Zebu blog

Category: IPOs

  • The IPO Theme of 2023

    The initial public offering (IPO) market in India has been doing well in recent years, and this trend is projected to continue in 2023 despite global uncertainties. According to The National News, the IPO pipeline in India remains solid, with multiple firms intending to go public in the coming year.

    One factor for the high success of the IPO market in India is the significant demand from individual investors. Many private investors in India have been looking for chances to join the stock market, and IPOs give a method for them to do so. In addition to individual investors, the IPO market has also been underpinned by high demand from institutional investors, including mutual funds and pension funds.

    Another element contributing to the great success of the IPO market in India is favourable market conditions. The Indian stock market has been performing strongly in recent years, with excellent returns for investors. This has produced a good atmosphere for firms wishing to go public and has helped to fuel demand for IPOs.

    Despite the continued global uncertainties, the IPO market in India is likely to remain strong in 2023. This is due in part to the fact that many firms in India have been able to withstand the economic hurdles brought on by the epidemic and are now eager to capitalise on their good financial situations by going public. In addition to robust demand from investors and excellent market circumstances, the IPO market in India is also being helped by regulatory improvements.

    The Indian government has taken moves to streamline the IPO process, making it easier for firms to go public. This includes steps such as the establishment of the computerised bidding procedure and the development of the institutional trading platform. These changes have helped to boost the number of IPOs in India and are likely to continue supporting the market in the future year.

    Overall, the IPO market in India is anticipated to maintain its robust performance in 2023, notwithstanding global uncertainties. This is due to a mix of robust demand from investors, attractive market circumstances, and supporting regulatory measures. If you are considering in investing in the IPO market in India, it is crucial to properly investigate any investment before committing cash and to speak with a financial adviser or expert to identify the best investment plan for your unique requirements and goals. It is also vital to bear in mind that no investment is without risk, and it is always necessary to thoroughly analyse your unique financial status and investment objectives before making any investment decisions.

  • Upcoming IPOs in January 2023

    The new year is here and with it comes a new crop of initial public offerings (IPOs) for investors to evaluate.

    One firm to watch is Happiest Minds Technologies Limited. This IT services business is slated to go public in January and is already creating a lot of talk owing to its great financial performance. Happiest Minds has recorded revenue growth of over 30% in the previous several years and has a significant position in the fast-growing digital services sector. In addition to its great financial success, Happiest Minds also boasts a varied customer base and a solid management team. These reasons, together with the expanding need for digital services, make Happiest Minds an excellent investment prospect.

    Another IPO to keep an eye on is CCL Products (India) Limited. This firm is a significant participant in the specialty coffee and tea sector and is slated to go public in January. CCL Products has a great track record of success and is well-positioned to capitalise on the expanding demand for speciality coffee and tea. The firm boasts a wide product line and a solid distribution network, which have contributed to fuel its growth. In addition, CCL Products has a sound financial position, with low debt levels and a robust balance sheet.

    Investors searching for a more diverse investment may wish to investigate the IPO of India Grid Trust. This firm owns and runs transmission assets in India and is planned to go public in January. India Grid Trust has a robust asset base and is well-positioned to benefit from the expanding demand for power in India. The firm has a good track record of growth and has a diverse asset portfolio, which includes transmission assets in numerous different states. In addition, India Grid Trust has a sound financial position, with low debt levels and a robust balance sheet.

    One firm that is garnering a lot of excitement is Bharat Road Network Limited. This infrastructure development business is slated to go public in January and has a great track record of growth. Bharat Road Network has a broad asset base and is well-positioned to profit from the government’s focus on infrastructure development. The firm has a prominent position in the road building and maintenance industry and has a broad project portfolio, which includes both national and state highway projects. In addition, Bharat Road Network has a sound financial position, with low debt levels and a robust balance sheet.

    Another IPO to watch is HPL Electric & Power Limited. This firm is a significant participant in the electrical and power distribution sector in India and is slated to go public in January. HPL Electric & Power has a robust asset base and is well-positioned to benefit from the expanding demand for power in India. The organisation has a great track record of growth and has a varied customer base, which includes both residential and commercial consumers. In addition, HPL Electric & Power has a robust financial position, with low debt levels and a stable balance sheet.

