Top 10 IPO Review

IPO Review 2018

Top 10 Upcoming IPO issues: IPO availing companies

It is extended to the Initial Public Offering. In this, company initiates to sell its shares to the institutional investors through the exchange. Furthermore, those shares are offered to the general public for purchase. IPO allows money to openly circulate in the market. With the help of underwriters in the investment banking firms, who ensure a proper valuation of shares, the companies proceed further with IPO. They do not have to repay any capital to public investors. The companies selling shares in the form of public offering do this with the purpose of increasing their capital, to make an acquisition, to have some money in the bank for corporate purposes and to become the public entity.

As the count of bulk IPOs has been already issued in 2017, the investment returns also scaled up to the same. The question may be arising in your mind that whether the upcoming IPOs of the year 2018 would reflect the same return potential or not. The investing in the IPOs must be done after contemplating the financial data of the company. As there are many companies waiting to appear in the IPO Listing of 2018, one might make efforts to pursue the right direction. You can invest thereby opening a Demat Account availed by the Best Stock Broker in India.

IPO and Seasoned Issue:

When a company offers its stocks or securities to the public for the first time and become a publicly traded company, it has embarked an IPO. When the prevailing public entity moves ahead to raise its capital by selling more shares to the public that offering is termed as a seasoned issue. It generally takes 3 to 10 days to get IPO refunds after IPO allotments by the registrar of an IPO. Refunds can be done by two methods. First is by using ECS which is an acronym for Electronic Clearing Service and by using cheques. Cheques send through registered from a post office and usually takes 3 to 5 days to reach the upholder.

Stocks, mutual funds, and debentures are termed as Long-term capital assets when they are held for more than 12 months before they are sold. If these stocks are sold or transferred before 12 months they are known as short-term capital. When an investor sells IPO allocated shares within 12 months of IPO Allotment, he pursues short-term capital gains. These gains are taxed with the investor’s regular income or we can say, tax on his salary etc. To experience the fruitful investment, it is necessary to keep the track of upcoming IPO and some other factors related to the company listing IPO.

IPOs of December 2017

Issuer Company Open date Close date Issue Type Issue Size (Rs Crore) Status
Shalby Limited IPO 5-Dec-17 7-Dec-17 IPO-BB Closed
Future Supply Chain Solutions Ltd IPO 6-Dec-17 8-Dec-17 IPO-BB 645.78 – 649.70 Closed

 

Shalby Limited

It was founded in 2004 and is located in Ahmedabad. It is led by Dr. Vikram Shah, an orthopedic surgeon with more than 25 years of experience. The company provides healthcare services with the network of 8 fully operational hospitals. It is one of leading multi-specialty hospitals. Company avails outpatient consultative healthcare services through 3 hospitals and 68 Outpatient Clinics. These Clinics have the network spread across 53 cities in 16 states of India.

Orthopaedic services make Shalby more recognizable. In 2016, it had a 15% market share of all joint replacement surgeries conducted by private corporate hospitals in India. Some other categories which make it noticeable are critical care, cardiac care, neurology, nephrology etc.

IPO Issue Detail

Shalby Hospitals
Fresh issue INR480 crore
Price Band INR245 – 248 per share
Total IPO size INR504.5 – 504.8 crore
Offer For Sale 1,000,000 shares (INR24.5 – 24.8 crore)
Minimum bid (lot size) 60 shares
Face Value  INR10 per share
Retail Allocation 35%
Listing On NSE, BSE

 

Consolidated financial Information 

Financial Data (in INR crore)        
FY2017 FY2016 FY2015 FY2014 FY2013
Total revenue 332.9 292.6 277.6 261.7 229.8
Total expenses 279.6 256.6 234.6 209.5 211.1
Profit after tax(PAT) 62.6 37.6 25.7 39 17.1
Profit Percent 66% 46% -34% 128%

 

IPO Allotment & Listing

  • Basis of Allotment: 12-December-2017
  • Refunds: 13-December-2017
  • Credit to Demat accounts: 14-December-2017
  • Listing: 15-December-2017

 

Future Supply Chain Solutions

The company avails logistics like warehousing, value-added services including kitting and bundling, distribution services, packaging solutions etc. Express logistics involves cold-chain warehousing and long-haul distribution services for perishable products and transportation solutions.

The customers are served under the category comprised of apparel, retail, fashion, food and beverage, e-commerce, electronics and technology, healthcare etc.

Rakesh Biyani, joint managing director at Future Group Future said that they opened Future Supply Chain in 2006, and in 10 years, they have developed distribution centers in India. They offer third-party logistics to non-group companies, and their revenue share from both group and outside are almost equal.

