June 19, 2017

CDSL IPO opens for subscription.

cdsl ipo

CDSL IPO opens today

Central Depository Services (CDSL) has a unique business model. The business has high entry barriers and seems to have decent growth prospects, according to brokerages.The stock is offered at 17.7-18.2x its FY2017 EPS and an issue price band of Rs 145-149.

Incorporated in 1999, Central Depository Services was initially promoted by BSE. It later divested its stake to leading banks as “Sponsors” of CDSL. CDSL is one of the two depositories operating in India. They facilitate the holding of securities in electronic form and enable securities to be processed by book entry. The Depository Participant (DP), who acts as an agent of the depository, offers depository services to investors.

CDSL is the second largest depository in terms of market share. CDSL has been growing at decent compounded annual growth rate (CAGR) of 23%/14% in 3/5 years (and revenues grew by 13%/18%).The company is planning to raise up to Rs 524 crore through this maiden offer. The total issue size of the IPO stands at 2,48,27,046 shares. Bids can be made for a minimum of 100 equity shares and in multiples of 100 shares thereafter. The issue will close on June 21. As per the data available with the National Stock Exchange as of 1045 hours, the total bids received stood at 41,37,800 shares and the total bids received at cut-off price stood 36,37,800 shares. The subscription data shows that the IPO has got subscribed by 17%. CDSL is likely that the listing may also be at a premium to the offer price. However, it is difficult to say if the stock will be a consistent outperformer.

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June 19, 2017

Tejas Networks Subscription Details.

tejas networks ipo

Tejas Networks IPO oversubscribed 1.88 times.

Issue period for Tejas Networks IPO ended on 16th of June. As per the data published on BSE website, the issue is 1.88 times oversubscribed. It was oversubscribed 3.1 by Retail Institutional investors where as 2.16 times by Qualified institutional buyers. You can check the complete details in the table given below.

Sr.No. Category No.of shares offered/reserved No. of shares bid for No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs) 9434105 20411105 2.1600
1(a) Foreign Institutional Investors(FIIs) 12096575
1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) 3530395
1(c) Mutual funds 589435
1(d) Others 4194520
2 Non Institutional Investors 4606740 2221890 0.4800
2(a) Corporates 64955
2(b) Individuals(Other than RIIs) 2147200
2(c) Others 9735
3 Retail Individual Investors(RIIs) 3071160 9510875 3.1000
3(a) Cut Off 8018835
3(b) Price bids 1492040
Total 17112005 32143870 1.88


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June 8, 2017

Reliance Nippon Life AMC’s IPO coming soon!!

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Reliance AMC IPO

Reliance Nippon Life AMC’s IPO coming soon!!

Reliance Nippon Life Asset Management has said in a press release that it will soon float an IPO. The board of Reliance Nippon Life Asset Management (RNAM) has approved the proposal. Reliance Nippon Life AMC is a subsidiary of Reliance Capital and Nippon Life insurance company is its strategic partner. The company has said it will soon initiate discussions with Merchant Bankers, Lawyers and Auditors for the IPO proceedings. As of March end 2017 the company’s AUM is Rs 3,58, 059 crore. Company’s Chief executive Sundeep Sikka said that they plan to list 10% initially(minimum requirement as per SEBI’s listing guidelines). It may go upto 25% in coming years. Typically, asset management companies are valued at 5 percent of AUM, which is likely to value Reliance MF at about Rs 20,000 crore and a 10 percent stake sale could fetch Rs 2,000 crore.

“As a part of financial inclusion we have been creating wealth for mutual fund unit holders. Now we also believe it’s an opportunity for retail investors to participate as equity shareholders in the AMC,” said Reliance Nippon Life Asset Management CEO Sundeep Sikka said.

“Along with further consolidations happening in economy we would like to be ready to take advantage of suitable acquisitions,” he further added.
More details to follow.

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June 5, 2017

Au Small Finance Bank Limited IPO coming soon!

Au Small Finance Bank Limited has commenced operations as a small finance bank with effect from April 19, 2017. Prior to this it was known as Au Financiers (India) Limited. The Reserve Bank issued the licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India. Recently it was reported by Mint that Au Small Finance Bank Limited is planning to launch its almost Rs2,000 crore IPO by end of this month. The company is currently on a road show. If the IPO is sucessfull the it will be the third small finance bank to be listed( the other two being Equitas Small Finance Bank and Ujjivan Small Finance Bank). Au Small Finance Bank Ltd has also filed a DRHP with SEBI. More details to follow.


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