    Investors looking for exposure to the financial industry may wish to investigate the IPO of LVB Finance Limited. This non-banking financial organisation is slated to go public in January and has a great track record of development. LVB Finance offers a range of financial products and services and is well-positioned to benefit from the developing economy in India. The firm boasts a wide product line and a solid distribution network, which have contributed to fuel its growth. In addition, LVB Finance has a robust financial position, with low debt levels and a stable balance sheet.

    Overall, the IPO market in India is projected to continue robust in January 2023, with numerous attractive firms set to go public. If you are contemplating investing in an IPO, it is vital to properly investigate any investment before committing cash and to contact with a financial adviser or expert to identify the best investment plan for your unique requirements and goals.

  • Upcoming IPOs This Week

    Elin Electronics Limited

    Elin Electronics Limited is a well-established provider of electronics manufacturing services (EMS). Since its inception in 1969, the company has built a reputation as a leading producer of lighting, fans, and small/kitchen appliances for some of the most well-known brands in India. Additionally, Elin Electronics is one of the largest fractional horsepower motor manufacturers in the country.

    Elin Electronics offers a wide range of products and provides complete solutions for them using both “original equipment manufacturer” (OEM) and “original design manufacturer” (ODM) business models. The company’s diverse EMS product line includes: I) lighting products, ceiling, fresh air, and TPW fans, and modular switches and sockets; (ii) small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryers, and hair straighteners; and (iii) fractional horsepower motors used in mixer grinders, hand blenders, wet grinders, chimneys, and air conditioning systems.

    The company operates factories in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh), and Verna (Madhya Pradesh). It also has a central R&D center in Ghaziabad, Uttar Pradesh, where research and development for all OEM and ODM models is conducted, including sketching ideas, refining designs, developing optional features, and testing.

    In recent years, Elin Electronics has served a significant number of customers, including 327 in Fiscal 2020, 387 in Fiscal 2021, 342 in Fiscal 2022, and 297 in the seven months ending October 31, 2022. The company has also generated significant revenue from its operations, including Rs 7,855.84 million in Fiscal 2020, Rs 8,623.78 million in Fiscal 2021, Rs 10,937.54 million in Fiscal 2022, and Rs 6,044.57 million in the six months ending September 30, 2022.

    The main goal of the Elin Electronics IPO is to raise funds that will be used to repay or make early payment on some of the company’s loans, fund capital expenses to improve and expand its facilities in Ghaziabad and Verna, and for general corporate purposes.

    The IPO for Elin Electronics is tentatively scheduled to take place from December 20-22, 2022. The bid date will run from December 20 at 10 a.m. to December 22 at 5 p.m., with the last opportunity to confirm a UPI Mandate at 5 p.m. on the final day of the issue.

    Radiant Cast Management Services

    Radiant Cash Management Services Limited is a leading provider of retail cash management services in India, serving banks, financial institutions, and organized retail and e-commerce companies. Incorporated in 2005, the company has a team of qualified and motivated employees and a strong network of locations and touchpoints, serving more than 13,044 pin codes across India.

    Radiant Cash Management Services offers a range of services including collection and delivery of cash, cash processing, overnight vaulting services for bulk cash and ATM cards, ATM services, and handling of PIN mailers, drafts, and cheque books. The company is also involved in the management of electronic online and mobile financial and cash transactions, as well as the development of intellectual property in the area of cash management.

    Some of Radiant Cash Management Services’ key clients include Axis Bank, Citibank, Deutsche Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, The Hongkong and Shanghai Banking Corporation, and Yes Bank.

    The company is planning to go public with an initial public offering (IPO) to raise funds for working capital requirements, capital expenditure for the purchase of specially fabricated armored vans, and general corporate purposes. The IPO is tentatively scheduled to take place from December 23-27, 2022, with the bid date running from December 23 at 10 a.m. to December 27 at 5 p.m. The lot size for the IPO is 150 shares, and retail individual investors can apply for up to 13 lots, or a total of 1950 shares.

  • The Different Types Of Companies That List For IPOs

    An initial public offering (IPO) is the process by which a privately held company becomes publicly traded on a stock exchange in India. Companies that go public through an IPO in India are known as “going public” companies. There are several different types of companies that list for IPOs in India, each with its own unique characteristics and considerations.

