HNI category has got 1.14 times subscribed and the retail quota was subscribed 42%
SH Kelkar & Company has received full subscription from its Rs 500-crore Initial Public Offering (IPO), which closes on Friday. IPO is the act of selling shares in a company for the first time.
SH Kelkar Listing Date: The Mumbai-based firm has so far received 22.3 million bids for the 20.2-million shares on offer in the IPO. The qualified institutional buyer category quota got subscribed 2.25 times. Wealthy or high net worth individual quota was subscribed 1.14 times. The retail quota was subscribed 42 per cent.
SH Kelkar Allotment Date: SH Kelkar has set a price band of Rs 173-180 apiece for its IPO. On Tuesday, the company had raised Rs 150 crore from 13 anchor investors, including T Rowe Price, ICICI Prudential Mutual Fund, and Axis Mutual Fund.
Mumbai-based fragrance manufacturer SH Kelkar’s Initial Public Offering (IPO) was subscribed 42 per cent on day one, on Wednesday. The 20.2-million share offering has so far received 8.4 million bids. SH Kelhar is looking to raise a little over Rs 500 crore from its IPO, to close on Friday. The company has priced its IPOin the range of Rs 173 to Rs 180 per share.
JM Financial, Kotak Mahindra Capital, and Keynote Capital are handling the IPO.
70% of bids from foreign investors; share offering lapped up six times; retail quota under-subscribed
The Rs 3,000-crore initial public offering (IPO) of InterGlobe Aviation, which runs IndiGo, sailed through without any turbulence, with foreign investors on board. It was subscribed a little over six times. The 30-million share offering saw nearly 185 million bids, worth about Rs 14,000 crore. About 70 per cent of the offering, or 127 million bids, came from foreign institutional investors (FIIs).
IndiGo Listing Date: Global investors scrambled to buy InterGlobe shares, hoping India’s air travel penetration would increase through the next few years. As of now, the penetration level is only 0.08 annual domestic seats per capita, against penetration rates of 0.35-0.6 in other developing markets such as Brazil, Turkey, Indonesia and China, according to Angel Broking.
IndiGo Allotment Date: IndiGo operates in the lucrative low-cost carrier (LCC) segment. On listing, the airline would be one of the world’s leading LCCs in terms of market value.
The qualified institutional buyer segment, which includes institutional investors such as FIIs, mutual funds and insurance companies, was subscribed 17.8 times. The non-institutional investor category was subscribed 3.6 times.
IndiGo IPO flies mostly on global wings The retail investor category — those investing less than Rs 2 lakh — was subscribed only 92 per cent. Around 45 per cent of the IPO was reserved for retail investors, while seven per cent of the issue was reserved for InterGlobe employees.
Despite a 10 per cent discount on offer, the employee quota was subscribed nearly 13 per cent. The undersubscribed shares meant for the retail category, as well as employees, will be distributed among other investor segments, which saw high subscription.
Experts said the retail investor portion received a lukewarm response, owing to concern over valuations. Most domestic brokerages had termed the IPO pricing expensive; grey market activity, too, suggested marginal listing day gains.
For the IPO, InterGlobe had set a price band of Rs 700-765 a share. Given the heavy demand, the IPO is likely to be priced at the top end of the band. That will value the company at about Rs 27,500 crore. At Rs 765 a share, InterGlobe’s market value will be six times that of Jet Airways and 10 times that of SpiceJet.
Though most analysts had hailed IndiGo’s operational efficiencies, they felt the pricing had left little on the table for investors. “While we appreciate Indigo’s efficient operations and management capability to deliver profitable growth in a sector where few have succeeded globally, we find valuations expensive. At 10.2 times the FY15 EV (enterprise value)/Ebitdar (earnings before interest, tax, depreciation, amortisation and rent), at the higher end of the peer sector range, the proposed issue price fully factors profits on aircraft trading and lower than the sector’s aircraft maintenance costs in perpetuity, plus the benefits of lower crude prices and mid-teen volume growth through the next 10 years,” domestic brokerage house Ambit had said in a report.
“Foreign investors that applied in IndiGo have a record in being invested in other LCCs like RyanAir, Air Asia and others. So, they had a greater level of confidence, while for domestic investors, this offering was a first of its kind. That’s why it was more FII-led. Still a deal of this size has seen good demand from most investors,” V Jayasankar, head of equity capital markets, Kotak Investment Banking.
