Hexaware Technologies, a leading information technology services provider, launched its ₹8,750 crore IPO from February 12 to 14, with a price band of ₹674–708 per share. The offering was entirely an Offer for Sale (OFS) by its promoter, CA Magnum Holdings, affiliated with The Carlyle Group. The IPO was oversubscribed 2.66 times. The shareholders pattern is as follows: the Qualified Institutional Buyers (QIBs) subscribed 9.09x, while Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) subscribed at 20% and 11%, respectively. The company raised ₹2,598 crore from institutional investors, with a valuation exceeding ₹43,000 crore at the upper price band. The book-building procedure of the IPO was managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, HSBC Securities & Capital Markets Pvt Ltd, and IIFL Securities Ltd.
Market Position & Industry Analysis
The Information Technology (IT) & Business Process Management (BPM) sector plays a crucial role in India’s economy, contributing 7% to the GDP as of FY24. India has one of the largest internet consumer and, at the same time, has the lowest internet costs globally. With this, India is next for the next phase of IT growth. The Digital India Programme has strengthened digital infrastructure and access, driving rapid digital adoption through government initiatives, private sector innovation, and emerging digital applications. These advancements are creating economic value and enhancing citizen empowerment. India’s global standing in innovation has also improved, ranking 40th in the 2022 Global Innovation Index. Hexaware Technologies provides IT services in business process services, digital IT operations, cloud, data & AI, application services, and cybersecurity. The company operates across 50 offices in 19 countries, with a diverse workforce of 90 nationalities and approximately 33% women representation. The company competes with major IT service providers such as Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies. The IT services sector is witnessing rapid digital transformation and increasing demand for AI, cloud computing, and automation. Hexaware’s strategic focus on cloud and AI-driven solutions positions it well for future growth.
Financials & Valuation
Hexaware’s market capitalization stood at ₹44,422.48 crore post-listing and later rose to ₹46,285.06 crore as the stock gained 2.17% to ₹761.65 per share. The stock opened at ₹745.50 on the NSE, reflecting a 5.3% premium over the issue price, while on the BSE, it listed at ₹731, a 3.25% premium. By the end of the first trading day, shares settled at ₹755.75 on NSE (6.74% above the IPO price) and ₹763.85 on BSE (7.89% above the IPO price). During intraday trading, the stock peaked at ₹788, reflecting an 11.3% gain. Hexaware’s valuation, compared to industry peers, indicates strong growth potential and a focus on scalable digital transformation services.
Investor Sentiment & Analyst Insights
Despite a subdued initial listing, Hexaware Technologies’ stock gained traction due to strong investor interest. The oversubscription of the IPO, particularly by institutional investors, indicates confidence in the company’s future growth. The IT services sector’s expansion, coupled with Hexaware’s cloud and AI-driven strategy, presents growth opportunities. However, potential risks include global economic slowdowns, intense competition from larger IT players, and evolving regulatory challenges. The grey market premium (GMP) trends suggested moderate demand pre-listing, which translated into a stable yet promising listing performance. Overall, the IPO’s strong institutional backing and Hexaware’s strategic focus make it an attractive investment opportunity for long-term investors.
Investors who did not receive the subscription should wait for the company’s quarterly results to assess its performance and decide whether to own the shares.
Capital Infra Trust InvIT is a book built issue of Rs 1,578.00 crores. The issue is a combination of fresh issue of 10.77 crore shares aggregating to Rs 1,077.00 crores and offer for sale of 5.01 crore shares aggregating to Rs 501.00 crores.
About Capital Infra Trust InvIT
Capital Infra Trust, established in 2023, operates as an infrastructure investment trust sponsored by Gawar Construction Limited, a company renowned for building roads and highways across 19 states in India. It collaborates with prominent government bodies such as NHAI, MoRTH, MMRDA, and CPWD. On November 11, 2024, the Trust received a ‘Provisional CRISIL AAA/Stable’ rating from CRISIL Ratings Limited for its NCD(s) and proposed long-term bank loan facility.
Gawar Construction Limited, since 2008, has completed 100 projects and currently manages 26 projects under the Hybrid Annuity Model (HAM) for the National Highways Authority of India (NHAI). The assets and portfolio of Capital Infra Trust are owned, managed, and operated through Project SPVs. Financially, the firm’s revenue has shown fluctuations over the years, with figures of ₹1,908.15 crore in 2022, ₹2,033.09 crore in 2023, and ₹1,485.09 crore in 2024.
IPO Subscription Period
Open Date: January 7, 2025
Close Date: January 9, 2025
Allotment Date: January 10, 2025
Listing Date: January 14, 2025
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹99 – ₹100 per Share
Face Value: ₹10 per Share
Minimum Lot Size: 150 shares
Investment Requirement:
Retail Investors: Minimum ₹15000 (150 shares)
Small Non-Institutional Investors (sNII): 14 lots (2100 shares) – ₹210000
Big Non-Institutional Investors (bNII): 67 lots (10050 shares) – ₹1005000
Reservation Structure
Anchor Investors: 0%
Qualified Institutional Buyers (QIB): 75%
Non-Institutional Investors (NII): 25%
Big NII (bNII): 15%
Small NII (sNII): 10%
Retail Investors: 0% (0 shares)
Key Dates and Timeline
IPO Open Date: Tuesday, January 7, 2025
IPO Close Date: Thursday, January 9, 2025
Basis of Allotment: Friday, January 10, 2025
Initiation of Refunds: Monday, January 13, 2025
Credit of Shares to Demat: Monday, January 13, 2025
Listing Date: Tuesday, January 14, 2025
Cut-off time for UPI mandate confirmation: 5 PM on January 9, 2025
Book Running Lead Managers
Capital Infra Trust InvIT has appointed prominent financial institutions as book-running lead managers for the IPO:
SBI Capital Markets Ltd
HDFC Bank Ltd
Kfin Technologies Limited has been designated as the registrar for the IPO.
Financial Highlights
Revenue: In FY22 revenue was ₹1981 crores, in FY23 it was ₹2518 and in FY24 it is ₹1543 crores.
Profit after Tax (PAT): FY22- ₹126 crore, FY23- ₹498 crores and FY24- ₹126 crores.
IPO Objectives
The Company intends to utilize the Net Proceeds for the following purposes:
Providing loans to the Project SPVs for repayment/pre-payment of external borrowings, in part or in full from the financial lenders (including any accrued interest and prepayment penalty); and
Providing loans to the Project SPVs for repayment of unsecured loans availed by the Project SPVs from the Sponsor.
Subscription Status (As of January 08, 2025)
Retail: -
QIB: -
NII: -
Overall Subscription: –
Recommendation
We recommend investors to apply as the company is Trust Investment firm which takes our money and invests in projects to earn returns. From total revenue they will distribute fixed percentage of revenue as dividend to the investors. It will be great for investors as a fixed income in their portfolio.
Standard Glass Lining IPO is a book built issue of Rs 410.05 crores. The issue is a combination of fresh issue of 1.50 crore shares aggregating to Rs 210.00 crores and offer for sale of 1.43 crore shares aggregating to Rs 200.05 crores.
About Standard Glass Lining Technology Limited
Established in September 2012, Standard Glass Lining Technology Limited specializes in manufacturing engineering equipment for India’s pharmaceutical and chemical industries. With a fully integrated in-house production process, the company delivers end-to-end solutions tailored to its clients’ needs. Their consumers are from paint, biotechnology, pharmaceutical, and food beverages. Their promoters play a crucial role in the growth of the company as they are skilled and experts in leadership.
Its turnkey offerings encompass design, engineering, manufacturing, assembly, installation, and operational support for pharmaceutical and chemical manufacturing facilities.
The product range includes: Reaction Systems and Storage, Separation, and Drying Systems.
IPO Subscription Period
Open Date: January 6, 2025
Close Date: January 8, 2025
Allotment Date: January 9, 2024
Listing Date: January 13,2025
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹133 – ₹140 per Share
Face Value: ₹10 per Share
Minimum Lot Size: 107 shares
Investment Requirement:
Retail Investors: Minimum ₹14980 (107 shares)
Small Non-Institutional Investors (sNII): 14 lots (1498 shares) – ₹209720
Big Non-Institutional Investors (bNII): 67 lots (7169 shares) – ₹1003660
Credit of Shares to Demat: Friday, January 10, 2025
Listing Date: Monday, January 13, 2025
Cut-off time for UPI mandate confirmation: 5 PM on January 8, 2025
Book Running Lead Managers
Standard Glass Lining Technology Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
IIFL Securities Ltd
Motilal Oswal Investment Advisors Ltd
Kfin Technologies Limited has been designated as the registrar for the IPO.
Promoter Information
Promoter: The promoters of the company are Nageswara Rao Kandula, Kandula Krishna Veni, Kandula Ramakrishna, Venkata Mohana Rao Katragadda, Kudaravalli Punna Rao and M/s S2 Engineering Services.
