Tag Archives: IPO

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Tata Sons could be valued at Rs 7-8 trn in IPO

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Tata Sons could be valued at Rs 7-8 trn in IPO

The market value of Tata Sons’ listed investments is estimated at Rs 16 trillion

Tata Sons, the investment-holding arm of Tata group companies, could fetch valuation of Rs 7-8 trillion in an initial public offering (IPO), based on the current market capitalisation of group firms, according to a report.

The market value of Tata Sons’ listed investments is estimated at Rs 16 trillion. The group could derive another Rs 1-1.5 trillion of value from unlisted investments and step-down subsidiaries such as Tata Technologies, Tata Metalliks and Rallis, according to a report by investment banking firm Spark PWM.

Investors are likely to give a holding company a 30-60% discount when calculating the equity value, and Tata Sons’ value would be Rs 7.8 trillion, factoring a 60% discount, it said.

Four group companies – Tata Motors, Tata Chemicals, Tata Power and Indian Hotels Company (IHCL) – hold ownership in Tata Sons. The only realistic way for potential value unlocking of Tata Sons stake is through Tata Chemicals wherein the ownership is about 80% of the company’s market capitalisation. The stake is worth about 16-21% of the mcap for the other three companies, it said.

According to Reserve Bank of India regulations, it is mandatory for an upper-layer NBFC to list within three years of the notification. On September 14, 2023, the RBI had notified 15 companies, including Tata Sons, under this category. The holding company would now have to list on the bourses by September 2025.

“There are multiple levers of value available from unlisted investments as the group is entering into new-age segments such as semi-conductors (Tata Electronics),” it said. The IPO could likely lead to the simplification of the group holding structure.

“We believe that about 80% of Tata Sons’ holdings might not be monetisable, but the process of restructuring could trigger a re-rating,” it added.

A majority stake in Tata Sons is held by philanthropic trusts of the group, with Sir Dorabji Tata Trust and the Sir Ratan Tata Trust being the biggest among them. Sir Dorabji Tata Trust holds a 28% stake, Sir Ratan Tata Trust a 28% stake and other promoter trusts hold a 14% stake as of March 2023.

Sterling Investment Corporation and Cyrus Investments hold 9% stake each. The group also has several cross-holdings, with Tata Motors and Tata Chemicals holding 3% each, Tata Power Company 2% and IHCL 1% stake.

An earlier report by Kotak Securities said Tata group was considering selling a 5% stake in Tata Sons through the IPO to raise about Rs 55,000 crore at an estimated valuation of Rs 11 trillion.

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RBI Rs 1-crore limit on IPO funding by NBFCs

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HNIs use multiple-account route to bypass RBI’s Rs 1-crore limit on IPO funding by NBFCs

High net-worth individuals (HNIs) have been routinely circumventing the Rs 1-crore limit set by the Reserve Bank of India for funding of initial public offerings (IPOs) by NBFCs, market sources told Moneycontrol. They have been doing that by opening multiple accounts with the non-banking finance companies (NBFCs), of which they are the ultimate beneficiary.

To curb the frenzy in the IPO market fuelled by money borrowed from NBFCs, the RBI imposed a ceiling of Rs 1 crore on the amount that NBFCs can lend a borrower for an issue, effective April 1, 2022.

It may have helped, to an extent, temper the previously massive subscriptions in the bigger sized IPOs but has done little to dampen the craze for IPOs of small and micro (SME) enterprises.

Moneycontrol spoke to some of the HNIs who invest in IPOs using borrowed funds and this is how the “system” operates:

HNIs open multiple accounts with the NBFC in the name of family members, their firms, family offices, trusts and even employees.

IPO funding requires the client to put up a certain amount as margin. This may vary between 1 and 10 percent; depending on how many times the NBFC expects the issue to be oversubscribed. Lower the subscription, higher is the margin collected from the clients. Conversely, the margin collected is lower if the issue is expected to see heavy subscription.

Reason being, higher the number of times the issue is subscribed, lesser the number of shares that will be allotted to applicants. So a lower upfront margin will be enough to cover any potential downside if the IPO flops on listing.

Say the client has put up a margin of Rs 50,000 and is allotted shares worth Rs 2 lakh, the NBFC is covered even if the stock falls 20 percent on listing.

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JG Chemicals IPO last bidding day today: Check GMP, subscription status, review, key dates, more. Should you subscribe?

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JG Chemicals IPO last bidding day today: Check GMP, subscription status, review, key dates, more. Should you subscribe?

JG Chemicals IPO opened for subscription on Tuesday, March 5, and today (Thursday, March 7) is the last day to apply to the issue for those who are interested in subscribing. In the two days that the issue has been available for subscription, both retail and non-institutional investors have responded enthusiastically. JG Chemicals IPO subscription status was 6.40 times, as per BSE data, on the second day. The retail investors portion was subscribed to 8.32 times, Non Institutional Investors (NII) portion was booked 9.64 times, and Qualified Institutional Buyers (QIB) portion was booked at 45%. On day 1, JG Chemicals IPO subscription status was 2.47 times.

It has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

JG Chemicals IPO price band has been set in the range of ₹210 to ₹221 per equity share of the face value of ₹10. Investors can bid for a minimum of 67 equity shares and in multiples of 67 equity shares thereafter. JG Chemicals raised ₹75.35 crore from anchor investors on Monday, March 4.

