IBS TIMES 221st ISSUE

TEAM IBS TIMES Vikram Leo Singh (Editor In Chief) Neha Thampi (Senior Editor Magazine) Puja Bhowmick (Senior Editor Website) Priyanka Tiwari Shreya Jariwala Nithin Abraham Sandra Maria Babu Simi Gopalakrishnan Harshada Mahindrakar Preethika Sampath Utkarsh Agnit Chaterjee Anish Das Anjali Arun Ankush Kapoor Dishant Mehta L H Vadiraj Mohammed Abdullah Afridi Mohit Agrawal Mohit Rao Pradeep Gupta PVSN Yamini Apoorva Rashika Ravichandran Satya Sree Supriya Reddy Dendi Designed by – Ankush Kapoor L H Vadiraj Pradeep Gupta

CONTENTS ___________________________________________ Introduction to IPO

Dishant Mehta

Equitas Small Finance Bank

Agnit Chatterjee

Mrs Bectors Food Specialities

L H Vadiraj

Gland Pharma

Mohit Rao

Mazagon Dock Shipbuilders

Abdullah Afridi

Chemcon

Supriya Reddy

CAMS

Mohit Agrawal

Route Mobile

Pradeep Gupta

Happiest Minds Technologies

Satya Sree

Angel Broking

Rashika Ravichandran

Mindspace Business Parks REIT

Yamini Apoorva

Antony Waste Handling Cell

Anish Das

SBI Cards

Anjali Arun

Burger Kin

Ankush Kapoor

INTRODUCTION TO INITIAL PUBLIC OFFERING (IPO) WRITTEN BY – DISHANT MEHTA

AN IPO IS LIKE A NEGOTIATED TRANSACTION – THE SELLER CHOOSES WHEN TO COME PUBLIC – AND IT’S UNLIKELY TO BE A TIME THAT’S FAVOURABLE TO YOU. — WARREN BUFFETT INITIAL PUBLIC OFFERING (IPO) An initial public offering (IPO) refers to the way toward offering shares of a private enterprise to the public in another stock issuance. Public offer issuance permits a company to raise capital from public investors. The progress from a private to a public company can be a significant time for private investors to completely acknowledge gains from their venture as it normally incorporates share premiums for current private investors. Then, it likewise permits public investors to take an interest in the offering.

Purpose An IPO is a fundraising support technique utilized by large companies, in which the company offers its shares to the public for the first time. Following an IPO, the company's shares are exchanged on a stock trade. A portion of the primary inspirations for undertaking an IPO include: raising capital from the offer of the shares, giving liquidity to company organizers and early investors, and exploiting a higher valuation.

History The term initial public offering (IPO) has been a trendy expression on Wall Street and among investors for quite a long time. The Dutch are credited with leading the first modern IPO by offering shares of the Dutch East India Company to the overall population.

From that point forward, IPOs have been utilized as a path for organizations to raise capital from public investors through the issuance of public offer proprietorship.

Criteria for listing an IPO According to the SEBI norms, a company can get listed with only 10% holding with the public gave the base net proposal to the public is Rs 100 crore, at least 20 lakh shares are offered to the public in an IPO through book-building method and distribution to qualified institutional purchasers are 60% of the size of an issue.

The minimum limit level of public holding will be 25% for all listed companies. Existing listed companies having under 25% public holding need to arrive at the minimum 25% level by a yearly expansion of at the very least 5% to public holding. For the new listing, if the post-issue capital of the company determined at offer cost is more than Rs 4000 crore, the company might be permitted to open up to the public about 10% public shareholding and consent to the 25% public shareholding. The necessity by expanding its public shareholding by at any rate 5% per annum.

For companies whose draft offer record is forthcoming with the Securities and Exchange Board of India (SEBI) at the latest these amendments are needed to consent to 25% public shareholding. The requirement by expanding its public shareholding by at least 5% per annum, regardless of the measure of post-issue capital of the company determined at the offer cost. A company may build its public shareholding by under 5% in a year if such an

increment carries its public shareholding to the level of 25% in that year. The necessity for consistent posting will be equivalent to the conditions for the initial listing.

Each listed company will keep a public shareholding of at least 25%. If the public shareholding in a listed company falls beneath 25% whenever such company will carry the public shareholding to 25% within a maximum time of a year from the date of such fall.

According to the SEBI norms, share allotment rules express that the minimum bid lot is characterized based on the price band i.e. in the range of Rs 14000 to Rs 17000.

Working of IPO Before an IPO, a company is viewed as private. As a private company, the business has developed with a moderately small number of shareholders including early investors like the authors, family, and companions alongside proficient investors, for example, venture capitalists or angel investors. At the point when a company arrives at a phase in its development cycle where it trusts it is experienced enough for the rigors of SEBI guidelines alongside the advantages and obligations to public shareholders, it will start to publicize its advantage in opening up to the world.

Ordinarily, this phase of development will happen when a company has arrived at a private valuation of a minimum of Rs 100 Crore. However, private organizations at different valuations with solid basics and demonstrated productivity potential can likewise fit for an IPO, contingent upon the market rivalry and their capacity to meet listing necessities.

An IPO is a major step for a company as it gives the company admittance to raising cash.

This gives the company a more noteworthy capacity to develop and extend. The expanded transparency and share listing credibility can likewise be a factor in assisting it with getting terms when looking for borrowed funds too.

IPO shares of a company are valued by underwriting after investigating the facts of the matter under consideration. At the point when a company opens up to the world, the recently possessed private offer proprietorship converts to public proprietorship, and the current private shareholder's shares become worth the public trading price.

Share underwriting can likewise incorporate extraordinary arrangements for private to public share possession. For the most part, the change from private to public is a critical time for private investors to trade out and acquire the profits they were anticipating.

Private shareholders may clutch their shares in the public market or sell a portion of every one of them for gains.

Generally, the quantity of shares the company sells and the cost for which shares sell are the producing factors for the company's new shareholders' equity value. Shareholders' equity speaks to shares claimed by investors when it is both private and public yet with an IPO the shareholders' equity increments essentially with money from the essential issuance.

Performance There are a few factors that may influence the return from an IPO which is frequently firmly watched by investors. A few IPOs might be excessively advertised by venture banks which can prompt initial misfortunes. In any case, most IPOs are known for acquiring in momentary exchanges as they become acquainted with the public. There are a couple of key contemplations for IPO performance.

Lock-Up Looking at the outlines following numerous IPOs, you'll notice that following a couple of months the stock takes a steep downturn. This is frequently a direct result of the termination of the lock-up period. At the point when a company opens up to the public, the underwriters make the company insiders, for example, authorities and workers consent to a lock-up arrangement.

Lock-up arrangements are lawfully restricting agreements between the underwriters and insiders of the company, disallowing them from selling any shares of stock for a predetermined time frame. The time frame can go somewhere in the range of three years as per SEBI regulations.

Waiting Periods As indicated by the SEBI standards, the entire cycle of allocation takes around 10 working days. If any chance that shares are not allotted/partially allotted, the sum paid would be refunded. For the shares to begin trading on the Stock Exchanges, it ordinarily takes around 2 weeks from the date of conclusion of the IPO issue.

Flipping Flipping is the act of exchanging an IPO stock in the initial not many days to acquire a quick benefit. It is regular when the stock is limited and takes off on its first day of listing.

IPO’s over the long-term IPOs are known for having the unstable first day of the season restores that can pull in investors hoping to profit from the discounts involved. Over the long-term, an IPO's price will sink into a consistent worth, which can be trailed by traditional stock price measurements like moving averages. Investors who like the IPO opportunity yet might not have any desire to face the individual stock challenge may investigate overseeing funds zeroed in on IPO universes.

FOODIE MOMENTS – MRS BECTORS FOOD WRITTEN BY – LH VADIRAJ

Returns matter a lot. It's our capital.

– Abigail Johnson

If you follow Capital Markets then definitely you would know about Mrs. Bector’s Food, well if it wasn't listed on the stock exchange then some of them wouldn't have known about this company but you know about Mrs. Bector's Food by the name of “CREMICA”.

This Jalandhar based public limited company was incorporated in 1995. It is one of the leading companies of North India in the bakery and biscuits segment mainly in the premium segment. This company basically deals in food products such as digestives, glucose, cookies, creams, crackers, and biscuits under flagship brand ‘Mrs. Bector’s Cremica’. The category accounted for 59.2% of its revenue from operations for FY2020.

Besides manufacturing and selling the various food products as mentioned, it also deals in bakery products in sweet and savory categories including buns, bread, cakes, and pizza bases under the brand ‘English Oven’. which contributed 17.1% to its revenues in FY2020. In addition, sales of bakery and frozen products such as buns, kulchas, pizzas, and cakes to QSR customers accounted for 16.8% of its topline in FY2020.

With its Pan-India presence, its products are sold in almost 26 states and have a strong reputation in the industry they all sell in 64 countries across six continents. What you all know is about its bakery and biscuit products. Besides this, they are also the largest supplier of buns in India. Burger King India Limited, Hardcastle Restaurants Private Limited, Yum! Restaurants (India) Private Limited and Connaught Plaza Restaurants Private Limited are its main clients to whom the supply of buns is made.

What happened in 2018?

The Indian Stock Exchanges started off with a bang as it recorded most IPOs globally in the first half of 2018 as it saw 90 IPOs launch where a total of US $3.9 billion was raised. As per EY India, stock exchanges of India have recorded the highest activity in terms of deals in IPOs. This is where Mrs. Bectors Food’s management saw an opportunity and gave a green signal for filling for Initial Public Offer (IPO) and also secured SEBI's approvals. But this attempt in 2018 went off the track due to adverse market conditions, so it had to drop its plan.

