New Delhi: After a month-long hiatus, the primary market is heading towards a peak hour, with five companies involved in Paytm Parents One97 Communication and Policybazaar India Parent company PB Fintech plans its IPO in the first half of November to raise over Rs 27,000 crore collectively.
other three firms whose initial stock sale Sapphire Foods India set to open, which operates KFC and Pizza Hut outlets, decorative aesthetics supplier SJS Enterprises and microcrystalline cellulose manufacturer Sigachi Industries.
IPO of FSN E-Commerce Ventures Ltd., which runs an online marketplace for beauty and wellness products hero, and Fino Payments Bank are currently open for public subscription.
The three-day initial share sale of Nykaa and Fino Payments Bank will end on November 1 and November 2, respectively. Nykaa wants to raise Rs 5,352 crore through itself IPOWhile fintech firm Fino Payments Bank is seeking Rs 1,200 crore mobile through initial share-sale.
Together these seven companies will raise around Rs 33,500 crore through initial share sale. A major part of this will be received by technology-based companies.
Before that, Aditya Birla Sun Life AMC Rs 2,778 crore was opened in the initial share sale on September 29.
Prateek Singh, Founder and CEO, LearnApp.com said, “Bull markets are the best times when any company enjoys a better premium and valuation than a publicly traded one.”
“Tech companies in particular get a better premium because their capacity is growing rapidly, which is why we are seeing many tech startups going for IPOs this time to raise cash,” he said.
He further added that the trend of technology-based companies going public would continue in the near future till the market calms down and turns downward. So if the market goes down in future then the IPO will also go down.
So far in 2021, 41 companies have floated their IPOs to raise Rs 66,915 crore and Devina Mehra of First Global said the year should close with a primary market fund of Rs 1 lakh crore.
Besides these, Power Grid InvIT, Infrastructure Investment Trust (InvIT) sponsored by Power Grid Corporation of India raised Rs 7,735 crore through its IPO and Brookfield India Real Estate Trust raised Rs 3,800 crore through its initial share-sale.
The funds raised so far this year are much higher than the Rs 26,611 crore collected by 15 companies through initial share-sales throughout 2020.
Such impressive funding through IPOs was last seen in 2017, when the firms raised Rs 67,147 crore through 36 initial share-sales.
Mehra, Founder, First Global & Smallcase Portfolio Manager, said, “Whenever any fund raising method is available, everyone jumps in until it is in a frenzy phase. We have entered the IPO market several times in the past. I’ve seen this many times. Also — happens every few years. IPOs will keep coming until the market is favourable.”
He also advised investors to be cautious.
“Just because an IPO is too hypothetical or heavily oversubscribed, doesn’t mean it will perform well in the years to come. Many fancy consumer tech IPOs like Uber, Lyft, etc. globally have followed suit. The market has not performed well.” added.
Digital firm One97 Communications, which operates under the Paytm brand name, is set to launch an IPO of Rs 18,300 crore on November 8.
The IPO involves issue of equity shares worth Rs 8,300 crore and Offer for Sale (OFS) of Rs 10,000 crore by existing shareholders.
The company has fixed a price band of Rs 2,080-2,150, which means the valuation of the firm is Rs 1.44 lakh crore to Rs 1.48 lakh crore.
Nikhil Kamath said, “The biggest merit to Paytm’s IPO will be that they have a much more diverse regulatory reach under one roof. This focus on diversification means that they have a lot more than other major players in any particular business book. Not unlike depth, which tend to focus more on expertise.” True Beacon and co-founder of Zerodha said.
The Rs 5,710-crore IPO of PB Fintech, which operates online insurance platform PolicyBazaar and credit comparison portal Paisabazaar, includes a fresh issue of equity shares worth Rs 3,750 crore and an offer for sale by existing shareholders for about Rs 1,960 crore.
The issue will open for public subscription during November 1-3 with a price band of Rs.940-980 per share.
The initial share sale of Sapphire Foods India will open for public subscription on November 9 and end on November 11. The IPO will be an offer for sale of 1,75,69,941 equity shares entirely by the promoters and existing shareholders.
According to market sources, the IPO is expected to fetch Rs 1,500-2,000 crore.
The Rs 800 crore IPO of SJS Enterprises is an offer for sale of shares entirely by Evergraph Holdings Pvt Ltd for Rs 710 crore and shares by KA Joseph for Rs 90 crore.
The issue with a price band of Rs 531-542 per share will open on November 1 and end on November 3.
Sigachi Industries will issue 76.95 lakh equity shares through IPO and is planning to raise Rs 125.43 crore at the upper end of the price band of Rs 161-163 per share.
