Asia Press Agency

Tag: IPO

  • Overwhelming Response to Net Avenue Technologies IPO

    Overwhelming Response to Net Avenue Technologies IPO

    Net Avenue Technologies’ initial public offering (IPO), which commenced on November 30, garnered extraordinary investor interest, closing with a subscription rate of over 511.10 times on the last day of bidding. The breakdown reveals a substantial appetite across investor categories, with retail subscriptions at 721.68 times, QIB at 61.99 times, and NII at an impressive 616.24 times, based on data from chittorgarh.com.

     

    The overwhelming response resulted in a staggering 1,93,81,04,000 applications against a modest offering of 37,92,000 shares on the third day of the IPO. This fervent demand was reflected in specific categories, with the retail segment subscribing 89.06 times, QIB at 0.41 times, and NII at 46.17 times by December 1, according to data sourced from Chittorgarh.com.

     

    The journey of Net Avenue Technologies IPO began on a robust note, witnessing a subscription rate of over 14 times on the first day. Noteworthy figures include the retail portion being booked 23.37 times, NII at 10.74 times, and QIB remaining unsubscribed on the initial day.

     

    Breaking down the specifics of the Net Avenue Technologies IPO, it comprises a public issue of 5,696,000 equity shares. The allotment includes 1,896,000 shares for retail investors, 1,080,000 for qualified institutional buyers, and 816,000 for non-institutional investors. The price band has been set at ₹16 to ₹18 per share, with a face value of ₹1 per share. The total issue size stands at 5,696,000 shares, aggregating up to ₹10.25 crore.

     

    The allocation strategy entails not more than 50% of the offer being reserved for QIB, a minimum of 30% for the retail portion, and a minimum of 15% for NII (HNI). Notably, the issue secured ₹2.91 crore from anchor investors on November 29, 2023.

     

    Net Avenue Technologies outlines its intention to utilize the net proceeds from the IPO for various purposes, including funding customer acquisition through marketing and awareness initiatives, addressing working capital requirements, fulfilling general corporate needs, and covering the expenses associated with the issue.

     

    Managing the IPO proceedings, Shreni Shares Limited acts as the book running lead manager, while Bigshare Services Pvt Ltd takes on the role of the registrar for the issue.

     

    In terms of the grey market scenario, the Grey Market Premium (GMP) for Net Avenue IPO currently stands at +11, indicating a premium of ₹11 in the grey market, as reported by investorgain.com. This signifies the willingness of investors to pay more than the issue price for Net Avenue shares.

     

    Taking into consideration the upper end of the IPO price band and the current GMP, the estimated listing price for Net Avenue shares is projected at ₹29 apiece. This reflects a significant 61% increase over the IPO price of ₹18, underscoring the strong investor confidence and anticipation surrounding the listing. The “Grey market premium” serves as a valuable indicator of investors’ readiness to pay a premium for shares, highlighting the optimistic sentiment prevailing in the market.

  • Tata Technologies Raises ₹791 Crore from Anchor Investors

    Tata Technologies Raises ₹791 Crore from Anchor Investors

    Tata Technologies, the engineering services company under the Tata Group, has successfully raised ₹791 crore from 67 investors through an anchor book, just a day before its highly anticipated Initial Public Offering (IPO) opens for bidding. This marks a significant development as it hits the upper limit of the ₹475-500 price range set by the company for the IPO.

     

    In a filing to exchanges, Tata Technologies stated, “the company in consultation with the book running lead managers has finalised allocation of 1,58,21,071 equity shares to anchor investors, at a price of ₹500 per share.” The IPO, scheduled to open on November 22, will remain open for bidding until November 24.

     

    This IPO is particularly noteworthy as it represents the first public offering from a Tata Group company in almost two decades. The company aims to raise ₹3,042.51 crore through this IPO, which is entirely an offer for sale (OFS) in nature. Tata Technologies has reserved 20.28 lakh equity shares for its employees and 60.85 lakh shares for Tata Motors shareholders. The net issue of the IPO, excluding the portions allocated to employees and shareholders, constitutes the overall offering.

     

    Qualified institutional buyers (QIBs) have been allocated 50% of the total offer size, with 15% earmarked for high net worth individuals (HNIs). The remaining 35% is set aside for retail investors, providing a diverse participation opportunity in the IPO.

