Subscription | Business Upturn

Netflix cuts prices in some countries to boost subscriptions

Aryan Jakhar — Fri, 24 Feb 2023 01:07:05 +0000

Netflix Inc. said on Thursday that it has reduced the cost of its subscription plans in several regions in order to maintain subscriber growth in the face of fierce competition and tight consumer spending.

The stock dropped over 5%, behind the wider market and on track for its worst day in more than two months.

The streaming sector has witnessed severe competition in the last year as a pandemic-driven boom fades and customers cut back on spending due to recession worries, prompting companies to reconsider their strategy.

According to the Wall Street Journal, which broke the story first, the price reduction occurred in nations throughout the Middle East, Sub-Saharan Africa, South America, and Asia.

The discounts apply to specific tiers of Netflix in those markets, with the cost of a membership being slashed in half in some circumstances, according to the Journal.

Netflix, which operates in over 190 countries, has been aiming to expand its presence in new foreign areas as the marketplaces in the United States and Canada become saturated. It announced steps earlier this month to restrict password sharing for accounts on its streaming platform.

After losing customers in the first half of 2022 as rivals like Paramount+ and Disney+ gained subscribers, the business added roughly 7.6 million in the fourth quarter.

Nonetheless, average income per membership fell across regions in the final three months of 2022.

“We’re always exploring ways to improve our members’ experience.” “We can confirm that we are updating the pricing of our plans in certain countries,” a spokesperson for the company said.

The spokesperson did not provide any further information on the price decreases.

Ami Organic IPO to open for bidding on September 1: Details here

Sneha Sengupta — Mon, 30 Aug 2021 05:54:32 +0000

The chemical manufacturing company with an overall public issue of ₹569.64 crore is all set to step into Dalal Street on 1st September 2021. The public issue will commence its bidding with effect from September 1 till September 3, the last for its subscription. According to the company’s promoters, Ami Organics IPO price band will range from ₹603 to ₹610. The company’s shares is can be availed today at a premium rate of ₹50 in the grey market.

Following are some specifications of Ami Organics IPO:

Ami Organics IPO GMP Ratings

At ₹50 the premium of the company’s share was decided to be dispatched in the grey market today. Therefore the grey market may certainly get a ₹50 listing gain from this public issue compared to the issue price of ₹603-₹610. Meanwhile, today Ami Organics IPO GMP dipped against its yesterday price of ₹68. However, market observers said the pricing was deterred due to the effect of non-trading days but are now expecting and estimating an increase on Monday and Tuesday.

Other details:

– Ami Organics IPO price: As decided by the promoters, it will range from ₹603 to ₹610.

– Ami Organics IPO size: With a ₹569.64 crore public issue including ₹200 crore, it will also comprise an Offer for Sale (OFS) of ₹369.64 crore.

– Ami Organics IPO allotment date: The allotment of shares will commence from 8th September 2021.

IPO order size: A lot can comprise at least 24 shares of the company. A bidder can avail of a minimum of one lot and a maximum of 13 lots.

Investment dimension: A bidder can bid for atleast one lot and maximum upto 13 lots with an investment of at least ₹14,640 ( ₹610 x 24) and maximum ₹1,90,320 ( ₹610 x 24 x 13).

Listing date: Company’s shares will be listed at both NSE and BSE. However, the listing date for the Indian market is tentative on 14th September 2021.

Chemplast Sanmar IPO: Issue subscribed 10% on Day 1 of offering

Sneha Sengupta — Tue, 10 Aug 2021 08:45:50 +0000

Chemical maker Chemplast Sanmar received a public offer subscription at a 10 per cent rate on August 10, at the first bidding. Investors gave away bids for 38.01 lakh equity shares compared to the offered size of 3.99 crore shares, the subscription data displayed.

The offer size has been decreased to 3.99 crore equity shares from 7.11 crore equity shares just after the company retrieved Rs 1732.5 crore from other investors at a range of Rs 530-541 per equity share. Retail investors purchased 50 per cent of shares of their reserved chunk, whereas the non-institutional investors’ portion was subscribed at 2 per cent. The reserved portion of eligible institutional buyers of 2.17 crore shares got bids for 1,836 equity shares.

Chemplast Sanmar’ s primary aim is to draw Rs 3,850 crore through the issue of speciality paste polyvinyl chloride (PVC) resin and custom manufacturing materials for pharmaceutical, agro-chemical and fine chemicals areas. This offer consists of a fresh issue of Rs 1,300 crore with an offer for sale of Rs 2,550 crore.

“On the upper price band of Rs 541 and EPS of INR 30.6 for FY21, the P/E multiple works out to be 17.6x, which is at a significant discount compared to the industry average of around 31x. A leading manufacturer dominates primarily in South India with its efficient operational network and logistics,” added KRChoksey Research.

“A healthy market share, limited opportunity for new entrants and stringent performance requirements by customers in the industry offers a positive outlook for Chemplast in the medium term,” the brokerage indicated.

“Based on a strong business model with long-tenured customer relations and discounted valuation compared to its peers, we recommend a ‘subscribe’ rating for listing gains,” it added.

