News Analysis India

Tag: IPO

  • SC refuses to grant interim relief on pleas seeking stay on LIC IPO share allotment 

    By PTI

    NEW DELHI: The Supreme Court on Thursday refused to grant any interim relief and stay the Life Insurance Corporation (LIC) IPO share allotment on a batch of pleas filed by some policyholders.

    A bench of Justices DY Chandrachud, Surya Kant and PS Narasimha said that the court should be reluctant to grant any interim relief in matters of commercial investments and IPO.

    “We are not inclined to grant any interim relief,” the bench said as it issued notice to the Centre and LIC on the batch of pleas seeking their response within eight weeks.

    The bench said that on the aspect of interim relief the court must be guided by the well-settled principle of prima facie case, the balance of convenience and whether there is any irreparable injury.

    The LIC IPO opened on May 4 for retail and other investors and is set to be allotted on Thursday.

    The bench noted that one of the pleas has challenged the interim order passed by the Bombay High Court and disposed it, saying the writ petition before the high court will be transferred to the apex court.

    The top court tagged the batch of pleas with a pending matter referred to a Constitution Bench on the issue of the passage of the Finance Act, 2021 as a money bill.

  • Paytm’s Rs 18,300 crore IPO subscribed 48 per cent on Day-2

    By PTI

    NEW DELHI: Paytm’s Rs 18,300-crore IPO was subscribed 48 per cent on Tuesday, with one more day to go for bidding to close for India’s largest public issue to date.

    The initial public offering of Paytm’s parent company One97 Communications Ltd received bids for 2.34 crore equity shares against the offer size of 4.83 crore shares, according to information available from stock exchanges.

    While retail investors lapped up the offering, qualified institutional buyers, including FIIs, have so far shown less than enthusiastic participation.

    QIBs had the largest number of shares reserved for them at 2.63 crore. Against this, bids were received for 1.2 crore at 17.00 hours on Tuesday, according to stock exchange information.

    The portion set aside for retail investors has been subscribed 1.23 times with 1.08 crore shares being sought against a reservation of 87.98 lakh. Retail investors had the smallest portion reserved for them.

    Non-institutional investors bid for just 5 per cent of the 1.31 crore shares reserved for them. The IPO was subscribed 18 per cent on the opening day on Monday. The offering closes on Wednesday evening.

    Other tech IPOs such as those of Nykaa and Zomato Ltd had received stronger investor demand on their opening days but they were much smaller compared to the Paytm’s share sale.

    Paytm has priced its shares in a price band of Rs 2,080-2,150 per share, valuing the company at Rs 1.39 lakh crore at the upper end of the price band.

    The share sale closes on November 10. Share allotment is likely to take place on November 15, and the shares are expected to be listed on November 18. The offer comprises a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) of shares worth up to Rs 10,000 crore.

    The OFS, or secondary share sale, consists of the sale of shares worth up to Rs 402.65 crore by founder Vijay Shekhar Sharma.

    The company has set aside 75 per cent of the offer for qualified institutional buyers, 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors.

    The record-setting IPO has received a mixed response from analysts, with some calling it a good bet to ride India’s fintech wave and others pointing at expensive pricing.

    At the upper end of the price band, Paytm is valued at 49.7 times FY21 revenues. Also, it had negative cash flows for the last three fiscals. It posted a loss of Rs 1,701 crore on a revenue of Rs 2,802 crore in FY21.

    Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants. It offers a range of services to the users – payment services and financial services.

    The OFS also includes up to Rs 4,704.43 crore worth of shares offered by Antfin (Netherlands) Holdings, up to Rs 784.82 crore by Alibaba. com Singapore E-Commerce, up to Rs 75.02 crore by Elevation CapitalV FII Holdings, up to Rs 64.01 crore by Elevation Capital V Ltd, Rs 1,327.65 crore by Saif III Mauritius, Rs 563.63 crore by Saif Partners, Rs 1,689.03 crore by SVF Partners and Rs 301.77 crore by International Holdings.

  • Cabinet clears Life Insurance Corporation IPO, issue by March 2022

    By Express News Service
    NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) has given its in-principle approval for the listing of Life Insurance Corporation of India (LIC)’s shares on stock exchanges, an official in the Department of Financial Services, Ministry of Finance, told TNIE.

    The initial public offering (IPO) of the state-owned life insurer is part of the government’s efforts to raise Rs 1.75 lakh crore through disinvestment in the current financial year. Sources said all efforts are being made to ensure the LIC IPO is done within the current financial year, which ends in March 2022. 

    The government, which holds 100% equity holding in LIC, is planning to sell a portion of its stake in the process. Finance Minister Nirmala Sitharaman in her Budget speech had brought in necessary amendments in the Life Insurance Act to pave the way for LIC IPO.

    Deloitte and SBI Capital have been appointed pre-IPO advisors. According to sources, they have prepared a full activity chart for LIC, the milestones, what they have to do with accounts, etc.