2020 - The year when it got listed for the very first time With financial year 2019 – 20 ending Mrs. Bector’s Food Specialities Limited reported operating revenue of about Rs. 500 Crs but when we see its EBITDA it has decreased by 2.73%. At the same time, its book net worth has increased by 8.22%

In October, Mrs. Bector's Food Specialities Limited which was being backed by Private Equity Funds Gateway Partners and CX Partners who held 46.75% stake had plans to make a partial exit. As this Ludhiana-based premium biscuit maker and supplier to Fast food chains like Burger Kings, Pizza Hut, KFC, and Macdonald’s had filed draft papers with SEBI to raise ₚ550 crores via an IPO. It comprised a fresh issue worth Rs 40.54 crores and Rs 500 crores offer of sale to the existing shareholders where a maximum amount of Rs 245 crores to Linus, with 186 crore rupees to GW Crown PTE Ltd. The minimum amounts of Rs 38.50 crores to Mabel and Rs 30.50 crores to GW Confectionary PTE. This IPO issue is Book Built IPO Issue. The speculations were about reserving 50% for Qualified Institutional Buyers followed by 35% for Retail Investors and around 15% for NonInstitutional Investors.

With Mr. Anoop Bector being the promoter of the company, was with the objective of not selling any equity. So the decision was to hold 51% even after the IPO. This IPO was managed by IIFL Securities, ICICI Securities, and SBI Capital Markets with the Equity Shares listed at BSE and NSE on 24th December 2020.

With the issue opening on 15th December 2020 with closing on 17th December, saw IPO price per equity share as Rs 288 with the face value of Rs 10 along with 50 lot of IPO Size with Retail Investor who could apply for 13 lots. Mrs. Bector's Food Specialities Limited witnessed the highest subscription in 2020 beating Mazagon Dock.

Shipbuilders Ltd and Burger King India and other IPOs as it got subscribed 198.02 times.

Also, this brings Mrs. Bector's Food Specialities Limited in third place for being the biggest subscribed IPO in a decade. The public issue saw a subscription of 29.33 times from Retail Individuals, 620.86 times from Non-Institutional Investors, 176.85 times from Qualified Institutional Buyers, and 45.46 times from employees.

Objects of the Issue Out of its 6 Manufacturing facilities, the Funds raised will be utilized towards the expansion of its Rajpura manufacturing facility by establishing a new production line. This move now comes up with the surge in demand for packaged food items and an increase in the sale of biscuits and bakery products to retail customers. Along with this objective, the funds will be made towards meeting general corporate goals

After Listing of the Issue As Virender Sehwag started India’s innings by smashing six like that Mrs.Bectors Food hits the capital market with a bang by listing at a premium of 70%. The shares were listed at Rs 500 on NSE and Rs 501 on BSE whereas the issue was about Rs 288. Once the time got hit to 11:30 The shares were traded at Rs 571.90 making it upwards by 98.61%.

The stock saw a high share price as it traded at Rs 601.20 before closing on its debut at Rs 595.55

Equitas Small Finance Bank IPO WRITTEN BY – AGNIT CHATERJEE Equitas Small Finance Bank IPO EFSB IPO is a main-board IPO. FV is ₹ 10, aggregating to ₹ 517.60 Croress The issue price ranges from ₹ 32 to 33 per equity share. The minimum order volume is 450 shares.

Capitech Pvt Ltd is the Registrar of IPO. These shares are intended to be listed on BSE and NSE. The book value of the script till June 2020 is Rs.26.47. In the upper limit of the price band, the latest issue needs to be adjusted to 1.26 times the price to book value (P/BV) after including the fresh issue. Q1FY21 demands a 16.3 times P/E ratio.

Shares of Equitas Small Finance Bank failed to encourage investors in November. They fell 6.06 percent to ₹ 31(BSE). Shares fell 5.76 percent to close at ₹ 31.10(NSE). The issue price of the stock was ₹33. Equitas Small Finance Bank has raised ₹ 518 crores through a public issue. The new issue includes an offer to sell ₹ 280 crores and an offer for sell of 7.2 crores equity shares by promoter Equitas Holdings.

Promoter Equitas should reduce its stake in Small Finance Bank to 40 percent of paid-up equity within five years of commencing its banking business. The IPO of Equitas Small Finance Bank is an attempt made by the managers in compliance with Reserve Bank listing standards, which requires SFBs to mandatorily get listed within 3 years of reaching ₹ 500 crores net worth. It is the third-largest finance bank listed on the exchanges after Ujjivan Small Finance Bank and AU Small Finance Bank.

Equitas Small Finance Bank IPO Listing Date NSE symbol EQUITASBNK Listing in BSE and NSE ISIN INE063P01018 IPO price per share ₹ 33 Face value equity ₹ 10 share

IPO Timetable

Equitas Holdings (EHL) shareholder IPO reservation Investors holding EHL shares are eligible to apply under the Shareholders category of ESFB. The company has reserved a 10% offer to shareholders (approximately Rs 51 crores). EHL shareholders can apply up to Rs 2 lakh in the shareholder category. The 518 crores Equitas Small Finance Bank IPO saw a 64 percent subscription of members on the second day of the initial public offering (IPO) three-day bidding process. According to data available on the exchanges, IPO bids were received for over 7 crores equity shares out of 11.58 crores shares. Equitas Small Finance Bank has raised Rs 140 crores from 12 anchor investors. 4.23 crores equity shares were allotted at Rs. 33 each in the upper price group. The IPO stock was trading at nil or zero premium in the secondary market.

Investor share and allotment basis Percentage based on the allocation of the offered size: QIB not more than 50% The NIII ratio is not less than 15% At least 1 lot per investor subject to retail availability.

Employee post-offer paid-up equity share capital should not exceed 5% Not equal to 10% shareholders Equitas Small Finance Bank IPO Bidding Details & Listing day trading information Section QIB NII RII Employee Others Total

IPO Subscription 3.91x 0.22x 2.08x 1.84x 0.42x 1.95x

BSE IPO price ₹ 33.00 Open ₹ 31.00 Low ₹ 30.10 High ₹ 33.05 Last trade ₹ 32.75 Vol 3,721,057

NSE ₹ 33.00 ₹ 31.10 ₹ 30.05 ₹ 33.15 ₹ 32.80 23,099,679

Strengths of EFSB IPO   

Equitas Small Finance Bank is one of the largest SFBs in India with a diverse asset portfolio. It has a strong retail liability portfolio with a strategic supply chain.

The company has registered strong revenue growth in the last 3 years. Its revenue increased to Rs 2,927 crores from Rs 1,772 crores in FY18.

It creates stable margins for the last 3 years.

Risk factors for investing in this IPO These risk factors affect the company's earnings and margins that affect its share price.

Investors need to understand these factors before investing in them.  

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The current Covid-19 crisis is unpredictable and will have a significant impact on this banking business. Credit defaults/NPAs can be increased.

Banks are subject to strict RBI regulatory requirements and prudent standards and their inability to comply with such rules & regulations adversely affects their business performance, financial condition, and cash flow.

The Bank's interest rates are subject to risk and any fluctuations in interest rates or inability to maintain interest rate risk will adversely affect its net interest margins, income, business, financial position, management results, and cash flow through regular operations.

This bank has a short operating history as a small finance bank and its future financial and operational performance cannot be estimated based on its expanding and growing operations.

There is stiff competition in small business loans, microfinance, and auto finance.

Any negative changes in such sectors will adversely affect its business and day-today operations.

If the bank fails to control the amount of non-performing assets in its portfolio or the RBI increases the mandatory allocation requirements, it will adversely affect its business, financial position, performance, and cash flow.

Equitas Small Finance Bank IPO Recommendation: 1) Equitas Small Finance Bank came with IPO as it has regulatory consent. Otherwise, it is not the right time to bring in an IPO, especially for a financial services company whose business has been most affected by the damage done to the economy by COVID-19.

2) In the pre-IPO round, Equitas Small Finance Bank had raised ₹ 52/share. Now they are coming up with an IPO at ₹ 33 per share. This shows that the market is not ready to give good value to Equitas SFB. 3) After the IPO, the promoters' holdings will be 82%. According to Reserve Bank regulations, they must reduce it to 40% before September-2021. I.e., Huge dilution of cards. Bandhan Bank stocks fell from 700 to 350 when it was difficult for them to reduce promoter holding.

4) A listing profit of ₹ 2-3 is possible.

5) D/E is too high for Equitas Small Finance Bank. As of 30.06.2020, it is 6.18%.

Gland Pharma – An Indian Gem in Chinese Hands WRITTEN BY – MOHIT RAO Gland Pharma was founded by P V N Raju in 1978 and is now one of the fastest-growing generic injectables-focused companies in India as well as on a global scale.

Headquartered in Hyderabad, Gland Pharma focuses on selling its products under a business-to-business (B2B) model in over 60 countries and develops a majority of its products for export to the USA. In 2017, the Chinese drug firm Fosun Pharma acquired a 74% stake of Gland Pharma for an approximate value of $1.09 Billion. When the Fosun group had acquired this take it was the largest Chinese takeover of an Indian company.

This was allowed without approval from or review by the India Foreign Investment Promotion Board and the Cabinet Committee on Economic Affairs under the new FDI norms where foreign investment of up to 100% is allowed in the pharmaceutical sector but above 74% requires government approval.

Over the years, Gland Pharma has made heavy investments in their manufacturing infrastructure to support their product portfolio needs and reach. They currently have seven manufacturing facilities in India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities. As of March 31, 2020, Gland had the manufacturing capacity for finished formulations of about 755 million units per annum.

