Ircon IPO opens today, should you subscribe?

The price band of the offer has been fixed between Rs 470-475 per share of the face value of Rs 10 each.

IPO News: The initial public offer (IPO) of Ircon International (Ircon) opens today for subscription. The government plans to divest around 10 per cent in its railway subsidiary.

Established in 1976, this Miniratna is an integrated engineering and construction company (EPC), specialising in major infrastructure projects, including railways, highways, flyovers, tunnels, aircraft maintenance hangars etc.

Issue details - Ircon IPO

The issue consists entirely of an offer for sale (OFS) of 9,905,157 shares with 5 per cent shares being reserved for Ircon’s employees. The retail investors and employees will be offered a discount of Rs 10 per share. As the issue is 100 per cent OFS, the company will not receive any funds raised from the issue.

The price band of the offer has been fixed between Rs 470-475 per share of the face value of Rs 10 each. At the upper end of the price band, the IPO is expected to fetch Rs 470 crore. The number of shares in each lot has been fixed at 30.

So, should you invest in the public offer? Here's a list of what top brokerages have to say.

Ircon International IPO

Angel Broking files offer document with Sebi for IPO to raise Rs 600 crore

As of end-June, the company managed Rs 113 billion in client assets and operates around 1.1 million active broking accounts.

IPO News: Angel Broking filed its offer document with markets regulator Securities and Exchange Board of India (Sebi) on Wednesday. The company is looking at an initial public offering (IPO) of equity to raise Rs 6 billion, half of which would be new funds.

Sources say the offer will value Angel Broking around Rs 25 billion.

Through the IPO, promoter Ashok Thakkar and World Bank arm International Finance Corporation (IFC) will divest part of their holding. The new capital will be used for working capital requirements. ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are managing the IPO.

Earlier this year, ICICI Securities, also a broking and investment banking entity, came out with an IPO which wasn’t received well by investors. Key listed brokers Motilal Oswal, IIFL and Edelweiss are not purely broking entities.

Angel Broking is an independent full-service retail broking house. The company offers services such as broking, advisory, margin funding and loan against shares. It offers broking services through digital platforms and 11,000-odd sub-brokers.

A CLSA report ranked Angel Broking seventh in terms of number of active clients as of March, with a four per cent market share. The top three on this measure were ICICI Securities, HDFC Securities and Zerodha. The top five in the4 segment have three bank-backed ones and one discount brokerage.

Full News Updates → Angel Broking IPO

---

News Source: BS

Bandhan Bank makes strong debut; lists at 33% premium against issue price

The stock listed at Rs 499, a 33% premium against its issue price of Rs 375 per share on the National Stock Exchange.

IPO News : Bandhan Bank has made a strong debut at the bourses on Tuesday. The stocks listed at Rs 499, a 33% premium against its issue price of Rs 375 per share on the National Stock Exchange (NSE). On the BSE, the stock listed at Rs 485, 29% higher against its issue price.

At 10:04 am; Bandhan Bank stock was trading Rs 472 on the BSE and NSE. A combined 35.11 million shares changed hands on the counter on both the exchanges.

Bandhan Bank with a market value of Rs 571.59 billion stands at 53rd position in overall market capitalisation ranking, the BSE data shows.

The private sector lender raised Rs 45 billion through initial public offer (IPO), which was oversubscribed by 14.6 times. The qualified institutional buyers (QIBs) category was subscribed 38.67 times, the non-institutional investors category was subscribed 13.89 times and the retail individual investors (RIIs) category received subscription of 1.20 times.

The objective of the fresh issue was also to augment bank’s Tier-I capital base to meet the bank’s future capital requirements. The bank also believed that the listing of equity shares will enhance the bank’s visibility and brand name among existing and potential customers.

The bank has a very healthy business mix – on the asset side 96.5% of total advances qualifying as priority sector lending (PSL) and on the liability side 33.2% of total deposits in the low-cost current account & savings account (CASA).

Considering the healthy financials – NIM of 9.9%, gross and net NPA of 1.67% & 0.8%, respectively and high return ratios of 25.6% RoE and 4.1% RoA, analyst at Centrum Broking believe the bank will be able to attract adequate investor interest.

Further, the bank is expected to benefit largely from financialisation of household investments especially in the rural & underbanked areas, vast branch network and presence in high growth segments of micro lending, retail and SME banking.

→ Bandhan Bank IPO ←

Bandhan Bank’s Rs 44-bn IPO opens: Expert views on why you should subscribe

The private sector lender is expected to raise Rs 44.13 billion at the lower and Rs 44.73 billion at the upper end of the price band.

IPO News : The Bandhan Bank initial public offering (IPO) opened for subscription on Thursday, at a price band of Rs 370-375 a share. The issue will close on March 19.

The private sector lender is expected to raise Rs 44.13 billion at the lower and Rs 44.73 billion at the upper end of the price band. The bank has put on offer up to 119,280,494 equity shares, including a fresh issue of up to 97,663,910 equity shares.

