The other three companies joining the league under the same day calendar synchronously on December 11 2020 as per form 5 is Mobikwik , Vishal Mega Mart together with Sai Life Sciences, They are busy in planning their spot issues. This article aims to describe in detail the concerns stemming from these public offers with regards to their amounts of allotted subscription, locating prevalence, their range and their claims.
Overview of Issues: 11 December to 13 December
A flurry of IPO activity is being witnessed in December with the likes of Hyundai, Swiggy and NTPC Green Energy coming into the fold. On top of that, these three corporations VMM, Mobikwik and Sai Life Sciences are all set to make their initial public offerings virtually at the same time. The period when these initial public offerings will be available for applications is from 11th to 13th December during which quite a number of investments will be raised.
- Vishal Mega Mart IPO: New Markets On The Line
Key Details:
IPO Dates: from December 11 to December 13
Price Band: INR 74-78 per share
Lot Size: 190 shares
Minimum Investment: INR 14820 per lot
Issue Size: 8,000 crores (in October, the company marked an off sale for INR 2320 crores)
Issue Type: Offer for Sale (OFS)
Vishal Mega Mart, Headquartered in Gurugram, is a supermarket chain running across the length and breadth of the country. The company plans to raise 8000 crores solely via the Offer for Sale route, implying no fresh shares will be mg up for sale. And the proceeds from the IPO will instead benefit dealers that already have shareholding in the company without being deployed directly into company activities.
This IPO allows retail investors to come in and utilize the potential and growth of one the country’s largest retail players’ store, expansion funded through this IPO is not going to help the development of the company itself.
- Mobikwik IPO: Сreating сompletely new concepts in the World of Fintech.
Key Details:
IPO Dates: 11th December to 13th December
Price Band: 265 – 279 Indian rupees per share
Lot Size: 53 shares
Minimum Investment: 14787 Indian rupees per lot
Issue Size: 572 crore
Mobikwik, a Gurugram based Fintech company intends to raise ₹572 crores through its IPO issue. This IPO is essentially not similar to that of Vishal Mega Mart’s as this one, includes New Equity Shares to be issued, therefore, the business will be able to raise capital for the growth. The proceeds will be allocated to the following areas: 7. Improving the quality of financial and payment services 8. Investing in the latest technological advancements like AI and machine learning 9. For meeting general business purpose. Retail investors can expect to invest in an energetic service that is bound to evolve due to the fast developing digital payments ecosystem.
- Sai Life Sciences IPO: Reinforcing Pharmaceutical Dominance
Aspects to Keep in Mind:
IPO Dates: December 11 – 13
Price Range: ₹522 to ₹549 a share
Lot Size: 27
Minimum Application Amount: ₹ 14,823
Amount of Issue: ₹3,043 crore
Sai Life Sciences, a company engaged in the business of manufacturing pharmaceuticals and based in Hyderabad, is planning an IPO which comprises fresh issue of shares of Rs 950 crores and an Offer for Sale (3.81 crores shares). The funds raised will be utilized for the following purposes: Page 60 of 115 Galaxy International IPO 2020 Saitec Enterprises Group, LLC (a debt advisory firm) A Note on Current Market Conditions 8M832W37 Refinance outstanding commercial loans Repayment of existing debts General corporate purposes This series of IPOs provides investors with an ideal opportunity to invest in the pharma sector which is anticipated to grow rapidly in India and across the globe.
What Makes These IPOs Different?
Investors have a potentially one of a kind opportunity with these three IPOs being launched at the same time. The companies operate in three different sectors (retail, fintech, and pharmaceuticals) which brings about a much required diversification high in demand. As Vishal Mega Mart grows its presence in retail, Mobikwik accelerates the digital era while Sai Life Sciences enhances growth in pharmaceuticals.
Conclusion:
Investment Strategy: Analyze the price band, minimum investment and sector growth rate for each IPO before investing in them.
Risk : Keep in mind that investing in the stock market carries a certain degree of risk. It is a good idea to seek the advice of a financial professional.
Opportunity for More: It is possible to reduce risk and improve the returns from the portfolio by investing in various sectors.
Note: This paper is purely for explaining purposes and should not be considered as any form of investment advice. There are risks associated with investment in IPOs, hence potential investors are advised to seek professional assistance before taking actions.