     

    Market analysts are closely watching the IPO, noting that Tata Technologies shares are trading at a substantial 70% premium in the grey market, which serves as an informal platform for trading IPO shares until their official listing. Despite volatile trends in the market, the grey market premium (GMP) for Tata Technologies IPO remains steady at ₹351, reflecting sustained investor interest.

     

    The IPO allotment date for Tata Technologies is expected on November 27, 2023, while the listing date is anticipated to be on November 29, 2023.

     

    Arihant Capital has given an ‘apply’ recommendation for the public offer. They highlight Tata Technologies’ diverse services, including IT consultancy, SAP implementation, and CAD/CAM engineering and design consultancy. The revenue breakdown shows a robust mix, with approximately 80% from services, 11% from products, and 9% from education.

     

    Strong partnerships with industry leaders like Dassault and Siemens, coupled with the use of Microsoft AZURE products, position Tata Technologies for global expansion. Recent empanelment by Airbus signals significant growth potential for the company. The revenue and profit after tax (PAT) of Tata Technologies have demonstrated a compound annual growth rate (CAGR) of 36% and 62%, respectively, from FY21 to FY23. In the first half of FY24, there was a 34% and 36% year-on-year growth in revenue and PAT.

     

    Arihant Capital suggests that Tata Technologies has outpaced competitors such as Tata Elxsi, L&T Technologies, and KPIT Technologies in revenue CAGR over the last three years. At an upper band valuation of ₹500, the issue is valued at a price-to-earnings (PE) ratio of 32.5x based on FY23 earnings per share (EPS). The recommendation encourages investors to subscribe to the IPO for potential short-term listing gains as well as long-term investment prospects.

  • ASK Automotive’s IPO Receives Anchor Investment of ₹250 Crore

    ASK Automotive’s IPO Receives Anchor Investment of ₹250 Crore

    ASK Automotive, a leading player in the auto ancillary sector, has secured an impressive investment of over ₹250 crore from anchor investors just a day before the commencement of its initial public offering (IPO) on November 7. In a regulatory filing, the company revealed the names of the 25 investors who took part in the anchor book, along with 5 mutual funds that applied through 6 different schemes.

     

    The IPO Committee of ASK Automotive, in collaboration with the Book Running Lead Managers to the Offer, concluded the allocation of 88,71,416 Equity Shares to Anchor Investors. These shares were allocated at an Anchor Investor allocation price of ₹282 per Equity Share, including a share premium of ₹280 per Equity Share.

     

    Among the notable anchor investors in the list are esteemed names such as Goldman Sachs, Neuberger Berman Investment Funds and Emerging Markets Equity Trust, Morgan Stanley, Florida Retirement System, Copthall Mauritius Investment, BNP Paribas Arbitrage, Integrated Core Strategies, Societe Generale, and Edelweiss Trusteeship. Additionally, the anchor investors’ roster includes prominent entities like SBI Life Insurance Company, ICICI Prudential Life Insurance Company, ICICI Prudential Mutual Fund, Nippon Life India, Bajaj Allianz Life Insurance Company, Tata Mutual Fund, Canara Robeco Mutual Fund, and Abakkus Diversified Alpha Fund.

     

    The ASK Automotive IPO subscription will commence on November 7, with an IPO price band set within the range of ₹268 to ₹282 per equity share, each having a face value of ₹2. This equates to a floor price that is 134 times the face value and a cap price that is 141 times the face value.

     

    When assessing the price-to-earnings (P/E) ratio based on the diluted earnings per share for the fiscal year 2023, it stands at 43.37 times the floor price and 45.63 times the cap price. The IPO lot size for ASK Automotive is 53 equity shares and its multiples.

     

    ASK Automotive Ltd specializes in advanced braking systems, precision solutions for manufacturing lightweight aluminum components, the assembly of wheels for two-wheeler original equipment manufacturers (OEMs), and the production of safety control cables. The company’s extensive service offerings cater to a diverse range of sectors, encompassing both the automotive and non-automotive industries.

     

    The strong response from anchor investors underscores the market’s confidence in ASK Automotive and its growth potential, setting the stage for a promising IPO launch.

