All You Need To Know About the Upcoming IPOs

Prasanth Menon

17 Apr 2017

The IPO pipeline remains robust as more upcoming IPOs in India are added by Securities and Exchange Board of India (SEBI) on a regular basis post evaluation. After getting SEBI approvals, companies can bring their IPOs anytime in the next 12 months.

Recently Indian markets witnessed, Avenue Supermarts, the owner of D-Mart supermarket chain, Shankara Building Products and CL Educate, were some of the companies that floated IPOs in the first quarter of 2017. Avenue Supermarts was the biggest IPO of the quarter, and as of today the company has a market cap of over Rs 50K Cr post its listing. It was the biggest listing since PNB Housing’s Rs 3,000 crore IPO in November 2016.

Hudco, NSE, Central Depository Services, Nakshatra World and Cochin Shipyard are among the names that aspire to launch share sale offers in coming months. From the huge list of companies awaiting SEBI approval for listing, at present, five companies—Hudco, Central Depository Services, S Chand and Company, Genesis Colors and Security & Intelligence Services (India)—have secured Sebi’s go-ahead to float their respective public offers. The companies intend to utilise the earnings to fund its business expansion, and to meet working capital requirements of the companies.

State-run Housing and Urban Development Corp. Ltd (Hudco)’s IPO will take an offer for sale (OFS) route through which the company will sale 200,190,000 equity shares that will be 10% stake of the company. Retail investors and Hudco employees can avail a discount of up to 5% on the issue price. As on March, 2016, the paid up capital of Hudco is Rs 2,001 Cr. Indian government holds 100% stake in this company. SBI Capital Markets, IDBI Capital, ICICI Securities, and Nomura Financial Advisory and Securities will manage the company’s public issue. Through minority stake sale and strategic sale in PSUs this fiscal the government expects to raise Rs 56,500 Cr, wherein Rs 36,000 Cr is to come from minority stake sale in PSUs and Rs 20,500 Cr is to come from strategic stake sale.

Apart from the aforementioned, there are 11 companies including NSE, Eris Lifesciences, GTPL Hathway, Bharat Road Network, Tejas Networks, Salasar Techno Engineering, Au Financiers, Prataap Snacks, PSP Projects that are awaiting approval from SEBI to rollout IPOs. Combined these companies are expected to acquire approximately Rs 20,000 crore.

The government cabinet has given an approval to the listing of five state-run general insurance companies including New India Assurance Company, National Insurance Company, Oriental Insurance Company, United India Insurance Company and a re-insurance firm General Insurance Corporation - apart from other big issues like that of SBI Life Insurance, which is also expected to file IPO papers in the near future.

The most recent additions to the ever growing list of companies aspiring to float IPO are the Railway PSUs. Government official cabinet has approved the listing of 9 Railway PSUs including IRCTC, Rail Vikas Nigam.

Here is the list of upcoming IPOs in India in the pipeline.

No. Forthcoming IPOs Tentative Dates
1 S Chand & Company Apr-17
2 HUDCO May-17
3 CDSL 2017
4 Continental Warehousing 2017
5 Prataap Snacks 2017
6 NSE 2017
7 GVR Infra Projects Limited 2017
8 Matrimony.com 2017
9 Mas Financial Services 2017
10 SIS Limited 2017
11 Vodafone India 2017
12 SBI Life Insurance 2017
13 Go Airlines 2017
14 Security & Intelligence Services India 2017
15 Genesis Colors 2017
16 G R Infraprojects 2017
17 Cent Bank Home Finance Limited (CBHFL) 2017
18 VLCC Health Care 2017
19 Salasar Techno Engineering -
20 Eris Lifesciences -
21 Bharat Road Network -
22 Tejas Networks -
23 Au Financiers -
24 GTPL Hathway -
25 PSP Projects -

 


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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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All You Need To Know About the Upcoming IPOs

Prasanth Menon

17 Apr 2017

The IPO pipeline remains robust as more upcoming IPOs in India are added by Securities and Exchange Board of India (SEBI) on a regular basis post evaluation. After getting SEBI approvals, companies can bring their IPOs anytime in the next 12 months.

Recently Indian markets witnessed, Avenue Supermarts, the owner of D-Mart supermarket chain, Shankara Building Products and CL Educate, were some of the companies that floated IPOs in the first quarter of 2017. Avenue Supermarts was the biggest IPO of the quarter, and as of today the company has a market cap of over Rs 50K Cr post its listing. It was the biggest listing since PNB Housing’s Rs 3,000 crore IPO in November 2016.

Hudco, NSE, Central Depository Services, Nakshatra World and Cochin Shipyard are among the names that aspire to launch share sale offers in coming months. From the huge list of companies awaiting SEBI approval for listing, at present, five companies—Hudco, Central Depository Services, S Chand and Company, Genesis Colors and Security & Intelligence Services (India)—have secured Sebi’s go-ahead to float their respective public offers. The companies intend to utilise the earnings to fund its business expansion, and to meet working capital requirements of the companies.

State-run Housing and Urban Development Corp. Ltd (Hudco)’s IPO will take an offer for sale (OFS) route through which the company will sale 200,190,000 equity shares that will be 10% stake of the company. Retail investors and Hudco employees can avail a discount of up to 5% on the issue price. As on March, 2016, the paid up capital of Hudco is Rs 2,001 Cr. Indian government holds 100% stake in this company. SBI Capital Markets, IDBI Capital, ICICI Securities, and Nomura Financial Advisory and Securities will manage the company’s public issue. Through minority stake sale and strategic sale in PSUs this fiscal the government expects to raise Rs 56,500 Cr, wherein Rs 36,000 Cr is to come from minority stake sale in PSUs and Rs 20,500 Cr is to come from strategic stake sale.

Apart from the aforementioned, there are 11 companies including NSE, Eris Lifesciences, GTPL Hathway, Bharat Road Network, Tejas Networks, Salasar Techno Engineering, Au Financiers, Prataap Snacks, PSP Projects that are awaiting approval from SEBI to rollout IPOs. Combined these companies are expected to acquire approximately Rs 20,000 crore.

The government cabinet has given an approval to the listing of five state-run general insurance companies including New India Assurance Company, National Insurance Company, Oriental Insurance Company, United India Insurance Company and a re-insurance firm General Insurance Corporation - apart from other big issues like that of SBI Life Insurance, which is also expected to file IPO papers in the near future.

The most recent additions to the ever growing list of companies aspiring to float IPO are the Railway PSUs. Government official cabinet has approved the listing of 9 Railway PSUs including IRCTC, Rail Vikas Nigam.

Here is the list of upcoming IPOs in India in the pipeline.

No. Forthcoming IPOs Tentative Dates
1 S Chand & Company Apr-17
2 HUDCO May-17
3 CDSL 2017
4 Continental Warehousing 2017
5 Prataap Snacks 2017
6 NSE 2017
7 GVR Infra Projects Limited 2017
8 Matrimony.com 2017
9 Mas Financial Services 2017
10 SIS Limited 2017
11 Vodafone India 2017
12 SBI Life Insurance 2017
13 Go Airlines 2017
14 Security & Intelligence Services India 2017
15 Genesis Colors 2017
16 G R Infraprojects 2017
17 Cent Bank Home Finance Limited (CBHFL) 2017
18 VLCC Health Care 2017
19 Salasar Techno Engineering -
20 Eris Lifesciences -
21 Bharat Road Network -
22 Tejas Networks -
23 Au Financiers -
24 GTPL Hathway -
25 PSP Projects -