Developments related to pledged shares—100 per cent equity stake of CCVL—and viability of fundamental performance would be monitored in the near-term, it ascertained.

After battling the heavy winds, Chemplast’s overall revenue resulted at Rs 3,798.73 crore with a profit at Rs 410.24 crore in FY21, which rose the revenue of Rs 1,257.65 crore along with a profit of Rs 46.12 crore in FY20.

“Similarly, Chemplast and CCVL can both take advantage of co-location and common raw material sourcing. The management is focusing to keep these both businesses distinct to pursue independent growth opportunities,” Choksey said.

According to the latest issued by the IPO Watch and IPO Central, the grey market investors were trading Chemplast Sanmar’s shares at a premium of Rs 25-35 or 4.6-6.5 per cent in relation to the issue price of Rs 541.

CarTrade Tech IPO: Issue subscribed 6% on Day 1, while retail portion booked 13%

Sneha Sengupta — Mon, 09 Aug 2021 08:43:17 +0000

On August 9, the initial public offering of CarTrade Tech, a multi-channel auto platform received a good 6 per cent subscription within few hours of its commencement with investors bidding for 8.37 lakh equity shares in comparison to the IPO size worth Rs 1.29 crore equity shares, as claimed by the Exchange data.

Moreover, retail investors too contested on the same grounds and received a whopping 13 per cent booking rate of their reserved chunk. Non-institutional investors had bid for 3,915 equity shares compared to their reserved portion of 27.79 lakh shares. But the institutional buyers are yet to offer their bids.

On August 6, CarTrade Tech has degraded the offered size to 1.29 crore shares from 1.85 crore shares after receiving Rs 900 from the anchor investors a day before the issue commencement.

The company plans to place Rs 2,998.5 crore through the latest issue to make it an absolute offer package for sale by interested investors and shareholders. The price band for the offer is uniformly set at Rs 1,585-1,618 per share.

Established in April 2000, Cartrade is a multi-channel auto platform with a great reach of vehicle types and value-added services. Its platforms function under the umbrella of various brands— CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. CarWale and CarTrade platforms help the customer to purchase or sell new cars whereas BikeWale aids in the purchase and sale of two-wheelers. Shriram Automall allows the sales of pre-owned vehicles and farm & construction instruments. CarTrade Exchange is an online auction platform for vehicles, while Adroit Auto provides the facility of vehicle inspection and valuation reports to various financial institutions. AutoBiz facilitates Customer Relationship Management (CRM) and second-hand car Enterprise Resource Planning (ERP) solutions to original equipment manufacturers (OEMs) such as BMW India and MG Motor India.

“In terms of valuations, the post-issue FY2021 PE works out 73.4x to (at the upper end of the issue price band). There are no listed peers for comparison. However, the company is doing better compared to unlisted peers in terms of financial,” added Amarjeet Maurya, AVP-Mid Caps at Angel Broking.

CarTrade Tech shares were trading in the grey market at a premium range of Rs 400-450, according to the IPO Watch and IPO Central data with a trading price of Rs 2,018-2,068, 25-28 per cent above the issue price band of Rs 1,618.

RailTel Corporation IPO subscribed 6.55 times as the grey market dives

Sanah Shah — Thu, 18 Feb 2021 05:43:53 +0000

RailTel Corporation of India’s IPO of Rs 820 crore has observed robust retail participation at bids summing up to 11 times the issue size until now. The subscription will close on Thursday, 18th February.

The premium that the unlisted shares of the company were profiting from in the grey market has slipped in the past few days. Analysts have largely been positive on the issue, as the Mini Ratna firm is debt-free and has been a consistent dividend payer. The IPO is seeking a just valuation of 21.4 times PE on an FY20 trailing basis at the upper limit of Rs 93-94 price band, they said.

Abhay Doshi, a Gujarat-based dealer of unlisted shares who also follows the grey market, said the stock was dominating a premium of Rs 12-14 on Thursday 18th February, which was way lesser than the Rs 47 premium it was benefitting a few days ago.

“The prospects of the company are very good, but it looks like sentiment has changed due to dull participation of QIB and HNI categories till now,” the founder at UnlistedArena.com said.

Till the end of 2nd Day of the IPO, the issue was subscribed 6.55 times with the retail quota getting bids going up to 10.55 times the limit. The qualified institutional buyers’ quota was subscribed 2.97 times and the non-institutional investor category 2.63 times the limit. The portion reserved for employees was subscribed 1.85 times.

The grey market premium still suggests 13-15% rise over the upper limit of the IPO price band.

Fundamental analysts are positive about the company’s growth prospects, though reported sales and profit growth over the recent years have been in single digits. Geojit has a ‘subscribe’ rating on the issue and cites increasing data usage, the government’s digital India initiatives and further diversification plans.

RailTel is one of the mega neutral telecom infrastructure providers in India. Last reported on 31st January, the company had the exclusive right of way along 67,415 route km connecting 7,321 railway stations for laying optical fibre cable. RailTel offers leased line and VPN facilities and also provides IP-1 services.

The state-run company ensures strategic and important network infrastructure is given to the government and some states. The company is also an applying partner for the Bharat Net project to produce an optical fibre cable-based broadband infrastructure.