    Small and midsize enterprises: Small and midsize companies in India are typically defined as those with revenues of less than INR 35 billion. These companies often go public as a way to raise capital to fund expansion or to pay off debt. Because these companies are typically smaller and less established than larger companies, they may carry a higher level of risk for investors in India.

    High-growth companies: High-growth companies in India are those that are experiencing rapid expansion and have the potential for significant future growth. These companies may go public as a way to raise capital to fund their expansion plans in India. Because of their high growth potential, high-growth companies can be attractive to investors in India, but they also carry a higher level of risk.

    Established companies: Established companies in India are those that have been in business for a number of years and have a track record of steady growth and profitability. These companies may go public as a way to raise capital to fund expansion or to pay off the debt in India. Because they are established and have a proven track record, established companies may be seen as less risky investments than smaller or high-growth companies in India.

    Spin-off companies: A spin-off company is a company that is created when a larger company divides off a portion of its business into a separate, independent entity in India. Spin-off companies may go public through an IPO in India as a way to raise capital and become independently traded on a stock exchange in India.

    In conclusion, there are several different types of companies that list for IPOs in India, including small and midsize companies, high-growth companies, established companies, special purpose acquisition companies (SPACs), and spin-off companies. Each type of company has its own unique characteristics and considerations in India, and it is important for investors to carefully evaluate the risks and potential rewards of investing in an IPO in India.

  • Here Is Why You May Not Get An IPO Allotment

    Here Is Why You May Not Get An IPO Allotment
    Retailers’ participation in IPOs has gone up sharply in the past few years. India’s IPO craze lasted through the first quarter of 2022. This article is for people who tried to get IPO shares during this time but didn’t get them.

    Even though investors can apply for an IPO, this does not guarantee that they will get shares in the IPO. But if it happens again and again, you need to find out why.

    When it gives out IPO shares, a company tries to get investors to fill out applications. When investors bid on an IPO, they should keep in mind these conditions, which may include lot size, bid price, and more.

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    Why do people put money into IPOs?
    An initial public offering is a way for a company to get money from the market. Simply put, an IPO is a process by which a company that is privately owned becomes a company that is traded on the stock market.

    An IPO is a way for a company to get the money that it can use to run or grow. So, it makes it possible for investors to put money into a business while it is still young. Initial public offerings have always given investors great returns, which is why people are so excited about them now.

    Here are a few reasons why you might not have received an allotment

    Oversubscription and the lottery
    When a company does an IPO, the price range and number of shares are set. IPO shares are sold to three different types of buyers: qualified institutional buyers, non-institutional buyers, and retail buyers. Each section has a certain number of shares given to it. When more investors sign up for a class than there are available scrips, this is called oversubscription.

    If there are too many people who want to buy shares, they are given out through a computerised lottery system. Since there were more investors who wanted to buy shares than there were shares available, not all of them will get one.

    Problem with the application
    The registrar checks each application to make sure it is correct and has everything it needs. Your application could be turned down if you gave wrong information or if some forms are missing.

    Bid price
    During an oversubscription, the final issue price is set by the company based on the bids investors submit. If your bid price is lower than the price of the issue, you won’t get any.

    How to improve your chances

    Fill out the application correctly
    Make sure that all the information on your application is correct before you send it in. Most IPO allocation rejections happen because forms are not complete or are wrong.

    Don’t make your application large
    Even if you have a big application, that doesn’t mean it will be accepted for IPOs. SEBI has made rules to make sure that all applicants are treated the same.

    Apply by a certain date
    If you apply at the higher end of the price range, you have a better chance of getting an allotment. If you apply before the deadline, you have a better chance of getting shares in a book-building IPO, in which the price of the shares is set after all the applications are in.

    Don’t wait until the last minute to apply.
    On the last day, don’t rush, because a lot could go wrong in the last few seconds.

    Invest in the main company
    If you own part of the parent company, your chances will be better if you apply as a shareholder.

    Conclusion
    Before applying for IPO shares, it’s important to look over the company’s prospectus. It is an important document with all the necessary information.

    We hope this article has helped you better understand why shares in an IPO weren’t given out. Open a free demat account with Zebu so that you can apply for upcoming IPOs and increase your chances of getting shares.