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Esconet Technologies IPO Date, Review, Price, Allotment

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  • Asconet Technologies IPO Details: Asconet Technologies IPO date has been finalized, the IPO will open on 16th February and close on 20th February. Asconet Technologies is an NSE SME IPO which will raise Rs 28.22 crore through IPO. The price band of Asconet Technologies IPO has been fixed at ₹80 to ₹84 with a market lot of 1600 shares.
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  • Asconet Technologies IPO Review
    Asconet Technologies IPO Date and Price Band Details
    Asconet Technologies IPO Market Lot
    Asconet Technologies IPO Dates
    Asconet Technologies IPO Form
    Asconet Technologies Company Financial Report
    Asconet Technologies IPO Valuation – FY2023
    peer group
    company promoter
    Asconet Technologies IPO Registrar
    Asconet Technologies IPO Allotment Status
    Asconet Technologies IPO Lead Managers aka Merchant Bankers
    Company Address
    Asconet Technologies IPO FAQs
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    Asconet Technologies Private Limited, established in 2012, is engaged in the business of catering to a wide range of IT requirements such as high-end supercomputing solutions, data center facilities, storage servers, network security, virtualization and data security. Their comprehensive solutions meet the needs of SMEs, large enterprises and public sector customers. Additionally, Esconet extends its capabilities in the cloud services domain through its wholly owned subsidiary ZeaCloud Services, ensuring its customers have access to cutting-edge technology and a seamless IT infrastructure experience.
    Asconet offers a robust suite of server solutions carefully designed to meet the diverse and evolving needs of enterprises. These solutions include state-of-the-art hardware configurations, seamless networking, and secure storage options, providing businesses a reliable foundation to build on. Moving forward with the data-driven era, Asconet goes beyond traditional server services and systematically integrates machine learning tools and artificial intelligence into its portfolio.
  • Asconet provides a wide range of systems integration services that include total IT solutions including hardware, network and software implementation. Keeping in mind the customer requirements, Asconet also provides tailor-made services that will suit the operational needs and objectives of their respective customers.
    Objectives of the issue:
    Working capital requirement of the company
    Investment in a wholly owned subsidiary, viz. ZCloud Services Private Limited, to fund its capital expenditure expenditure
    general corporate expenses
    Asconet Technologies IPO Review
    may apply
    Asconet Technologies IPO Date and Price Band Details
    IPO opens: February 16, 2024IPO closes: February 20, 2024
    IPO size: Approximately ₹28.22 crore, 3,360,000 equity shares
    Face value: ₹10 per equity share
    IPO price band: ₹80 to ₹84 per equity share
    IPO Listing: NSE SME
    Retail Quota: 35% of net offer
    QIB Quota: 50% of net offer
    NII Quota: 15% of net offer
    Asconet Technologies IPO Market Lot
    The minimum market lot of Asconet Technologies IPO is 1600 shares with application amount of ₹134,400.
  • Application Lot Size Share Amount
    Retail Min 1 1600 ₹134,400
    Retail Max 1 1600 ₹134,400
    S-HNI Minimum 2 3200 ₹268,800
    Asconet Technologies IPO Dates
    Asconet Technologies IPO date is 16th February and IPO closing date is 20th February. The IPO allotment date is 21st February and the IPO may get listed on 23rd February.
  • IPO opening date: February 16, 2024
    IPO closing date: February 20, 2024
    Basis of allotment: February 21, 2024
    Refund: February 22, 2024
    Credit to demat account: February 22, 2024
    IPO Listing Date: February 23, 2024
    You can check IPO subscription status and IPO allotment status on their respective pages.

Continue reading Esconet Technologies IPO Date, Review, Price, Allotment →

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Atmastco IPO Opens Today: Check Subscription Status, GMP Today

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Atmastco IPO: Check Subscription Status, GMP Today.

Atmastco IPO: The initial public offering of engineering, procurement and construction firm Atmastco Ltd, which opened for public subscription on Thursday, February 15, has been fully subscribed. As of 4:06 pm on the first day of bidding, the Rs 56.25 crore SME IPO was subscribed 1.03 times, generating bids for 71,42,400 shares against the offer of 69,39,200 shares.

The IPO will remain open till 20 February.

The retail category has received subscription 1.78 times and the non-institutional quota has received 0.27 times subscription.

The allotment of Atomastco IPO will take place on February 21, while its listing will take place on February 23, 2024 on both NSE SME.

atomastco ipo gmp today

According to market observers, unlisted shares of Atmastco Ltd are trading at Rs 33 higher in the gray market than their issue price. The gray market premium or GMP of Rs 33 means the gray market is expecting 42.86 per cent listing profit from the public issue. GMP is based on market sentiments and keeps changing.

The ‘grey market premium’ refers to the willingness of investors to pay more than the issue price.

Atomastco IPO Details

According to a statement, the Atmastco IPO is a combination of a fresh issue of 54.8 lakh equity shares and an offer for sale (OFS) of 18.25 lakh shares with a fixed price of Rs 77 per share. At this price, the company will raise Rs 42.2 crore through fresh issue and Rs 14.06 crore through OFS. The proceeds from the fresh issue will be used primarily to finance the working capital requirements of the company. Additionally, some amount will be used for repayment of loans and general corporate purposes. The first public issue will open for subscription on February 15 and close on February 20.

It will raise a little over Rs 56 crore through an initial public offering that will open for subscription on February 15. After the completion of the initial public offering (IPO), the shares of the Bhilai-headquartered company will be listed on the National Stock Exchange. Small and Medium Enterprises (SME) Platform – NSE Emerge.
The Chhattisgarh-based company has ongoing projects worth more than Rs 720 crore. Investors can apply for a minimum of 1,600 equity shares and in multiples of 1,600 equity shares thereafter. Affinity Global Capital Markets Private Limited is the sole lead manager of the public offering.

(The story has been updated with the latest subscription and GMP data as of 4:06 p.m.)