Dhan Manage

Tag: #IPO

  • Indo Farm Equipment IPO Draws Massive Response with 227x Subscription, Among the Highest in the Past Year

    The initial public offering (IPO) of Indo Farm Equipment Ltd has made waves, achieving a staggering 227.57 times subscription on the final day of bidding on Thursday. This makes it one of the most heavily subscribed IPOs in the last 12 months, comparable to the Vibhor Steel Tubes IPO in February 2024 (320 times subscription) and Manba Finance in September 2024 (224 times subscription).

    Record-Breaking Numbers Across Investor Categories
    The Indo Farm Equipment IPO received bids for an astounding 192 crore shares against the 84.70 lakh shares on offer, as per NSE data. Breaking it down further:

    • Non-Institutional Investors (NIIs): A jaw-dropping 501.65 times subscription.
    • Qualified Institutional Buyers (QIBs): A robust 242.40 times subscription.
    • Retail Individual Investors (RIIs): 101.64 times subscription.

    This overwhelming response was further bolstered by an anchor investor allotment, which raised over ₹78 crore before the bidding opened to the public.

    Grey Market Premium (GMP) Signals Positive Listing Gains
    Market observers tracking grey market premium (GMP) trends reveal that Indo Farm Equipment shares are commanding a GMP of ₹86, indicating a potential 40% gain upon listing. With a price band of ₹204-₹215 per share, the IPO size has been pegged at ₹260 crore at the upper price band, positioning the company’s market valuation at over ₹1,000 crore.

    IPO Details and Key Dates
    The IPO comprises a fresh issue of 86 lakh equity shares and an Offer-for-Sale (OFS) of 35 lakh equity shares by promoter Ranbir Singh Khadwalia. The allotment of shares is expected to take place on January 3, 2025, while the listing on the exchanges is scheduled for January 7, 2025.

    A Strong Performance Among Recent IPOs
    The Indo Farm Equipment IPO stands out for its extraordinary investor interest, particularly among NIIs and QIBs. It joins the ranks of other highly successful IPOs this year, further underscoring investor confidence in the company’s growth prospects and robust fundamentals.

    Disclaimer: The views and investment tips expressed by experts on Dhan Manage are their own and not those of the platform or its management. Dhan Manage advises users to consult certified financial experts before making investment decisions.

  • Reliance Jio Prepares for India’s Biggest IPO, Estimated at ₹35,000-40,000 Crores

    Key Highlights:

    • Reliance Jio Infocomm, Mukesh Ambani’s telecom company, is gearing up for its Initial Public Offering (IPO).
    • The IPO size is expected to range between ₹35,000-40,000 crores, potentially making it India’s largest-ever IPO.
    • The offering is set to include a mix of fresh issues, offer-for-sale components, and pre-IPO placements.

    Launch Timeline and Structure

    According to The Hindu BusinessLine, Reliance Group plans to launch the IPO in the second half of the year. Sources indicate the IPO will feature both fresh issues and an offer for sale, with a pre-IPO placement also being considered.

    Investment bankers remain optimistic, stating there should be no difficulty in securing subscriptions due to strong demand. The division between the fresh issue and offer-for-sale components is still under discussion, and the size of the pre-IPO placement will depend on the structure of the fresh issue.

    Foreign Investment in Jio Platforms

    Reliance Jio operates under Jio Platforms, which has a 33% stake held by foreign investors. In 2020, Reliance raised $18 billion by selling stakes in Jio Platforms to major global funds, including Abu Dhabi Investment Authority, KKR, Mubadala, and Silver Lake.

    Valuation Estimates

    Brokerages estimate Reliance Jio’s valuation to be around $100 billion, with some sources suggesting it could reach $120 billion. The company’s investments in cutting-edge technologies, such as artificial intelligence and satellite internet services, are expected to enhance its competitive position.

    Recently, Jio Platforms announced a partnership with global technology leader Nvidia to develop AI language models, signaling its focus on innovation. Additionally, RJio has received regulatory approval to launch satellite internet services, further expanding its technological capabilities.

    Market Leadership

    Reliance Jio is India’s largest telecom operator, boasting 460 million wireless subscribers as of October. Over the past five years, Reliance Industries Limited (RIL) has invested approximately $3 billion into building its telecom, internet, and digital businesses.

    With its focus on technology, partnerships, and market dominance, Reliance Jio’s IPO is set to be a landmark event in the Indian equity market.