During FY18-20, RailTel’s revenues grew at a compounded annual growth rate of 7.5% at Rs 1,128 crore in FY20. Over the same period, EBIDTA grew at a CAGR of 12.4% to Rs 334 crore in FY20. Net profit increased by 2.6% CAGR during the period to Rs 141 crore in FY20. Operating margin was more than 28% while the dividend payout ratio was 46-49% for the same period.

One of the main negatives includes the company’s heavy reliance on government entities and, thus, a concentration risk provided that 23.8% of its revenues come from only three high profile customers. It is present in a highly regulated industry, which is a cause of worry.

Choice Broking said, “Considering the futuristic service & growth plans of the Indian Railways and RailTel’s ability to monetise its existing assets through subscription plans and co-sharing with private operators, we feel that fundamentals are positive for the company. Thus, we assign a ‘subscribe’ rating for the issue,.”

Niral Shah of Samco Securities stated that the issue is fairly priced. “It has been commanding a good grey market premium indicating the offer will sail through but keeping the risks in mind, we recommend investors to subscribe for listing gains only,” he said.

Indus Towers (formerly Bharti Infratel), a listed company in the mobile communications infrastructure sector, has a P/E multiple of around 15 and an EV/EBITDA of 3. Other railway infrastructure stocks such as Ircon International, RITES and RVNL are trading at an average P/E of 9.5 times and the fresh The railway IPO, IRFC, had a poor market launch.

Astha Jain of Hem Securities termed the demanding valuations as ‘fully priced,’ but said that the industry dynamics of telecom and telecom data services — where the broadband market is advancing pace with enterprise data services presents huge potential.

“The edge which company holds over its peers in terms of financial performance makes this issue attractive to deploy funds in. Hence we recommend investors to subscribe to the issue for the short & long term,” she said.

Prospective Investors can subscribe to the IPO by purchasing a minimum of one batch of 155 shares or in multiples. Retail investors can bid for a maximum of 13 lots at the lower band limit.RailTel had on Monday 15th February raised funds worth Rs 243.99 crore from 14 secured investors. Foreign portfolio investors who participated were UK based Aurigin Capital through its Aurigin Master Fund and Utilico Emerging Markets Trust, Reliance Capital managed Cohesion MK Best Ideas Sub-Trust, Singapore based, Integrated Core Strategies Asia and Goldman Sachs India.

RailTel IPO subscribed 3 times; check out day 2 performance

Chirag Jha — Wed, 17 Feb 2021 07:35:18 +0000

On February 17, the second day of bidding RailTel has continued to see good subscription. It is subscribed 3.08 times so far with strong support from retail investors whose reserved portion has seen a 5.8 times subscription.

The Rs 819 crore IPO has received bids for 18.76 crore equity shares against offer size of over 6.11 crore shares, the subscription data available on the exchanges showed.

The above offer size excluded anchor book which also received good demand from investors. The company already garnered Rs 244 crore from anchor investors on Monday.

The portion set aside for non-institution investors was subscribed 87 per cent and that of employees 87 per cent, but the qualified institutional buyers are yet to put in their bids.

RailTel’s IPO is a complete offer for sale of over 8.71 crore equity shares by the Government of India (GoI). The issue was opened for subscription on February 16, with a price band of Rs 93-94 per share.

“At the upper price band, RailTel is available at a P/E of 21.4x on FY20 basis, which appears fully priced. Considering, increasing data usage, GoI’s digital India initiatives and further diversification plans of RailTel, we assign a subscribe rating for the issue,” Geojit Financial Services said.

RailTel Corporation of India is an information and communications technology (ICT) infrastructure provider and one of the largest neutral telecom infrastructure providers in India. A neutral telecom infra provider is a third party who has little or no part in providing Internet service to the end-user but allows interconnection between multiple telecommunication carriers.

RailTel IPO Opens for Subscription; Check out performance at Day 1

Chirag Jha — Tue, 16 Feb 2021 09:58:52 +0000

The three-day initial public offering (IPO) of the state-owned RailTel Corporation of India will open for subscription on Tuesday. The price band has been fixed at Rs 93-94 a share for the initial share-sale.

RailTel Corporation of India, has subscribed 1.57 times so far in morning on February 16, the first day of bidding.

The IPO is entirely an offer-for-sale through which the government will offload 87,153,369 equity shares, amounting to 27.16 per cent stake. Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors, and 15 per cent for non-institutional bidders.

“At the upper end of the price band of Rs 94, the company’s IPO is valued at P/E of 21x on FY20 EPS which is decent and P/E of 34x on annualised H1FY21 EPS which looks fairly valued. The company is expected to enjoy premium post listing owing to absence of major players in the listed space,” said Ajcon Global which recommended subscribing the issue.

RailTel was incorporated in September 2000 with the aim of modernising the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks.

The company has successfully completed a number of long-term projects for provision of ICT services across India. These include the NKN and Bharat Net (formerly, the National Optical Fiber Network) projects for providing high capacity bandwidth pipes and laying optical fiber cable for connectivity of gram panchayats in India.