Gland Pharma earned 67% of its revenue from the United States, 15% from India, and the rest mainly coming from Europe, Canada, and Australia.

The IPO IPO Date Issue Type Issue Size Fresh Issue Offer for Sale Face Value IPO Price Market Lot Minimum Order Quantity Listing At

November 09, 2020 to November 11, 2020 Book Built Issue IPO 43,196,968 Equity Shares of Re.1 totaling up to Rs.6,459.55 Crore 8,333,333 Equity Shares of Re.1 totaling up to Rs.1,250.00 Crore 34,863,635 Equity Shares of Re.1 totaling up to Rs. 5,229.55 Crore Re.1 per equity share Rs.1490 to Rs.1500 per equity share 10 Shares 10 Shares BSE, NSE

In November of 2020, Gland Pharma decided to go in for its IPO. The IPO opened on the 9th of November and closed on the 11th of November and comprised of 43,196,968 equity shares of the face value of ₹1 aggregating up to ₹6,479.55 Crores. The issue was priced at ₹1490 to ₹1500 per equity share. The minimum order quantity was 10 Shares. Fosun Singapore and Shanghai Fosun Pharma are the promoters of the company and their shareholding reduced to 58% in the company from 74%. The company was said to use net fresh issue funds for funding working capital requirements, capital expenditure requirements and general corporate purposes.

Amount (in INR & million) 31-Mar-20

31-Mar-19

Mar-18

Total Assets

40,860.39

35,235.49

29,294.68

Total Revenue

27,724.08

21,297.67

16,716.82

Total Expense

17,795.42

14,234.89

11,702.17

Profit After Tax

7,728.58

4,518.56

3,210.51

The Financial Statements In terms of the financial records, Gland Pharma has had a strong showing over the last 3 years with revenue and profit after tax steadily increasing. With an increase in the number of manufacturing facilities, Gland Pharma has also seen a steady increase in its total assets.

Even though the injectable pharmaceutical market is highly competitive, Gland pharma has been able to grow at a rapid rate since its takeover in 2017.

In the last financial years FY18-FY20, its revenue grew at a Compounded Annual Growth Rate (CAGR) of 27%, and its Profits After Tax (PAT) grew by 55% CAGR, having a minimal debt with debt/equity ratio at 0.01 in FY20. These numbers surely sparked investor confidence as the biggest pharma sector IPO in India (Rs 6,480 crore) was oversubscribed on the last day. The issue was subscribed nearly 2 times on the final day of the bidding of the IPO. What the future holds?

About ₚ200 crore will be used for improving infrastructure including the addition of new lines and warehouses at its Pashamylaram plant near Hyderabad. At its Visakhapatnam plant, the company will be adding a new active pharmaceutical ingredient manufacturing facility for vertical integration. Gland Pharma is also planning to expand into China, the world’s second largest pharmaceutical market, and Africa by taking help from its Shanghai-based promoter which has a strong presence in these markets. The only threats in the future Gland Pharma might face is the fact that about 30% of their raw materials for APIs are acquired for China. Seeing rising geopolitical tensions within China and India might lead to volatility and disruption in supply chains. Seeing as approximately 67% of operational revenue comes from the USA, tension between China and the USA can also have a negative impact on the company.

The Fosun group initially tried to acquire an 86% stake in Gland Pharma in 2017, but due to the Dokalam tension between India and China, the deal was put on hold. Eventually the deal went through but was reduced to a 74% stake which is the maximum investment allowed in the pharma industry without government approval. Whether Gland Pharma being owned by a Chinese company will have risks for India in the long term remains to be seen. However, a prized Indian asset which is known as a jewel in the pharma industry is now in the hands of a direct rival and this could manage to shift the generic injectables industry in the future.

A Defence IPO in your Portfolio, Mazagon Dock Shipbuilders WRITTEN BY – MOHAMMED ABDULLAH AFRIDI

IPO's have been the main focus of attraction for investors in 2020. Many companies from recognized start-ups to government companies are coming up with IPO's. IPO's have become more popular among the investors as data shows that all IPO's in 2020 raised around Rs 25000 crores which is very much higher when compared to last year's Rs 12,362 crore. These figures show that investors' demand for IPO's has increased. This demand is due to changing market dynamics, as investors are more open to shelling out their money when markets are rising. Apart from that many companies with diverse sectors such as pharmaceuticals, IT, financial services, etc. have released their IPO in 2020. One such company that has released its IPO in 2020 is Mazagon dock shipbuilders.

Mazagon dock shipbuilders also known as "Ship Builder to the Nation" is India's one of the largest public undertaking defense shipyards. This shipyard is under the control of the Ministry of Defence and is situated in Mumbai. The main works of the shipyard include the construction of warships, merchant ships, and submarines. The capacity of this shipyard is 40,000 DWT. Their business is divided into two units. One is the shipbuilding division, this division deals with building and repairing naval ships. The other division is the submarine and heavy engineering division. This division looks after building, repairing, and refitting diesel-electric submarines. Till 2020, mazagon shipbuilders have built 795 vessels. These vessels include 25 warships, 4 missile boats, 3 submarines, 6 Leander class frigates, 3 Godavari class frigates, 3 Shivalik class frigates, 3 corvettes, and 6 destroyers. Mazagon Dock shipyard was strategically built on the west coast of India. This shipyard is situated on a sea route that connects Europe, Pacific Rim, and Asia.

President of India, through the Ministry of Defense, Government of India is the promotor of Mazagon Dock shipbuilders. It is a company with strong financials and a good order book.

Objectives of Mazagon Dock shipbuilders IPO The objective of the IPO is to fulfill the following requirements.  

To benefit from share listing on stock exchanged.

To complete the disinvestment plan of 30,599,017 equity shares by selling investors established 15.17% of pre-offer equity share capital.

Analysis of key financials of Mazagon Dock shipbuilders Particulars Total Assets Total Revenue Profit After Tax

For the year/period ended (Rs in million) 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17 209,660.28 208,479.34 193,703.72 193,911.65 55,353.07 52,046.74 50,276.29 42,748.63 4,770.59 5,324.74 4,961.73 5,982.58

In the above table, the assets and revenues are growing at a good rate; these financials were taken from the annual report of Mazagon Dock Shipbuilders. This increasing rate shows that the company is growing. However, the growth rate is low when compared to other companies of the same sector. The company has reported a 12.25% CAGR increase in operating revenue. The operating revenue was 4977.65 Crores in FY 2020. Although operating revenue has increased, the operating expenditure has also increased. The report shows that operating expenditure has increased by almost 11.6% CAGR in the past three years. The Tax expenses also increased and this led to a fall in profit after tax in 2020. The profit margin also contracted to 9.58% in FY2020. The organization had produced a negative operating cash flow of Rs 95.56 crores in FY20 when compared with last year in which the company had generated a positive cash flow of Rs 65.23.

Figure 1: shareholding pattern after IPO

Mazagon Dock IPO details IPO Opening Date IPO Closing Date Issue Type Face Value IPO Price Market Lot Min Order Quantity Listing At Issue Size Offer for Sale

Sep 29, 2020 Oct 1, 2020 Book Built Issue IPO ₹10 per equity share ₹145 per equity share 103 Shares 103 Shares BSE, NSE 30,599,017 Equity Shares of ₹10 30,599,017 Equity Shares of ₹10

On IPO opening day i.e. Sep 29, 2020, the stock was opened to start the buying process.

On IPO closing day i.e. Oct 1, 2020, the buying process was closed. A book built issue is a type of process by which the price of an IPO is determined. In this type of process, the underwriter generally an investment bank invites bids from institutional investors, and the price is discovered by recording the demand for shares before it arrives for issue price. Face values are an important parameter from an accounting perspective. It is used by companies to calculate interest payment, market value, premiums, and returns. This value is set by companies and it is very important to note that there is no relation between the face value and market value of a stock. When IPO's are released the shares are not sold separately. Instead, multiple shares are bundled into Market Lot. In the case of Mazagon Dock, each market Lot had 103 shares. The shareholders instead of bidding for shares, have to bid for Market Lots, Hence the minimum number of shares an investor can bid in this IPO is 103 shares and the maximum an investor can bid for is 13 Lots (i.e. 1339 shares). The listing of Magazon dock shares on BSE, NSE was done on 12th October 2020.

A total of 30,599,017 shares were up for sale and these shares amounted to around 443.69 Crores. Mazagon Dock Shipbuilders IPO was so popular that it was subscribed 157. 41 times to that of shares available for sale.

Road ahead for this IPO The coronavirus lockdown had an adverse impact on the shipbuilding and defense production of the company. However, the company is expected to benefit from the atmanirbhar Bharat initiative, a financial package is expected to release soon to increase the production and this will aid its order book. In 2020, the company had production worth Rs 5000 crore and it is expected to increase by 8-10% a year. The revenue from repairs and pre-fits is expected to increase from 3.5% to 15% in the next 5 years and profit margins are expected to increase to 8% under the ministry's defense procurement regulations. With all these positives in place and the government of India as a promotor, it is truly a wonderful opportunity for investors to invest and this will surely increase their portfolio yield in the future.

Investing in Chemcon – Con or Pro? WRITTEN BY – SUPRIYA REDDY Introduction to Chemcon Chemcon is the main revelation organization for items and administrations identified with substance correspondences intervened by human olfactory and taste receptors. ChemCon offers a remarkable, protected mechanical stage dependent on a restrictive overall permit gained from Duke University.

Its workplaces are situated in Brussels on the Erasme Medical Campus (ULB) where it right now utilizes 13 individuals. The discoveries have been assembled in a data set that empowers the Company to replicate a fake nose that communicates the entire collection of Human Olfactory Receptors (HORs).

