GIC Re IPO opens today. Should you invest?

GIC Re is the largest reinsurance company in India in terms of gross premiums accepted in fiscal 2017

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General Insurance Corporation of India Limited (GIC Re’s) initial public offer (IPO) opens today for subscription. The company aims to garner over Rs 11,000 crore. The price band has been fixed at Rs 855 – Rs 912 per share. The IPO would be India’s third biggest ever, after Coal India’s Rs 15,200 crore and Reliance Power’s Rs 11,700 crore issues.

The IPO consists of an offer for sale (OFS) of 10.75 crore shares (12.5% stake pre-issue) worth Rs 9,804 crore at the higher price band and a fresh issue of 1.72 crore shares worth Rs 1,569 crore. The amount raised from the fresh issue will be used for augmenting the capital base to support future business growth and to maintain current solvency levels.

GIC Re is the largest reinsurance company in India in terms of gross premiums accepted in fiscal 2017. The company, according to CRISIL Research, accounted for nearly 60% of the premiums ceded by Indian insurers to reinsurers in FY17.

Should you subscribe to the IPO? This is what leading brokerages and research houses across the country

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Bharat Matrimony IPO opens today: Should you invest?

The offer (price band: Rs 983 – 985) consists of an offer for sale (OFS) and fresh issue

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Latest News – Ltd (Matrimony) is one of the leading providers of online matchmaking services in India. It has two business segments – matchmaking services (96% of FY17 revenue) and marriage services (4%).

The company has one of the largest databases (3.08 million active profiles as of Jun’17) on its portal. It owns brands like,, and

The offer (price band: Rs 983 – 985) consists of an offer for sale (OFS) and fresh issue. OFS is from private equity (Rs 325 crore) and promoters (Rs 46 crore). The fresh issue of Rs 130 crore, will be used for repayment of debt (around Rs43 crore), purchase of land for office (around Rs 43 crore) and advertising (Rs 20 crore).

So, should you subscribe for Bharat Matrimony IPO? Here’s what leading brokerages suggest:


IPO proceeds are expected to be gainfully utilised leading to higher revenues from increased brand awareness and lower rentals and interest expenses. Focused expansion of its marriage services business through cross selling and assisted services could also help the company move up the value chain.

The stock is available at ~51x FY17 P/E with a 10% discount to retail investors. It may be noted that the nature of the business is not comparable to that of Just Dial and Info Edge. We recommend Subscribing for listing gains… Read Full Article

Will NSE IPO hit the market in 2017?

Exchange’s pending co-location issue with Sebi has caused uncertainty


Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi on Monday said the National Stock Exchange (NSE) may have to refile the offer document for its much-awaited initial public offer (IPO), which could potentially raise more than Rs 10,000 crore from investors.

NSE, the country’s largest stock exchange, filed its prospectus for Sebi approval in December 2016. Following which, the exchange has gone through a lot of material changes that need to be updated in the offer document. For one, it has appointed Vikram Limaye, MD & CEO of IDFC, as the next chief. More importantly, the financial numbers for a company going public cannot be more than two quarters old. Now, the IPO hinges on what happens to the ‘unfair access’ controversy at its co-location facility.

Both Sebi and NSE have maintained that the IPO cannot proceed unless the co-location (co-lo) issue is put to rest. Given the stage at which the case is, experts say that it could take up to six months for the co-lo controversy to settle.

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NSE, on its part, is trying to settle the case through the consent route to avoid lengthy proceedings. Tyagi recently said it is “too early to comment if the NSE issue can be settled through the consent mechanism”. The Sebi chief added that NSE and 14 key managerial personnel of the exchange have replied to Sebi’s show cause notices, which are “under examination”. The regulator will take a view only after it has studied the replies.

Under the consent mechanism, an alleged wrongdoer settles the matter with Sebi without admitting or denying guilt. The regulator may levy a penalty on the wrongdoer, impose a market ban, or opt for both. In the past, a lot of companies, including Reliance Infrastructure, Suzlon, RBL Bank, and JP Morgan, have used the consent route to settle outstanding matters with…. read more…

CDSL IPO opens for subscription. Should you apply?

CDSL is the second largest depository in terms of market share

 CDSL IPO opens for subscription. Should you apply?

The initial public offer (IPO) of BSE-promoted Central Depository Services Limited (CDSL) opened today for subscription. The company is planning to raise up to Rs 524 crore through this maiden offer.

CDSL acts as a repository of over 325,000 e-insurance accounts, reports suggest, which hold more than 66,000 insurance policies in electronic form. It also offers other online services such as e-voting, e-Locker, National Academy Depository, electronic access to security information & execution of secured transactions, drafting & preparation of wills for succession, mobile applications and transactions using secured texting.

So, should you subscribe to the offer? Here’s what leading brokerages and research houses suggest:

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CDSL is the second largest depository in terms of market share and has been growing at decent compounded annual growth rate (CAGR) of 23%/14% in 3/5 years (and revenues grew by 13%/18%). Further, the key positive about the company is that it has controlled operating expenses in last 3 years which has led to significant margin expansion of 1150 bps since FY15 to 54% in FY17.