Shareholding:
Pre-Issue: 72.49%
Post-Issue: -
Financial Highlights
Revenue: In FY22 revenue was ₹241 crores, in FY23 it was ₹500 and in FY24 it is ₹549 crores.
Profit after Tax (PAT): FY22- ₹25 crore, FY23- ₹53 crores and FY24- ₹60 crores.
Net Worth: ₹448 crores
Total Borrowing: ₹174 crores
Key Performance Indicators (KPIs):
ROE: 20.7%
RoNW: 25.5%
P/BV: 5.7
EPS (Pre-IPO): ₹3.25
EPS (Post-IPO): ₹3.64
P/E Ratio (Pre-IPO): 43.04x
P/E Ratio (Post-IPO): 38.5x
IPO Objectives
The Company intends to utilize the Net Proceeds for the following purposes:
Financing capital expenditure requirements for purchasing machinery and equipment.
Repaying or prepaying, in full or part, certain outstanding borrowings of the Company, as well as supporting its wholly-owned subsidiary, S2 Engineering Industry Private Limited, in repaying or prepaying outstanding borrowings from banks and financial institutions.
Investing in S2 Engineering Industry Private Limited to meet its capital expenditure needs for purchasing machinery and equipment.
Supporting inorganic growth through strategic investments and/or acquisitions.
Covering general corporate purposes.
Subscription Status (As of January 07, 2025)
Retail: 19.97x
QIB: 1.81x
NII: 35.73x
Overall Subscription: 18.16x
Recommendation
We recommend investors to apply the IPO of Standard Glass Lining Technology Ltd, as the revenue is growing year on year and the demand of the industry has risen which is beneficial for the company. The grey market premium as of January 07, 2025, it is approximately 71% showing a great listing gain to investors. For long term the valuation post IPO are also reasonable compared to its peer companies like GMM Pfaudler Ltd, HLE Glasscoat Ltd, Thermax Ltd, etc. provides a better opportunity to investor in long term.
The Ventive Hospitality IPO is a book-built issue worth ₹1,600 crores, consisting entirely of a fresh issue of 2.49 crore shares. The IPO subscription window opens on December 20, 2024, and closes on December 24, 2024. The allotment of shares is expected to be finalized on December 26, 2024, with a tentative listing date set for December 30, 2024, on the BSE and NSE. The price band for the issue has been set at ₹610 to ₹643 per share, with a minimum lot size of 23 shares. Retail investors can participate with a minimum investment of ₹14,789, while sNII investors require a minimum of 14 lots (322 shares) amounting to ₹2,07,046. For bNII investors, the minimum investment is ₹10,05,652 for 68 lots (1,564 shares). The IPO also includes a reservation of up to 16,313 shares for employees at a ₹30 per share discount to the issue price. This IPO offers diverse investment opportunities for retail and institutional investors, supported by a robust team of lead managers and competitive pricing.
Period
The Ventive Hospitality IPO is scheduled to open for subscription on December 20, 2024, and will close on December 24, 2024. The share allotment is expected to be finalized by December 26, 2024, with the tentative listing date set for December 30, 2024, on both the BSE and NSE
Pricing and Lot Details
Ventive Hospitality Limited, a prominent hospitality asset owner focusing on luxury offerings across business and leisure segments, is launching its Initial Public Offering (IPO) with the following key details:
Price Band: ₹610 to ₹643 per share. The lower limit is ₹610, while the upper cap is ₹643.
Lot Size: A minimum investment requires 23 shares, amounting to approximately ₹14,789 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹1,600 crore, entirely through a fresh issue of 2.49 crore shares.
Face Value: ₹10 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Ventive Hospitality IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
23
14,789
Retail (Max)
Maximum: 13
299
1,92,257
Small HNIs (Min)
Minimum: 14
322
2,07,046
Small HNIs (Max)
Maximum: 67
1,541
9,90,863
Large HNIs (Min)
Minimum: 68
1,564
10,05,652
Reservation Structure
The Ventive Hospitality Limited IPO employs a structured reservation system to ensure diverse investor participation:
Qualified Institutional Buyers (QIBs): 75% of the net issue is reserved for QIBs, encompassing mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the net issue is allocated to NIIs, which includes high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum of 14 lots (322 shares), amounting to approximately ₹2,07,046 at the upper price band.
Large HNIs (lNIIs): Minimum of 68 lots (1,564 shares), totaling approximately ₹10,05,652 at the upper price band.
Retail Investors: 10% of the net issue is reserved for retail investors.
Minimum lot size: 10% of the net issue is reserved for retail investors.
This reservation framework ensures balanced participation across institutional and individual investors, accommodating varying investment capacities.
Key Dates & Timelines
The Ventive Hospitality Limited IPO is scheduled with the following timeline (December 2024)
IPO Open Date: Friday, December 20, 2024
IPO Close Date: Tuesday, December 24, 2024
Basis of Allotment: Thursday, December 26, 2024
Initiation of Refunds: Friday, December 27, 2024
Credit of Shares to Demat Accounts: Friday, December 27, 2024
Listing Date on BSE and NSE: Monday, December 30, 2024
Book Running Lead Managers
The Ventive Hospitality Limited IPO is being managed by the following Book Running Lead Managers (BRLMs):
JM Financial
Axis Capital
HSBC Securities
ICICI Securities
IIFL Securities
Kotak Mahindra Capital Company Limited
SBI Capital Markets
The registrar for the IPO is KFin Technologies Limited, responsible for processing applications, managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Ventive Hospitality Limited is promoted by a group of individuals and entities with substantial experience in the real estate and hospitality sectors. The key promoters are:
Atul I. Chordia: Serving as the Chairman and Executive Director, Atul Chordia brings over 31 years of experience in the real estate sector. He oversees the company’s overall operations and management. Atul has received several accolades, including the Hoteliers Award 2019 – Developer of the Year and the Times of India Real-Estate Icons of Pune Award 2022.
Tuhin Parikh: A Non-Executive Nominee Director, Tuhin holds a bachelor’s degree in commerce from the University of Bombay and a PGDM from IIM Ahmedabad. With 22 years of experience in the construction and real estate sector, he currently serves as Senior Managing Director and Head of the Real Estate Group in India at Blackstone Advisors India Private Limited.
Atul I. Chordia HUF: This entity is part of the promoter group associated with Atul Chordia, reflecting his personal and family stake in the business.
Premsagar Infra Realty Private Limited: A private entity engaged in real estate development and investments; this company is an important promoter of Ventive Hospitality Limited.
BRE Asia ICC Holdings Ltd and BREP Asia III India Holding Co VI Pte. Ltd.: These are foreign investment entities aligned with Ventive Hospitality, bringing international capital and expertise to the company.
About Ventive Hospitality Ltd.
Ventive Hospitality Limited is a prominent hospitality asset owner with a strong focus on luxury offerings across both the business and leisure segments. The company’s portfolio consists of 11 operational hospitality assets in India and the Maldives, totaling 2,036 keys as of September 30, 2024. These assets span across the luxury, upper-upscale, and upscale segments, catering to a wide range of travelers. The company partners with globally recognized operators, including Marriott, Hilton, Minor, and Atmosphere, ensuring world-class service and premium experiences. Notable properties in their portfolio include JW Marriott Pune, The Ritz-Carlton Pune, and Conrad Maldives, which are iconic luxury hotels in their respective locations. The Ritz-Carlton Pune is one of only two such hotels in India, while JW Marriott Pune is the largest luxury hotel in Pune. In the Maldives, Ventive Hospitality owns three luxury assets, which are renowned for their unique offerings, including undersea accommodations and dining experiences, further enhancing the luxury experience.
A key strength of Ventive Hospitality is its luxury focus, with over 80% of hotel operation revenues coming from its luxury assets. This aligns with global demand trends for high-end accommodations. Their properties consistently command an ARR (Average Room Rate) premium, reflecting superior asset quality and an exceptional customer experience. For example, from January to September 2024, luxury hotels in Pune achieved an ARR index of 1.44, while the Maldives properties reported an ARR index of 1.04.
In addition to its premium hospitality offerings, Ventive Hospitality also has a strong MICE (Meetings, Incentives, Conferences, and Exhibitions) offering. The JW Marriott Pune features the largest ballroom in Western India, enhancing its ability to host large-scale events, weddings, and conferences. Ventive Hospitality’s assets also benefit from its food and beverage offerings, which contribute up to 39.62% of the hotel operation revenues, further driving profitability.
The company has a proven track record of development and acquisition-led growth in India and the Maldives, with a strategic focus on acquiring and developing marquee hotels across these key geographies. The company’s experienced promoters and management team bring a mix of global and local expertise, positioning Ventive Hospitality well to capitalize on strong industry tailwinds. With a strategic portfolio of high-value luxury assets, strong brand partnerships, and a track record of successful asset management, Ventive Hospitality is well-positioned for continued growth and success in the luxury hospitality sector.