  • Akasa Air Delays IPO and Listing Plans Until the End of the Decade

    Akasa Air Delays IPO and Listing Plans Until the End of the Decade

    Akasa Air, one of the latest players in the Indian domestic aviation sector, has adjusted its IPO and stock listing plans, pushing them beyond the previously anticipated date of 2027. According to the airline’s CEO, Vinay Dubey, a listing by the end of this decade is a “much more realistic goal.”

     

    Dubey explained his perspective, stating, “I don’t think 2027 will be possible for a listing, but the listing is something that we definitely want to do. We may have to gather a little more history before we can list. Certainly, listing or an IPO is something that we would desire.”

     

    At present, only two Indian airlines, IndiGo and SpiceJet, are listed on the country’s stock exchanges. The plans of GoAir, another domestic carrier, to launch an IPO were canceled, and the airline has encountered financial difficulties that have disrupted its operations since May of this year.

     

    Akasa Air, which commenced operations in mid-2022, currently offers over 750 flights each week across 16 routes, connecting major cities such as Mumbai, Delhi, Bengaluru, and Ahmedabad.

     

    The airline is actively preparing to launch international services by the end of the fiscal year 2024 and is poised to expand its aircraft fleet accordingly. Currently, Akasa operates a fleet of 20 aircraft, with plans to place a significant aircraft order by the end of 2023.

     

    In preparation for its overseas operations, Akasa Air has secured international flying rights from key Middle East aviation markets, including Saudi Arabia, Qatar, and Kuwait.

     

    CEO Dubey commented on the airline’s growth strategy, saying, “We are in growth mode. We should have two more aircraft delivered before the end of this calendar year. We will exit the financial year with 25 aircraft. We will exit the following financial year with approximately 40 aircraft.”

     

    Dubey also dismissed reports suggesting that the family of the late ace investor Rakesh Jhunjhunwala is considering selling its stake in Akasa Air, calling such rumors “absurd.” He emphasized that the Jhunjhunwala family is committed to a long-term investment in the airline.

     

    As per the most recent official data, Akasa Air holds a domestic market share of 4.2% and served 5.17 lakh passengers in the previous month. The airline’s strategic approach indicates a strong focus on expansion and continued growth in the Indian aviation sector.

  • Northern Arc Capital Appoints ICICI Securities for ₹2K Crore IPO

    Northern Arc Capital Appoints ICICI Securities for ₹2K Crore IPO

    Chennai-based non-banking financial company (NBFC), Northern Arc Capital Ltd, has taken a significant step toward its ₹2,000 crore initial public offering (IPO) by appointing ICICI Securities. Additionally, it is likely to bring Citi and Axis Capital on board as managers for the IPO, according to sources familiar with the matter.

     

    The company initially filed its draft prospectus with the Securities and Exchange Board of India (Sebi) in July 2021 but postponed its plans due to market conditions. At that time, it had engaged IIFL Securities, Axis Capital, SBI Capital Markets, and Credit Suisse Securities for a fresh issue of ₹300 crore and an offer for sale of up to 36,520,585 equity shares.

     

    The company is now planning to file a revised draft prospectus with Sebi by the end of November, with a target of achieving a public listing by the end of the current financial year.

     

    Northern Arc Capital is backed by a consortium of equity investors, including Sumitomo Mitsui Banking Corp, LeapFrog, Accion, Augusta Investments (Affirma Capital), IIFL, Dvara Trust, and Eight Roads (the proprietary arm of Fidelity). It previously raised $50 million through a bond issuance from FMO, the Dutch entrepreneurial development bank.

     

    Northern Arc specializes in providing loans to various segments, including micro, small, and medium businesses, households, financial institutions, self-employed individuals, entrepreneurs, and emerging businesses. Leveraging technology and data, the company offers diverse solutions to meet the credit requirements of these segments and small businesses.

     

    Together with its asset management arm, which oversees seven alternative investment funds, Northern Arc manages assets totaling over ₹9,000 crore. The company reported a strong 33% year-on-year growth in consolidated net profit in FY23, reaching ₹242 crore, up from ₹182 crore in FY22. Its total income from operations on a consolidated basis grew by an impressive 44% annually, reaching ₹1,305 crore, compared to ₹909 crore in FY22.

