Niva Bupa Health Insurance is set to launch its IPO with total issue size of ₹ 2200 crore, which comprises fresh issue of ₹800 crore and offer for sale of ₹1400 core.
IPO Subscription Period
Open Date: November 7, 2024
Close Date: November 11, 2024
Allotment Date: November 12, 2024
Listing Date: November 14, 2024
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹70 – ₹74 per Share
Face Value: ₹10 per Share
Minimum Lot Size: 200 shares
Investment Requirement:
Retail Investors: Minimum ₹14,800 (200 shares)
Small Non-Institutional Investors (sNII): 14 lots (2800 shares) – ₹207,200
Big Non-Institutional Investors (bNII): 68 lots (13,600 shares) – ₹1,006,400
Incorporated in 2008, Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP that provides insurance in the health sector.
Niva Bupa offers a variety of health insurance policies catering to individuals and families, covering hospitalization, pre- and post-hospitalization expenses, and additional benefits like annual health check-ups, daycare treatments, and ambulance services.
Popular plans include Health Companion, ReAssure, and GoActive, which provide customizable options to meet diverse healthcare needs. The company’s products are broadly categorized into
Retail products designed for individuals and families.
Group products intended for employers and employees.
As of March 31 2024, the company had 14.73 million active lives insured. As of March 31, 2024, the company is present across 22 states and four union territories in India.
Financial Highlights
Revenue Growth: Decreased by 21% from ₹413.07 crores (FY 2023) to ₹328.71 crores (FY 2024)
Profit After Tax (PAT): Rose by 650%, reaching ₹81.85 crores in FY 2024
Net Worth: ₹2049.6 crores
Total Borrowing: ₹250 crores
Key Performance Indicators (KPIs):
ROCE: 13.69%
RoNW: 5.68%
P/BV: 6.14
EPS (Pre-IPO): ₹0.48
EPS (Post-IPO): ₹-0.42
P/E Ratio (Pre-IPO): 153.7x
P/E Ratio (Post-IPO): -177.74x
IPO Objectives
The company proposes to utilise the Net Proceeds towards the following objects:
Augmentation of its capital base to strengthen solvency levels and
General corporate purposes
Subscription Status (As of November 8, 2024, 7:02:07 PM)
Retail: 0.76x
QIB: 0.83x
NII: 0.35x
Overall Subscription: 0.69x
Total Applications Received: 20,51,35,135 shares for 29,72,97,298 shares bid.
Recommendation
Apply (for Long-term investment) Niva Bupa Health Insurance Ltd. stands as one of the larger players in India’s health insurance sector, boasting strong financial performance and a well-diversified portfolio. However, the high Price-to-Earnings (PE) ratio indicates overvaluation, which could limit immediate upside. For those considering applying, tepid investor sentiment around the IPO suggests a relatively lower likelihood of strong listing-day gains. Long-term investors, however, may find potential in adding this stock to their portfolios, given the sector’s growth trajectory and Niva Bupa’s established market position.
Swiggy, one of India’s leading food delivery and hyperlocal service platforms, has officially launched its much-anticipated Initial Public Offering (IPO), marking a significant milestone in the company’s journey since its founding in 2014. Swiggy’s IPO, valued at ₹11,327.43 crore, includes a fresh issue worth ₹4,499 crore (11.54 crore shares) and an offer for sale of ₹6,828.43 crore (17.51 crore shares). The IPO opened for subscription, with a price band set at ₹371-₹390 per share. Retail investors need a minimum investment of ₹14,820 for 38 shares, while employee allocations include a 750,000-share reservation at a ₹25 discount. Allotments will be finalized on November 11, with listing on the BSE and NSE anticipated for November 13, 2024. Founded in 2014, Swiggy is a leader in food delivery and hyperlocal services in India, with a significant presence through services like Instamart for grocery delivery, capturing a broad online market share.
