IPO corner: Senores Pharma subscribed 93x; Carraro 1.1x, Ventive 10x

The response to the three initial public offerings (IPOs) that closed on Tuesday was mixed. Senores Pharmaceuticals’ Rs 582-crore offering was the most sought after of the lot, attracting 93 times more demand than the shares on offer and generating bids worth over Rs 31,000 crore. Meanwhile, Carraro India’s Rs 1,250-crore IPO managed to scrape through with just 1.12 times subscription. The retail and high net worth individual (HNI) portions of the issue remained undersubscribed. Ventive Hospitality’s Rs 1,600-crore issue garnered nearly 10 times subscription. Meanwhile, Unimech Aerospace and Manufacturing’s IPO was also subscribed close to nine times on its second day.

 

 

Senores’ IPO consisted of a Rs 500-crore fresh fundraise. The company is a global, research-driven pharmaceutical firm specialising in developing and manufacturing a wide range of pharmaceutical products. For the six months ended September 30, Senores reported revenue from operations of Rs 181 crore, with an Ebitda margin of 25.91 per cent and a PAT margin of 13.23 per cent. At the IPO price, the company is valued at nearly Rs 1,800 crore.

 

Carraro’s IPO, engaged in manufacturing components ranging from the smallest gear to complete tractor manufacturing, was entirely an offer for sale. At the IPO price, the company will be valued at a little over Rs 4,000 crore. For the six months ended September 30, Carraro reported revenue from operations of Rs 915 crore and a net profit of Rs 497 crore. 

 

Ventive Hospitality, engaged in developing and managing high-end luxury hotels and resorts, launched an IPO that was entirely a fresh issue. It has hotel assets in Pune, Bengaluru, Varanasi, and the Maldives. For the six months ended September 30, Ventive reported revenue from operations of Rs 846 crore and a net loss of Rs 138 crore. At the IPO price, the company is valued at nearly Rs 15,000 crore.

 

This week has seen a flurry of IPO activity, with nine offerings hitting the market, seeking to raise a combined Rs 6,840 crore, making it the busiest week for IPOs this year.

 

The five IPOs that closed on Monday attracted cumulative bids worth Rs 1.4 trillion, as against Rs 2,909 crore on offer. These offerings were subscribed between 11 times and 195 times. 

SME public offer doubles on debut

 

Nacdac Infrastructure’s value nearly doubled during its trading debut on Tuesday. The company’s Rs 10 crore initial public offering (IPO) had garnered 2,210x subscription — the highest for an SME IPO this calendar year.  Shares of Nacdac, a civil and structural construction firm, ended at Rs 69.8 versus the issue price of Rs 35. At the last close, the company was valued at Rs 73.5 crore. The company’s IPO attracted bids worth Rs 14,385 crore and over 7.5 million applications. 

Tata Investment rises on Tata Cap listings buzz

  Tata Investment Corporation’s (TICL’s) shares rose as much as 13.4 per cent following reports that Tata Capital is gearing up for a $2 billion initial public offering.  According to its annual report, TICL holds 80.7 million shares of Tata Capital as of March 31. Shares of TICL ended at Rs 6,799, up Rs 267, or 4.1 per cent, over its previous close. Tata Capital is classified as an ‘upper-layer’ NBFC.