At the upper band of INR149, the offer is available at 18.2x FY17 EPS which we believe is attractive considering – 1) strong parentage and entry barrier 2) stable earnings growth 3) strong margins and 4) decent ROE of 16%. Hence we recommend to SUBSCRIBE for long-term investment….(read more…)

Srei-promoted Bharat Roads look to raise Rs 1,200 cr via IPO in July

The public issue consists of up to 29,300,000 equity shares of face value of Rs 10 each

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Srei Infrastructure Finance-promoted Bharat Road Network (BRNL) is looking to raise Rs 1,200 via an initial public offering (IPO) in mid-July. “We got approval in May and by mid-July we should be able to bring the IPO,” Bajrang Kumar Choudhary, managing director, BRNL, told Business Standard.

The public issue consists of up to 29.3 million equity shares of face value of Rs 10 each. According to market sources, the issue size is estimated at Rs 1,200 crore.

Inga Capital Private, Investec Capital Services (India) Private and Srei Capital Markets are the book-running lead managers to the issue.

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The proceeds from the IPO would be utilised more in terms of growth consolidation, both organic and inorganic. We are looking at quite a few opportunities, assets in the BOT (build-operate-transfer) mode but have not zeroed in on anything,” Choudhary said.

The firm is focused on development, implementation, operation and maintenance of roads and highway projects. It is involved in development, operation and maintenance of national and state highways in several states, including Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha, through partnerships with experienced EPC (engineering-procurement-construction) players.

BRNL’s project portfolio consists of six BOT projects. Of these, two are operational under final commercial operation, three projects are operational under provisional COD (commercial operation declaration) and one is under construction.

The company performs a range of project management functions, including design, engineering, EPC management and quality control. It also provides project advisory activities, including project management consultancy, conceptualisation, commissioning, operation and management of the (read more…)

CDSL to launch Rs 524-cr IPO on June 19

Promoter BSE to offer 26% stake to comply with Sebi requirements


Central Depository Services India (CDSL) will launch its much-awaited initial public offering (IPO) on June 19. Promoter BSE will sell 26 per cent stake in the depository via the IPO to comply with the shareholding requirement imposed by markets regulator Securities and Exchange Board of India (Sebi).

The exchange currently holds 50.05 per cent stake in CDSL. To meet Sebi norms, it had to bring down its holding to 24 per cent by March 31, 2017. Sebi, however, has extended the deadline till June 30. CDSL’s Rs 524-crore IPO will close on June 21 and the listing will take place before June 30.

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The IPO entirely comprises of secondary share sale of 35.2 million shares which are being offered in the price band of Rs 145-149 per share. Besides the BSE, State Bank of India, Bank of Baroda and Calcutta Stock Exchange will be offering their 4.57 per cent, 2.08 per cent and 0.96 per cent stake, respectively, in the IPO.

The offering will comprise of 33.65 per cent of paid-up equity share capital of CDSL. At the top-end of the price band, CDSL will be valued at around Rs 1,550 crore. After BSE, CDSL is the second market infrastructure institution (MII) to go public. Just like the BSE, CDSL, too, will be listed only on the National Stock Exchange (NSE).

For the year FY17, CDSL had reported net profit of Rs 85.8 crore on revenues of Rs 1,86.9 crore. (read more…)

Reliance General Insurance IPO by FY18-end

Reliance Capital to dilute 10% stake


The Anil Ambani-controlled Reliance Capital will float an iniitial public offering (IPO) of equity for its general insurance arm and list on the stock exchange. This could give the company a valuation of Rs 6,000 crore.
Reliance General Insurance is targeting an IPO by the end of this financial year. It might also look for a strategic partner.
Fully owned by Reliance Capital, it is planning to dilute 10 per cent of its shareholding in 2017-18. In the next three years, to dilute 25 per cent.
Rakesh Jain, executive director and chief executive, said listing would enable individual investors to participate in a high growth and new wealth creation opportunity. The company has not ruled out the possibility of stake sale and thereby getting a strategic partner but gave no time line for this.

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In the general insurance business, ICICI Lombard and government-owned New India Assurance and General Insurance Corporation are planning to get listed in the near future. ICICI Prudential Life Insurance is the only one in that segment which has listed till now.
With 40 per cent growth in premiums earned in FY17, Reliance General Insurance got Rs 4,007 crore on this count, from Rs 2,792 crore in FY16.
Profit before tax rose 32 per cent to Rs 130 crore in FY17. The investment portfolio at end-March was Rs 6,724 crore, up 25 per cent. Assets under management grew 25 per cent to Rs 6,700 crore.
He said the company is well positioned to capitalise on opportunities across retail, corporate and government supported consumer segments.
“The listing will enable retail investors to participate in this high growth and new wealth creation opportunity,” he said in a statement. (read more…)