The IPO also consists of an offer for sale of up to 14,050,780 equity shares by IFC and up to 7,565,804 equity shares by IFC FIG. Bids can be made for a minimum lot of 40 shares and in multiples of 40 shares thereafter.

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, JM Financial and JP Morgan India are book running lead managers to the issue. Karvy Computershare is the registrar to the issue.

Should you subscribe to the Bandhan Bank IPO? Here’s what some brokerages recommend:

IIFL – Bandhan Bank was able to ride the recent MFI crisis smoothly unlike NBFC-MFIs. So in the current form, it is a robust and resilient micro loan financier with great growth prospects. The bank would likely be able to sustain RoA and RoE near the 4% and 25% mark respectively. We believe long term investors would find post-money valuation at 4.8x P/BV reasonably attractive. A comparable benchmark for valuation would be the recent IndusInd Bank-Bharat Fin transaction wherein the former valued the latter at ~5.2x FY18 P/BV.

Centrum Broking  – The bank will be able to attract adequate investor interest. Further, the bank is expected to benefit largely from financialisation of household investments especially in the rural & underbanked areas, vast branch network and presence in high growth segments of micro lending, retail and SME banking. Given the high valuations, investors can subscribe to the issue from a long term perspective. It must be noted that since the issue is being offered at expensive valuation, listing gains may be capped.

---

↓ More Expert Views on ↓

→ Bandhan Bank IPO , ICICI Securities IPO ←

Bandhan Bank IPO kicks off; Here’s All You Need To Know

At IPO price, the microfinance-focused bank is valued at nearly Rs 450 billion.

IPO News : Bandhan Bank is set to become the latest listed lender in India as it looks to raise Rs 4,473 crore via an initial public offering that opens on Thursday.

In the three-day offer, the company will issue up to 11.93 crore equity shares at a price band of Rs 370-375 apiece. At the upper end, it will command a valuation of Rs 44,730 crore, according to BloombergQuint’s calculations.

That makes it larger than not only non-banking finance company-turned banking entities such as AU Small Finance Bank, Ujjuvan Financial and Equitas Holdings, but also private banks such as RBL Bank, Federal Bank and IDFC Bank in terms of market capitalisation.

The IPO is a combination of fresh issue worth Rs 3,662 crore and an offer for sale of Rs 811 crore by existing investors – World Bank arms International Finance Corp (IFC) and IFC FIG Investment Company. Post the offer, the promoter holding in Bandhan Bank will come down to 82.3 percent from the current 89.6 percent.

An erstwhile microfinance company, Bandhan Financial Services Ltd., the country largest at the time, Bandhan Bank commenced banking operations in August 2015 after receiving a universal banking licence from the Reserve Bank of India.

Investment bankers are, however, confident that the issue will garner good response.

“Markets will always show some volatility. The bank’s fundamentals are very strong. It has a differentiated business model. Despite the market corrections, the issue will do well,” said Vishal Kampani, MD, JM Financial Group.

Bandhan Bank and IDFC Bank are among the latest entities to be awarded bank licenses by the RBI. The two received the central bank’s “in-principle” in April 2014 and a final nod a year later.

→ Bandhan Bank IPO ←

BMW to invest Rs 130 cr in India, will launch new version of the 5 series this month

The company is looking to expand its dealer network in the country

 

 

German luxury carmaker BMW is investing another Rs 130 crore in India to enhance operations, taking its total investment in the country to Rs 1,250 crore.

The company will launch new version of its locally manufactured 5 Series later this month and 6 Series Gran Turismo (GT) model next year to strengthen its product portfolio in India.

"Since 2007, we have been consistently investing in India. This year, we are going to increase our investment further to up to Rs 1,250 crore on a cumulative basis," BMW India President Vikram Pawah told PTI.

BMW has invested Rs 1,120 crore in the Indian operations so far.

The new investment will go into BMW group operations, including Motarrad (two-wheeler business) as well as the financial services arm, he added.

Get all the Latest Updates on Business News

With the fresh investments, the total investments on BMW group operations in India will go up to Rs 520 crore and on BMW Financial Services to Rs 730 crore.

The company is looking to expand its dealer network in the country. It currently has 18 partners and is present in 30 cities.

"Besides, we have 63 touch points. Out of these, we have 41 sales outlets. So we want to take these 41 outlets to 50 by 2018," Pawah said.

In other emerging towns, in addition to 30 major cities, the company utilises its 'Mobile Studios' to expand the market further.

On new product launches, he said: "As part of our power to lead strategy, product offensive starts. In next two weeks, we will be launching the new 5 Series."

The model has played a big role in the success of BMW in India. Since 2007, the company has sold around 66,000 vehicles in India with 5 Series having contributed close to 30 per cent of the total sales...(read more...)