     

    The move to appoint ICICI Securities and potentially Citi and Axis Capital as managers for the IPO comes at a time when several NBFCs are going public. In 2023, the financial sector has witnessed several NBFC listings, with varying responses from the market. SBFC Finance Pvt. Ltd experienced a 44% premium upon listing, while Fusion Microfinance and Five Star Business witnessed more subdued responses. Northern Arc Capital’s forthcoming IPO will be closely watched in this dynamic financial landscape.

  • Hero FinCorp Shortlists Investment Banks for ₹4,000 Crore IPO

    Hero FinCorp Shortlists Investment Banks for ₹4,000 Crore IPO

    Hero FinCorp, the financial services subsidiary of Hero MotoCorp, India’s prominent two-wheeler manufacturer, has taken a significant step toward launching a mega initial public offering (IPO) in 2024. The targeted size of this IPO is approximately ₹4,000 crore, according to reports from Moneycontrol, although it may fluctuate depending on market conditions and investor share sale strategies.

     

    This large-scale listing has garnered the support of eight distinguished investment banks, who will serve as advisors in this endeavor. The selected banks include JM Financial, Bofa Securities, Jefferies, ICICI Securities, HSBC Securities, UBS, SBI Capital, and HDFC, as confirmed by official sources.

     

    The proposed IPO will involve a combination of primary and secondary share issuance. This approach will not only raise essential growth capital but also provide an exit strategy for some investors, aligning with Hero FinCorp’s strategic financial goals.

     

    Hero FinCorp stands as one of India’s rapidly expanding non-banking financial companies (NBFCs) and has earned recognition for disbursing loans at a rate of one every 30 seconds. In terms of ownership, Hero MotoCorp holds approximately 40% of Hero FinCorp, while the Munjal family, who are the promoters, owns around 35-39% of the company. The remaining shares are in the hands of private equity investors such as Credit Suisse, Apollo Global, and a selection of Hero MotoCorp dealers.

     

    In terms of stock performance, shares of Hero MotoCorp demonstrated resilience on Tuesday, closing 0.37% higher at ₹3,171.80 on the BSE. Over the last year, the stock has surged by 25%, while it has exhibited a 16% increase in the current year, 2023.

     

    This stock’s performance over the past year has seen positive returns for seven out of ten months in the current calendar year. The three months with negative returns include August (-9%), March (-3%), and February (-12.5%). In contrast, the stock achieved a 10% increase in July, representing its highest monthly surge. As of October, the stock has already gained 4%, following a nearly 5% increase in September.

     

    The upcoming Hero FinCorp IPO is set to be a significant event in India’s financial sector, attracting the expertise of eight leading investment banks. As the company advances its IPO plans, its continued growth and strong market performance are expected to drive investor interest.

     

    Hero MotoCorp, one of India’s leading two-wheeler manufacturers, and its financial services arm, Hero FinCorp, are poised for a significant IPO in 2024, with the targeted size set at around ₹4,000 crore. A total of eight renowned investment banks have been selected to serve as advisors in this process. While the offering will combine both primary and secondary share issuance, the final size of the IPO may vary based on market conditions and investor strategies.

     

    The selected investment banks for this substantial listing include JM Financial, Bofa Securities, Jefferies, ICICI Securities, HSBC Securities, UBS, SBI Capital, and HDFC. This IPO aims to generate growth capital and offer an exit opportunity for certain investors, supporting Hero FinCorp’s financial objectives.

     

    In terms of stock performance, Hero MotoCorp’s shares exhibited resilience as they closed 0.37% higher at ₹3,171.80 on the Bombay Stock Exchange (BSE) on Tuesday. Over the past year, the stock has shown remarkable growth, posting a 25% increase, and it has already surged by 16% in 2023.

     

    The performance of Hero MotoCorp’s stock throughout the year has been characterized by positive returns in seven out of ten months in the current calendar year. The remaining three months recorded negative returns, particularly in August (-9%), March (-3%), and February (-12.5%). Conversely, the stock achieved a substantial 10% increase in July, representing its highest monthly gain. As of October, the stock has already risen by 4%, following an impressive 5% gain in September.

  • Emcure Pharmaceuticals Revives IPO Plans To Raise $500 Million

    Emcure Pharmaceuticals Revives IPO Plans To Raise $500 Million

    Emcure Pharmaceuticals, a prominent player in the pharmaceutical industry, is gearing up to reinitiate its initial public offering (IPO) in 2024, with aspirations to raise between $400 million and $500 million. This decision marks a revival of its listing plans, which were put on hold in 2022 due to the global market turbulence caused by Russia’s invasion of Ukraine.

