From TeamLease to PNB Housing: How IPOs have fared in 2016

An initial public offer (IPO) is the first sale of shares by a company to the public. It could be an old or a new company which decides to be listed on the stock exchange. If a company has never issued equity to the public, it's known as an IPO.

This year saw share sales across various sectors. The Rs 6,000-crore IPO of ICICI Prudential Life Insurance Company attracted strong demand from investors. The IPO saw nearly 10 times more demand than shares on offer, with bids totalling about Rs 45,000 crore, according to the Business Standard report.

In fact, during the year, markets witnessed two micro-finance companies – Equitas Holdings and Ujjivan Financial Services – go for their public offering. Infibeam, which launched its IPO in March, was the first e-commerce IPO ever. The year also saw two health care companies – Healthcare Global and Thyrocare Technologies – launch their IPOs. RBL Bank’s IPO was the first by any private sector bank in a decade.

 

The fundraising through initial share sales in 2016 has crossed the Rs 20,000-crore mark – the highest since 2010. So far this year, 20 companies have tapped primary markets to raise Rs 20,217 crore, according to the report.

Despite the high volatility in the secondary market, the IPO flow has been consistent this year. Business Standard brings to you a list of current and recently closed IPO's in the country so far this year.

OCTOBER

PNB Housing Finance

Issue open: October 25

Issue close: October 27

The Rs 3,000-crore IPO of PNB Housing Finance was subscribed nearly 30 times, as of the final day of the issue, as institutional investors and high net worth individuals (HNIs or wealthy persons) bid aggressively for the allotment. At the end of the day, the institutional quota was subscribed 86.2 times, while the HNI quota was subscribed close to 68 times. The entire offering was a fresh issue of shares.

Varun Beverages Ltd

Issue open: October 26

Issue close: October 28

The Rs 1,100-crore IPO of equity in Varun Beverages got a positive response from the Street, with the issue being subscribed 1.85 times on the final day of the offering. There was strong support from institutional investors, with their quota being subscribed 4.9 times. On the other hand, HNI investors bid only 0.42 times the shares reserved for them. The retail (small investor) quota was subscribed 0.79 times. The employee quota was subscribed only 0.05 times.

Endurance Technologies Ltd

Issue open: October 5

Issue close: October 7

The Rs 1,160-crore IPO of Endurance Technologies saw 43 times more demand than the shares on offer. There were 752 million bids, worth Rs 35,000 crore, against the 17.2 million shares on offer. The institutional investor category was subscribed 53.4 times and the HNI portion by 127 times. The retail category saw relatively lukewarm response, of only two times the subscription, at a total of 20.4 million bids against the 8.6 million shares on offer.

SEPTEMBER

HPL Electric & Power Ltd

Issue open: September 22

Issue close: September 26

HPL Electric & Power's Rs 361 crore IPO was over-subscribed by nearly eight times at the close of bidding. The IPO received bids for over 11.53 crore shares as against the total issue size of 1,44,40,001, translating into a subscription of 7.98 times, data available with the National Stock Exchange (NSE) showed.

ICICI Prudential Life Insurance Co

Issue open: September 19

Issue close: September 21

The Rs 6,000-crore IPO of ICICI Prudential Life Insurance Company, the biggest in six years and the first by an insurance company, attracted strong demand from investors. The IPO saw nearly 10 times more demand than shares on offer, with bids totalling about Rs 45,000 crore. Demand was particularly strong from institutional and wealthy investors (those applying for more than Rs 2 lakh). The retail portion, however, was subscribed just 1.3 times. The IPO also had special reservation for individual shareholders of ICICI Bank. The shareholder portion saw 12 times subscription.

G N A Axles Ltd

Issue open: September 14

Issue close: September 16

The Rs 130-crore IPO of Punjab-based automobile parts maker GNA Axles garnered 54 times subscription. While the institutional investor portion was subscribed 17 times, the HNI portion was subscribed 217 times. The retail portion was subscribed 10 times. The price band for the IPO was fixed at Rs 205-207 a share. GNA Axles is engaged in the manufacturing of shafts used in four-wheelers. The company will use the IPO money towards setting up of plant and machinery and for working capital requirement.