Financial Highlights
Metric
30-Sep-24
31-Mar-24
31-Mar-23
31-Mar-22
Explanation
Assets
–
₹8,794.1 Crore
₹8,606.17 Crore
₹8,010.41 Crore
Total assets owned by the company, including both current and non-current assets. This represents the overall value of the company’s holdings at the specified dates.
Revenue
₹875.9 Crore
₹1,907.38 Crore
₹1,762.19 Crore
₹1,197.61 Crore
Total income generated by the company from its business activities. The decline in revenue from 31 March 2024 to 30 Sep 2024 is notable.
Profit After Tax
₹-137.83 Crore
₹-66.75 Crore
₹15.68 Crore
₹-146.2 Crore
The net profit or loss after taxes. A negative value indicates a loss for the period. The company incurred losses in FY 2024 and Q2 FY2025.
Net Worth
–
₹3,665.83 Crore
₹3,657.15 Crore
₹3,441.39 Crore
Represents the shareholders’ equity or the total value of the company owned by its shareholders. This includes retained earnings and capital investments.
Total Borrowing
–
₹3,682.13 Crore
₹3,599.66 Crore
₹3,291.07 Crore
The total outstanding borrowings or debts of the company, both short-term and long-term, which need to be repaid. The borrowings increased slightly from March 2023 to September 2024.
IPO Objectives
The Ventive Hospitality IPO aims to utilize the net proceeds from the fresh issue for the following objectives:
Repayment and Prepayment of Borrowings: The company intends to use part of the proceeds to repay or prepay certain borrowings availed by the company, including the payment of any accrued interest on these borrowings.
Investment in Step-down Subsidiaries: A portion of the proceeds will be used to support the step-down subsidiaries of the company, namely SS & L Beach Private Limited and Maldives Property Holdings Private Limited, including the payment of interest through investments in these subsidiaries.
General Corporate Purposes: The remaining proceeds will be used for general corporate purposes, which may include funding future business expansion, operational needs, and other corporate activities.
Subscription Status as of December 23, 2024
Category
Subscription (times)
Shares Offered
Shares Bid For
Explanation
QIB (Qualified Institutional Buyers)
1.28
74,60,342
95,74,233
QIBs subscribed 1.28 times, bidding for more shares than offered, indicating strong institutional interest.
NII (Non-Institutional Investors)
0.89
37,30,171
33,15,358
NIIs subscribed 0.89 times, with demand lower than shares offered, suggesting moderate interest.
bNII (Bids above ₹10L)
0.96
24,86,929
23,82,800
bNII (large investors) subscribed 0.96 times, with good demand, but still lower than the shares offered.
sNII (Bids below ₹10L)
0.75
12,43,242
9,32,558
sNII (smaller investors) subscribed 0.75 times, with less demand compared to shares offered.
Retail
1.54
24,86,781
38,34,859
Retail investors subscribed 1.54 times, with a strong demand surpassing the shares offered.
Employee
4.24
16,313
69,207
Employees subscribed 4.24 times, showing very high demand relative to shares offered.
Total
1.23
1,36,93,606
1,67,93,657
Overall, the subscription rate is 1.23 times, with total shares bid exceeding shares offered, indicating a healthy overall demand.
Recommendation:
Ventive Hospitality Limited is a prominent hospitality asset owner with a portfolio focused on luxury hotels in India and the Maldives. It operates 11 properties, including high-end assets like JW Marriott Pune and The Ritz-Carlton Pune, which cater to both business and leisure travellers. The company’s properties are managed by global operators such as Marriott, Hilton, and Minor.
The IPO aims to raise ₹1,600 crore through the Offer for Sale (OFS) of 2.49 crore shares, with a price band of ₹610 to ₹643 per share. The company’s revenue mainly comes from luxury assets, contributing over 80% of hotel operation revenues.
However, the company’s financials show losses in recent years, with a negative profit after tax for 2024. It has a high level of debt, which raises concerns about its financial stability.
Analysts are divided on the IPO. Some recommend subscribing for long-term gains due to the company’s strong market position and growth prospects in the luxury segment, while others advise caution because of financial instability and debt concerns.
In conclusion, Ventive Hospitality’s IPO presents potential for growth in the luxury hospitality market, but investors should weigh the risks related to its debt and recent financial performance before making a decision.
The Carraro India IPO is a book-built issue worth ₹1,250 crores, entirely comprising an Offer for Sale (OFS) of 1.78 crore shares. The IPO opens for subscription on December 20, 2024, and closes on December 24, 2024, with the allotment expected to be finalized on December 26, 2024. The tentative listing date is set for December 30, 2024, on the BSE and NSE. The price band is fixed at ₹668 to ₹704 per share. Retail investors can apply for a minimum lot size of 21 shares, requiring an investment of ₹14,784. For small non-institutional investors (sNII), the minimum investment is ₹2,06,976 for 294 shares (14 lots), while large non-institutional investors (bNII) need to invest ₹10,05,312 for 1,428 shares (68 lots). The IPO provides an opportunity to invest in a well-established entity while catering to a diverse range of investors.
Period
The Carraro India IPO is scheduled to open for subscription on December 20, 2024, and will close on December 24, 2024. The share allotment is expected to be finalized by December 26, 2024, with the tentative listing date set for December 30, 2024, on both the BSE and NSE.
Pricing and Lot Details
The Carraro India IPO offers investors an opportunity to invest in a leading manufacturer of transmission systems and axles for off-highway vehicles. Below are the key details:
Price Band: ₹668 to ₹704 per share. The lower limit is ₹668, while the upper cap is ₹704.
Lot Size: A minimum investment requires 21 shares, amounting to approximately ₹14,784 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹1,250 crore, entirely through an Offer for Sale (OFS) of 1.78 crore shares.
Face Value: ₹10 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Carraro India IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
34
14,784
Retail (Max)
Maximum: 13
273
1,92,192
Small HNIs (Min)
Minimum: 14
294
2,06,976
Small HNIs (Max)
Maximum: 67
1,407
9,90,528
Large HNIs (Min)
Minimum: 68
1,428
10,05,312
Reservation Structure
The Carraro India IPO follows a structured reservation system to ensure participation from diverse investor categories:
Qualified Institutional Buyers (QIBs): 50% of the total issue is reserved for QIBs, including mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum 14 lots (294 shares), amounting to ₹2,06,976 at the upper price band.
Large HNIs (lNIIs): Minimum 68 lots (1,428 shares), totaling ₹10,05,312 at the upper price band.
Retail Investors: 35% of the total issue is reserved for retail investors.
Minimum lot size: 1 lot (21 shares), requiring an investment of ₹14,784 at the upper price band.
This reservation system ensures balanced participation across institutional and individual investors while catering to varying investment capacities.
Key Dates & Timelines
Carraro India Limited IPO Timeline (December 2024)
IPO Open Date: Friday, December 20, 2024
IPO Close Date: Tuesday, December 24, 2024
Basis of Allotment: Thursday, December 26, 2024
Initiation of Refunds: Friday, December 27, 2024
Credit of Shares to Demat Accounts: Friday, December 27, 2024
Listing Date on BSE and NSE: Monday, December 30, 2024
Book Running Lead Managers
The Carraro India Limited is being managed by the following Book Running Lead Managers (BRLMs):
ICICI Securities Limited
HDFC Bank Limited
Kotak Mahindra Capital Company Limited
The registrar for the IPO is Link Intime India Private Limited, responsible for processing applications, managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Carraro India is led by a seasoned management team with extensive experience in the automotive components industry.
Balaji Gopalan, the Managing Director, has been with the company since September 1, 1998. He holds a Doctor of Philosophy in Human Resource Management from the University of Pune and is responsible for achieving revenue, EBITDA, and CSR targets.
Andrea Conchetto, a Non-Executive Director, holds a diploma in Electrotechnical Engineering from the University of Padua. He is associated with the Carraro Group, including Carraro S.p.A., Carraro Drive Tech Italia S.p.A., Carraro China Drive Systems Co. Ltd, and Siap S.p.A.
Enrico Gomiero, also a Non-Executive Director, holds a diploma as an accountant and commercial expert from the Technical Institute for Commercials and Surveyors of Padua. He is associated with various entities in the Carraro Group, including Carraro S.p.A., Carraro Drive Tech Italia S.p.A., Carraro Finance S.p.A., Carraro International S.E., and Siap S.p.A.
Davide Grossi, the Whole-time Director and Chief Financial Officer, holds an undergraduate degree in Business Administration and a Master’s in Accounting, Corporate Finance, and Control from Bocconi University. He has previously been associated with Alten Sverige AB, Isagro (Asia) Agrochemicals Pvt. Ltd., and Deloitte & Touche S.p.A.
Sudhendra Mannikar, the Whole-time Director and Chief Operating Officer, has been with the company since August 2, 1999. He holds a Bachelor’s degree in Engineering (Production) and an MBA from the University of Pune. He was previously associated with Essar Projects Limited.
The promoters of Carraro India include Tomaso Carraro, Enrico Carraro, Carraro S.p.A., and Carraro International S.E.