The uses of ChemCon's examination take into consideration the advancement of new items and innovations for buyer needs in the region of flavours and scents, yet besides all businesses that manage smell or taste issues. The uses of ChemCon's examination drives the advancement of new items and advances for customer needs in numerous territories.

In the Flavour and Fragrance industry, the organization's principal territory of the centre, ChemCon's foundation and item portfolios speak to an inventive methodology with fruitful answers for:   

Malodor counteraction Development of new fragrance materials Creation of cost-effective formulations

Because of the helpful attributes of GPCRs, ChemCon's examination can likewise be utilized in drug markets (Drug Discovery: oncology, immunology, and so on). Chemcon Chemicals is the main producer of Pharmaceutical synthetic compounds and creates the greatest income from this specific fragment. Hetero Labs Limited, Laurus Labs Ltd, Aurobindo Pharma Ltd, Lantech Pharmaceuticals Ltd, Macleods Pharma Ltd are the critical clients of its Pharma substance business. Be that as it may, Shree Radha Overseas, Universal Drilling Fluids, Water Systems Speciality are a portion of the customers of its oilfield synthetics section. In 2018, it was the eighth biggest maker of HMDS and secondbiggest producer of CMIC synthetic around the world Apart from serving the domestic market, Chemcon also exports to several countries around the globe. The percentage of revenue earned from major countries to which products are exported for Fiscal 2020 is as follows: Country Percentage of Revenue from Operations Dubai 26.43% Thailand 2.80% Serbia 2.21% China 1.45% Russia 0.95% Japan 0.79% America 0.74% Italy 0.36% Malaysia 0.03% South Korea 0.10%

Chemcon Attributes     

The largest producer of drug synthetic compounds across the globe.

Leading oilfield synthetic substances producer in India.

Diversified customers base in the home-grown and worldwide business sectors.

Strong and reliable monetary execution.

Dedicated assembling plants for every item.

Company Financials Summary of financial Information (Restated Consolidated) Particulars

For the year/period ended (Rs in million) 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17

Total Assets

2,257.92

1,730.33

970.66

626.80

Total Revenue

2,660.17

3,053.26

1,583.91

899.96

430.41

263.81

28.24

Profit After Tax 488.53

Chemcon IPO Chemcon IPO is a primary board IPO of 9,352,940 value portions of the assumed worth of ₹10 accumulating up to ₹318.00 Crores. The issue is estimated at ₹338 to ₹340 per value share. The base request amount is 44 Shares. The IPO opened on Sep 21, 2020, and shut on Sep 23, 2020. Connection Intime India Private Ltd is the recorder for the IPO. The offers are proposed to be recorded on BSE, NSE. Advertisers of Chemcon IPO 1. Kamal Kumar Rajendra Aggarwal 2. Navdeep Naresh Goyal 3. Shubharangana Goyal Objects of the issue Firm purposes to utilize the net proceeds from the IPO towards under targets;   

To meet capital utilization for expansion of collecting office.

To meet business working capital necessities.

To meet general corporate purposes.

Chemcon IPO Details IPO Opening Date

Sep 21, 2020

IPO Closing Date

Sep 23, 2020

Issue Type

Book Built Issue IPO

Face Value

₹10 per equity share

IPO Price

₹338 to ₹340 per equity share

Market Lot

44 Shares

Min Order Quantity

44 Shares

Listing At

BSE, NSE

Issue Size

9,352,940 Equity Shares (aggregating up to ₹318.00 Cr)

of

₹10

Fresh Issue

4,852,940 Equity Shares (aggregating up to ₹165.00 Cr)

of

₹10

Offer for Sale

4,500,000 Equity Shares (aggregating up to ₹153.00 Cr)

of

₹10

Chemcon IPO offer size by Investor Category The Percentage of Offer Size available for Allotment/allocation:   

QIBs: 50% Non-Institutional Investors: 15% Retail Individual Investors: 35%

Things you should know before investing in Chemcon IPO 1. It is the lone maker of HMDS in India and was the third-biggest producer of the substance on the planet.

2. The organization acquired around 65 per cent income from the pharma area and the rest from oilfields industry.

3. It has long-standing associations with clients, having solid a client base, sound profit proportions return for capital utilized (RoCE) and profit for value (RoE) at

4.

5.

6.

7.

37.92 per cent and 34.23 per cent for FY20, a positive obligation value proportion and stable PAT and EBITDA edges.

In addition, at current valuations at a P/E of 22.12x, below the business normal, Chemcon is alluring to put resources into as long as possible, said specialists.

Astha Jain, the Senior Research Analyst at Hem Securities, expects a posting at 90100% premium to the issue cost.

The organization raised Rs 165 crore through a new issue and the leftover Rs 153 crore will go to advertisers who stripped stake in the organization.

It will use new issue continues towards the development of assembling office, working capital prerequisites, and general corporate purposes.

Effect on India In India, The creation of HMDS has expanded by 3.5 per cent CAGR more than 2014-19 when contrasted with 10.7 per cent development enlisted by Chemcon. With the development of Covid-19 pandemic, the development is probably going to be higher in the close to term as internationally anti-toxins in blend with different medications are utilized for an enormous scope to fix Covid-19 patient for bacterial diseases as there is a demand for vaccines, production will increase which will impact positively on Indian economy Conclusion Chemcon Specialized Chemicals has reliably demonstrated solid monetary execution.

P/E at 22.12 makes the issue shows up sensibly evaluated and the business peer bunch normal P/E is about 31.30. The development of the assembling office with IPO continues would bring about expanded all out volumetric reactor limit at the assembling office from 374.85 KL to 625.85 KL. Likewise, Chemcon Specialized Chemicals plans to showcase its items in different ventures like elastic and semiconductor fabricating. India is at present a net shipper of both HMDC and CMIC; Chemcon being the lone maker of HMDS in India means to benefit from this business opportunity by subbing imports and obliging India's developing HMDS market. Accordingly one may buy into the IPO for posting gains and long haul too.

CAMS IPO – THE TRANSFER FROM UNLISTED TO LISTED WRITTEN BY – MOHIT AGRAWAL Computer Age Management Services (CAMS) is India's largest registrar and largest transfer agency (RTA) with a combined market share of 70 percent according to AAUM's joint venture fund. Collaborative fund clients include four of the five largest joint funds and nine of the 15 largest joint venture funds based on AAUM. CAMS has a market share of 70 percent in the MF registrar business. The leader and the MF led by the bank receive a market share that is ready for the realization of CAMS revenue. It is an example of a business that illuminates assets that is why by the end of the year an investor can expect a healthy share, and there is a chance that shares per share may increase every year.

CAMS IPO Details IPO Opening Date

Sep 21, 2020

IPO Closing Date

Sep 23, 2020

Issue Type

Book Built Issue IPO

Face Value

₹10 per equity share

IPO Price

₹1229 to ₹1230 per equity share

Market Lot

12 Shares

Min Order Quantity

12 Shares

Listing At

BSE

Issue Size

18,246,600 Equity Shares of ₹10 (aggregating up to ₹2,244.33 Cr)

Offer for Sale

18,246,600 Equity Shares of ₹10 (aggregating up to ₹2,244.33 Cr)

Employee Discount

122

The technology-driven financial infrastructure and service provider Computer Age Management Services has started on the first day on a solid note with a whopping 23.4 percent price tag on release on October 1. The stock opened at Rs 1,518 per share on the BSE, compared to the final issuance price of Rs 1,230, mainly on expected lines given strong securities, healthy cash position, debt-free status, high return rates and a strong market share.

In the 10:02 hours IST, trading at Rs 1,505.40, increased by Rs 275.40 or 22.39 percent compared to the price of the release, at 38.98 shares. The public edition of Rs 2,244-crore saw healthy enrollment 47 times on September 21-23 for the reasons mentioned above. It is also sponsored by an independent American company based in Warburg Pincus through Great Terrain.

The National Stock Exchange with a 37.5% stake in NSE Investments came out of the company, which contributed fully to the public issue. The company therefore did not receive a fund for this IPO. In F.Y. 2017-2020 CAMS has shown a steep growth in revenue

by CAGR of 14 per cent consequently which increases the AAUM approximately by 15 per cent CAGR. At the same time, its EBITDA and total profits have grown at a CAGR of 13 percent and 12 percent respectively.

The company is not liable for debt, thus translating it into healthy repayment rates with ROCE / ROE of 37/35 percent. In addition, it regularly pays dividends by paying FY20 at 40 percent.

Financials of CAMS IPO (in Crs) Year

Revenue

EBITDA

OPM

PAT

NPM

Shares

FV

EPS

2016

391.00

143.00

36.57%

84.00

21.48%

4.876

10

17

2017

472.00

183.00

38.77%

108.00

22.88%

4.876

10

22

2018

650.00

254.00

39.08%

160.00

24.62%

4.876

10

33

2019

711.00

261.00

36.8%

130.00

18.28%

4.876

10

26

2020

721.00

309.00

42%

173.00

23%

4.876

10

35

Recommendation to CAMS IPO Pros: 1. Asset Light business model. In buffet language, it is a cash-strapped business. This means that in addition to investing in growth, this will continue to produce a higher ROCE as revenue grows. As of 31.03.2020, ROCE stands at 40%. Anything over 30% is good.

2. Competition is low. The only major player is Karvy. India's sophisticated client management guidelines are the backbone of the CAMS business.

3. Pricing is moderate thus giving room for listing gain.

Cons: 1. Promoters who sell stocks partially often are considered bad and negative.

2. Revenue growth has not been good for last three years.

3. 86% of business is dependent on Mutual Fund. We know that over the past decade, Mutual fund payments from customers i.e. ER (Expense Ratio), have been low. This means that there has been very less profitability in Mutual Funds. Therefore, if Mutual fund companies are unable to grow their AUMs, the CAMS business will suffer .