     

    According to sources cited by Reuters, Emcure Pharmaceuticals has engaged the services of esteemed investment banks such as JP Morgan, Jefferies, and Kotak for its IPO preparations. The company is eyeing a valuation of approximately $3 billion when it goes public.

     

    As part of the IPO preparations, it has been reported that Bain Capital, which holds a 13% stake in Emcure Pharmaceuticals, is planning to divest its ownership in the company. This divestment is expected to be a significant component of the IPO, potentially contributing to the overall funds raised.

     

    The decision to revive the IPO plans aligns with the positive growth prospects within the pharmaceutical sector in India. The Indian pharmaceutical market, currently valued at $50 billion, is projected to witness substantial expansion, reaching an estimated valuation of $130 billion by 2030. This anticipated growth is driven by increasing health consciousness among the population and growing demand for pharmaceutical products in the country.

     

    Furthermore, the pharmaceutical industry in India is experiencing a surge in merger and acquisition activity, characterized by historically high valuations of pharmaceutical companies. For instance, Torrent Pharma is currently in negotiations to acquire its larger competitor, Cipla, in a potential deal worth around $7 billion. If successful, this deal would represent the largest pharmaceutical transaction ever in India.

     

    Emcure Pharmaceuticals aims to capitalize on the rising demand for pharmaceutical products in India, as well as the increasing awareness of healthcare among its citizens. The company had originally planned to go public in 2022, with ambitions to raise approximately $672 million. While it had received regulatory approval for the IPO, the decision to postpone the listing was influenced by the heightened market volatility resulting from Russia’s invasion of Ukraine.

     

    The revival of Emcure Pharmaceuticals’ IPO plans signals its confidence in the stability of the financial markets and its readiness to tap into the growing opportunities within the pharmaceutical industry. As it moves forward with its listing preparations, the company anticipates a positive reception from investors eager to participate in India’s expanding healthcare sector.

  • Inspire Films to Hit the Street with a 21.20 Cr IPO

    Inspire Films to Hit the Street with a 21.20 Cr IPO

    Inspire Films Limited, a prominent Indian media production company, is set to launch an IPO comprising 35,98,000 shares at a price of Rs. 59 per share, with a face value of Rs. 10 each, amounting to a total of Rs. 21.22 crores. The minimum investment lot comprises 2,000 shares. The allocation of shares includes 10,24,000 shares for anchor investors, 6,82,000 shares for Qualified Institutional Buyers (QIBs), 5,14,000 shares for High-Net-Worth Individuals (HNIs), 11,98,000 shares for retail investors, and 1,80,000 shares for market makers.

     

    The anchor allocation is scheduled for September 22nd, with the IPO subscription window open from September 25th to 27th. Following the IPO, the companys shares will be listed on the NSE Emerge platform on 9th of October 2023. Narnolia Financial Services Limited acts as the book running lead manager, while Maashitla Securities Private Limited serves as the registrar.

     

    The IPO proceeds are aimed at achieving three critical objectives. Firstly, it intends to cater to the companys working capital requirements, ensuring operational stability. Secondly, the funds raised will be directed toward general corporate purposes, facilitating strategic growth and development. Lastly, a portion of the proceeds will be allocated to cover the expenses related to the offering, ensuring a seamless and cost-effective process.

     

    Inspire Films Limited is a prominent player in content creation and distribution, specializing in television and digital content across diverse broadcasting channels, digital platforms, and applications. The companys comprehensive approach spans project financing, talent acquisition, location scouting, set design, budget management, and meticulous oversight of both production and post-production processes.

     

    Inspire Films envisions a world where exceptional creative talents converge to craft timeless characters and unforgettable narratives. Their ultimate mission is to lead the industry in effectively conveying ideas through captivating content, transforming intricate concepts into clear and compelling stories that engage and inspire global audiences.

