When we talk about investing in the stock market, IPO is probably the best timing for that. When a company makes its entry in the stock market for the very first time, it is called Initial Public Offering (IPO). Recently the Bombay Stock Exchange (BSE) got listed on National Stock Exchange (NSE) with about 35% listing gains. This year some more IPOs are lined up and all these are much awaited by the investors. The top five on the list are CDSL, Avenue Supermart, NSE India, HUDCO, Eris Life sciences. Now let’s talk about these IPOs. We are not saying that all IPOs have the same fortune as BSE (in terms of listing gains) but the current market environment and the amount of money ( after demonetization) channeled towards the mutual fund industry, give the following companies a strong support during their respective public offerings.
Avenue Supermart (D Mart) IPO
Avenue Supermarts Pvt. Ltd. IPO is the second on the list. The company incorporated in 2000 and operates its hypermarkets and supermarkets chain in the name D Mart. D Mart is focused to be a one stop solution of your every daily household need. It may be food, garments, kitchenware, beauty products, toiletries, home appliances and much more. The below points to be noted
- IPO will hit the market on March 8, 2017 and will be closed this offer period on March 10, 2017
- The issue price band is Rs.295 to Rs.299
- The lot size is 50. That means you can bid for 50 equity shares and in multiple thereafter.
- The issue size would be Rs.18700 million
- D Mart is going to be listed on NSE/BSE
- 35% of the total issue size will be offered to the retail customers and 50% is fixed for the Qualified Institutional Buyers (QIB) whereas 15% is fixed for the Non Institutional Bidders (NIB).
CDSL (Central Depository Services Ltd.) IPO
CDSL is a subsidiary company of Bombay Stock Exchange (BSE). The Mumbai based company act as a central depository of securities. Holding securities in physical form or in dematerialized form is the main function of CDSL. The other functions are like transfer of securities, account opening, processing delivery, dematerialization etc. BSE is preparing a divestments of up to 30% of its stake in the company through this IPO. The following points may grab your attention
- The issue size will be about Rs.500 crore and company will be valued up to Rs.1500 crore after the issue.
- Currently BSE holds 54.2% stake and divestment plans is of up to 30%
- The issue price and date is yet to be determined but market is expecting the price between Rs.115 to Rs.135 and it is expected to hit the market before 31st March this year.
- CDSL will get listed on both NSE and BSE.
- The revenue got increased to Rs.116 crores in 2016 from Rs.105 crores in 2015.
National Stock Exchange (NSE) IPO
NSE which is in this list is yet to confirm the date of its IPO. NSE is the one of the two main security exchange in India which is established in 1992 and located in Mumbai. The exchange is the first in the country to introduce the fully automated and screen based trading platform. Nowadays anybody can invest and trade in the market if he or she has the internet connection and a system. The following points need to consider if you are excited about this IPO.
- It is yet to confirm the date, price band, lot size and other important information and yet to get clearance from SEBI
- The market is expecting the IPO date within April 2017.
- The issue size can be Rs.10000 crores
- NSE is going to be listed on BSE only as it cannot be listed on NSE.
- NSE is also planning for overseas listing and that is also very soon.
HUDCO (Housing and Urban Development Corporation) IPO
This year HUDCO or namely Housing and Urban Development Corporation has also lined up to make its presence for the first time in the market. This Union Government owned company was founded in 1970 and it has it’s headquarter in New Delhi. HUDCO is focused with building affordable housing and urban development. The below points is to be noted
- The Government is keen to dilute 10% of its stake in the company and the IPO will be through an offer for sale. The company may raise Rs.500-1000 crores through the IPO.
- The IPO is would be held within March 2017
- The company filed the paper for IPO on January 3, 2017
- The lot size, issue price band is yet to be confirmed.
- During 2015-16 net profit at Rs.782 crores on a total income of Rs.3296 crores. The company is rated AAA by CARE, IRRPL and ICRA.
Eris Life Sciences IPO
The last name on the list of Eris Life Science. The leading pharmaceutical company was incorporated in 2007 and has it’s headquarter in Ahmedabad. The company is engaged in manufacturing, marketing and selling of medicines of chronic and acute lifestyle ailments. Although the company has no export revenue, comes on the list top 35 pharma companies in India. The some basic points of the IPO are as follows
- The issue size is almost Rs.2000 crores which can be industry’s biggest IPO in the last decade.
- Chrys Capital is set to exit which has 16% stake in the company thorough the IPO.
- On February 10 the company filed the draft papers with SEBI and yet to confirm the offer date. Although market is expecting it within April 2017.
- The offer price band is yet to be confirmed.
- The company reported a consolidated net profit of Rs.129 crores on revenue of 370 crores for the six months ended 30th September, 2016.
Although all these IPOs are very attractive and contains both public and private sector companies, when comes to investments we need some logical thinking and informed decisions. IPOs are the best way for a company to raise funds for its business as well as it serves as a great opportunity for the investor to invest their money into some new companies with higher growth potential. More alternative gets available to the investors so that he/she can mobilize his/her money. Therefore, our only hope is that, the article may be of some help in achieving the same.