IPO Subscription Period
The Swiggy IPO opensfor subscription from November 6, 2024, and will close on November 8, 2024. The finalization of the allotment is expected by November 11, 2024, with refunds being initiated the same day.
Pricing and Lot Details
The Swiggy IPO offers an opportunity to invest in one of India’s top food and grocery delivery platforms, with the IPO open from November 6 to November 8, 2024. Key details for potential investors include:
Price Band: The IPO price is set between ₹371 and ₹390 per share.
Lot Size: Investors must purchase a minimum of 38 shares, totaling approximately ₹14,820 for retail investors at the highest price.
Issue Size: The IPO aims to raise around ₹11,327.43 crore, comprising a fresh issue of ₹4,499 crore and an offer for sale of ₹6,828.43 crore
Face Value: Rs. 1 Per Equity Share
The Swiggy IPO has a structured bidding system for different investor categories. Here’s a breakdown of the investment requirements for retail investors and high-net-worth individuals (HNIs):
Reservation Structure
The reservation structure for Swiggy’s IPO is divided as follows:
Qualified Institutional Buyers (QIBs): 75% of the issue is reserved for QIBs. This segment includes mutual funds, foreign institutional investors, and other large financial entities.
Non-Institutional Investors (NIIs): 10% of the issue is allocated for non-institutional investors, often high-net-worth individuals (HNIs) who invest in larger lot sizes.
Retail Investors: 15% of the IPO is reserved for retail investors, with a minimum bid of 38 shares per lot, allowing for smaller individual investments.
Employee Reservation: Swiggy has reserved up to 750,000 shares for employees, offered at a ₹25 discount per share within the IPO price band of ₹371-₹390
This structure balances institutional and retail participation, while the employee reservation encourages internal engagement in the company’s growth.
Key Dates & Timelines
Swiggy IPO Timeline (November 2024)
IPO Open Date: Wednesday, November 6, 2024
IPO Close Date: Friday, November 8, 2024
Basis of Allotment: Monday, November 11, 2024
Initiation of Refunds: Tuesday, November 12, 2024
Credit of Shares to Demat Accounts: Tuesday, November 12, 2024
Listing Date on BSE and NSE: Wednesday, November 13, 2024
Book Running Lead Managers
The Swiggy IPO is being managed by a group of Book Running Lead Managers (BRLMs), including:
Avendus Capital Pvt Ltd
BofA Securities India Limited
Citigroup Global Markets India Private Limited
ICICI Securities Limited
J.P. Morgan India Private Limited
Jefferies India Private Limited
Kotak Mahindra Capital Company Limited
The registrar for the IPO is Link Intime India Private Limited, which will handle the processing of applications and allotments
Promoters Information
Swiggy’s promoters are primarily its three co-founders: Sriharsha Majety, Nandan Reddy, and Rahul Jaimini.
Anand Kripalu – Independent Director and Chairman since December 2023. He holds a B.Tech from IIT Madras, a PG Diploma from IIM Calcutta, and an advanced management program from The Wharton School. Kripalu is the Global CEO of EPL Limited and has held senior roles at Diageo’s United Spirits, Cadbury Schweppes, Hindustan Lever, and DCM Data Products. He has received the “Lifetime Achievement Award” at the Indian Marketing Awards.
Sriharsha Majety – Managing Director and Group CEO of Swiggy. He holds a B.Tech from BITS Pilani and a post-graduate diploma from IIM Calcutta. With over 10 years at Swiggy, he was named ‘Entrepreneur of the Year 2019’ at The Economic Times Awards for Corporate Excellence.
Lakshmi Nandan Reddy Obul – Whole-time Director and Head of Innovation at Swiggy. He holds a Master’s in Physics from BITS Pilani and has over 10 years of experience with Swiggy. Before joining the company, he worked in business consulting at Intellecap.
The major institutional investor is Prosus, a subsidiary of the South African conglomerate Naspers, which holds approximately 33-40% of the company, and is looking to reduce this shareholding through the IPO.