L&T Technology Services Ltd

Issue open: September 12

Issue close: September 15

The Rs 890-crore IPO of L&T Technology Services equity garnered a subscription of only 2.5 times what was offered. The 7.28-million share offering received bids for 18 million shares. Engineering-giant L&T sold around 11 per cent stake in the company through the IPO, for Rs 890 crore. The price band for the issue was Rs 850-860 a share.

AUGUST

RBL Bank Ltd

Issue open: August 19

Issue close: August 23 

RBL Bank’s IPO of shares was subscribed three times as of the day before its close. The 37.9 million-share offering had received 117 million bids, data provided by stock exchanges show. The Rs 1,200-crore IPO closed on 23 August. By then, the retail portion of the IPO was subscribed 3.25 times, institutional (big) investor portion was subscribed 4.3 times and HNI quota was fully covered.

S P Apparels Ltd

Issue open: August 2

Issue close: August 4

SP Apparels' IPO received tepid response with the offering seeing just two times more demand than shares on offer. The institutional investor segment was subscribed 2.2 times, HNI segment was subscribed 5.1 times and retail category garnered just 1.9 times subscription.

Dilip Buildcon Ltd

Issue open: August 1

Issue close: August 3

The Rs 650-crore IPO of infrastructure firm Dilip Buildcon saw 20 times more demand than shares on offer. The 21.4-million share offering saw bids for nearly 444 million shares, data provided by stock exchanges showed. The wealthy investor portion of the IPO was subscribed around 80 times, while institutional investor portion saw nearly 10 times more demand than shares on offer. Demand was relatively tepid in the retail segment with the category seeing just two times subscription.

JULY

Advanced Enzyme Technologies Ltd

Issue open: July 20

Issue close: July 22

The IPO of equity from Advanced Enzyme Technologies received an overwhelming response, with the issue seeing 115 times more demand than the shares on offer. The 3.2-million share offering received 373 million bids, according to stock exchange data. The qualified institutional buyers category was subscribed 94 times, the retail (small investor) portion was subscribed a little over 10 times and the HNI segment saw a whopping 393 times subscription.

L&T Infotech Ltd

Issue open: July 11

Issue close: July 13

L&T Infotech’s Rs 1,230-crore IPO garnered 11 times subscription, helping parent firm L&T successfully divest a little over 10 per cent stake. The company’s 12.25-million share offering attracted 132 million bids, data provided by stock exchanges showed. The issue attracted nearly one million applications from retail investors, which is among the highest in recent IPOs.

JUNE

Quess Corp Ltd

Issue open: June 29

Issue close: July 1

The Rs 400-crore IPO of Quess Corp got an overwhelming response on its final day from investors, with the issue getting subscribed 144 times the shares on offer, the highest such for an Indian IPO in nine years. It was also the fifth highest subscribed issue since the year 2000, data collated from Prime Database showed. However, if we exclude companies with an issue size below Rs 50 crore, the issue had the second highest subscription after Religare Enterprises, which hit the market in 2007 with an issue size of Rs 140 crore and was subscribed 158 times.

Mahanagar Gas Ltd

Issue open: June 21

Issue close: June 23

The Rs 1,000-crore IPO of shares of Mahanagar Gas Limited (MGL) garnered nearly 65 times subscription, highlighting investor appetite for primary market offerings continued to be robust as of the date of subscription's closing. The 17.34-million share offering attracted over a billion bids, worth around Rs 47,000 crore. MGL, a joint-venture between state-owned Gail India and BG Asia Pacific Holdings (formerly British Gas Asia Pacific), is one of the largest city gas distribution companies in India.

MAY

Parag Milk Foods Ltd

Issue open: May 4

Issue close: May 21

Maharashtra-based Parag Milk Foods managed to successfully close its IPO of shares on May 21. The company received 1.15 times subscription in the qualified institutional buyer (QIB) segment. Parag Milk's Rs 750-crore IPO was forced to cut the issue price and extend closing by three days as it had not garnered the full QIB participation.