Going forward, Mehra said that new economy companies like e-commerce, fintech and technology startups will lead the next round of capital coming into the economy and we are seeing the beginning of that boom with IPOs.
other three firms whose initial stock sale Sapphire Foods India set to open, which operates KFC and Pizza Hut outlets, decorative aesthetics supplier SJS Enterprises and microcrystalline cellulose manufacturer Sigachi Industries.
IPO of FSN E-Commerce Ventures Ltd., which runs an online marketplace for beauty and wellness products hero, and Fino Payments Bank are currently open for public subscription.
The three-day initial share sale of Nykaa and Fino Payments Bank will end on November 1 and November 2, respectively. Nykaa wants to raise Rs 5,352 crore through itself IPOWhile fintech firm Fino Payments Bank is seeking Rs 1,200 crore mobile through initial share-sale.
Together these seven companies will raise around Rs 33,500 crore through initial share sale. A major part of this will be received by technology-based companies.
Before that, Aditya Birla Sun Life AMC Rs 2,778 crore was opened in the initial share sale on September 29.
Prateek Singh, Founder and CEO, LearnApp.com said, “Bull markets are the best times when any company enjoys a better premium and valuation than a publicly traded one.”
“Tech companies in particular get a better premium because their capacity is growing rapidly, which is why we are seeing many tech startups going for IPOs this time to raise cash,” he said.
He further added that the trend of technology-based companies going public would continue in the near future till the market calms down and turns downward. So if the market goes down in future then the IPO will also go down.
So far in 2021, 41 companies have floated their IPOs to raise Rs 66,915 crore and Devina Mehra of First Global said the year should close with a primary market fund of Rs 1 lakh crore.
Besides these, Power Grid InvIT, Infrastructure Investment Trust (InvIT) sponsored by Power Grid Corporation of India raised Rs 7,735 crore through its IPO and Brookfield India Real Estate Trust raised Rs 3,800 crore through its initial share-sale.
The funds raised so far this year are much higher than the Rs 26,611 crore collected by 15 companies through initial share-sales throughout 2020.
Such impressive funding through IPOs was last seen in 2017, when the firms raised Rs 67,147 crore through 36 initial share-sales.
Mehra, Founder, First Global & Smallcase Portfolio Manager, said, “Whenever any fund raising method is available, everyone jumps in until it is in a frenzy phase. We have entered the IPO market several times in the past. I’ve seen this many times. Also — happens every few years. IPOs will keep coming until the market is favourable.”
He also advised investors to be cautious.
“Just because an IPO is too hypothetical or heavily oversubscribed, doesn’t mean it will perform well in the years to come. Many fancy consumer tech IPOs like Uber, Lyft, etc. globally have followed suit. The market has not performed well.” added.
Digital firm One97 Communications, which operates under the Paytm brand name, is set to launch an IPO of Rs 18,300 crore on November 8.
The IPO involves issue of equity shares worth Rs 8,300 crore and Offer for Sale (OFS) of Rs 10,000 crore by existing shareholders.
The company has fixed a price band of Rs 2,080-2,150, which means the valuation of the firm is Rs 1.44 lakh crore to Rs 1.48 lakh crore.
Nikhil Kamath said, “The biggest merit to Paytm’s IPO will be that they have a much more diverse regulatory reach under one roof. This focus on diversification means that they have a lot more than other major players in any particular business book. Not unlike depth, which tend to focus more on expertise.” True Beacon and co-founder of Zerodha said.
The Rs 5,710-crore IPO of PB Fintech, which operates online insurance platform PolicyBazaar and credit comparison portal Paisabazaar, includes a fresh issue of equity shares worth Rs 3,750 crore and an offer for sale by existing shareholders for about Rs 1,960 crore.
The issue will open for public subscription during November 1-3 with a price band of Rs.940-980 per share.
The initial share sale of Sapphire Foods India will open for public subscription on November 9 and end on November 11. The IPO will be an offer for sale of 1,75,69,941 equity shares entirely by the promoters and existing shareholders.
According to market sources, the IPO is expected to fetch Rs 1,500-2,000 crore.
The Rs 800 crore IPO of SJS Enterprises is an offer for sale of shares entirely by Evergraph Holdings Pvt Ltd for Rs 710 crore and shares by KA Joseph for Rs 90 crore.
The issue with a price band of Rs 531-542 per share will open on November 1 and end on November 3.
Sigachi Industries will issue 76.95 lakh equity shares through IPO and is planning to raise Rs 125.43 crore at the upper end of the price band of Rs 161-163 per share.
Going forward, Mehra said that new economy companies like e-commerce, fintech and technology startups will lead the next round of capital coming into the economy and we are seeing the beginning of that boom with IPOs.
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