About Swiggy Limited.
Swiggy is a leading Indian technology-driven platform offering a variety of convenience services, including Food Delivery, Instamart for grocery delivery, Dineout for restaurant reservations, and SteppinOut for event bookings. As a pioneer in the hyperlocal commerce sector, it has quickly established itself as a leader in food delivery and quick commerce in India. The platform also includes services like Genie for product pick-up/drop-off and other hyperlocal activities.
Swiggy’s business model is enhanced by its membership program, Swiggy One, and several in-app payment solutions, including Swiggy Money, Swiggy UPI, and Swiggy-HDFC Bank credit card. The company also provides valuable services to restaurant and merchant partners through analytics-driven tools, supply chain solutions, and last-mile delivery services. By mid-2024, Swiggy employs 930 tech professionals, leveraging its technological capabilities to drive growth and operational efficiency.
The Indian food services market, which Swiggy operates within, is poised for significant growth, fueled by urbanization and rising consumer incomes. The online food delivery segment, in particular, is expected to grow from ₹640 billion in 2023 to ₹1,400-1,700 billion by 2028. Swiggy is positioning itself to capitalize on this, with a large user base in top cities and expanding reach in smaller towns. The rising Average Order Value (AOV) and increasing consumer demand for convenience further boost Swiggy’s success prospects.
Despite its strong competitive advantages, such as an innovative platform, a loyal user base, and synergies from its wide partner network, Swiggy faces challenges. These include the need to maintain user acquisition, scale operations, and address the supply-side constraints in India’s largely unorganised restaurant market. Swiggy’s strategy to overcome these risks focuses on retaining and growing its user base, expanding its partner network, and enhancing its technology infrastructure.
The company is also focused on expanding its quick commerce operations, improving brand recall, and optimizing its delivery network. However, Swiggy must address key risks, such as dependence on restaurant and merchant partners, managing Dark Stores efficiently, and overcoming the cultural preference for home-cooked food, which can limit the expansion of food services in certain regions.
IPO Objectives
The company intends to allocate the net proceeds from this issuance towards the following strategic purposes:
Debt Repayment: A portion of the funds will be directed towards repaying or pre-paying some or all of Scootsy’s borrowings, thereby strengthening its overall financial position.
Expansion of Dark Stores: Funds will be utilized to support the expansion of Scootsy’s Dark Store network, enhancing its ability to provide faster services in the Quick Commerce segment. This includes making necessary lease or license payments for new store locations.
Technology and Infrastructure Investment: A significant portion of the proceeds will be invested in technology upgrades and cloud infrastructure, aimed at improving operational efficiency and supporting long-term business growth.
Marketing and Branding: Funds will be allocated to marketing and promotional initiatives designed to increase brand awareness and expand Scootsy’s visibility across different market segments.
General Corporate Purposes: The remaining proceeds will be used for general corporate purposes, allowing for flexible allocation in response to evolving business needs.
Subscription Status
Subscription Status as of 08 Nov’24’
Retail Individual Investor
1.14 times
Non-Institutional Investor
0.41 times
Qualified Institutional Buyers
6.02 times
Employee
1.65 times
Overall
3.59 times
Recommendation
Swiggy is a consumer-first technology company that provides a unified platform for food delivery, grocery shopping (Instamart), and on-demand deliveries. The company’s revenue from operations for FY2024, FY2023, and FY2022 were ₹11,634.35 crores, ₹8,714.45 crores, and ₹6,119.78 crores, respectively. However, Swiggy posted negative EBITDA figures for the same periods: ₹-1,835.57 crores in FY2024, ₹-3,910.34 crores in FY2023, and ₹-3,233.76 crores in FY2022. Similarly, the Profit After Tax (PAT) was negative, with ₹-2,255.95 crores in FY2024, ₹-4,192.17 crores in FY2023, and ₹-3,631.23 crores in FY2022.