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  • Companies With IPOs In September

    September is an exciting month for the IPO market. Here are all the upcoming IPOs for this month.

    Keventer Agro

    The company sells a wide range of products under many different brands and categories. As of March 2021, they were involved in the value chain and had more than 90 SKUs in the fresh, frozen, and ambient long-shelf-life product categories.

    The Keventer Agro IPO is made up of Rs 350 crore in new shares and 1 crore shares from existing shareholders.

    Capital Small Finance Bank
    In 2016, Capital Small Finance Bank became India’s first small finance bank. In March 2021, it will be one of the top SBFs in terms of asset quality, cost of funds, retail deposits, and CASA deposits.

    Capital Small Finance Bank has a diverse portfolio with a large book value across several types of assets. The bank has a secured loan rate of 99 percent, which is the highest among its competitors.

    It’s a first public offering.

    Sresta Nature Bioproducts

    The business, which is based in Hyderabad, sells packaged organic goods.

    The Sresta Natural Bioproducts IPO includes both new shares and shares from existing shareholders. The company plans to sell new shares to raise Rs 50 crore to cover working capital needs and pay off or repay some market loans.

    Landmark Cars

    The car dealership is ready to start an initial public offering (IPO) of Rs 762 crore, which will include both new shares and an offer to sell equity. The net money made from selling new shares worth Rs 150 crore would be used for general business goals and to pay back or pay off any market loans.

    Tracxn Technologies
    Tracxn Technologies helps new businesses set up customer service that works well by giving them statistical information about their customers. The IPO offer from Tracxn Technologies is a full sale from the shareholders who already own the company.

    Ola Cab

    The company is one of the biggest app-driven cab services. It has 250 locations in India, New Zealand, the UK, and Australia where it helps people get around. Through the app-based business, customers can get in touch with drivers of motorcycles, e-rickshaws, cabs, and taxis.

    The value of the IPO would be about Rs 1500 crore.

    Elin Electronics

    The company is a major player in the electronics manufacturing services (EMS) sector, with a 12 percent market share in Fiscal 2021. Manufacturers of lights, fans, and small kitchen appliances can get full product solutions from Elin Electronics. They were also the first to make motors with a fraction of a horsepower.

    In the IPO, fresh shares worth Rs 175 crore and OFS stocks are put together.

    Droom Technology

    They run a business that makes it easier to buy and sell cars online by using technology and data science. Droom Technologies is the only company in India that offers a completely online transactional solution and has the largest selection of cars for sale online. About 1.15 million cars, bikes, and other vehicles, both new and used, are listed on their platform.

    In the IPO, current shareholders can offer to sell their shares, and new issues of Rs 200 crore are also being made.

    One Mobikwik System

    Mobikwik is one of the largest companies that offer “Buy Now, Pay Later” services. Fintech is an important part of the field because it makes everyday mobile transactions easy and gives people the option to “buy now and pay later.”

    The public offering includes both primary shares and an offer to sell.

    Skanray Technologies

    They are the best at making medical devices and they design, develop, manufacture, and sell high end equipment. The primary issue includes new shares worth Rs 400 crores and an offer from current shareholders to sell their shares.

    Gemini Edibles and Fats

    The company makes, sells, and sends out edible oils and fats. Gemini Edibles has had one of the segment’s fastest growth rates. In the south Indian states, they are the market leaders when it comes to making sunflower oil under the brand name Freedom.

    Ixigo

    Ixigo makes it easy to book travel, tickets, and hotels online. They help travelers make smart travel decisions by using innovations in artificial intelligence, machine learning, and data science.

    The company has been given permission to start an IPO for Rs 1600 crore.

    API Holdings
    With respect to gross merchandise value (GMV) in Fiscal 2021, they are India’s largest healthcare provider. API Holdings runs a business that is integrated from beginning to end. This lets them serve all of the stakeholders in the healthcare value chain.

    Emcure Pharmaceutical

    The company is one of India’s biggest pharmaceutical companies. It develops, makes, and sells drugs around the world in a number of important therapeutic areas.

    Final words
    IPOs can be a great way to invest and give investors a chance to diversify their portfolios. But before putting money into a new company, you must do your homework and research. Invest in an initial public offering (IPO) only if you know the company and understand its value. Without doing research, investing in an IPO can be risky.