This leadership team brings a wealth of expertise and strategic vision to Carraro India, positioning the company for sustained growth and success in the automotive components sector.
About Carraro India Ltd.
Carraro India Limited, established in 1997, is a technology-driven and integrated supplier specializing in the development of complex engineering products and solutions for original equipment manufacturers (OEMs). The company focuses on axles, transmission systems, and gears tailored for the agricultural tractor and construction vehicle industries in India. As an independent Tier-1 solution provider, Carraro India offers mission-critical components that are integral to its customers’ final products. sThe company’s product portfolio includes axles and transmission systems designed for agricultural tractors and construction vehicles such as backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders. It also manufactures gears, shafts, and ring gears for industrial and automotive vehicles. Carraro India caters to a diverse range of off-highway vehicles, offering axles and transmission systems across various horsepower (HP) categories.
The agricultural tractor segment, which dominates the Indian market with a 90% share, is driven by farm mechanization and favourable government policies. Meanwhile, the construction vehicle segment, holding the remaining 10%, is bolstered by significant infrastructure investments. The Indian government’s ₹10 lakh crore budget allocation for infrastructure development in 2023–24, alongside the ₹27 lakh crore National Infrastructure Pipeline (NIP) investment by FY2025 and ₹7 lakh crore for road and highway projects over the next 2–3 years, is expected to drive robust demand for construction vehicles.
Financial Highlights Summary
Revenue Growth: The company achieved consistent growth in operating revenue, increasing from ₹1,497.54 Cr in FY22 to ₹1,788.96 Cr in FY24, showcasing robust demand and operational efficiency.
Profitability Metrics:
EBITDA: Improved from ₹82.86 Cr in FY22 to ₹149.99 Cr in FY24, with margins rising from 5.45% to 8.30%, highlighting better cost management.
PAT: Grew from ₹22.42 Cr in FY22 to ₹62.56 Cr in FY24, with PAT margins improving from 1.50% to 3.50%.
Return Metrics:
ROCE: Increased from 10% in FY22 to 19.35% in FY24, reflecting efficient resource utilization.
Cash Flow & Liquidity:
CFOA: Despite fluctuations, stable operational cash flows support liquidity and operational health.
Asset & Equity Growth:
Total assets grew from ₹1,012.44 Cr in FY22 to ₹1,072.89 Cr in FY24, while net worth rose from ₹292.49 Cr to ₹369.82 Cr, reinforcing financial stability.
Debt Management: Controlled borrowing with total debt at ₹212.55 Cr in FY24 indicates balanced financial management.
Overall: The company exhibits strong revenue growth, enhanced profitability, efficient capital use, and solid financial health, ensuring a positive outlook for stakeholders.
IPO Objectives
The Carraro India Limited Initial Public Offering (IPO) is structured entirely as an Offer for Sale (OFS), wherein the promoter selling shareholder will divest a portion of their stake. Consequently, the company itself will not receive any proceeds from this offering. All funds generated will be directed to the promoter selling shareholder, net of offer-related expenses and applicable taxes.
In an OFS, existing shareholders sell their shares to the public, allowing them to monetize their holdings. This approach does not result in capital inflow to the company but enables the promoters to reduce or liquidate their ownership stake. For investors, participating in such an IPO provides an opportunity to invest in a company with an established operational history and financial track record.
It’s important to note that since the company won’t receive any proceeds from this IPO, there won’t be immediate capital available for business expansion or debt reduction. Investors should consider this aspect when evaluating the potential impact of the IPO on the company’s future growth and financial strategy.
Subscription Status as of December 20, 2024, 05:00 PM
Investor Category
Subscription (times)
Explanation
Qualified Institutional Buyers (QIB)
0
No subscription from QIBs on the current day.
Non-Institutional Investors (NII)
0.06
Limited participation from NIIs, indicating a 6% subscription of their portion.
– bNII (bids above ₹10L)
0.04
High-value bids (above ₹10L) accounted for only 4% of the allotted category.
– sNII (bids below ₹10L)
0.1
Smaller value bids (below ₹10L) achieved a 10% subscription.
Retail Investors
0.16
Stronger interest from retail investors with a 16% subscription rate.
Total
0.09
The overall subscription rate across all categories is 9%, reflecting moderate interest.
Conclusion:
Carro India Limited, a company in the [specific industry, e.g., automobile, technology, etc.], presents both opportunities and risks for potential investors. Here are key factors to consider before deciding to invest:
Positives:
Growth Potential: If the company operates in a high-growth sector with favorable macroeconomic trends, it may benefit from increased demand.
Financial Strength: Analyze its revenue growth, profitability margins, and debt levels. Consistent growth in revenue and profit would indicate a strong financial position.
Competitive Edge: The company might hold unique advantages, such as innovative technology, cost-efficiency, or a strong brand reputation in the market.
Industry Position: Evaluate the company’s standing compared to peers. A leadership position in a niche market could indicate long-term growth potential.
Concerns:
Valuation: Assess the Price-to-Earnings (P/E) ratio and compare it with industry peers. A high valuation could indicate that the stock is overvalued.
Operational Risks: Analyze the risks in supply chain management, raw material costs, and dependency on specific markets or clients.
Market Sentiment: If subscription numbers (e.g., from QIBs, NIIs, retail investors) are low, it may suggest weak investor confidence.
Macroeconomic Risks: Factors like interest rate hikes, inflation, or geopolitical issues could impact the company’s growth prospects.
Before investing, thoroughly review the company’s Red Herring Prospectus, assess the subscription demand across investor categories, and consult with a financial advisor. Investing in IPOs carries inherent risks, so ensure the investment aligns with your financial goals and risk appetite.
Founded in February 2008, Transrail Lighting Ltd. is an engineering construction company that manufactures lattice structures, conductors, and monopoles, specializing in energy transmission and distribution. There was also an offer for sale of 1.02 crore shares valued at Rs 438.91 crore. The IPO auction was launched on December 19, 2024, and will conclude on December 23, 2024. The allotment of shares will be finalized on December 24, 2024, and the shares are scheduled to be listed on BSE and NSE on December 27, 2024. 2024 The price range for IPOs has been fixed at ₹410 to ₹432 per share. Investors can apply for a minimum of 34 shares, with a retail investment of ₹ ₹14,688 The minimum investment for small non-institutional investors (sNII) is 14 lots (476 shares) equivalent to ₹2,05,632, while the minimum investment for large non-institutional investors (bNII) is ₹14,688) is 69 lots (2,346 shares) for a total of ₹10,13,472.
IPO Subscription Period
The Transrail Lighting Limited IPO is scheduled to open for subscription on December 19, 2024, and will close on December 23, 2024. The share allotment is expected to be finalized by December 24, 2024, with the tentative listing date set for December 27, 2024, on both the BSE and NSE.
Pricing and Lot Details
The Transrail Lighting Limited IPO offers investors an opportunity to invest in a prominent player in the engineering and construction industry. Below are the key details:
Price Band: ₹410 to ₹432 per share. The lower limit is ₹410, while the upper cap is ₹432.
Lot Size: A minimum investment requires 34 shares, amounting to approximately ₹14,688 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹838.91 crore, comprising a fresh issue of 0.93 crore equity shares worth ₹400 crore and an Offer for Sale (OFS) of 1.02 crore shares valued at ₹438.91 crore.
Face Value: ₹2 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Transrail Lighting IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
34
14,688
Retail (Max)
Maximum: 13
442
1,90,944
Small HNIs (Min)
Minimum: 14
476
2,05,632
Small HNIs (Max)
Maximum: 68
2,312
9,98,784
Large HNIs (Min)
Minimum: 69
2,346
10,13,472
Reservation Structure
The Transrail Lighting Limited IPO employs a structured reservation system to ensure participation from diverse investor categories:
Qualified Institutional Buyers (QIBs): 50% of the total issue is reserved for QIBs, including mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum 14 lots (476 shares), amounting to ₹2,05,632 at the upper price band.
Large HNIs (lNIIs): Minimum 69 lots (2,346 shares), totaling ₹10,13,472 at the upper price band
Retail Investors: 35% of the total issue is reserved for retail investors.
Minimum lot size: 1 lot (34 shares), requiring an investment of ₹14,688 at the upper price band.
This reservation system ensures balanced participation across institutional and individual investors while catering to varying investment capacities.
Initiation of Refunds: Thursday, December 26, 2024
Credit of Shares to Demat Accounts: Thursday, December 26, 2024
Listing Date on BSE and NSE: Friday, December 27, 2024
Book Running Lead Managers
The Transrail Lighting Limited IPO is being managed by the following Book Running Lead Managers (BRLMs):
Inga Ventures Private Limited
Axis Capital Limited
HDFC Bank Limited
IDBI Capital Market Services Limited
The registrar for the IPO is Link Intime India Private Limited, responsible for processing applications, managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Transrail Lighting Limited is led by a seasoned management team with extensive experience in the transmission and distribution (T&D) industry.
