QIB | Business Upturn

Adani Enterprises FPO subscribed 85% on Day 3, QIB portion booked 97%

Aryan Jakhar — Tue, 31 Jan 2023 09:18:33 +0000

In the afternoon of January 31, the third and last day of bidding, Adani Enterprises received offers for 38.74 million shares against an offer size of 45.5 million shares, reflecting an 85 percent subscription.

This does not include the fully subscribed anchor section.

Retail investors have stepped back as the stock price has fallen below the FPO price band, bidding for only 10% of the shares reserved for them.

QIBs (qualified institutional buyers) are in the fore. They have bid on 12.44 million of the 12.8 million shares allotted to them. This represents a subscription rate of 97 percent.

Non-institutional investors have oversubscribed to the tune of 250 percent of the allotted amount. They bid for 24 million shares, compared to 9.6 million reserved. Meanwhile, employees have bid on 45 percent of the restricted shares.

On January 25, only days before the offer opened, anchor investors, who were among the qualifying institutional purchasers, subscribed for over Rs 6,000 crore in shares. IHC, one of the anchor investors, announced another $400 million investment on January 30 in a statement.

Adani group shares were battered last week when Hindenburg Research, an American short seller, accused the business of utilising tax havens and raised debt worries in a research. Adani Group disputed all claims in a 413-page reply.

The Rs 20,000-crore FPO was 1% subscribed at the conclusion of day one, January 27. The subscription stood at 3% on the second day.

The sale, which runs through January 31, has a price range of Rs 3,112-3,276 per share.

The funds will be used to support projects in the green hydrogen ecosystem, expand current airport facilities, and build new motorways by Adani Group’s flagship enterprise.

The earnings will also be used to repay some debt owed by the business and its subsidiaries (Adani Airport Holding, Adani Road Transport, and Mundra Solar).

Adani Enterprises shares recovered following a steep drop, rising 3.4 percent to Rs 2,976 on the BSE.

Zomato receives good response on the first day of IPO opening, QIB portion booked at 98%

Nishita Sharma — Wed, 14 Jul 2021 12:35:48 +0000

On Wednesday online food delivery giant Zomato’s opened its IPO at Rs 9,375 crore and received a strong response from retail investors.

The bidding issue crossed the halfway mark by 3 pm IST on the first day as reported by The Economic Times. Quoting data from the BSE and NSE, the report said that the Zomato IPO quota was subscribed 2.34 times by retail investors.

The portion reserved for QIBs was subscribed at 20 percent and quotas reserved for non-institutional investors and employees were subscribed 9 percent each.

The report added, Zomato issue had attracted bids for 39,98,37,165 shares and currently almost 56 percent of the total issue size of 71,92,33,522 equity shares. Ahead of the IPO, Zomato has now raised Rs 4,197 crore from 186 anchor investors.

As of March 2021, Zomato was previously present in 525 cities in India, with 3,89,932 active restaurant listings along with a presence in 23 countries outside India.

The brokerage from yes Securities advised the IPO on listing gains is, “The IPO is expected to generate a lot of interest given the company uniqueness, large opportunity size and some evidence of scale economies, but the valuations look really expensive on conventional parameters at 25x FY21 EV/sales versus 10x for global peers and 12x for Indian quick services restaurants, with the path to profitability also unclear.”

It added that “While the current frenzy should deliver some listing gains, we would await more clarity on capital allocation plan and also to provide a more nuanced fundamental view on the company.”

Zomato IPO to open on July 14 and close on July 16

Nishita Sharma — Sat, 10 Jul 2021 09:14:56 +0000

As per the current reports given today by Moneycontrol, it said that Zomato will be hitting its initial public offering next week. The IPO has valued at Rs 9,375 crore and is expected to open from July 14. It is said to be the second-largest IPO which is launched in the last 16 months after the SBI Card IPO, which stood at a valuation of Rs 10,355 crore in March 2020.

The Public Issue of IPO will comprise a public offer worth Rs 9,375 crore. This is broken down into a fresh issue that is valued at Rs 9,000 crore and an offer for sale worth Rs 375 crore with its current shareholder of Info Edge.

According to the report by Moneycontrol, the offer will open on July 14 and the bidding will be continued till July 16 as its closing issue date.

It also has the possibility of an anchor book opening, it will be one day prior to the public issue opening, the date of IPO listing will most likely to take place by July 27 according to Economic Times.

Investors can subscribe with a minimum bid of 195 equity shares or in multiples. The retail investors can bid for a capped number of 13 lots at the upper end of the price band of Rs 76 per equity share.

The objective of the issue of Zomato aims to use the net proceeds from the public issue to fund its organic and inorganic growth which is estimated to be around Rs 6,750 crore.

The Basis of Allotment for IPO will be seen in the finalization of the basic allotment which is most likely going to take commence by July 22.

In the Financial Year 2020, Zomato rose up to 105 percent. In Financial Year 2019 the cost only saw a rise of 47 percent. The food giant saw consolidated losses at the end of the financial year in March of 2020, which stood around Rs 2,385.6 crore.

As per the current report, the consolidated losses for Financial Year 2021 were Rs 816.43 crore against a revenue of Rs 1,993.78 crore. The down-trend in losses is credited to the impacts of the COVID-19 pandemic.