APRIL

Ujjivan Financial Services Ltd

Issue open: April 28

Issue close: May 2

Small finance bank (SFB) licensee Ujjivan Financial Services' IPO was oversubscribed 40 times, with strong demand from all segments of investors. The 29.7 million shares on offer saw bids for 1.2 billion shares worth Rs 25,200 crore, despite no participation by foreign investors. At the top-end of the price band of Rs 210, the IPO size translated into Rs 887 crore.

Thyrocare Technologies Ltd

Issue open: April 27

Issue close: April 29

The IPO of medical diagnostic chain Thyrocare Technologies generated huge demand, with the equity issue seeing 73 times more demand than the shares on offer. According to data from stock exchanges, there were bids for 551 million shares, worth Rs 24,500 crore, against the 7.5 million on offer. The HNI segment was subscribed 225 times, the QIB and retail quota were subscribed 73.2 and 8.2 times, respectively.

Equitas Holdings Ltd

Issue open: April 5

Issue close: April 7

The IPO of Equitas Holdings ended on April 7, 2016, with bids for a total of 239.59 crore shares, compared with 13.91 crore equity shares on offer, according to data from the  NSE website. The IPO was subscribed 17.21 times. The QIB category was subscribed 14.93 times. The non-institutional investors category, made up of HNIs, was subscribed 57.29 times. The retail individual investors category was subscribed 1.40 times.

MARCH

Infibeam Incorporation Ltd

Issue open: March 21

Issue close: March 23

The Rs 450-crore IPO of Infibeam Incorporation received tepid response from institutional investors. The IPO received good response from the non-institutional investors (NII) category. The NII category was subscribed 2.23 times and the retail investors' category was subscribed 1.31 times. The QIB category was subscribed 86 per cent, or 0.86 times. Overall, the IPO was subscribed 1.11 times. The bidding for the IPO ended on Wednesday, March 23, 2016.

Bharat Wire Ropes Ltd

Issue open: March 18

Issue close: March 22

The Rs 70-crore IPO of Bharat Wire Ropes was subscribed 59 per cent on the second day of the issue. The IPO received bids for 1,04,09,100 shares against the total issue size of 1,75,00,000 shares, data available with the NSE till 1700 hours showed. The QIB category was subscribed 52 per cent while that of non-institutional investors category was fully subscribed.

Healthcare Global Enterprises Ltd

Issue open: March 16

Issue close: March 18

The IPO of equity from cancer-care network operator HealthCare Global Enterprises (HCG) was subscribed at least 1.6 times. The Rs 650-crore issue got bids for 25.3 million shares, against the issue size of 16.39 million, showed data put up on the NSE website. The QIB portion was subscribed 2.4 times and the retail (small) investors segment 0.8 times. The non-institutional investors category was subscribed 0.4 times.

FEBRUARY

Quick Heal Technologies Ltd

Issue open: February 8

Issue close: February 10

Anti-computer virus product company Quick Heal Technologies saw robust demand for its IPO, with bids nearly 11 times the shares on offer. The 10.14-million share offering of the Pune-based company saw nearly 109 million bids. The QIB segment saw 4.3 times subscription and the retail portion was subscribed 3.7 times.

TeamLease Services Ltd

Issue open: February 2

Issue close: February 4

Despite difficult market conditions, recruitment and staffing company TeamLease Services’ IPO attracted bids worth around Rs 16,000 crore. The company’s IPO was worth Rs 435 crore, of which Rs 190 crore was raised from anchor investors a day before the issue opened. The remaining 2.9 million shares, worth Rs 245 crore, saw 190 million bids, worth Rs 16,200 crore, or 66 times, the shares on offer. Including the anchor investors, the IPO was subscribed 38 times.

JANUARY

Precision Camshafts Ltd

Issue open: January 27

Issue close: January 29

The IPO of Precision Camshafts sailed through comfortably with 1.8 times subscription at the close of the issue. The Rs 410 crore public issue received 28.6 million bids against 15.9 million on offer. The auto ancillary firm had earlier raised Rs 123 crore from anchor investors. Precision was the first IPO of calendar year 2016. It was also the first issue after Sebi shortened the IPO timeline (time taken between IPO closing and first day of listing) from 13 days to just six. The QIB segment of the IPO was subscribed 2.6 times while retail portion was subscribed 1.8 times and the HNI portion remained undersubscribed at 0.73 times.