Digambar Chunnilal Bagde, the Executive Chairman, holds a Bachelor of Engineering (Civil) degree and has over 47 years of experience in the design and execution of transmission lines in both Indian and international markets. He has been associated with the company since its inception in 2008.
Randeep Narang, the Managing Director and Chief Executive Officer, holds a Master of Business Administration from NMIMS Mumbai and has attended several leadership development and strategic management programs in the U.S. and India. With more than 36 years of experience managing complex profit and loss responsibilities across various industries, he has been instrumental in steering the company’s growth and operations.
Sanjay Kumar Verma, a Non-Executive Director, holds a diploma of master in computer systems and networks from Khaikov State Polytechnical University, Ukraine. He has several years of experience in business administration and serves as a director on the boards of multiple companies.
The promoters of Transrail Lighting Limited include Ajanma Holdings Private Limited, Digambar Chunnilal Bagde, and Sanjay Kumar Verma. This leadership team brings a wealth of expertise and strategic vision to Transrail Lighting Limited, positioning the company for sustained growth and success in the T&D sector.
About Transrail Lighting Ltd.
Founded in February 2008, Transrail Lighting Ltd is a leading engineering, procurement and construction (EPC) company with a primary focus on energy transmission and distribution. With over four decades of expertise The company has thus built a strong reputation for providing turnkey EPC solutions to civil construction. This includes bridges, tunnels and cooling towers. as well as poles and lighting systems and railway infrastructure, such as overhead electrification. Signal and rail connections making the company successful in transmitting power and Worldwide distribution project It has started operations in 58 countries, including Bangladesh, Kenya, Nigeria, Finland and Poland… This global presence reinforces our ability to execute large-scale projects in a variety of challenging markets. Especially in Asia and Africa… Financially, Transrail is showing strong growth. Its revenue increased from Rs 2,139.09 crore in 2021 to Rs 3,086.14 crore in 2023, coupled with lower costs. This indicates improved operational efficiency. As of September 2023, the company had 1,575 employees, reflecting its commitment to improving operations and building capacity. Transrail is well positioned to capitalize on growing demand in the global communications and electricity distribution sectors, driven by growing energy demand in emerging markets. The integration of smart grids and renewable energy sources presents significant opportunities, especially in high voltage (HV) and ultra-high voltage (EHV) solutions. The company’s focus is on delivering sustainable, quality infrastructure. That high is consistent with the priorities of industry trends.
Financial Highlights: Investor-Centered Approach
Strong revenue growth Operating Income: ₹4,009 Crore in FY2022, up 75.5% from FY2022. This sustained growth underscores our strong business performance and extensive market position. Total revenue: ₹4,113 million in fiscal year Reflecting two-year growth of 73.4%, supported by operational excellence and additional revenue streams.
Effective cost management Consumables expenses: Increased to ₹2,246 trillion in FY2024, in line with revenue growth. which shows efficiency in operations Subcontract costs: ₹499 million in fiscal year This demonstrates scalable operations. At the same time, external work can be managed efficiently.
Increase profits Profit after tax (PAT): ₹233 trillion in FY, up 118% from FY23 and 264% from FY22, highlighted by key operational and financial improvements. Other Income: Continued growth in non-operating income, such as interest or dividends. Helps create profits.
Expanding assets and financial strength Total assets: ₹4,836 crore as on June 30, 2024, up 70% from FY2022, indicating substantial investment in the capital structure. Net worth: ₹1,140 million in FY2024, up 90% in three years, reflecting strong profits and reinvestment ability.
Careful debt management Total debt: ₹603 million in fiscal year which is in outstanding proportion to the growth of assets It signals disciplined financial practices. Finance Expenditure: Fixed at ₹50 million, emphasizing efficient debt service amid expansion.
Investing in human fixed assets Employee benefit expenditure: ₹198 million in fiscal year This emphasizes the company’s commitment to its people. Depreciation and Amortization: Continued growth to ₹164 trillion in FY2024 indicates strategic investments in fixed assets and long-term growth initiatives.
Important points for investors
Transrail Lighting Ltd shows a clear path to revenue growth. Improving Profitability and efficiency in operations.
Combined with disciplined spending and debt management. The company’s financial strength provides a solid foundation for sustainable performance.
The company’s strategic investments in assets and employees further position it as a reliable and growth-oriented player in the EPC sector.
Transrail is an attractive investment opportunity for those wanting exposure to a fast-growing and well-run enterprise in the communications, electricity, and infrastructure sectors.
IPO Objectives
Transrail Lighting Limited is proposing an Initial Public Offering (IPO) with the aim of utilizing the net proceeds for various purposes. The company intends to allocate the funds towards the following objectives:
Incremental working capital requirements to support the company’s operations.
Funding capital expenditure to aid in the company’s growth and development.
General corporate purposes to enhance its overall business activities.
The total number of shares to be issued is as follows: 92,59,259 shares will be issued through a fresh issue, while 1,01,60,000 shares will be offered for sale by existing shareholders.
Subscription Status as of December 20, 2024, 06:54 PM
Category
Subscription (times)
Shares Offered
Shares Bid For
Qualified Institutional Buyers (QIB)
1.36
37,95,889
51,51,680
Non-Institutional Investors (NII)
7.42
28,46,917
2,11,36,508
– bNII (bids above ₹10L)
5.67
18,97,945
1,07,70,010
– sNII (bids below ₹10L)
10.92
9,48,972
1,03,66,498
Retail Investors
7.13
66,42,805
4,73,67,100
Employee Portion
1.53
4,29,814
6,55,792
Total
5.42
1,37,15,425
7,43,11,080
Recommendation:
Transrail Lighting Limited stands out with strong profitability, consistent revenue growth, and superior operational efficiency, outperforming larger peers like KEC International and Kalpataru Projects. Its higher Operating and Net Profit Margins reflect effective management.
Despite its smaller scale and shorter history in the T&D sector (since 2016), its lower P/E ratio suggests potential undervaluation, though market sentiment may remain cautious. Strong management and customer relationships support growth, but risks like order book susceptibility and regulatory challenges should be considered. A promising T&D growth story with risks; thorough due diligence is essential.
DAM Capital Advisors IPO is a book-built issue of Rs 840.25 crores. It is entirely an offer to sell 2.97 crore shares.
About DAM Capital Advisors Limited
DAM Capital Advisors Limited, founded on May 7, 1993, is a renowned investment bank in India. DAM Capital serves its customers with investment banking services which include equity capital markets (“ECM”), mergers and acquisitions (“M&A”), private equity (“PE”), and structured finance counselling, as well as institutional equities services such as broking and research. Their primary concentration is on the Indian capital market, which is currently one of the fastest-growing marketplaces in the world. As of July 31, 2024, they have completed 67 ECM transactions, including five offers for sale, six preferential issues, three rights issues, seven buybacks, four open offers, one initial public offering of units by a real estate investment trust, 26 IPOs, and 15 placements by qualifying institutions. Moreover, till July 31, 2024, DAM Capital Advisory has also advised on 20 advisory transactions including M&A advisory, private equity advisory and structured finance advisory, and has also executed block trades. On March 31, 2024, the revenue increased by 114% and profit after tax (PAT) increased by 713%.
IPO Subscription Period
Open Date: December 19, 2024
Close Date: December 23, 2024
Allotment Date: December 24, 2024
Listing Date: December 27, 2024
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹269 – ₹283 per Share
Face Value: ₹2 per Share
Minimum Lot Size: 53 shares
Investment Requirement:
Retail Investors: Minimum ₹14999 (53 shares)
Small Non-Institutional Investors (sNII): 14 lots (742 shares) – ₹209986
Big Non-Institutional Investors (bNII): 67 lots (3551 shares) – ₹1004933
Cut-off time for UPI mandate confirmation: 5 PM on December 23, 2024
Book Running Lead Managers
DAM Capital Advisors Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
Nuvama Wealth Management Limited
Link Intime India Private Limited has been designated as the registrar for the IPO.
Promoter Information
Promoter: The promoters of the company are Dharmesh Anil Mehta, Sonali Dharmesh Mehta and Boombucket Advisors Private Limited.
Shareholding:
Pre-Issue: 45.88%
Post-Issue: 39.89%
Financial Highlights
Revenue: In FY22 revenue was ₹94.51 crores, in FY23 it was ₹85.04 crores and in FY24 it is ₹182 crores.
Profit after Tax (PAT): PAT has increased year on year, FY23 ₹8.67 crores to in FY24 ₹70.52 crores.
Net Worth: ₹162 crores
Total Borrowing: ₹4.93 crores
Key Performance Indicators (KPIs):
ROE: 54.72%
RoNW: 44.98%
P/BV: 12.76
EPS (Pre-IPO): ₹9.98
EPS (Post-IPO): ₹9.98
P/E Ratio (Pre-IPO): 28.37x
P/E Ratio (Post-IPO): 28.4x
IPO Objectives
The company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Subscription Status (As of December 20, 2024)
Retail: 5.11x
QIB: 0.01x
NII: 5.32x
Overall Subscription: 3.71x
Recommendation
DAM Capital Advisors Ltd. is a great company which don’t need any funds for operations or expansions. It has enough cash reserves to pay the minimal debt on the balance sheet. The revenue numbers are really great and have potential to rise more in future. Grey Market Premium (GMP) is really high shows good listing gain and also good for long term investment in company.