Griffin Partners held 40 percent in the company and it will offload 20 percent of this stake through the IPO, post which the PE will continue to hold 15.1 percent according to the estimation of Toshniwal.

In the run-up to the IPO, SSG Capital–the parent of Griffin Partners– had on November 20 sold 19.63 lakh shares aggregating to 4.9 percent stake to two Edelweiss Group- managed entities–Edelweiss Crossover Opportunities Fund and EW Clover Scheme-at Rs 636.60 a share, according to an earlier exchange filing by the company.

As of September, the company commences contract logistics operations through 42 distribution centers, floating around 3.84 million sqft warehouse space along with the operation of 2 distribution centers for customers, covering 0.37 million sqft warehouse space.

The company had reported Rs 45.7 crore gain in FY17, up from Rs 29.4 crore in the previous year on a revenue of Rs 561.2 crore which rose 9.6 percent over the year before.

IPO Issue Detail

Future Supply Chain Solutions
Fresh issue Nil
Price Band INR660 – 664 per share
Offer For Sale 9,784,570 shares (INR645.78 – 649.70 crore)
Total IPO size 9,784,570 shares (INR645.78 – 649.70 crore)
Minimum bid (lot size) 22 shares
Face Value  INR10 per share
Retail Allocation 35%
Listing On NSE, BSE

 

Future Supply Chain IPO Market Lot

  • Shares: Apply for 22 Shares (Minimum Lot Size)
  • Amount: Rs.14,608

 

Consolidated financial Information 

Financial Data (in INR crore)          
FY2017 FY2016 FY2015 FY2014 FY2013
Total revenue 577 528.5 410.7 333.2 354.1
Total expenses 518.8 483.9 373.9 326.3 353.7
Profit after tax(PAT) 45.6 29.5 24.7 4.2 -4.2
Profit Percent 55% 19% 488% 200%

 

Future Supply Chain IPO Allotment & Listing

  • Basis of Allotment: 12-December-2017
  • Refunds: 14-December-2017
  • Credit to Demat accounts: 14-December-2017
  • Listing: 18-December-2017

 

Recent IPO issues: IPO Review 2018| IPO availing companies

IPO Issuer Company Opening date Closing date IPO Issue Type IPO Issue Size (Rs in Crore) IPO Status
AVG Logistics Ltd. 28 March,2018 3 April, 2018 Book Building 32.45-33.06 Cr Close
Deccan Healthcare Ltd 28 March,2018 4 April, 2018 Book Building 40.5 – 45 Cr Open
MMP Industries Ltd 28 March,2018 4 April, 2018 Book Building 83.7 – 84.6 Cr Open
S.S. INFRASTRUCTURE DEVELOPMENT CONSULTANTS LTD 28 March,2018 5 April, 2018 Book Building 15.84 – 17.12 Cr Open
SONI SOYA PRODUCTS LTD 28 March,2018 4 April, 2018 Public Issue (Fixed Portion) 4.5 Cr Open

Apollo Micro Systems Ltd IPO

Apollo Micro Systems Ltd was founded in the year 1985 by Baddam Karunakar Reddy, MD of the company. The Hyderabad based private limited company became the public entity on April 1, 2017 and thereafter its name was changed to “Apollo Micro Systems Limited”. It has a proven its solid foundation with the development of new technologies and order execution. This has rendered into recurring orders. The public entity has a good reach in the automotive, Defence,  and railway sectors. It also contributes to various missile based projects such as surface to air missile, nuclear missiles etc.

The electro-mechanical and engineering design based firm is well recognized for its Launcher control system, Rugged weapon system etc. It also invests around 6 percent of the revenue in research and development.

It’s revenue grew by 54 percent annually in the past five fiscals to reach Rs 211 crore in FY17. The IPO issue data for the year 2018 is shown below:

IPO Issue Detail

Future Supply Chain Solutions
Fresh issue INR156 crore
Price Band INR270 – 275 per share
Offer For Sale Nil
Total IPO size 56,72,727 shares(INR 156 Crore)
Minimum bid (lot size) 50 shares
Face Value  INR10 per share
Retail Allocation 35%
Listing On NSE, BSE

 

Apollo Micro Systems Ltd IPO Market Lot

  • Shares: Apply for 50 Shares (Minimum Lot Size)
  • Amount: INR 13500-13700

Discount: INR12 per share to retail investors.