Route Mobile – The One Time Passionate Stock for the Investors WRITTEN BY – PRADEEP GUPTA

Have you ever thought how the one-time password (OTP) does gets delivered to your mobile phone very quickly within seconds for any of your financial transaction? The answer is Route Mobile’s Application Programming Interfaces (API). The API plays a major role between the network operator and the end customers. It has tied up with the telecom operator and assists in delivering the message to the customer by which the transaction can take place About Started in the year 2003 as a cloud communications platform provider catering to enterprises over the top players and mobile network operators which very soon established connectivity to more than 250 operators globally and became the largest communication platform as a service (CPaaS) in Asia, Africa and the Middle East in terms of connectivity and customers. Today’s client network consists of major public sector banks.

In the year 2019, the company delivered more than 31 billion messages and to sum up its great achievement today it has over 3000 monthly billable clients across all the services one can think of. Its top 10 clients account for about 64% of the company’s revenues, with the topmost client contributes 15.45% to FY 20 revenues. As per the Red Herring Prospectus, Route Mobile Ltd global operations included nine direct and 12 steps down subsidiaries serving its clients through 18 locations across almost all the continents.

IPO Listing It was listed successfully by the help of book running lead managers which were ICIC Securities, Axis Capital, Edelweiss Financial Services Ltd and IDBI capital, K Fintech was the registrar for the IPO. With a market capitalization of Rs. 6400 Cr, no listed entities in India whose business portfolio could be comparable to that of Route’s business and its important role has no doubt boosted its share price and had a phenomenal run on the Dalal street since its IPO in September 2020.

The stock got listed at 86% premium and over the past months, it has risen over 92%. The IPO price of the stock for a lot of 40 shares was fixed as Rs. 345 to Rs. 350 per share. By Sept 11, 2020, the IPO was subscribed to 73.30 times, in which retail category subscription was 12.67 times, the QIB category subscribed to 89.76 times and 192.81 times by the NII category. On 21st Sept 2020 when the company got listed the closing price went up to record high Rs. 651.30 and since then it has been showing a continuous rally by which currently it is being traded at more than Rs. 1100. The issue size was set at 1,73,91,303 shares which aggregate up to Rs. 600 Cr. The issue comprised of Rs. 240 Cr of fresh issue and Rs. 360 Cr in an offer to sale by existing promoters, the Gupta brothers which would include shares up to Rs. 180 cr held by each of them.

Financials The company’s total revenue from its operations stood at Rs. 3096.14 million in the three months ended 30 June 2020 and has been growing year on year. In the fiscal year 2018, 2019 and 2020 their revenue amounted to Rs. 5049.48 million, Rs. 8446.68 million and Rs. 9562.52 million respectively with the profit after tax for the years was Rs. 466.77 Cr Rs. 545.32 Cr Rs. 691.02 Cr respectively. Sandipkumar Gupta and Rajdipkumar Gupta the promoters of Route Mobile Ltd. hold 65.75% in the company which earlier was 96%. The foreign institutions, general public and financial institutions hold 15.7%, 7.96%, and 3.74% respectively.

The qualitative factors that made this company one of the favourite stocks for the investors are;  Well established relationships and global connectivity with Mobile Network Operators (MNO)  Products suite for MNO’s  Global clients and diversified business base across all industries  Consistent and growing financial track record  Robust Business Model  Diversified services offered for the enterprises through Omnichannel cloud communication platform service.  Scalable delivery platform Performance during pandemic The company made sure that all its operations and services continue to its customers without any interruptions or difficulties and hence responded swiftly to coronavirus for which it implemented various performances to ensure that everything runs seamlessly, which showed that the entire team was able to work from home since March 23, 2020, when the lockdown was enforced in India. Route Mobile’s ensured their customers' data and the assets are safeguarded for which they deployed security systems.

By the end of the first quarter, June 30 the company was able to process more than 6.95 billion billable transactions.

The objective of the Issue

 Repayment or pre-payment, in full or part, of certain borrowings of their Company amounting Rs. 365 million which would help them reduce their outstanding indebtedness, debt servicing costs and enable utilization of their accruals for the further investment to increase the business growth and its expansion.  Acquisitions and other strategic initiatives costing Rs. 830 million and so far they have successfully acquired 4 entities, Start Corp India Private Limited and Cellent Technologies (India) Private Limited acquired in the year 2016, Call 2 Connect India Private Limited and 365squared Limited located in Malta acquired in the year 2017.  Purchase of office premises in Mumbai which amounts Rs. 650 million as the company’s lease rental expense for the first quarter amounted to Rs. 16.31 million out of which Rs. 11.12 million was towards their office premises in Mumbai for the same period.  General corporate purposes which shall not exceed 25% of the Gross Proceeds of the Fresh Issue. The general corporate purposes for which the Company proposes to utilise Net Proceeds include expenses towards strategic initiatives, joint ventures, funding growth opportunities, investment in subsidiaries

Looking at the amazing reviews by the top stock brokers company there is no doubt that the company has outperformed as compared to other IPO’s of the pandemic year and if the company is able to maintain the steady and sustainable growth through the coming years it will surely become “DARLING OF THE INVESTORS”.

THE HAPPIEST IPO – HAPPIEST MINDS WRITTEN BY – SATYA SREE

Introduction Happiest Minds Ltd is a company offering IT services based in Bangalore. The company's market is divided into three categories: 1. Digital Business Service (DBS), 2. Infrastructure and Management Security Service (IMSS) 3. Product Engineering Service (PES) Happiest Minds has 148 successful clients as of June 30, 2020, and has a worldwide footprint in countries such as United States, United Kingdom, Australia, Canada, and the Middle East. 96.9 percent of the company's sales in the fiscal year 2020 came from digital services, one of the largest among Indian IT firms.

Happiest Minds offers facilities such as Retail, Edutech, Automotive, BFSI, Hi-Tech, Engineering R&D, Manufacturing, Transportation, Media, and Entertainment across sectors of business.

Competitive strengths 1.

2.

3.

4.

Focused on software product development Good name for the provision of digital IT services End to End digital lifecycle Agile Engineering and Delivery

Public offerings The company launched its IPO in September 2020 with an offer for the selling of 3,56,63,585 private equity shares by promoter Ashok Soota and a private equity fund backed by JP Morgan. The IPO price range was between ₹165 and ₹166; the issue was subscribed 151 times. The shares of the company were listed on the Bombay Stock Exchange and National Stock Exchange of India on 17th September 2020 at an opening price of ₹351, a 111% premium over the issue price.

Objects of the issue The organization had planned to utilize the fresh issue net worth to finance the following objects: 1. To satisfy the needs for long-term working capital 2. Corporate General Uses The company kicked off IPO on 7th Sept 2020 for 702 crores. The IPO received a subscription of 151 times making it the 5th most subscribed IPO in the past 5 years and the 8th most successful IPO in a decade.

Initial Public Offering Details Issue Date

September 7th – 9th, 2020

Issue Type

Book Built Issue IPO

Face Value

₹2 per each equity share

IPO Price

₹165 to ₹166 per equity share

Minimum Order Quantity

90 Shares

Listing At

BSE, NSE

Issue Size

42,290,091 Equity Shares of ₹2

Fresh Issue

6,626,506 Equity Shares of ₹2

Offer for Sale

35,663,585 Equity Shares of ₹2

Analysts believe that much of the interest in IPO is down to the increase in retail investors in the market over the last 6 months.

1.

2.

Some of the share sales that are reserved for retail investors was subscribed 70.94 times.

Those reserved for non-institutional investors and qualified institutional buyers were subscribed 351.45 &77.42 times.

Company Financials Financial Performance (in crores) FY2018

FY2019

FY2020 Q1 FY2021

Revenue

489.1

601.8

714.2

187.0

Expenses

512.2

576.3

629.4

146.2

Net income

-25.2

17.4

60.5

54.5

Net margin (%)

-5.2

2.9

8.5

29.1

Analysis of happiest minds share price after ipo listing Qualitative Analysis of Happiest Minds 1. At the level of the whole economy Almost every country’s economy has been severely affected by the spread of coronavirus disease (COVID-19). According to some sources, the coming one or two years will not be much good.

2. At the industry level Since Happiest Minds at the industry level is related to an important sector, the IT Services & Consulting sector. Therefore, its demand is going to increase.

Business Model of Happiest Minds The company has major three business segments.

1. Digital Business Services (DBS) DBS is the major source of revenue of about 97%, despite the company’s two other business segments. This segment includes services such as Providing seamless digital experience and solutions.  Enabling application-centric transformation and morph into the future of digital business  Transforming legacy systems into modern, efficient, and responsive systems improving performance, agility, and profitability  Assisting in the design and testing of operations, platform management, consulting, and domain-led offerings or its clients through cloud services, artificial intelligence services, etc.

2. Product Engineering Services (PES) In this segment, the Happiest Minds uses in-depth engineering expertise to help companies in various industries change their product or do so for their customers.

3. Infrastructure and Management Security Services (IMSS) This segment includes Infrastructure Management Services, Security Services, and Robotic Process Automation (RPA).

Under IMSS the company provides an integrated suite of services in the enterprise’s distributed and hybrid IT environments as a single entity to deliver single accountability.

IPO Performance 2021 Listing Day Gain/Loss Current Gain/Loss 123.49%

123.92%

Based on financial parameters, the issue appears fairly priced. For its future growth, the business has adopted a mindful IT approach. For medium to long term incentives, investors may consider subscribing to this IPO which leads to excessively subscribed but frightening the investors that they may trade below listing day highs. Whereas in 2021 there is a slight increase in the price compare to 2020. Finally, one suggestion is that do not sell in a panic instead use every fall for accumulation and give a minimum time frame of 8 to 12 months we may see huge by end of this year as the company has excellent growth in the last 3 years. Moreover, the covid-19 impact has seen less in the IT sectors.