Concord Enviro IPO is a book built issue of Rs 500.33 crores. The issue is a combination of fresh issue of 0.25 crore shares aggregating to Rs 175.00 crores and offer for sale of 0.46 crore shares aggregating to Rs 325.33 crores.
About Concord Enviro System Limited
Concord Enviro Systems Limited was incorporated in July 1999 and engaged in the business of water provider and wastewater reuse with the advanced technology zero-liquid discharge (ZLD). Due to giving more importance to customer satisfaction and building strong and long relationships, now they have around 353 domestic and 24 international customers, including various industries such as pharmaceuticals, chemicals, food and beverage, defense and energy, automotive and auto ancillaries, steel, and textiles. Additionally, the company has a broad global reach, exporting to regions including North America, Latin America, Africa, the Middle East, and Southeast Asia. It is noticeable that the company’s revenue has increased from 2022 to 2024, raising INR 329.37 crores to INR 496.86 crores, and the net income of 2024 is also satisfactory at INR 41.44 crores. Further, this company works in two countries with two manufacturing facilities, one in Vasai, Maharashtra, India, and the other in Sharjah, UAE.
IPO Subscription Period
Open Date: December 19, 2024
Close Date: December 23, 2024
Allotment Date: December 24, 2024
Listing Date: December 27, 2024
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹665 – ₹701 per Share
Face Value: ₹5 per Share
Minimum Lot Size: 21 shares
Investment Requirement:
Retail Investors: Minimum ₹14721 (21 shares)
Small Non-Institutional Investors (sNII): 14 lots (249 shares) – ₹20604
Big Non-Institutional Investors (bNII): 68 lots (1428 shares) – ₹1001028
Cut-off time for UPI mandate confirmation: 5 PM on December 23, 2024
Book Running Lead Managers
Concord Enviro Systems Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
Motilal Oswal Investment Advisors Limited
Equirus Capital Private Limited
Link Intime India Private Limited has been designated as the registrar for the IPO.
Promoter Information
Promoter: The promoters of the company are Prayas Goel, and Prerak Goel.
Shareholding:
Pre-Issue: 60.93%
Post-Issue: %
Financial Highlights
Revenue: In FY22 revenue was ₹337 crores, in FY23 it was ₹350 crores and in FY24 it is ₹512 crores.
Profit after Tax (PAT): PAT has increased year on year, FY23 ₹5.49 crores to in FY24 ₹41.44 crores.
Net Worth: ₹320 crores
Total Borrowing: ₹167 crores
Key Performance Indicators (KPIs):
ROE: 13.73%
RoNW: 12.92%
P/BV: 3.96
EPS (Pre-IPO): ₹22.77
EPS (Post-IPO): ₹0.6
P/E Ratio (Pre-IPO): 30.72x
P/E Ratio (Post-IPO): 1171.2x
IPO Objectives
Investment in the wholly owned Subsidiary, Concord Enviro FZE (“CEF”) for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for the treatment of water, wastewater and related membrane modules (the “U.A.E Project”);
Investment in our wholly owned Subsidiary, Rochem Separation Systems (India) Private Limited (“RSSPL”), for financing its capital expenditure requirements for the brownfield project to expand the manufacturing facilities, storage and supporting activities (the “Vasai Project”);
Funding capital expenditure requirements of the Company for the purchase of plant and machinery;
Investment in our wholly owned Subsidiary, Concord Enviro FZE, for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by Concord Enviro FZE;
Investment in the wholly owned Subsidiary, Concord Enviro FZE, for funding working capital requirements of Concord Enviro FZE;
Investment in the joint venture, Reserve Enviro Private Limited, to grow our pay-per-use/pay-as-you-treat business.
Subscription Status (As of December 20, 2024)
Retail: 1.96x
QIB: 0.03x
NII: 0.94x
Overall Subscription: 1.2x
Recommendation
Concord Enviro Systems Ltd. Is in waste treatment segment, which has high expansion possibility in future and has high revenue generating capacity hence it is a really great company. But, its post IPO PE ratio is 1172 times which is really high and the grey market premium is also about 10% show less interest from public. It is a great investment if you get an attractive price, but only apply for minimal listing gain.
Sanathan Textiles Limited, a leading textile manufacturer, is launching its Initial Public Offering (IPO) with a total issue size of ₹550 crore. The offering includes a fresh issue of 1.25 crore shares worth ₹400 crore and an Offer for Sale (OFS) of 0.47 crore shares valued at ₹150 crore. The IPO will be open for subscription from December 19 to December 23, 2024, with allotment details finalized on December 24, 2024. Shares are set to list on BSE and NSE on December 27, 2024. The price band for the IPO is ₹305 to ₹321 per share. Retail investors can participate with a minimum lot size of 46 shares, requiring an investment of ₹14,766. Small Non-Institutional Investors (sNII) must invest in a minimum of 14 lots (644 shares), totalling ₹2,06,724, while Large Non-Institutional Investors (bNII) need at least 68 lots (3,128 shares), amounting to ₹10,04,088. Sanathan Textiles plans to utilize the proceeds from the fresh issue for capacity expansion, debt reduction, and working capital requirements. With its strong presence in the textile sector and the growing demand for Indian textile exports, this IPO offers investors a promising opportunity in a sector poised for significant growth.
IPO Subscription Period
The Sanathan Textiles Limited IPO is scheduled to open for subscription on December 19, 2024, and will close on December 23, 2024. The share allotment is expected to be finalized by December 24, 2024, with the tentative listing date set for December 27, 2024, on both the BSE and NSE.
Pricing and Lot Details
The Sanathan Textiles Limited IPO offers investors an opportunity to participate in the growth of a leading textile manufacturer. Below are the key details:
Price Band: ₹305 to ₹321 per share. The lower limit is ₹305, while the upper cap is ₹321.
Lot Size: A minimum investment requires 46 shares, amounting to approximately ₹14,766 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹550 crore, comprising a fresh issue of 1.25 crore equity shares worth ₹400 crore and an Offer for Sale (OFS) of 0.47 crore shares valued at ₹150 crore.
Face Value: ₹2 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Sanathan Textiles IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
46
14,766
Retail (Max)
Maximum: 13
598
1,91,958
Small HNIs (Min)
Minimum: 14
644
2,06,724
Small HNIs (Max)
Maximum: 67
3,082
9,89,322
Large HNIs (Min)
Minimum: 68
3,128
10,04,088
Reservation Structure
The Sanathan Textiles Limited IPO employs a structured reservation system to ensure participation from diverse investor categories:
Qualified Institutional Buyers (QIBs): 50% of the total issue is reserved for QIBs, including mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum 14 lots (644 shares), amounting to ₹2,06,724 at the upper price band.
Large HNIs (lNIIs): Minimum 68 lots (3,128 shares), totalling ₹10,04,088 at the upper price band.
Retail Investors: 35% of the total issue is reserved for retail investors.
Minimum lot size: 1 lot (46 shares) requiring an investment of ₹14,766 at the upper price band.
This reservation system ensures balanced participation across institutional and individual investors while catering to varying investment capacities.
Initiation of Refunds: Wednesday, December 25, 2024
Credit of Shares to Demat Accounts: Thursday, December 26, 2024
Listing Date on BSE and NSE: Friday, December 27, 2024
Book Running Lead Managers
The Sanathan Textiles Ltd IPO is being managed by the following Book Running Lead Managers (BRLMs):
Dam Capital Advisors Ltd (formerly IDFC Securities Ltd)
ICICI Securities Ltd
The registrar for the IPO is KFin Technologies Ltd, which is responsible for processing applications and managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Sanathan Textiles is led by an experienced management team with deep roots in the textile industry.
Paresh Vrajlal Dattani, the Chairman and Managing Director, has been serving on the Board since October 10, 2005. A science graduate from the University of Calcutta, he brings 46 years of experience to the company. He oversees the company’s overall performance, drives growth strategies, and provides leadership guidance. In addition, he has been a partner at Ramniklal Nandlal Bros since 1978.
Ajay Vallabhdas Dattani, the Joint Managing Director, has also been on the Board since October 10, 2005. A commerce graduate (honors) from the University of Calcutta, Ajay plays a key role in the operations and expansion of the cotton division, as well as overseeing finance, production, and compliance. With over 18 years of experience in the textile industry, he contributes significantly to the company’s operational growth.
Anilkumar Vrajdas Dattani, the Executive Director, joined the Board on the same date and is a commerce graduate from the University of Bombay. He oversees corporate social responsibility initiatives and administrative functions of the company. Like Paresh, Anilkumar has 46 years of industry experience and has been a partner at Ramniklal Nandlal Bros since 1978.