     

    Operating on a B2B model, Inspire Films excels across three key business verticals. Firstly, it is deeply entrenched in television, creating content for esteemed linear broadcast channels such as Star Plus, Zee TV, Colors TV, Sony, and others, with a primary focus on the Hindi General Entertainment Channels (GEC) segment. Moreover, Inspire Films has earned a solid foothold in the digital content domain, collaborating with major Over-The-Top (OTT) platforms like Amazon Mini, Disney+ Hotstar, SonyLiv, MX Player, and Jio Cinema, delivering captivating content to digital audiences.

     

    Expanding their horizons further, Inspire leverages its content creation expertise to cater to regional languages, encompassing Tamil, Telugu, Marathi, Odia, and more. This diversified approach allows them to engage a wide spectrum of audiences, delivering quality content tailored to their preferences.

     

    With a robust portfolio, Inspire Films has spearheaded numerous successful projects, including “Dear Ishq” for Disney+ Hotstar, “Tu Zakhm Hai” for MX Player, and a plethora of acclaimed shows like “Ek Veer Ki Ardaas Veera,” “Sadda Haq,” “Ishq Main Marjawan,” “Tere Ishq Main Ghaayal,” among others. Their commitment to delivering excellence in content creation firmly establishes their position as a noteworthy player in the ever-evolving world of entertainment.

     

    On the financial front, the company has shown spectacular growth. Its revenue from operations for FY23 stood at Rs. 4,883.16 lakhs, a significant increase from Rs. 3,814.77 lakhs for FY22 and Rs. 1,938.39 lakhs for FY21. EBITDA for FY23 reached Rs. 713.58 lakhs, compared to Rs. 132.60 lakhs for FY22 and Rs. 52.45 lakhs for FY21. Profit After Tax (PAT) for FY23 was an impressive Rs. 404.82 lakhs, contrasting with FY22s Rs. 25.92 lakhs.

     

    Beyond Dreams Entertainment Private Limited and Mr. Yash A Patnaik are the esteemed promoters of the company, reflecting their pivotal role in driving its continued success and growth trajectory.

  • Jupiter Life Line Hospitals Raises ₹261 Crore

    Jupiter Life Line Hospitals Raises ₹261 Crore

    Jupiter Life Line Hospitals, a multi-specialty hospital chain operator, has successfully raised ₹261 crore from anchor investors just ahead of its Initial Public Offering (IPO), which opened for subscription today, Wednesday.

     

    The company allocated 35.47 lakh equity shares to 39 entities at ₹735 apiece, which coincides with the upper end of the price band. Notable anchor investors include the Singapore Government, Abu Dhabi Investment Authority, Goldman Sachs, Fidelity Funds, Nomura, HDFC Mutual Fund (MF), Nippon India MF, Axis MF, Kotak Mahindra MF, Aditya Birla Sun Life MF, SBI Life Insurance Company, and HDFC Life Insurance, among others.

     

    Jupiter Life Line Hospitals’ IPO consists of a fresh issue of equity shares worth ₹542 crore and an Offer For Sale (OFS) of 44.5 lakh equity shares by promoter group entities and other shareholders.

     

    The price band for the Jupiter Life Line IPO has been set at ₹695-735 per share, with the offer closing on September 8.

     

    Proceeds from the fresh issue will be utilized for debt retirement and general corporate purposes, as stated by the company.

     

    ICICI Securities, Edelweiss Financial Services, and JM Financial are acting as the book-running lead managers for the IPO. The equity shares are intended to be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

     

    Jupiter Life Line Hospital currently operates in Thane, Pune, and Indore under the ‘Jupiter’ brand, with a total bed capacity of 1,194 as of December 2022. The company is also in the process of developing a multi-specialty hospital in Dombivli, Maharashtra.

     

    Prior to the IPO, Jupiter Life Line Hospitals had conducted a pre-IPO placement, raising ₹123 crore by issuing approximately 16.7 lakh shares at a price of ₹735 each to investors.

     

    The successful anchor investment demonstrates strong investor interest in the healthcare sector and the potential growth prospects for multi-specialty hospital chains in India.

  • Samhi Hotels and Motisons Jewellers Get SEBI’s Nod for IPO

    Samhi Hotels and Motisons Jewellers Get SEBI’s Nod for IPO

    Capital markets regulator SEBI (Securities and Exchange Board of India) has given the green light to two companies, Samhi Hotels and Motisons Jewellers, to raise funds through initial public offerings (IPOs). SEBI’s approval implies that the companies can proceed with their plans to go public.