When the Angels came to D-Street – The Angel Broking IPO WRITTEN BY – RASHIKA RAVICHANDRAN

“If you can get an IPO, do not buy it. Only buy IPOs you can’t get.”

This quote by Greenwich Wealth Management LLC’s Chief Investment Officer and columnist Vahan Janjigian seemed to have been adopted by the investors as they watched Angel Broking issue its Initial Public Offering (IPO). The lacklustre debut of the 22-yearold brokerage firm at Dalal Street raised many eyebrows as it failed to cross the Rs. 300 per share mark at the stock market but gained momentum later on as its IPO was subscribed nearly four times which analysts termed as humdrum when juxtaposing it with the strong debuts of Happiest Minds Technologies and Chemcon Specialty Chemicals which doubled on listing.

Angel Broking is an Indian stockbroker firm established by Dinesh Thakkar way back in 1987 with a capital of just Rs. 5 Lakhs. Despite losing half his capital in the first 8 months of business, Dinesh refused to give up and started his journey again as a sub-broker thus eventually gaining success. Angel Broking was incorporated as wealth management, retail, and corporate broking firm in 1996 providing broking, marginal funding, advisory and financial services through its brands – Angel Broking and Angel Bee powered by ARG. In its 22-year-old history, Angel Broking graduated to being one of the largest and oldest brokering houses of the country having more than 8500 sub-brokers and financial outlets in more than 900 cities across India cementing its strong market presence while having 2.15 million operational broking accounts as of June’2020.

IPO Opening Date IPO Closing Date Issue Type Face Value IPO Price Market Lot Min Order Quantity Listing At Issue Size Fresh Issue Offer for Sale

Sep 22, 2020 Sep 24, 2020 Book Built Issue IPO ₹10 per equity share ₹305 to ₹306 per equity share 49 Shares 49 Shares BSE, NSE Equity Shares of ₹10 (aggregating up to ₹600.00 Cr) Equity Shares of ₹10 (aggregating up to ₹300.00 Cr) Equity Shares of ₹10 (aggregating up to ₹300.00 Cr)

Table 1 - Angel Brokering IPO Details

Angel Broking decided to go public in 22'September'2020 which was considered to be quite an intrepid decision since it was the first brokering company to go public in the last decade. The company offered Rs. 600 crore worth shares with a price band of Rs. 305-306 per share with Dinesh D. Thakkar, Ashok D. Thakkar, and Sunita A. Magnani acting as promoters of the company.

However, the stock's debut on the stock market was below expectations as it could not ride the wave of the recent strong show of other stocks although it was sold from September 22 to September 24. The stock opened at Rs. 275 on the Bombay Stock Exchange (BSE) and it collapsed before the issue price level in the session eventually stopping 9.8 percent below its issue price. The stock opened at Rs 275 on the BSE and failed to cross the issue price level in the session, ending down 9.8 percent from its issue price at Rs 275.85. Within minutes of its listing, the shares of Angel Broking gained nearly 5% of its value. Its total market capitalization rose to Rs. 2,339.45 crores around 10 am and the total quantity of 2.36 lakh shares exchanged hands and thus led to a turnover of Rs. 7.27 Crores.

Application Lots Shares Amount (Cut-off) Minimum

1

49

₹14,994

Maximum

13

637

₹194,922

Table 2 - Angel Brokering Lot Size Rs. 600 crores worth IPO of Angel Broking was quoted at 6-7% discount at the issue price of Rs. 306. The IPO was a fresh issue of Rs. 300 crores and an offer for sale of Rs. 300 crores.

The brokering company also succeeded in raising Rs. 180 crores from a consortium of 12 investors such as Goldman Sachs, Macquarie Fund Solutions, Invesco Trustee, Max life insurance company, ICICI Prudential, HDFC Mutual Fund, Sundaram Mutual Fund, and others. Angel Broking’s stock was ruling at a stock of Rs. 20 discounts in the grey market which refers to the trade of a commodity through distribution channels that are unauthorized by the original manufacturer or trademark proprietor in a market. Even the Angel Broking IPO did not see a strong surge amongst investors as compared to Chemcon and CAMS the grey market for the stock which saw the price fixed at Rs. 22 as the euphoria surrounding the stocks simmered down. At the issue price, the brokerage company would command a valuation of 26.84 times FY20 earnings which is a bit on the higher side.

Category Anchor QIB NII Retail Total

No. of shares 58,82,353 39,34,425 29,50,820 68,85,246 1,96,52,844

% 30% 20% 15% 35% 100%

Table 3 - IPO Offer Size The IPO received a stellar response from retail investors who subscribed 3.4 times on Day 3 of the issue. However, the Qualified Institutional Buyers (QIB) gave the stock a miss while the High Network Individuals (HNI) also gave a muted response by subscribing only 0.36 times. The Non-Institutional Investors (NII) failed to fully subscribe to their portion.

Bullish Sentiments for Angel Brokering in a Bearish Environment – Despite some select investors terming Angel Broking's IPO launch a failure, some industry experts urged the traders to be bullish on the stock terming the company’s sophisticated online and digital services as one of the main drivers behind the company’s growth.

Owing to the lockdown and increase in millennial traders, Angel Brokering was successful in garnering clients which averaged at around 1,15,565 per month in Q1 while there was enhanced participation from retail equity investors.

The digitization of its platforms has propelled Angel Brokering's success in acquiring the tech-savvy millennials who are the end-users of its various integrated digital platforms like the Angel Brokering website, Angel BEE mobile application, ARQ advisory, and NXT platform. India's robust growth in internet connectivity has helped the company acquire clientele from tier 2 and tier 3 cities where market penetration has not exactly reached its full potential yet. Since India is one of the countries with the lowest exposure to the equity markets, Angel Brokering’s long-standing reputation and low brokerage costs can help it cement its position as a market leader in the Indian Brokerage industry.

Wings Clipped? – Why was the launch full of hits and misses?

Although the shares of Angel Broking were given the thumbs up by almost every analyst before the issue of the IPO it failed to generate the expected buzz as some of the investors gave the stock a miss. The weak debut of the stock could be attributed to stretched valuation and as well as increasing competition in the brokerage industry. Another observation was that the grey market premium of the stock was lower than that of its IPO peers. The tight rules imposed by SEBI also increased the scepticism surrounding Angel Broking. Another reason could be the obscure timing of the stock as it debuted alongside impressive stocks like CAMS and thus the stock failed to gain momentum at the start.

Does the Future Look Bright?

After the issue of its IPO, Angel Broking reported a 3.6% marginal decrease in its revenue compared to the previous year but made a comeback as its profit grew by 12.9 percent.

Its Earnings Before Income, Tax, Depreciation, and Amortization (EBITDA) of Rs. 154 crores with a margin of 22 percent due to an extremely healthy average daily turnover growth were attributed to low operating expenses and brokerage expenses which formed almost 69.54 percent of its total revenue whereas revenue from other activities including income from depository operations, portfolio management services, income from distribution and other activities formed 30.46 % of the total revenue in FY 20. With the healthy and bountiful profits, Angel Broking has made a turnaround from an otherwise dismal debut at the D-street and has managed to regain investor confidence by posting strong financial gains. Its pan India presence and a great network of authorized people have enabled it to overcome its earlier pitfalls and thus, Angel Broking has announced that it is here to stay come what may.

In the end whatever the stock may be, one should remember legendary investor Warren Buffet’s sage advice – “Rule number one: Don’t lose money. Rule number two: Don’t forget rule number one.”

Mindspace Business Parks REIT Going Public WRITTEN BY – PVSN YAMINI APOORVA Background Mindspace was established by K Raheja Corporation in the early 2000s, began with Mumbai, and spread across the main commercial markets in Hyderabad, Pune, and Chennai. As of September 30th, it was reported that their portfolio comprises 5 integrated business parks and 5 independent offices amounting to 29.5million square feet of leasable area. The sponsors of this entity are Anbee Constructions LLP, and Cape Trading LLP (which are part of K Raheja Corp).

With 167 tenants, their portfolio is well-diversified and no single tenant has contributed more than 7% of their Total Negotiated Rents. Mindspace maintains a tenant base with a combination of global and Indian companies. It is also key to note that Mindspace Business Parks (REIT) is managed by the K Raheja Corp Investment Managers LLP (“Manager”).

The managers are responsible for managing all the assets and investments the firm undertakes. For the year ended March 2020, their net operating income stood at Rs 1,225.7 crore and dividend yield stands at 3.5% for FY20.

Now that we looked at the background of Mindspace business parks let us quickly understand what exactly is REIT. What is REIT? REIT stands for Real Estate Investment Trust and is a company that owns, operates, and finances income-producing real estate. How REIT works is similar to that of mutual funds.

Numerous investors’ money is pooled together as REIT’s capital that the firm uses to operate and returns from the investments are paid back in the form of dividends to shareholders. REIT is the perfect instrument for those who are interested in investing in real estate but do not have huge funds, knowledge, or time to invest in it. Moreover, REIT companies are obligated to pay at least 90% of their earnings as dividends as per the law which ensures investor security. An interesting fact is that Mindspace business is only the second REIT to be listed in India after Embassy REIT. Now that we have a basic understanding of what REIT is and how it works, the next section will commence the discussion about Mindspace Business Parks (REIT).