The collective expertise and leadership of the Dattani family form the backbone of Sanathan Textiles, ensuring strong strategic direction and operational excellence.
About Sanathan Textiles Ltd.
Sanathan Textiles Limited, incorporated in 2005, is a leading polyester yarn manufacturer and global supplier of cotton yarn. The company operates through three key business verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial uses. These technical textiles are utilized across various industries, including automotive, healthcare, construction, sports and outdoor activities, and protective clothing. With a robust manufacturing base in Silvassa, Sanathan Textiles serves a broad range of clients worldwide and is known for its diversified product offerings.
As of September 30, 2024, Sanathan Textiles had more than 3,200 active varieties of yarn products manufactured between April 1, 2021, and September 30, 2024. The company can produce over 14,000 varieties of yarn products and more than 190,000 stock-keeping units (SKUs), which are used across multiple end applications. In terms of global reach, Sanathan Textiles exports its products to 14, 27, and 29 countries in 2024, 2023, and 2022, respectively. The company also has a strong distribution network, with over 925 distributors in seven countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel.
Sanathan Textiles’ client base includes some of the most reputable names in the textile and garment industries, such as Welspun India Limited, Valson Industries Limited, G.M. Fabrics Private Limited, Premco Global Limited, and Banswara Syntex Limited. This extensive and diverse clientele reflects the company’s ability to cater to a wide array of requirements, from large multinational corporations to regional businesses.
One of the key strengths of Sanathan Textiles is its presence across multiple sectors, including polyester, cotton, and technical textiles. This diversification gives the company a competitive edge in the Indian market. The company places a strong emphasis on product development, focusing on process innovation to meet the evolving demands of the textile industry. Additionally, the fully integrated yarn manufacturing plant is strategically located and equipped with state-of-the-art machinery from both domestic and globally renowned suppliers, ensuring the production of high-quality yarn products.
Sanathan Textiles’ long-standing relationships with consumer brands have resulted in a low customer concentration, which reduces dependency on any single client. The company’s deep understanding of optimal product assortment and its well-established supplier network contribute to efficient procurement practices, ensuring competitive pricing. This operational efficiency is further supported by a healthy financial performance and an experienced management team with a proven track record in the textile sector.
The company’s strategic focus includes expanding manufacturing capacity, enhancing the value addition in existing products, and continuing to innovate through new product development. Moreover, Sanathan Textiles aims to harness digitization and technology to enhance production processes, with a strong emphasis on energy efficiency and sustainable practices.
Despite these strengths, there are several risks that the company faces. One of the key challenges is the lack of long-term agreements for raw materials, which may impact procurement stability. The company is also highly dependent on a small number of key suppliers for its raw materials, which could pose a risk to supply continuity. Additionally, Sanathan Textiles’ inventory turnover cycle increased to 69 days in Fiscal 2024, which could impact working capital management.
The company also faces a high level of revenue dependency on its distributors, who contributed 96.55% of the revenue in June 2024. This concentration poses a risk to the company’s revenue stream. Furthermore, Sanathan Textiles experienced a decline in both revenue (by 11.17%) and profit after tax (by 12.37%) in Fiscal 2024, which may indicate potential financial challenges. High working capital requirements also pose a risk to operational continuity if funding is insufficient. The company’s proposed capacity expansion could face challenges if it does not match the anticipated demand growth. Lastly, the company’s heavy reliance on markets in Gujarat, Maharashtra, and Punjab exposes it to regional risks that could affect business stability.
Financial Highlights
Metric
30-Jun-24
31-Mar-24
31-Mar-23
31-Mar-22
Explanation
Assets (₹ Cr)
2,529.53
2,203.68
1,906.67
1,796.47
The company’s total assets have grown consistently over the years, reflecting its expanding scale of operations and investments in its business.
Revenue (₹ Cr)
787.76
2,979.80
3,345.02
3,201.46
Revenue dipped in Q1 FY25 compared to full-year FY24 and prior periods, indicating potential seasonality or temporary challenges in operations.
Profit After Tax (₹ Cr)
50.07
133.85
152.74
355.44
Profitability has seen a decline, with PAT dropping significantly from FY22 to FY24 and a modest figure reported for Q1 FY25.
Net Worth (₹ Cr)
1,324.06
1,273.98
1,140.13
987.39
The company’s net worth has steadily increased, reflecting improved equity position and retained earnings over the years.
Total Borrowing (₹ Cr)
644.93
379.88
281
378.19
Borrowings have risen sharply in FY24 and Q1 FY25, indicating the company may be leveraging debt to fund growth or manage operations.
IPO Objectives
Sanathan Textiles Limited is conducting an initial public offering (IPO) to raise approximately ₹550 crore, comprising a fresh issue of ₹400 crore and an offer for sale of ₹150 crore.
The primary objectives for utilizing the proceeds from this IPO are:
Repayment and Prepayment of Borrowings: The company plans to allocate ₹160 crore to reduce its outstanding debts, thereby strengthening its financial position.
Investment in Subsidiary: An amount of ₹140 crore is earmarked for investment in its subsidiary, Sanathan Polycot Pvt. Ltd., to support its growth and operations.
General Corporate Purposes: The remaining funds will be utilized for general corporate needs, which may include working capital requirements, capital expenditures, and other business-related expenses.
By addressing these areas, Sanathan Textiles aims to enhance its operational efficiency, reduce financial leverage, and support the expansion of its business operations.
Subscription Status as of December 20, 2024, 05:58 PM
Category
Subscription Status
Explanation
Retail Individual Investor (RII)
2.1517 times
The retail category was oversubscribed by 2.15 times, indicating strong interest from individual investors.
Non-Institutional Investor (NII)
1.5253 times
The NII category (high-net-worth individuals and others) was subscribed 1.52 times, showing moderate demand from this segment.
Qualified Institutional Buyers (QIB)
0.0935 times
QIBs subscribed to only 9.35% of their allotted portion, reflecting low participation from institutional investors.
Overall Subscription
1.43 times
The IPO received an overall subscription of 1.43 times, driven mainly by the retail and NII categories, while QIB demand was significantly subdued.
Recommendation:
Long-Term Investors: Sanathan Textiles could be a viable option for investors looking for a stable, low-risk opportunity in the textile sector. Its low leverage, moderate valuation, and steady profitability make it a relatively safe bet.
Short-Term Investors: Given the moderate metrics, short-term gains may be limited unless market sentiment turns highly favorable.
Action Plan:
Before investing, consider:
The industry’s current and future outlook in light of global market trends.
Final IPO pricing and peer comparison to assess valuation attractiveness.
Your personal investment goals and risk tolerance.
In summary, Sanathan Textiles IPO offers stability and moderate growth potential, making it more suitable for conservative, long-term investors.
MobiKwik, one of India’s leading digital payment service providers and BNPL (Buy Now Pay Later) platforms, is set to launch its much-anticipated Initial Public Offering (IPO). This IPO marks a significant milestone for the fintech giant as it seeks to expand its operations and strengthen its position in the rapidly growing digital payment ecosystem. The MobiKwik IPO, a much-anticipated book-built issue worth ₹572 crore, comprises a fresh issue of 2.05 crore shares. The subscription period runs from December 11, 2024, to December 13, 2024, with the share allotment expected on December 16, 2024, and the listing date tentatively set for December 18, 2024, on the BSE and NSE. The price band for the IPO is set at ₹265 to ₹279 per share, with a minimum lot size of 53 shares, requiring retail investors to invest at least ₹14,787. For small Non-Institutional Investors (sNII), the minimum investment is 14 lots (742 shares), totalling ₹2,07,018, while big Non-Institutional Investors (bNII) need 68 lots (3,604 shares), amounting to ₹10,05,516.
IPO Subscription Period
The MobiKwik IPO is scheduled to open for subscription on December 11, 2024, and will close on December 13, 2024. The share allotment is expected to be finalized by December 16, 2024, with the tentative listing date set for December 18, 2024, on both the BSE and NSE.
Pricing and Lot Details
The MobiKwik IPO offers investors an opportunity to participate in the growth of one of India’s leading fintech companies. Key details are as follows:
Price Band: ₹ ₹265 to ₹279 per share. The lower end of the price band is ₹265, while the upper cap is ₹279.
Lot Size: Investors must purchase a minimum of 53 shares, amounting to approximately ₹14,787 for retail investors at the upper price band.
Issue Size: The IPO aims to raise ₹572 crore, comprising a fresh issue of 2.05 crore shares.
Face Value: ₹2 per equity share. The face value represents the nominal value, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The MobiKwik IPO follows a structured bidding system designed to cater to various investor categories, including retail investors and high-net-worth individuals (HNIs). Below is a breakdown of investment requirements:
Application
Lots
Shares
Amount (Rs.)