Investment bankers handling the IPO had said marquee global investors made big-ticket applications. According to reports, famed investor Rakesh Jhunjhunwala invested a significant sum. Business Standard couldn’t confirm this independently.
Citigroup Global Markets, JP Morgan, Morgan Stanley, Barclays Bank, Kotak Mahindra, UBS Securities were the investment banks that handled the IPO.
India’s largest airline company, InterGlobe Aviation, which operates IndiGo, is seeking to raise about Rs 3,000 crore from its initial public offering (Indigo IPO). While about Rs 1,800 crore of this is an offer for sale, going to the existing shareholders, the rest is a fresh issue. At Rs 765, upper end of the band, the company is looking at a valuation of Rs 27,500 crore. The two listed aviation players, Jet Airways and SpiceJet, have a combined market cap about a fourth of this number.
Why IndiGo is asking for a higher valuation is due to a consistent record of superior operational performance, across parameters. The key differential is, of course, the way it manages costs. Costs per available seat km (CASK, measured in US cents) at 5.95 is much lower than SpiceJet’s 6.68 and Jet Airways’ 9.05. Excluding fuel, the single biggest cost item, its CASK at 2.87 cents is lower than GoAir and SpiceJet, the other low-cost carriers. A single aircraft type, low distribution costs and a younger fleet have helped keep down costs on operations and maintenance. Its decision to order 100 A320s in 2005 helped it negotiate favourable terms, analysts say. The sale-and-lease back arrangement helped it gain about Rs 3,500 crore.
IndiGo Airline IPO: A robust business model but no discount in IPO price Coupled with the fleet expansion and strong passenger volumes, the low CASK has helped it grow faster than the market. IndiGo’s market share has increased from 14.5 per cent in FY10 to about 36 per cent with passenger volumes increasing 26 per cent. Higher volumes and load factors, along with growing revenue per passenger, has translated to 40 per cent annual growth in domestic revenues over FY10-15, while earnings before interest, taxes, depreciation, amortisation and rentals (Ebitdar) have grown 25 per cent. The company has also benefited due to the multiple challenges faced by competition (management change, high cost structure, lack of pricing discipline, etc.), which helped IndiGo move ahead.
A few favourable tailwinds will benefit the entire sector going ahead. The first is passenger volumes. The sector has been growing at about 12 per cent annually and analysts say demand would be 1.2-1.5 times gross domestic product growth which should help all players. Especially IndiGo, given its fleet strength and the fact that it is growing faster than the market. Growth in recent months has been a strong 20 per cent for the sector, with IndiGo outperforming peers. The other positive for the company is cheaper fuel costs which should boost its profits.
In FY15, the company made Ebitdar margins of 27 per cent and net margins of nine per cent as compared to 20 per cent and four per cent in FY14. Ebitdar margins, given lower fuel costs, spurted to 37 per cent in the June quarter, with net margins at 15 per cent enabling the company to report a net profit of Rs 640 crore. While the September quarter and the March quarter are not the best quarters of the year, analysts believe the company should be able to close the year at about Rs 2,400 crore in net profits.
The listed players far lag IndiGo and have a patchy net profit record; so, a comparison with the better global performers is in order. Low cost European and American carriers have their enterprise value/Ebitdar ranging between seven and eight times. While the company deserves a higher multiple given that the Indian market is growing faster, the IndiGo IPO, at about 7.6 times its FY16 EV/Ebitdar estimates, is slightly on the expensive side. Analysts say the company should have left something on the table for investors.
The low-cost carrier, India’s largest by market share, is reported to be working on a public listing in the first quarter of FY2015-16
Low-cost carrier Indigo Airlines is preparing for a public listing in the April-June 2015 quarter to raise about Rs 2,500 crore, the Times of India newspaper reported Wednesday.
Indigo Ipo date: The airline, which is India’s largest by market share, has consistently reported profits, is also expected to be profitable in the fiscal year ending March 2015.
Indigo Ipo: Indian commercial airlines have also had a reprieve of late due to all-time lows in crude prices, enabling them to save significantly on aviation fuel costs, which is the single largest operational expense. Some of the fuel savings, however, have been offset by heavily discounted tickets offered by airlines to try and increase passenger load and market share.