Mindspace Business Parks (REIT) going public Raheja Corp announced one fine day that Mindspace Business Parks (REIT) plans to launch their IPO on July 27th, 2020. The promoters of the company intend to dilute their stake from 85% to 65%. The existing stakeholders of the firm are supposed to offload a stake worth Rs3,500 crore and additional units worth Rs1,000 crores were issued, together raising Rs4,500 crores through the IPO. The Red-herring prospectus stated that the trustees plan to sell 16.36 crore units at Rs 274Rs275 per unit. From those, approximately, 4.09 crore units worth Rs1,125 crores will be allotted to strategic investors. Anchor investors have been allotted units that are approximately worth Rs1,519 crores before the public issue.

SEBI asked Mindspace to reduce the lot size from 800 units to 200 units to encourage the participation of retail investors in the IPO. Application Worth Minimum

Units Lot

Rs55,000 200

1

Investors can bid units in multiples of 200 beyond the minimum requirement.

Important dates All the important dates regarding the IPO are mentioned in the following table.

IPO Opening Date

27 July 2020

IPO Closing Date

29 July 2020

Finalization of Basis of Allotment

6 August 2020

Designated Date

7 August 2020

Closing Date

7 August 2020

Initiation of refunds

7 August 2020

Listing Date

12 August 2020

Some of the lead managers of this issue include: Morgan Stanley India Company Private Limited, Axis Capital Limited, DSP Merrill Lynch Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited, IDFC Securities Limited, ICICI Securities Limited,

CLSA India Private Limited, Citigroup Global Markets India Private Limited, Nomura Financial Advisory and Securities, Ambit Capital Private Limited, HDFC Bank Limited.

Applications REIT IPOs are not yet accepting UPI payments to apply therefore leaving investors to choose another alternative. Investors must first log in to their net banking portals, use their BO ID(Beneficiary Owner Identification Number, a 16-digit number used to identify your Demat account). Then using their net banking ASBA (Applications Supported by Blocked Amount) they proceed with the application. Once they apply, the application amount is blocked from their account and will only be debited if the investor receives official information about the allotment.

Subscription IPO was subscribed almost 13 times by the end of day 3 i.e. reports have shown that bids for 87,55,55,200 units against a bid size of 6,77,46,400 units were received for this issue.

Category

Subscription Status Shares Offered

Qualified Institutional 10.61 Times

36,952,600

Non Institutional

15.51 Times

30,793,800

Total

12.96 Times

67,746,400

Implications of the oversubscription The oversubscription of Mindspace business parks’ shares could imply certain things as per the experts. They are: 1. Investor portfolios need instruments like REIT to be included at the moment.

2. It is quite clear the commercial real estate continues to have the support of HNIs (High Net Worth Individuals) and Institutions. Despite the popular belief that rental assets will be drastically affected due to pandemic induced new norms i.e. the Work From Home mode.

It is believed that, when the battle with the pandemic ends, this successful investment will mean well for all future investments in this sector.

Performance in Stock Market Listing Day data of the business is displayed in the table below.

Open

Rs 304.00

High

Rs 308.90

Close

Rs 303.87

Low

Rs 299.00

Volume Rs. 560506224.00

On August 7th, 2020 Mindspace Business Parks REIT made a decent debut in the Bombay Stock Exchange and got listed at Rs304 which is 10.55% premium compared to the issue price of Rs275. But the day ended on a different note, as the close price dropped to 303.87, 0.04% fall from listing price.

After the subtle but positive debut into the capital market, Mindspace shares grew steadily over the next 4 months, with slight ups and downs. As of 31st December 2020, the shares were priced at 319.87 and opened at 328.70.

Performance in Share market from listing day till the end of 2020

What's in store for the Mindspace Business and real estate sector?

In the last three years, Mindspace Business’ revenue has increased at an annualized rate of 11.82%, net operating income is projected to grow by 59%, and dividend yield to 7.5% in FY2021. The only worry is the firm’s debt has also risen to 21% in the last 2 years.

Overall, Mindspace seems to have a bright future in terms of operations and financials leaving behind COVID falls as a short-term impact.

Analysts state that REIT is expected to deliver high returns in the future and the same is expected from investors waiting for long-term returns. Additionally, Mindspace managers/sponsors conveyed that the low returns pre-IPO are temporary and the returns will grow by 7.5% in FY2022.

The unique corporate structure and steady income generation which is the stability of debt instrument and benefit of holding equity instrument combined. These are the very reasons which excited the investors and are also the rationale behind why analysts believe Mindspace REIT and REIT, in general, will have positive performance in the markets.

With Mindspace and Embassy going public, all stakeholders and analysts are curious about the future of REIT listings in India. Are you?

Nitigrities of Antony Waste Handling Cell IPO WRITTEN BY – ANISH DAS

Antony Waste Handling Cell is one of the major players when it comes to the Indian Municipal Solid Waste (MSW) management industry. The major attributes of this company include solid waste collection, transportation, processing, and disposal services distributed throughout India. The company takes care of the MSW C & T projects that generally involve doorstep delivery of MSW from various households, commercial establishments, as well as slums.

Antony Waste Handling Cell IPO The company shares a profound listing on January 1 with a spike in the share of 56% on an intraday basis. This whopping rise in the listing is backed up by positive market sentiment and long term growth opportunities. Stock value strikes an intraday high of Rs 492.75 after making its debut with a 36.5 % premium over the issue price of Rs 315. The quoted price is Rs 459.10 which is over 45.75 percent over IPO price.

IPO Details

Lot Size Details The lot size of Antony Waste IPO is 47 shares. A retail investor has the ability to apply for a maximum of 13 lots (values worth 611 shares or â‚š192, 465).

Application

Lots

Shares

Amount (cut-off)

Minimum

1

47

14,805

Maximum

13

611

192,465

Highlights of Antony Waste IPO on Day 1, Day 2, and Day 3 The initial public offering of Antony Waste Handling comes with a subscription 1.97 times on the first day of bidding. This issue comes with a 1.32 crore bid against the issue size of 66.66 lakh shares. Qualified Institutional Buyers gets 63% subscription. Retail investors get 3.5 times while the non-institutional investors get a subscription of 8.3%. On Day 2, the initial offering was subscribed at a multiplier of 3.85. The issue gets a bid value of 2.56 crores against an issue price of 66.66 lakh shares. Qualified Retail Investors gets subscription at 64%. Retail Investors receives subscription at 7.2 times and noninstitutional investors get a subscription at 27.9%. The IPO was subscribed in a multiplier of 15 times on the final day of bidding. It was an amazing day with 9.91 crores against the issuance of 66.66 lakh shares. The amount specified for Qualified Institutional Buyers stands at 9.67 times and retail investors subscribed at 18.68 times.

Financial Facts & Implications

The Net Profit of Antony Waste Handling increases in the March Quarter of FY20 compared to the September quarter. This implies the company has lesser EPS than the earlier results.

Because the increase in profit accelerates the issue of shares to their respective shareholders. A rise in revenue was because of the projects going on in Pimpri Chinchwad and Nagpur becoming operational, and the Noida project and DahisarBorivali project. However, as from the above statistics, the PAT value decreases in March 19 compared to March 18. This implies higher EPS. The company has almost 25 projects in hand, out of which 15 will be ongoing as of November 15, 2020.

Objectives of the Issue Antony Waste Handling Cells aims to leverage the net funding in financing the following projects ● First, it will use it in part financing for PCMC WTE project bifurcating the investment in subsidiaries like AG Enviro and ALESPL. ● Mitigating the consolidated borrowings of the Company and Subsidiaries by inflicting debt into its subsidiaries. ● Also, this will be utilized to fulfill various corporate purposes.

Antony Waste IPO Holdings Pre Issue Share Holding

51.10%

Post Issue Share Holding

46.20%

Strengths of Antony Waste Handling Cell Limited ● It is one of the major brands providing end to end capabilities. ● This organization has almost two decades of experience in executing solid waste projects and comes with an illustrative track and is equipped with all the resources to work on the big projects for various municipalities as well as private companies.

● In the solid waste management sector, the number, size, as well as duration of various ongoing projects can be the best chore for the future performance of the company. They come up with 18 ongoing projects out of which 12 cover MSW and C&T projects. ● The effectiveness of the company’s processes is geared up by technically induced vehicles along with equipment. ● Company houses a group of experienced professionals having proper domain knowledge. Using this, the company can manage the business operations effectively utilizing customer relationships as well as predicting future trends.

Risk Factors Associated Antony Waste Handling Cell Limited mostly depends on municipal authorities for a major portion of the business as well as revenue. The majority of the municipalities are facing problems to fund several solid waste management projects from their own revenue receipts. Also, they are mostly dependent on the budget received from the state and central. A decline in the budget for the MSW projects has an adverse effect on business and operations.

MSW Projects are basically meant for those companies having a competitive bidding process. The business and Financial prospects of the company hamper a lot if the new MSW projects are not appreciated. Antony Waste depends on the customers for the major portion of the revenue. The loss of any of the major customers happens because of the adverse impact of a significant reduction in business. Company works in restricted demographic locations bringing a major part of the revenue. Projects taking place in new geographical locations do not incur huge profits like the present contracts.

IPO to Utilize Net Proceeds-What Lay in Store for Upcoming Days?

The company is utilizing the net proceeds for wastewater projects at Pimpri Chinchwad using investments in subsidiaries, AG Enviro, and ALESPL. It aims to diminish consolidated borrowings of companies and subsidiaries by inflicting debt in its subsidiary AG Enviro for repayment of a part of outstanding indebtedness. The listing price is much better than what is expected from the streets. However, the huge premium pushes various investors to book this for future profits. The business of Antony solely depends on revenue coming from municipal authorities that can be a potential risk in the business model. So what do you think investors will do? Pen down your feedback in the comment section.

