Tag IPO Review

NTPC Green Energy IPO
NTPC Green Energy IPO: Should You Apply or Avoid?

NTPC Green Energy IPO is a book-built issue of Rs 10,000.00 crores. The issue is entirely a fresh issue of 92.59 crore shares.

About NTPC Green Energy Limited

Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited. NTPC Green is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. The largest renewable energy public sector enterprise, NTPC (National Thermal Power Corporation Limited), was incorporated on November 7, 1975. The company’s renewable energy portfolio includes solar and wind power, making it easier to generate clean energy. Additionally, the company aims to develop utility-scale renewable energy projects and projects for public sector undertakings (“PSUs”) and Indian corporations. As of June 30, 2024, the company has an energy capacity of 14,696 MW, consisting of 2,925 MW from operating projects and 11,771 MW from contracted and awarded projects. Compared to its peers, NTPC has achieved higher EBITDA margins and PTA margins in the last 2 years.  The company is constructing 31 renewable energy projects in 7 states, totaling 11,771 MW. As of June 30, 2024, the workforce comprised 234 employees, and the company utilised the services of 45 contract labourers.

IPO Subscription Period

  • Open Date: November 19, 2024
  • Close Date: November 22, 2024
  • Allotment Date: November 25, 2024
  • Listing Date: November 27, 2024
  • Stock Exchanges: BSE and NSE

Pricing Details    

  • Price Band: ₹102 – ₹108 per Share
  • Face Value: ₹10 per Share
  • Minimum Lot Size: 138 shares
  • Investment Requirement:
    • Retail Investors: Minimum ₹14,904 (138 shares)
    • Small Non-Institutional Investors (sNII): 14 lots (1932 shares) – ₹208,656
  • Big Non-Institutional Investors (bNII): 68 lots (9384 shares) – ₹1,013,472

Reservation Structure

  • Qualified Institutional Buyers (QIB): 26.37% (24,44,44,445 shares)
  • Non-Institutional Investors (NII): 13.19% (12,22,22,222 shares)
    • Big NII (bNII): 8.79%
    • Small NII (sNII): 4.4%
  • Retail Investors: 8.79% (8,14,81,481 shares)
  • Anchor Investors: 39.56% (36,66,66,666 shares) raising ₹3960 crores

Key Dates and Timeline

  • IPO Open Date: Thursday, November 19, 2024
  • IPO Close Date: Monday, November 22, 2024
  • Basis of Allotment: Tuesday, November 25, 2024
  • Initiation of Refunds: Wednesday, November 26, 2024
  • Credit of Shares to Demat: Wednesday, November 26, 2024
  • Listing Date: Thursday, November 27, 2024
  • Cut-off time for UPI mandate confirmation: 5 PM on November 22, 2024

Book Running Lead Managers

Niva Bupa Health Insurance Limited has appointed prominent financial institutions as book-running lead managers for the IPO:

  • IDBI Capital Market Services Limited
  • IIFL Securities Limited
  • HDFC Bank Limited
  • Nuvama Wealth Management Limited

Kfin Technologies Limited has been designated as the registrar for the IPO.

Promoter Information

  • Promoter: The Promoters of the Company are the President of India, acting through the Ministry of Power, Government of India and NTPC Limited.
  • Shareholding:
    • Pre-Issue: 100%
    • Post-Issue: 89.01%

Financial Highlights

  • Revenue Growth: Increased by 11 folds from ₹170 crores (FY 2023) to ₹2037.66 crores (FY 2024)
  • Profit After Tax (PAT): Rose by 100%, reaching ₹344.72 crores in FY 2024
  • Net Worth: ₹6232 crores
  • Total Borrowing: ₹12796 crores

Key Performance Indicators (KPIs):

  • ROE: 7.39%
  • RoNW: 2.14%
  • P/BV: 9.89
  • EPS (Pre-IPO): ₹0.46
  • EPS (Post-IPO): ₹0.42
  • P/E Ratio (Pre-IPO): 234.97x
  • P/E Ratio (Post-IPO): 259.56x

IPO Objectives

The company proposes to utilise the Net Proceeds towards funding the following objects:

  • Investment in the wholly owned Subsidiary, NTPC Renewable Energy Limited (NREL), for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL
  • General corporate purpose

Subscription Status (As of November 19, 2024, 7:02:07 PM)

  • Retail: 1.47x
  • QIB: 0.00x
  • NII: 0.17x
  • Overall Subscription: 0.36x
NIva Bupa Limited IPO
Niva Bupa Ltd IPO: Review, Expert Analysis, and Investment Recommendations

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

Reservation Structure

  • Qualified Institutional Buyers (QIB): 30% (8,91,89,190 shares)
  • Non-Institutional Investors (NII): 15% (4,45,94,595 shares)
    • Big NII (bNII): 10%
    • Small NII (sNII): 5%
  • Retail Investors: 10% (2,97,29,730 shares)
  • Anchor Investors: 45% (13,37,83,783 shares) raising ₹8,315.28 crores

Key Dates and Timeline

  • IPO Open Date: Thursday, November 7, 2024
  • IPO Close Date: Monday, November 11, 2024
  • Basis of Allotment: Tuesday, November 12, 2024
  • Initiation of Refunds: Wednesday, November 13, 2024
  • Credit of Shares to Demat: Wednesday, November 13, 2024
  • Listing Date: Thursday, November 14, 2024
  • Cut-off time for UPI mandate confirmation: 5 PM on November 11, 2024

Book Running Lead Managers

Niva Bupa Health Insurance Limited has appointed prominent financial institutions as book-running lead managers for the IPO:

  • ICICI Securities Limited
  • Morgan Stanley India Company Private Limited
  • Kotak Mahindra Capital Company Limited
  • Axis Capital Limited
  • HDFC Bank Limited
  • Motilal Oswal Investment Advisors Limited

Kfin Technologies Limited has been designated as the registrar for the IPO.

Promoter Information

  • Promoter: Bupa Singapore Holdings Pte Ltd and Bupa Investments Overseas Limited.
  • Shareholding:
    • Pre-Issue: 62.27%
    • Post-Issue: 56%

About Niva Bupa Health Insurance Limited

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

  1. Retail products designed for individuals and families.
  2. 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:

  1. Augmentation of its capital base to strengthen solvency levels and
  2. 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.

Garuda Construction and Engineering IPO: Everything You Need to Know

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:

  1. Working capital requirements
  2. General corporate expenses
  3. 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.