For its IPO, Swiggy is issuing shares with a pre-issue EPS of ₹-10.70 and a post-issue EPS of ₹10.07. The pre-issue P/E ratio is -36.44x, while the post-issue P/E ratio is -38.72x, significantly lower than the industry’s average of 634.50x. Additionally, the company’s Return on Equity (RoE) for FY24 is -30.16%.
The Grey Market Premium (GMP) shows no expected listing gains (0%). Given the company’s financial performance and IPO valuation metrics, we recommend avoiding Swiggy’s IPO for both short-term listing gains and long-term investments.
Hyundai Motor India Limited (HMIL) is set to launch its Initial Public Offering (IPO) with a total issue size of ₹27,870.16 crores. This significant offering comprises an offer for sale of 14.22 crore shares, marking one of the most anticipated IPOs in the Indian primary market.
IPO Subscription Period
Open Date: October 15, 2024
Close Date: October 17, 2024
Allotment Date: October 18, 2024
Listing Date: October 22, 2024 (Tentative)
Stock Exchanges: BSE and NSE
Pricing and Lot Details
Price Band: ₹1,865 – ₹1,960 per share
Face Value: ₹10 per share
Minimum Lot Size: 7 shares
Investment Requirements:
Retail Investors: Minimum ₹13,720 (7 shares)
Small Non-Institutional Investors (sNII): 15 lots (105 shares) – ₹205,800
Big Non-Institutional Investors (bNII): 73 lots (511 shares) – ₹1,001,560
Reservation Structure
The Hyundai Motor IPO reserves shares across various investor categories to ensure broad participation:
Shares Credited to Demat: Monday, October 21, 2024
Listing Date: Tuesday, October 22, 2024
UPI Mandate Cut-off: 5 PM on October 17, 2024
Book Running Lead Managers
Hyundai Motor India Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
Kotak Mahindra Capital Company Limited
Citigroup Global Markets India Private Limited
HSBC Securities & Capital Markets Pvt Ltd
J.P. Morgan India Private Limited
Morgan Stanley India Company Pvt Ltd
Kfin Technologies Limited has been designated as the registrar for the IPO.
Promoter Information
Promoter: Hyundai Motor Company
Shareholding:
Pre-Issue: 100%
Post-Issue: 82.50%
About Hyundai Motor India Limited
Established in May 1996, Hyundai Motor India Limited is a subsidiary of the Hyundai Motor Group, the world’s third-largest automotive OEM by passenger vehicle sales. HMIL manufactures and markets a wide range of vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs), supported by a robust network of 1,366 sales points and 1,550 service centers across India.
Key Models:
Grand i10 NIOS
i20 & i20 N Line
AURA
Elantra
Venue & Venue N Line
Verna
Creta & Creta N Line
Alcazar
Tucson
Ioniq 5 (All-Electric SUV)
HMIL’s manufacturing facility near Chennai is pivotal in producing its comprehensive vehicle lineup, catering to both domestic and international markets, including Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.
Financial Highlights
Revenue Growth: Increased by 16% from ₹61,436.64 crores (FY 2023) to ₹71,302.33 crores (FY 2024)
Profit After Tax (PAT): Rose by 29%, reaching ₹6,060.04 crores in FY 2024
Net Worth: ₹12,148.71 crores
Total Borrowing: ₹758.14 crores
Key Performance Indicators (KPIs):
ROCE: 13.69%
RoNW: 12.26%
P/BV: 14.93
EPS (Pre-IPO): ₹74.58
EPS (Post-IPO): ₹73.33
P/E Ratio (Pre-IPO): 26.28x
P/E Ratio (Post-IPO): 26.73x
IPO Objectives
Hyundai Motor India Limited will not receive any proceeds from the IPO. Instead, the promoter-selling shareholders will receive the Offer Proceeds after deducting offer-related expenses and applicable taxes.