However, private airlines Jet Airways and SpiceJet, both of which are listed, continue to bleed money, while debt-addled Kingfisher Airlines has closed operations for close to three years now, with no signs of resuscitation by either promoter Vijay Mallya or any new investors.
indigo airlines ipo price: The operator of top Indian airline IndiGo has set the indicative price band for its initial public offering of shares at between 700 rupees ($10.83)and 765 rupees ($11.83) apiece, three sources directly involved in the transaction said.
Indian markets have been on a rise since late last year, with the BSE Sensex breaching the 29,000 mark, driven largely by expectations of reforms from the Narendra Modi-led government and two surprise interest rate cuts by the Reserve Bank of India.
Indigo has been preparing for the IPO since last year when it restructured its shareholding to become eligible for foreign direct investment (FDI), the newspaper reported.
Bharatiya Janata Party (BJP) president Amit Shah said at a rally in Patna on Monday that the National Democratic Alliance would win a majority of the seats that went to polls in the first two phases earlier this month in Bihar. Shah claimed the party would win 28 to 32 of the 49 seats from Bihar Election Phase-I, and 20 to 24 of the 32 seats voted for in Phase-II.
Senior BJP leaders are convinced that its alliance will surprise naysayers, just like the party did with its performance in Uttar Pradesh in the Lok Sabha elections, and then in Maharashtra, Jharkhand and Haryana Assembly polls. Indeed, they insist the party will turn in an equally splendid performance in the remaining three phases of voting in Bihar.
So, what explains the BJP’s confidence? Here are six reasons why the party is so gung-ho about its performance:
1) Cadre and resources: The BJP claims to have over 600,000 workers, 10 workers each for the more than 60,000 polling booths. The five-phased polling also gives it the advantage of re-deploying these workers from areas where polling is over. Its membership drive had notched up 9.6 million members in Bihar — a seventh of Bihar’s 68 million electorate. Add to this an estimated 70,000 Rashtriya Swayamsevak Sangh workers from across the country and enormous resources at the command of the alliance. This cadre strength is helping the BJP not only mobilise its voters more efficiently on polling days but more effectively spread its message to the remotest of villages. In contrast, the Grand Alliance is a rag-tag coalition with little synergy. Even Janata Dal (United) and Rashtriya Janata Dal insiders speak of workers that are liable to switch loyalties for reasons other than political commitment.
2) Haryana model and anti-Lalu vote: The BJP believes its ‘jungle raj’ campaign has struck a chord. Only the Muslims, Yadavs and Kurmis, who account for 35 per cent, are with the ‘Grand Alliance’ while the remaining 65 per cent will vote for BJP-led alliance, it believes. The BJP calls this its ‘Haryana model’, where it had succeeded in consolidating all other castes against the dominant Jats in the 2014 Assembly polls.
3) Perfect patchwork of caste alliances: BJP strategists think they have stitched together a perfect alliance of castes, with the 15 per cent upper castes supporting the BJP, eight per cent Kushwahas behind their leader — Rashtriya Loktantrik Samata Party’s Upendra Kushwaha — the evenly distributed five per cent Paswans with Ram Vilas Paswan and rest of the 10 to 11 per cent Mahadalits with former Bihar chief minister Jitan Ram Manjhi. It also estimates that the majority of the 30 per cent Extremely Backward Castes, comprising 114 castes, will also support its alliance.
4) Narendra Modi: The prime minister’s popularity is still undiminished. The large crowds that have turned up at his dozen election rallies are evidence of this. The BJP estimates the ‘Modi effect’ will help it increase its vote share in Bihar from the 38.5 per cent that its alliance received in the 2014 multi-polar Lok Sabha contest. The BJP needs a vote share of at least 43 to 44 per cent to win Bihar in what is now essentially a two-horse race. It hopes to beat the trend of failing to match its vote share of the 2014 Lok Sabha polls in subsequent state elections in Haryana, Jharkhand, Maharashtra, Jammu and Kashmir, and Delhi. Incidentally, its only defeat — drubbing, in fact — since 2014 came where its main rival was a credible non-Congress party: In Delhi against the Aam Aadmi Party in February.
5) Women voters: The high turnout of women in the first two phases is thought to be a vote for Modi’s promise of security and development.