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  • 10 Things You Should Consider Before Investing In An IPO

    Investing in an IPO can be a great way to build wealth with promising companies. However, if last year is anything to go by, IPOs can be extremely tricky to invest in. If you are purely investing in an IPO to benefit from the listing gains, we suggest that you find promising companies, apply to the IPO and sell your shares on the day that it gets listed. However, if you are a long term investor, you can hold on to your gains.

    In this blog, we’ll talk about what an IPO is and the 10 Things to Check Before Investing in them.

    1. Read the Red Herring Prospectus. A company files the Draft Red Herring Prospectus with SEBI when it wants to sell its shares to the public to raise money. This document explains how the company plans to use the money it gets from the public and what risks investors might face. So, people who want to invest in an IPO must read this document first.

    2. Reasons for Raising Money: It’s important to know what the company plans to do with the money it gets from the Initial Public Offering. One should find out if the company wants to pay off its debts or if it wants to raise money to grow the business, or use the money for other business purposes. This shows that the money will be used well in the business, which is a good sign for an investor.

    3. Know the business model: Before investing in the Initial Public Offering, investors should know what kind of business model the company has. Once they know what kind of business the company is in, the next step is to find a new market opportunity. This is because the size of the opportunity and the company’s ability to get a share of the market can make a big difference in the company’s growth and shareholder returns. If investors don’t understand what the company does for business, they shouldn’t buy into its IPO.

    4. Analyzing the background of the company’s management and promoters: It’s important to find out who runs the business since they are the company’s backbone. Investors should look at both the people who started the company and the people who run it since both play important roles in how the company works. The company’s management is a big part of what moves the business forward. One should look at the qualifications and length of time that the company’s top management has been there. This gives an idea of how the company works.

    5. The company’s strengths and weaknesses: Before putting money into a company’s IPO, you should do a SWOT analysis of the company. The DRHP can be used to figure out what the company’s biggest strengths and weaknesses are. Investors should find out where the company stands in the industry it is in. People who want to invest in a business should try to learn as much as they can about the company and the strategies it uses.

    6. The company’s valuation: Investors should also check the company’s valuation, since the offer price could be too low or too high depending on the industries it works in and its financial ratios.

    7. The company’s health: It’s important to look at how well the company has done financially over the past few years to see if the company’s sales or profits have been growing steadily. If the company’s sales are going up, it might be a good idea to invest in its Initial Public Offering. Before putting money into an IPO, investors need to know how healthy the company’s finances are.

    8. Investment Horizon: An investor should know what their investment horizon is before putting money into an IPO. They should decide if they want to buy shares in the IPO just to trade them on the day it is listed or if they want to keep them for a longer time. The reason for this is that a trading strategy would depend on how the market is doing right now, while a long-term strategy would depend on how the company is doing in its core areas.

    9. Comparable Peers: Investors should also look at who the company’s competitors are. The DRHP compares the company to its peers in terms of both its finances and its value. Investors can look at how the company is valued compared to its peers to see if it is priced fairly.

    10. The company’s potential in the market: Investors should also look at the company’s opportunities and threats in the sectors where it operates. This is important for long-term investors to determine if the investment is worth it.

  • Things To Learn From PayTM IPO

    Paytm is a startup that has gained a lot of attention for the way it has made it possible for Indians to recharge their phones and pay their bills online. Vijay Sharma, the founder, is the face of pure inspiration. He is a typical ‘small-town lad’ who had huge goals and worked late to build his firm. Many in the industry were looking forward to Paytm’s first public offering (IPO), but it fell short of expectations and disappointed most investors. However, like with any failure, there are lessons to be gained from the Paytm IPO disaster, which should be remembered when investing in future IPOs.

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    The history

    Investing in an IPO should be a well-considered decision, and investors should do their homework before devoting cash to any IPO, whether it is a well-known firm or not. The prospect of an IPO was clearly attractive in the case of Paytm, and the company’s exponential growth after demonetization is well documented. However, the corporation did make several mistakes, which analysts now recognize. Some of the corporate transitions, for example, were savvy and took advantage of opportunities, while others were risky.