 Consolidated financial Information 

Financial Data (in INR crore)          
FY2017 FY2016 FY2015 FY2014 FY2013
Total revenue 211.8 159.5 108.8 72.9 37.5
Total expenses 186 144.7 99.4 65.6 33
Profit after tax(PAT) 18.6 10 7.4 5.3 3
Profit Percent 86% 33% 47% 49% 94%

 

Apollo Micro Systems Ltd IPO Allotment & Listing

  • Basis of Allotment: 17 Jan 2018
  • Refunds: 18 Jan 2018
  • Credit to Demat accounts: 19Jan, 2018
  • Listing: 22 Jan 2018

 

  • Several companies are lining up for launching their IPO in coming months. You can find information about Upcoming IPOs. IPO Grading, IPO Bidding Information, IPO News, IPO Ratings, IPO Allotment Status, IPO Reviews, Grey Market Premiums of IPO’s, and IPO Performance Tracker are some of the important tools available to ease the process.
  • Financial Institution of an IPO is appointed by the company selling stocks to the public investors. They have the membership of stock exchanges and registered with SEBI. They emanate IPO applications, allocate shares based on SEBI guidelines and transfer those shares to investor’s Demat accounts.

 

Facts of IPOs

When equities are of low value, the possibility of an IPO getting height in the value is very low. While investing in any IPO, understand the fact that investment bankers promote them during times when demand for stocks is conductive. When demand is raised and prices are high, there is a greater risk of an IPO promoting its fundamentals. That might suit company with increasing capital but does not suit the investors buying shares. The IPO market died during the 2009-2010 recession because stock valuations were low across the market.

Things to keep in mind while choosing IPO for an investment

  • Go for the long term output plan and not for presumed gains.
  • Detailed analysis of the upholder’s idea and plan.
  • Project size in Pipeline would display the height of company’s scale.
  • If the issue size is big, the capability of the promoters would be better.

 

Market Lot Size and Minimum Order Quantity for an IPO

IPO Market Lot and Minimum Order Quantity are two important factors investor should know while investing in an IPO.

If an investor wants to bid for more stocks, they can apply in multiples of ‘IPO market lot’ of shares.

NRI IPO Investment in India

Initial Public Offering in India also allows NRI to invest here. To commence investment in Indian stock market, they need to read the Draft Red Herring Prospectus of the IPO for the information required to carry forward their trading. This prospectus has the two divisions described below:

Eligible NRI’s can invest in IPO’s

  • Retail Individual Bidders

Bid Amount by NRIs as per the number of equity shares should not exceed Rs 200,000 (less Retail Discount if any).

  • Non-Institutional Bidders

Under the terms and conditions applied, the NRIs in this category must not bid for equity stocks more than the offer size.

In the simple words, if they execute Bid Amount of up to Rs 200,000, it comes under the category of retail individual bidders and exceeding the same amount may be considered under the Non-Institutional Category for the purpose of allocation.

NRI Bidders bidding on a non-repatriation basis by accessing Resident IPO Application Forms should authorize their SCSB to block their Non-Resident Ordinary (NRO) accounts for the full Bid Amount, along with the submission of the Bid cum Application Form.

Financial institutions like HDFC Bank, Kotak, and ICICI Bank Bank offer 3-in-1 account facility. It provides a hassle-free way to invest in IPOs as well in other financial products in India. This facility is availed, when a client pays the high amount in return for the services like brokerage, AMC etc. ICICI Direct offers Online IPO, through which you can embark investing in an IPO easily. you need to address the risks on the way. The biggest risk you might face as a business is in developing something no one will pay for. Don’t give much time in overthinking about the risk involved. Some of the general Pros and Cons of company going public are described below:

Positive Attributes

  • The enterprise acquires the good position and raised public image when listed publicly. It also opens the door for the merger with other companies.
  • The entrepreneur gets the chance to liquidate some part of their holdings.
  • In public entity, through the issue of dividends and bonus shares, profit has to be distributed to shareholders and whole profit does not only go to entrepreneur.
  • Company’s strategy can be easily tracked as after an IPO, it is changed into the public entity. So it needs to show the past and future reports.
  • Corporate governance can be improved in comprehended ways. As they are now evaluated by the market. So to reach the standards of the market, the same has to be dealt diligently. 

Negative Attributes

  • The companies going public always have the pressure to perform well for the shareholders.
  • Dealing with an IPO demands monetary value in the return of financial service or underwriting fees.
  • Additional reporting and transparent analysis required on being public also cost money.
  • The company dealing with IPO suffers time loss and other expenses.
  • After the commencement of the market, the founders and first equity owners lose the control of the company.