you.
Checking the allotment status of Ami Organics on Link Intime (Registrar to IPO)
Visit the Link Intime registrar website for IPO status by clicking on the link below:
This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Ami Organics from the drop down box.
• There are 3 options. You can either access the allotment status based on PAN, Application Number or DPID-Client ID combination.
• Select the appropriate option you want to use and enter the details (PAN / Application Number / DPID-Client ID)
• Finally, click on the Search button
The IPO status with number of shares of Ami Organics allotted will be displayed on the screen.