    Learning Lesson

    Many experts consider Paytm to be a very new-age business strategy. As a result, the same experts think that when investors choose to join into any transactions with such firms in mind, such as making IPO investments, they must understand the company’s dynamics, understand prospective valuations, and evaluate the company’s future plans and growth strategy. As a result, investors who invest in an IPO cannot blame the IPO’s failure on their own lack of understanding prior to investing.

    The most important thing to remember when investing in an initial public offering (IPO) is to be tremendously confident in the firm. Second, a small number of radical businesses/companies have specialty technology and market share. Although some companies do well, such as Zomato and Nykaa, some do not have such blockbuster lists. The Paytm IPO was expected to be a blockbuster, but values were pushed well past their limitations. Investors frequently make mistakes in how they evaluate a firm and base their assumptions on that, rather than conducting a thorough fundamental analysis.

    Educate yourself and make wise investments.

    Paytm’s stock plummeted by 58 percent after the business was listed on the stock exchange. It went from a $20 billion valuation to a meager $7.8 billion valuation. Now, the company is frantically trying to persuade investors of its steady growth trajectory in the hopes of regaining some funds. However, when it comes to IPO investment, people aren’t thinking about Paytm because the company’s mounting expenses and a global sell-off of its stock have cast a pall over its future prospects.

    Going forward, the most important lesson is to understand the business and then the valuation. If it does not seem fair to you, do not put your hard-earned money into it.


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  • How To Improve Your Chances Of Getting an IPO Allotment

    There will be a plethora of IPOs to invest in in 2022, and there will be no shortage of allotments. This will undoubtedly be a banner year for the Indian stock market, as IPOs abound and investors scramble for a piece of the action. Investors rushed to diversify their portfolios in 2021, when more than 60 initial public offerings (IPOs) were listed. The market is excited about IPO allotment this year, and investors are eager to get their hands on the greatest firm stocks.

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    How an Initial Public Offering (IPO) Works

    An IPO, or Initial Public Offering, occurs when a private firm sells its stock to the general public. Companies begin as private companies with a small number of stockholders, such as the founders and their relatives and friends. Original stockholders of a private firm can include venture capitalists and a variety of financiers. When a company has achieved a significant point in its development and has established itself in its industry, it can apply to be listed and sell its shares to the general public. When this happens, anyone can become a shareholder in the firm and place a bid for a specific number of shares. Nonetheless, even if you desire a specific number of shares, you may not receive the IPO allocation for which you bid, receiving less than you expected, or receiving none at all.

    You might come upon an upcoming IPO among so many of the others expected in 2022, but how do you guarantee allotment? For a large number of eager investors, this is still an open subject. Looking back not too far in time, in 2021, practically every IPO that was offered was massively oversubscribed. However, there are certain specific things you can do to improve your chances of receiving the allotment you want.

    How to Increase Your Chances

    As an investor, the fact that an IPO is coming up may excite you, but it’s not a good feeling when you don’t get the allocation you expected, or worse, no allotment at all. As a result, you should understand how to improve your chances of receiving an IPO allotment by using the approaches listed below:

    Early Application – When an initial public offering (IPO) is announced, you have three days to apply. Instead of bidding for allocation at the last minute, it’s a good idea to do so within the first couple of days. If at all possible, bid on an allotment the same day it is made available. This implies you should have done your study and analysis on the firm in issue well ahead of time to ensure you desire a piece of its stock.

    Avoid Confusion – Many investors become confused by the phrases used during the IPO application process. If you want to be certain of receiving an IPO allotment, you need think clearly and understand these terms ahead of time. The distinction between the ‘cut price’ and the ‘bid price,’ for example, is never clear. An investor’s willingness to pay any price that companies decide on at the end of the book-building exercise is referred to as the ‘cut price.’ After the use of the ‘cut price,’ the investor is obligated to bid in the highest price range. Any additional amount is reimbursed if the price is lower than predicted, so investors should buy at the ‘reduced price.’

    Avoid Making Mistakes – Filling out IPO application paperwork should not be rushed. Errors in filing forms are common, and these might lead to rejection or the need to refill paperwork.

    Parent-Company Stocks – If the IPO is for a company that has a parent-company, you should first buy some parent-company stock. This raises your chances of getting an IPO allotment in the company where the IPO is being offered.

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  • What Is a Follow-On Public Offer and How Does It Work?