Subscription Status (As of October 15, 2024, 7:02:07 PM)
Overall Subscription: 0.18x
Retail: 0.27x
QIB: 0.05x
NII: 0.13x
Employee Category: 0.81x
Total Applications Received: 9,89,91,410 for 1,80,50,557 shares bid.
Recommendation: Apply. The Hyundai Motor India Limited (HMIL) IPO offers strong growth potential due to its market leadership, solid financials, and strategic expansion into electric vehicles (EVs). Backed by the globally renowned Hyundai Motor Group, and with a robust outlook for future growth, this IPO presents an attractive opportunity for long-term investors, especially those looking for exposure to the automotive and EV sectors. Despite the slightly high P/E ratio, the company’s consistent performance and future plans make it a promising investment.
Garuda Construction and Engineering Limited is opening its doors to public investment with an IPO worth ₹264.10 crores. This offering consists of a fresh issue of 1.83 crore shares aggregating ₹173.85 crores and an offer for sale of 0.95 crore shares worth ₹90.25 crores. Mark your calendars—this IPO is open for subscription from October 8, 2024, to October 10, 2024, with the tentative listing date on BSE and NSE set for October 15, 2024.
Key Dates to Remember:
IPO Open Date: October 8, 2024
IPO Close Date: October 10, 2024
Allotment Finalization: October 11, 2024
Listing Date: October 15, 2024
Price Band and Lot Size: The IPO price is set at ₹92-₹95 per share, with a minimum lot size of 157 shares. Retail investors can start with an investment of ₹14,915. For high-net-worth investors (HNIs), the minimum investment goes up to ₹208,810 for 14 lots.
Company Overview: Founded in 2010, Garuda Construction and Engineering Limited specializes in residential, commercial, industrial, and infrastructure projects. Their portfolio spans across residential/commercial buildings, infrastructure, and hospitality projects. The company’s focus on mechanical, electrical, and plumbing (MEP) services, as well as its expertise in project management, highlights its strong market positioning.
With a growing order book of ₹1,40,827.44 crore as of September 2024, Garuda is setting the stage for continued growth. Their projects spread across regions like MMR, Karnataka, and Rajasthan, showcasing their nationwide presence.
Financial Overview: Garuda has seen fluctuations in its financial performance, with revenue from operations recorded at ₹1,187.50 crores for the period ending April 30, 2024. Despite a slight decline in profit after tax from ₹40.8 crores in FY23 to ₹36.44 crores in FY24, the company’s robust order book and strong execution capabilities suggest long-term potential.
Key Performance Indicators (FY24):
ROE: 36.14%
ROCE: 46.69%
PAT Margin: 23.63%
Market Cap: ₹883.9 crores
IPO Objectives: The funds raised will primarily support:
Working capital requirements
General corporate expenses
Potential inorganic acquisitions
Subscription Status: As of October 8, 2024 (Day 1), the IPO had been subscribed 0.68 times. The retail portion saw strong interest with a subscription of 1.25 times, while the QIB category is yet to attract bids.
Should You Invest? While Garuda boasts a strong portfolio and a promising pipeline of projects, some concerns linger regarding its financial volatility. Their previous IPO attempt by a group company, PKH Ventures, was withdrawn due to a tepid market response. Dilip Davda, a market expert, advises caution with this IPO, categorizing it as a “High Risk/Low Return” opportunity due to aggressive pricing.
Final Thoughts: Garuda Construction and Engineering presents an exciting opportunity for investors seeking exposure to the construction sector. With a well-established presence in the market and a robust order pipeline, the company is set for growth. However, the cautious financial outlook and pricing concerns should be weighed carefully before investing.
Garuda Construction and Engineering IPO Review (Avoid) Dilip Davda recommends avoiding this IPO due to the company’s inconsistent financial performance and high trade receivables compared to revenue. A related group company, PKH Ventures, withdrew its IPO in 2023 due to poor market response. Despite holding over ₹1,400 crore in orders, the issue is aggressively priced based on FY25 earnings, making it a high-risk, low-return investment.
