IPO Archives - Maeeshat

IRCTC IPO pegged at over Rs 635 cr to hit market on Monday

by admin | May 25, 2021 | Business

Mumbai: Sep 28th (IANS) Come Monday, the Indian Railways will hit the country”s stock markets with its fourth and largest Initial Public Offer (IPO), that of the IRCTC worth over Rs 635 crore.

The state-run firm”s IPO will open on September 30 with a price band of Rs 315-Rs 320 per share taking the issue size to Rs 635.04 to Rs 645.12 cr. The offer size in terms of amount makes it the highest among all the railway offerings till date.

Till now, the Indian Railways has come out with three IPOs of its subsidiaries namely Rail Vikas Nigam Limited (RVNL), (Rail India Technical and Economic Service) RITES and (Indian Railway Construction Company Limited) IRCON.

Interestingly, RVNL”s IPO had the highest amount size till date of Rs 477.11 crore, followed by IRCON at Rs 466.93 crore and by RITES at Rs 460.44 crore.

An IPO is a financial instrument through which an unlisted company offers shares to the public first time. The funds raised are used for various purposes, like working capital, debt repayment and acquisitions.

In terms of IRCTC”s IPO, the issue comprises an offer for sale of 2,01,60,000 shares of Rs 10 face value. Of the total, 1,60,000 equity shares were reserved for employees.

Consequently, the total share dilution constitutes to about 12.60 per cent of IRCTC”s paid up equity share capital. The minimum bid lot of the IPO is 40 equity shares, thereafter orders can be placed in the multiples of 40 equity shares.

All proceeds from the offer will go directly to the selling shareholder.

The firm has consistently made profits over the years. In FY 2019, its net profit rose to Rs 272.6 crore from a profit of Rs 220.62 crore reported for FY18.

Moreover, the company”s revenue from operations has grown to Rs 1,867.88 crore in FY19 from Rs 1,470.46 crore earned during FY18.

The state-run entity is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.

Currently, it operates in four business segments, namely, Internet Ticketing, Catering, Packaged Drinking Water and Travel and Tourism.

Besides, it has diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels.

In addition, the company operates one of the most transacted websites in the Asia-Pacific region with volume averaging 25 to 28 million per month during the five months ending August 31, 2019.

–IANS

GIC Re IPO gets good response

by admin | May 25, 2021 | Corporate, Corporate finance, Corporate Governance, Investing

Chennai : The initial public offering (IPO) by government owned reinsurer General Insurance Corporation (GIC) has received good response from the investors on Wednesday the first day of the issue.

According to the data available on the BSE website, the portion reserved for qualified institutional buyers (QIB) was oversubscribed by 1.55 per cent.

The reinsurance major has fixed the issue price in the band Rs 855 to Rs 912 per equity share. The face value of the share is Rs 5.

The number of shares on the offer was 12,47,00,000 shares and as per BSE data at 6 p.m. total number of bids were 9,40,62,368.

The issue will close on October 13, 2017.

Post issue the promoters stake would come down to 85.78 per cent and the total equity capital will be up to Rs 438.6 crore from Rs.430 crore.

The IPO is a mix of offer of sale and fresh issue.

—IANS

L&T Infotech’s IPO oversubscribed 12 times

by admin | May 25, 2021 | Corporate, Corporate Buzz, Investing

Mumbai (IANS), L&T Infotech’s initial public offering (IPO) was oversubscribed by 11.67 times on the final day of the issue on Wednesday.

The company’s IPO received bids for 142,946,840 shares against the total issue size of 12,250,000 shares, according to the data available with the National Stock Exchange till 7.30 p.m.

The IPO was priced between RS 705 and Rs 710 per share. Retail investors were offered a discount of Rs 10 per share. The issue was opened on July 11.

With the IPO, the company is expected to fetch up to Rs 1,243 crore. The IPO includes an offer-for-sale of up to 1.75 crore equity shares by L&T Ltd. It comprises 10.3 per cent of the post offer paid-up equity share capital of the company.

The IT arm of the L&T Group, which caters to industries such as banking and financial services, insurance and energy, raised Rs 373 crore from anchor investors by selling shares at a price of Rs 710 apiece.

Some of the anchor investors were Auburn, ICICI Prudential, HDFC Mutual Fund, Reliance Capital and New India Assurance.

The investment banks — Citigroup Global Markets, Kotak Mahindra Capital, ICICI Securities have been roped in to handle the IPO.

The company which employs over 20,000 was ranked sixth largest Indian IT services company by Nasscom (National Association of Software and Services Companies) in 2015 in terms of export revenues.

In the last fiscal, the company’s revenue from operations and other income stood at Rs 61,430.2 crore, whereas it reported a net profit of Rs 922.17 crore.