     

    Samhi Hotels, a hospitality company, has proposed an IPO comprising a fresh issue of equity shares valued at ₹1,000 crore and an Offer for Sale (OFS) of 90 lakh equity shares by existing shareholders. The OFS includes the sale of 42.36 lakh equity shares by Blue Chandra Pte Ltd, up to 24.78 lakh equity shares by Goldman Sachs Investments Holdings (Asia) Ltd, up to 15.47 lakh equity shares by GTI Capital Alpha Pvt Ltd, and up to 7.39 lakh equity shares by the International Finance Corporation. This OFS represents a partial exit by existing shareholders to comply with listing regulations.

     

    The proceeds from the fresh issue, amounting to ₹750 crore, will be utilized by Samhi Hotels for debt repayment and general corporate purposes. As of February 28, 2023, the company owns a portfolio of 3,839 key rooms across 25 operating hotels in 12 major urban consumer hubs in India, including Bengaluru, Hyderabad, the National Capital Region (NCR), Pune, Chennai, and Ahmedabad. Samhi Hotels is the largest owner of Fairfield by Marriott and Holiday Inn Express brands in India and operates under long-term management contracts with global hotel operators such as Marriott, Hyatt, and IHG.

     

    On the other hand, Jaipur-based jewelry retail company Motisons Jewellers plans to issue 3.34 crore fresh equity shares in its IPO, with no Offer for Sale component. The net proceeds from the IPO will be utilized for repaying existing borrowings from scheduled commercial banks, funding working capital requirements, and general corporate purposes.

     

    While Samhi Hotels had previously filed IPO papers with SEBI in September 2019 and obtained regulatory approval in November 2019, the IPO was not launched at the time. Motisons Jewellers had initially filed preliminary IPO papers with SEBI in September 2022, but the regulator returned the draft papers in December.

     

    Both companies intend to list their shares on the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) after completing their respective IPOs, joining the ranks of publicly-traded entities in the Indian capital markets.

  • Stanley Lifestyles Ltd. Files for ₹200 Crore IPO

    Stanley Lifestyles Ltd. Files for ₹200 Crore IPO

    Stanley Lifestyles Ltd., a prominent luxury sofa and home decor company, has taken a significant step towards expansion by filing draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise ₹200 crore.

     

    The proposed IPO will consist of a fresh issue of shares valued at ₹200 crore, and an offer-for-sale (OFS) of up to 9.13 million shares by existing shareholders, including the promoter group.

     

    According to the company’s filing, founders Shubha Sunil and Sunil Suresh intend to sell up to 1.18 million shares in the OFS, while Oman India Joint Investment Fund II plans to offer up to 5.54 million shares. Other shareholders, namely Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati, will sell up to 1 million shares and 225,000 equity shares, respectively.

     

    As per the draft red herring prospectus (DRHP), the two promoters currently hold 33.68% each in Stanley, with Oman India Joint Investment Fund owning 26.86%. Kiran Bhanu and Sridevi Venkata hold 3.77% and 0.61%, respectively.

     

    Notably, in 2018, the Oman India Joint Investment Fund acquired a 26% stake in Stanley, and in 2019, the company received an additional ₹100 crore investment from the fund.

     

    Stanley Lifestyles Ltd. has reported robust financial performance, with a 43% year-on-year increase in consolidated revenue to ₹419 crore for fiscal year 2023, primarily driven by higher retail sales. Net profit for the same period rose by 50.65% to ₹34.98 crore.

     

    The company plans to utilize ₹90.13 crore of the IPO proceeds for expanding its store network, while approximately ₹39.99 crore will be allocated for opening anchor stores. Additionally, around ₹10.04 crore will go towards renovating existing stores, and ₹8.18 crore will be used to fund capital expenditure plans, purchase new equipment for the company and its subsidiary, SOSL, and meet general corporate requirements.

     

    Founded in 2011, Stanley Lifestyles operates two manufacturing facilities in Bengaluru and maintains a network of 55 stores across India. The company specializes in the production and sale of luxury furniture, including sofas, armchairs, kitchen cabinets, beds, mattresses, and pillows. The IPO is expected to fuel the company’s expansion efforts and further establish its presence in the luxury furniture and home decor market.