6) Beef: The BJP thinks it has Rashtriya Janata Dal chief Lalu Prasad on the run for his remarks about eating beef, forcing the former Bihar chief minister to clarify them at each of his rallies. This, it believes, has also neutralised whatever damage the party suffered because of Rashtriya Swayamsevak Sangh chief Mohan Bhagwat’s remarks on reviewing the caste-based reservation policy.
There is hope the Left parties and Third Front alliance that the Samajwadi Party leads will eat into the votes of the Grand Alliance. The BJP has a well-oiled team of strategists that have undertaken a course correction after realising the ‘Bihar versus Bahari (or outsider) campaign of its rivals could be getting traction because it over-projected Modi and Shah. It has now put up more hoardings of its local leaders like Sushil Modi, Rajiv Pratap Rudy, Nand Kishore Yadav, Ravi Shankar Prasad, and others.
Whirlpool of India Ltd, the Indian subsidiary of the global appliances major, has posted Rs 55.3 crore net profit due to better realisation from its inventories in the quarter ended 31st March, 2015. During the period, the company’s net earnings surged 55% from Rs 36 crore same period last year. In the quarter, Whirlpool’s net sales grew 18% to Rs 748 crore from Rs 637 crore on a year on year basis.
Commenting on the result, Arvind Uppal, Chairman, Whirlpool of India Limited and President Asia Pacific, Whirlpool Corporation said, “We delivered strong resultsin the fouth quarter driven by both top line growth and moderation in input costs.
Whirlpool India Share Price – During 2014-15, Whirlpool’s net profit surged 71% to Rs 211 crore from Rs 123 crore in the previous financial year. On a yearly basis, the company’s revenue grew 16% to Rs 3,167 crore from Rs 2,726 crore. In 2014-15, while Whirlpool’s raw material costs shoot up by 20%, higher realisation from its inventory stocks from the previous year helped the company keep its total expenses at a 13% higher level.
Since the beginning the current financial year lower temperature across the country has subdued the sales of home appliances. However”, Uppal seems optimistic. “The impact of unseasonal weather conditions is likely to moderate demand in semi-urban and rural areas, but we remain optimistic that growth will accelerate in the second half of the year, he said.
At the end of yesterday, the home appliances major’s stocks surged 2.26% to Rs 734.4 in BSE. Bombay Stock exchange’s benchmark 30-share index grew 0.69% to 27,837.21 points at the closing of the day.
The first of five voting phases in the high-stakes Bihar election began today with voting starting at 7 a.m in 49 seats, spread over 10 districts, amid elaborate security arrangements. In this phase, a total of 1,35,72,339 voters will elect MLAs to 49 Assembly seats for which 583 candidates, including 54 women, are in the fray.
The polling will be held between 7 a.m and 3 p.m in nine constituencies – Tarapur, Jamalpur, Suryagraha, Rajauli (SC), Govindpur, Sikandara (SC), Jamui, Jhajha and Chakai. In four constituencies – Alauli (SC), Beldaur, Katoria (ST), Belhar – voting will end at 4 p.m. The polling for the remaining 36 constituencies will be held between 7 a.m and 5 p.m. The duration of polling hours in 13 Assembly seats have been shortened on the basis of assessment of law and order situation with all these constituencies falling in Naxal-hit areas, Additional Chief Electoral Officer (ACEO) R Laxmanan said.
Of the total electors, there are 72,37,253 male, 63,17,602 female and 405 third gender, he said.
Among the break-up of seats being contested by different political parties in the first phase, the BSP leads the pack with 41 candidates, followed by BJP (27), RJD (17), LJP (13), Congress (8) and RLSP (6).
Among the left front constituents, the CPI has fielded 25 candidates followed by the CPI-M at 12.
As many as 13,212 polling stations have been set up for the first phase for which 63,624 polling personnel have been deployed, he said. Laxmanan said that 1.20 lakh personnel of Central Paramilitary Forces have been deployed to ensure free and fair polls adding that every polling station will be manned by a CPF personnel.
Out of the total number of 13,212 polling stations, 7,384 are tagged as critical and 2,255 are Left-Wing Extremists-hit. He said that five helicopters, including three Unmanned Aerial Vehicles (UAVs) have been deployed for air surveillance during polling. The number of mounted police force to be used for patrolling stands at 50, while 33 motor boats have been pressed into service for riverine petrolling.
As many as 935 video cameras and 339 android mobile phones have been put into use to ensure free and fair poll, the ACEO said.