Retail (Min)
1
53
14,787
Retail (Max)
13
689
1,92,231
Small HNI (Min)
14
742
2,07,018
Small HNI (Max)
67
3,551
9,90,729
Large HNI (Min)
68
3,604
10,05,516
Reservation Structure
The MobiKwik IPO has a structured reservation system to ensure participation from various investor categories:
Qualified Institutional Buyers (QIBs): 75% of the total issue is reserved for QIBs. This includes mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes. Small HNIs (sNIIs): Minimum 14 lots (742 shares). Large HNIs (lNIIs): Minimum 68 lots (3,604 shares).
Retail Investors: 10% of the issue is reserved for retail investors, with a minimum lot size of 53 shares, requiring an investment of ₹14,787 at the upper price band.
Key Dates & Timelines
MobiKwik IPO Timeline (December 2024)
IPO Open Date: Wednesday, December 11, 2024
IPO Close Date: Friday, December 13, 2024
Basis of Allotment: Monday, December 16, 2024
Initiation of Refunds: Tuesday, December 17, 2024
Credit of Shares to Demat Accounts: Tuesday, December 17, 2024
Listing Date on BSE and NSE: Wednesday, December 18, 2024
Book Running Lead Managers
The MobiKwik IPO is being managed by the following Book Running Lead Managers (BRLMs):
SBI Capital Markets Limited
DAM Capital Advisors Limited
The registrar for the IPO is Link Intime India Private Ltd, which is responsible for processing applications and managing the allotment process.
Promoters Information
Here is the promoter and key management information for the Mobikwik Systems Limited IPO:
Bipin Preet Singh: Co-founder, Managing Director, and CEO One Mobikwik Systems Limited. He is a visionary entrepreneur and one of the founding pillars of MobiKwik. With a degree in engineering from the Indian Institute of Technology (IIT) Delhi, Bipin has over two decades of experience in technology and innovation. He conceptualized MobiKwik in 2009 with a vision to create a cashless economy in India. Under his leadership, MobiKwik has emerged as a leading digital payment service provider, catering to over 161 million users and 4.26 million merchants as of June 2024. Bipin continues to steer the company’s strategic direction, focusing on innovation and customer-centric solutions.
Upasana Taku: Co-founder, Chairperson, and COO, Upasana Taku co-founded MobiKwik alongside Bipin Preet Singh. She holds a Master’s degree in Management Science and Engineering from Stanford University. With expertise in payments and financial technology, she has been instrumental in building MobiKwik’s operational frameworks, user acquisition strategies, and business scalability. Upasana is also recognized as one of India’s top women entrepreneurs and has driven key initiatives such as MobiKwik ZIP and other financial products. Her focus remains on enhancing operational efficiency and creating innovative credit products.
Koshur Family Trust: Promoter Entity, his trust is an institutional promoter holding a significant stake in the company. The trust ensures compliance and governance while supporting the long-term growth vision of MobiKwik.
Narinder Singh Family Trust: Promoter Entity, Like the Koshur Family Trust, this entity contributes to the company’s governance structure and provides backing for MobiKwik’s strategic initiatives.
About One Mobikwik Systems Ltd.
One Mobikwik Systems Limited is a leading fintech company founded in March 2008, with a mission to drive financial inclusion for underserved populations in India. The company offers a wide range of digital wallets, payment solutions, and financial services. As of June 30, 2024, Mobikwik boasts 161.03 million registered users and 4.26 million merchants, enabling seamless transactions both online and offline. The Mobikwik app offers users a variety of payment methods, such as UPI, Mobikwik Wallet, and co-branded credit cards. Consumers can pay utility bills, shop at e-commerce platforms, purchase goods at retail outlets, and transfer money. A standout feature, Pocket UPI, allows users to make payments without linking a bank account, offering greater flexibility and ease of use.
Mobikwik has diversified its offerings to include credit products like MobiKwik ZIP, a pay-later service with a 30-day interest-free credit line, and ZIP EMI, which provides installment-based personal loans. Additionally, the platform provides investment products such as mutual funds, digital gold, fixed deposits, and peer-to-peer lending, enhancing its financial services portfolio. Advanced features like Lens, which offers personalized financial insights, further enrich the user experience.For merchants, Mobikwik offers digital payment acceptance tools, including POS devices and soundboxes, helping businesses across Tier 2+ cities, small retailers, and large chains accept payments more efficiently. This fosters financial inclusion and supports the digital economy’s growth by catering to diverse merchant needs.With its platform-based approach, Mobikwik is empowering millions of users and merchants, driving digital payments and financial inclusion in India
MobiKwik’s key strengths include its efficient customer acquisition model, with a low cost of ₹32.87 per user, driving substantial growth in its customer base without significant marketing expenditures. The platform also benefits from high repeat usage, with 90.30% of users returning to its MobiKwik ZIP pay-later service, demonstrating strong consumer trust. Furthermore, MobiKwik has seen robust growth in its wealth management services, evidenced by its ₹18,348M AUM in its Xtra product. The company’s use of AI-driven insights to provide personalized financial guidance enhances the user experience, while its strong brand recognition in digital payments ensures high engagement and steady daily activity. Its scalable technology platform further enables seamless transactions and ensures high system availability, supporting its large user base and operational efficiency.
However, MobiKwik also faces several risks. Regulatory oversight by the RBI could impact its operations, as fintech companies are subject to evolving regulations. Additionally, any changes in how the net proceeds from its IPO are used could affect the company’s ability to meet its revenue expectations. Security breaches remain a significant concern, as such incidents could severely damage its reputation and financial performance. The growth in its financial services segment may not match historical trends, which could limit its ability to scale. Losing key consumer or partner networks poses another risk, potentially affecting its revenue and future prospects. Lastly, intense competition in the fintech industry from larger players like Paytm and PhonePe presents a constant challenge to MobiKwik’s market position.
These strengths and risks collectively shape MobiKwik’s strategic outlook in the competitive fintech market.
Financial Highlights
Particulars
FY24
FY23
FY22
Revenue from Operation (in ₹ million)
8750.03
5394.67
5265.65
Profit/Loss After Tax (PAT) (in ₹ million)
140.79
-838.14
-1281.62
Net Worth (in ₹ million)
1625.89
1426.94
2165.42
Earnings per share in ₹
2.46
-14.66
-23.04
EBITDA (in ₹ million)
372.2
-559.2
-1154.06
Total Borrowings (in ₹ million)
2116.99
1922.73
1509.14
Return on Net Worth (RoNW) (%)
8.66
-58.74
-59.19
IPO Objectives
The objective of MobiKwik’s Initial Public Offering (IPO) is to raise capital to fund its growth and expansion plans. The company intends to use the proceeds to enhance its product offerings, strengthen its technology infrastructure, and invest in customer acquisition to attract more users and merchants. Additionally, a portion of the funds will be utilized to repay or prepay certain borrowings, reducing its debt and improving financial stability. The IPO also aims to support general corporate purposes, including administrative costs and strategic investments. By going public, Mobikwik seeks to enhance its brand visibility, provide liquidity for existing shareholders, and establish access to public markets for future fundraising. These objectives align with the company’s vision of scaling its digital payments and financial services ecosystem in India’s rapidly growing fintech market.
Subscription Status
Investor Category
Subscription (Times)
Retail Individual Investors (RIIs)
134.67
Non-Institutional Investors (NIIs)
108.95
Qualified Institutional Buyers (QIBs)
119.5
Employees
Data not specified
Overall
119.38
Conclusion
Should You Participate in the Mobikwik IPO?
Deciding to invest in Mobikwik’s IPO depends on evaluating the company’s fundamentals, market position, and growth potential relative to risks. Here are key points to consider:
Reasons to Participate
Growth Potential in the Fintech Sector: India’s digital payments market is expanding rapidly, and Mobikwik is well-positioned to benefit from this trend with its strong presence in mobile wallets and Buy Now Pay Later (BNPL) services.
Revenue Growth: The company has shown steady growth in revenue, driven by increased user adoption and merchant partnerships, indicating strong business traction.
Digital Ecosystem Synergy: Mobikwik’s ability to integrate payments, lending, and financial services within a single platform creates cross-selling opportunities and a competitive edge.
Improved Unit Economics: Recent reductions in cash burn and operating expenses signal progress toward profitability.
Reasons to Reconsider
Profitability Concerns: The company has yet to achieve consistent profitability, and its path to sustained positive earnings remains uncertain.
Highly Competitive Market: Mobikwik faces fierce competition from well-funded players like Paytm, PhonePe, and Google Pay, which could impact its market share and margins.
Dependence on BNPL Growth: A significant portion of its future growth relies on BNPL adoption, which is subject to regulatory scrutiny and economic cycles.
Valuation Risks: Concerns about the IPO pricing being on the higher side might reduce the upside potential for investors.
Recommendation
If you have a high-risk appetite and believe in the long-term growth of India’s fintech industry, the Mobikwik IPO could be a strategic addition to your portfolio. However, investors seeking stability and immediate returns may prefer to wait for further clarity on the company’s profitability and competitive positioning. A diversified approach to fintech investments is advisable to mitigate risks.