SBI CARDS IPO WRITTEN BY – ANJALI ARUN SBI, India's largest commercial bank Incorporated in 1998, in terms of deposits, advances & number of branches, SBI Cards Payment Services Limited is a subsidiary of SBI. It currently owns (together with its nominees) 689,927,363 equity shares, representing 74.00% of the Company's pre-offer released, subscribed & paid-up equity shares. With an 18.0 percent market share of the Indian credit card market in terms of the number of credit cards outstanding as of September 30, 2019, they are the second-largest credit card issuer in India. An initial public offer of about Rs 10,000 Cr is coming up for SBI Cards & Payment Services Ltd to offer an exit to existing shareholders, broaden the capital base & be listed on the BSE and NSE stock exchanges.

The IPO of SBI Cards is a main-board IPO of 137,193,464 equity shares with a nominal value of ₹ 10 to ₹ 10,354.77 Crores. The issue is valued at around 750 to 755 per share of Equity. The minimum number of orders is 19 shares. A Retail-individual could apply for up to 13 lots (247 shares or ₹186,485).

Application

Lots

Shares

Amount (Cut-off)

Minimum

1

19

₹14,345

Maximum

13

247

₹186,485

The IPO of the SBI Card opened on Mar 2, 2020, and closed on Mar 5, 2020. The bidding closed at 5 PM for retail investors on March 5, 2020.

IPO Open Date

Mar 2, 2020

IPO Close Date

Mar 5, 2020

Basis of Allotment Date

Mar 11, 2020

Initiation of Refunds

Mar 12, 2020

Credit of Shares to Demat Account

Mar 13, 2020

IPO Listing Date

Mar 16, 2020

The SBI Card IPO also has a reserved quota for SBI workers, SBI employees can apply up to Rs 5L under the employee quota in addition to Rs 2L in retail and Rs 2L in shareholders' quotas. Investors holding SBI shares on 18 Feb 2020 (the date of filing RHP with SEBI) were eligible to apply under the SBI Cards IPO category of Shareholder. According to RHP, SBI shareholders may apply for the SH category above Rs 2 lakh and maximum up to reserved portion. Under the retail category, SBI shareholders (bidding up to Rs 2 lakhs) could also apply. Also, if an SBI shareholder is also an employee of the SBI, he/she is also eligible for applications in all three categories: RII (up to Rs 2 lakhs), Shareholder (up to Rs 2 lakhs) & Employees (up to Rs 5 lakhs). The full time or permanent employees of SBI (as at the RHP filing date) could also apply in the category of SBI employees of SBI Cards IPO. Rs 5 lakhs is the maximum limit defined to apply in the category of employees. When the category is fully or oversubscribed, the maximum allotment for employees cannot be above Rs 2 lakhs. There are 1,864,669 equity shares reserved for State Bank of India (SBI) employees in the SBI Card IPO. Around 1.35 percent of the overall size of the issue is reserved for employees. Note that the employee quota is only available to the existing workers. It excludes SBI workers who are retired.

Share offers to Employees: 1,864,669 Equity Shares (~1.35 percent) Total Shares Offered: Rs 500 Cr (Fresh Issue) + 130,526,7988 (OFS) SBI Cards IPO Details IPO Opening Date

Mar 2, 2020

IPO Closing Date

Mar 5, 2020

Issue Type

Book Built Issue IPO

Face Value

₹10 per equity share

IPO Price

₹750 to ₹755 per equity share

Market Lot

19 Shares

Min Order Quantity

19 Shares

Listing At

BSE, NSE

Issue Size Fresh Issue Offer for Sale

137,193,464 Equity Shares of ₹10 (aggregating up to ₹10,354.77 Cr) 6,622,517 Equity Shares of ₹10 (aggregating up to ₹500.00 Cr) 130,526,798 Equity Shares of ₹10 (aggregating up to ₹9,854.77 Cr)

Employee Discount

75

P/E (x)

45.8

Market Cap (₹ Cr.)

70890

SBI Cards IPO Allotment The completion of the Basis of Allotment for SBI Cards IPO was done on March 11 for 2020, and the allocated shares were credited to the Demat account by March 13, 2020. For 2020, the SBI Cards IPO Listing date was on March 16.

SBI Cards IPO Listing Date Listing Date

Monday, March 16, 2020

BSE Script Code

543066

NSE Symbol

SBICARD

Listing In

B

ISIN

INE018E01016

IPO Price

₹755 per equity share

Face Value

₹10 per equity share

Listing day Trading information BSE

NSE

IPO price

₹755.00

₹755.00

Open

₹658.00

₹661.00

Low

₹658.00

₹656.00

High

₹755.00

₹755.00

Last trade

₹683.20

₹681.40

Volume

4,167,374

60,893,377

SBI is also the largest co-brand credit card issuer in India and has partnerships with several major players, including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money & Yatra, among others, in the travel, power, fashion, health care & mobility industries.

The King of 2020 IPOs WRITTEN BY – ANKUSH KAPOOR Some lucky investors took a bite of one of the tastiest IPOs of 2020. This IPO was one of the biggest that the Indian markets had ever witnessed. But was it worth the hype? Let’s find out.

About Burger King India Limited is one of the quickest developing international quick-service restaurant (QSR) chains in India during the first 5 years of its operations based on the number of outlets. It is the national master franchisee of the Burger King brand in India, and hence the company has rights to develop, establish, set up, operate, and franchise Burger King branded restaurants in India. The master franchise agreement permits the company to change the menu to Indian tastes and preferences, as well as pricing. Burger King India Limited endeavors to cater to Indians with a spread of options using the brand’s flame grilling expertise.

The key strengths of Burger King India Limited are that they have a strong proposition and are a brand positioned for millennials as approximately 60% of Indians eating out are millennials, which represent the age group from 15 to 34 years old. They have a welldefined restaurant rollout and development process that enables them to identify locations and build out restaurants quickly, consistently, and efficiently with an experienced, passionate, and professional management team IPO Details Burger King India Limited proposed to use the net proceeds from the IPO issue for funding the roll-out of new company-owned Burger King Restaurants and general corporate purposes. The IPO was listed on NSE and BSE and was issued from 2nd to 4th December 2020 with the Face Value of ₹10/share. The IPO price ranged from ₹59 to ₹60 per equity share for the ₹810 crores public issue. The minimum order quantity and the market lot was set at 250 shares.

The Promoter appointed is QSR ASIA PTE. LTD. The lead manager to the issue is Kotak Mahindra Capital Company Limited, CLSA India Private Limited, Edelweiss Financial Services Limited, and JM Financial Limited. The Registrar to this issue is Link Intime India Private Limited.

Pre-Issue overview of Burger King India Limited’s Financials

Performance of the Issue In the momentum of IPO’s being launched in India, Burger King India Limited’s IPO was open for subscription from Dec 2nd to Dec 4th of 2020. The ₹810-crore public issue received the second-highest subscription of 156.65 times in 2020. Looking at the strong subscription demand, investors expected a heavy listing gain with a 70-75 percent listing premium on an allotment price of ₹60. The listing premium was justified in the eyes of the investors as there was a high probability of floating into the profit zone from loss once regular demand was expected to return to normal from COVID challenges and once that would happen, Burger King valuations would rise and IPO price would look eye-catching.

They believed Burger King India allowed investors to play on India's fastest-growing restaurant chains’ business.

Since its listing, the stock of QSR (quick services restaurant) chain, Burger King India, has now surpassed the market capitalization of its competitor Westlife Development. It surged 20 percent from its pre-opening price on 14th December, though gained 131 percent over its issue price of ₹60 per share. In the following days, it gained 20 percent each on 15th and 16th December, and 10 percent on 17th December. In total, the stock rallied 265.3 percent in four sessions to trade at ₹219.15 compared to its issue price of ₹60 per share, thus making it a multi-bagger in a short period. The value of ₹15,000 worth one Burger King lot of 250 shares invested in the IPO was valued at ₹54,787.50 recently. Two lots would be worth nearly ₹1.10 lakhs.

Burger King India Limited hit a market capitalization of ₹8,363.96 crore, which is higher than its closest competitor Westlife Development's ₹7,229.96 crores. Westlife was traded at ₹464.25 on the BSE, down 1.12 percent. Westlife Development is responsible for establishing and operating McDonald's restaurants across West and South India, through its wholly-owned subsidiary of Hardcastle Restaurants, which operates 319 McDonald's restaurants across India. As per the financial year ended March 2020, Burger King reported a loss of ₹76.6 crores on revenue of ₹841.2 crores, but Westlife Development had a profit at ₹36.6 crores on revenue of ₹1,547.8 crores. At the operating level, Burger King's earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹103.9 crores with a margin of 12.4 percent, while Westlife had an EBITDA at ₹144 crores with a margin of 9.7 percent for FY20.

Summing it up In the end, it all comes down to the performance of Burger King India Limited since they are required to open at least 700 restaurants by December 31, 2026, as per the Master Franchise and Development Agreement. So, before you think to invest in the shares of Burger King India Limited, ensure that you read through the company’s financials and the Red Herring Prospectus (RHP) carefully.

VIEWS BY THE SENIOR TEAM

FINANCIAL TRIVIA

MONEY FOR THOUGHT: The year 2020 took the world on a rollercoaster ride that no one knew what to expect. But amongst all this chaos this year witnessed a phenomenal performance in IPOs in India. There were some IPOs this year that were subscribed over 150 times! Did you know that the world's oldest stock exchange was established in the year 1602 called the Amsterdam stock exchange and that Bombay Stock Exchange is the oldest stock exchange in Asia established in the year 1875? It is quite interesting to see how the market has evolved over these years.

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