IPO News Highlights (May 28): Hero FinCorp gets Sebi's nod to float Rs 3,668 cr IPO

Leela Hotels IPO got fully subscribed on Day 3 of the initial public offer (IPO) on Wednesday, backed by QIB and retail investors. Earlier, the Schloss Bangalore Ltd garnered Rs 1,575 crore from anchor investors. The issue has a price band of Rs 413-435 per share. (Read More)

Spot electricity prices on India’s power exchanges slumped about 25 percent on average in May from a year earlier, briefly hitting zero on May 25, as unseasonal rains lowered temperatures and cut power demand for cooling devices such as air conditioners. (Read More)

Elon Musk’s Starlink is gearing up for mega India launch. A latest NDTV Profit report says that the company will commence operations in India within next 12 months, the report said. As part of the operations, Starlink will offer bandwidth with a speed of around 700 gigabytes per second to the customers, the report citing telecom department sources added. (Read More)

The Rs 35,000 crore structured product market is bracing for a regulatory shakeup, with market participants urging the Securities and Exchange Board of India (SEBI) to exempt such instruments from new position limits on index derivatives. (Read More)

Hero FinCorp, the financial services division of two-wheeler manufacturer Hero MotoCorp, has received Sebi's go-ahead to float a Rs 3,668 crore Initial Public Offering (IPO), an update with the markets regulator showed on Wednesday. - PTI

Walmart, the world’s largest retailer, plans to introduce “several hundred new roles” across the US and India, which will also be open to recently laid-off employees, a top company executive told Moneycontrol. "Within each country, that is United States and India, several hundred new roles are going to be introduced as the company reshapes teams. Employees who were affected by last week's changes are eligible to apply for any of these roles,” the executive, who requested anonymity, confirmed the development. (Read More)

The shares of Dar Credit and Capital were listed at Rs 65.15 apiece on the NSE Emerge platform on May 28. This implies a premium of 8.58 percent over the SME IPO's price of Rs 60 per share. Notably, the listing premium is lower than the grey market premium of 13% to 16% with which unlisted shares of the company were trading ahead of listing. The unlisted shares were trading with a grey market premium (GMP) of 16.67 percent at Rs 70 per share ahead of their official listing, according to data on Investorgain. According to IPO Watch, the unlisted shares were trading at Rs 68 apiece, implying a GMP of over 13 percent. (Read More)

Geojit Securities notes that Schloss Bangalore (The Leela) is valued at an EV/EBITDA of 27.5x for FY25 at the upper price band of Rs 435, which it considers reasonably priced. Citing the company’s strong brand presence, premium positioning in the luxury segment, planned technological enhancements, portfolio expansion, and supportive industry outlook, the brokerage recommends a “Subscribe” rating for long-term investors.

According to brokerage firm Anand Rathi, at the upper end of the price band, the company is valued at a P/E ratio of 266.8x, a P/S ratio of 11.2x, and a market capitalisation of Rs 14,527.1 crore. The EV/EBITDA ratio stands at 30x post equity share issuance. Anand Rathi views the IPO as fairly valued and has given it a “Subscribe – Long Term” recommendation.

• Businesses Are Waiting To See The Final Level Of Tariffs
• Need To Have More Certainty On Where The Tariffs Will Land
• Tariff Levels Announced On Liberation Day Are Untenable
• Markets Don't Always Price-in Economic Outcomes Correctly
• Markets Are Putting A Lot Of Weight On Continuity
• Don’t Think Markets Are Factoring In The Uncertainty
• Tariffs Might Stay At 10% & Slightly Higher In Some Segments Like Autos
• Tariffs Disrupt Manufacturing
• Trump's Tariff Policy Is Unlikely To Result In A Significant Rise In US Manufacturing Jobs
• Long-term Concern Is That We May Be Overexposed To The US
• 'Expect A Significant Reset In Global Portfolio Holdings'
• Many Portfolio Managers May Want To Cut US Overexposure
• Investors Globally Are Weary Of Being Locked-in Long-term Govt Sec Given Uncertainties
• ‘Big Beautiful Bill’, I Think, Is Not Fully Done
• We Are Seeing A Weaker Dollar Than Previous Expectations
• The Tax Concessions In The US Coming To An End As Indicated, Is Unlikely
• This Could Be India’s Moment
• A Red Carpet & Policy Stability Can Lead To Significant FDI Into India
• India Needs To Be A Lot More Proactive Than Reactive
• See Trump’s Message To Apple As A Negotiation Move
• Not Many CEOs Would Want To Cross The Trump Administration
• Unfortunate That We Are Not Talking About A Global Mega Deal
• Makes Sense For US Industries To Have Same Rights As EU Players
• Actual Trade Deals Take  A Lot Longer To Negotiate
• China May Keep Costs Of Goods Low, Keeping Inflation In Check
• Countries Outside The US Have The Opportunity To Cut Rates, Ease Liquidity
• We Should Ensure That Credit Is Properly Allocated
• Consensus Usually Ends Up Being Wrong, Maybe All This Plays Out In A Reasonable Way
• There Is Merit In Flying Under The Radar And Doing What We Need To Do Quietly

Belrise Industries shares listed on the exchanges at a premium on Wednesday, following a robust response to its Rs 2,150-crore initial public offering (IPO), which was subscribed 41.30 times. Shares of Belrise Industries listed at Rs 100 per share on the NSE, up 11.11 percent from its IPO price of Rs 90. (Read More)

HDB Financial Services Ltd. is close to securing the go-ahead from India’s securities regulator for its initial public offering, according to people familiar with the plan, which would allow the shadow lender to launch one of the country’s biggest listings this year. (Read More)

The company maintains long-term partnerships with several leading multinational OEMs, including Bajaj Auto, Honda Motorcycle & Scooter India, Hero MotoCorp, Jaguar Land Rover, and Royal Enfield Motors.

• Schloss Bangalore IPO Subscription Status (Day 2): The IPO was subscribed 17% by the end of the second day, according to BSE data as of 17:00 IST.
• Total Bids Received: The offering received bids for 77,01,408 shares against the total issue size of 4,66,10,169 shares.
• Retail Investor Response: The retail portion of the IPO was subscribed 41%.
• Non-Institutional Investor (NII) Quota: The NII segment saw a subscription of 11%.
• Qualified Institutional Buyers (QIBs): The QIB portion was also subscribed 11%.
• Day 1 Subscription: On the first day of bidding, the IPO was subscribed 6%.

Initial Public Offerings (IPOs) are transformative milestones for companies, symbolising their evolution from privately held entities to publicly traded ones. While large IPOs often capture media attention, Small and Medium Enterprise (SME) IPOs have emerged as silent yet powerful enablers of economic democratisation, allowing smaller businesses to tap into the capital markets. (Read More)

On the financial front, the company has demonstrated impressive growth, with its EBITDA increasing from Rs87.72 crore in FY22 to Rs600.03 crore in FY24.

Schloss Bangalore, the parent company of Leela Palaces, secured Rs1,575 crore from anchor investors ahead of its IPO.

Schloss Bangalore, known for its luxurious properties under "The Leela" brand, operated 12 hotels with a total of 3,382 rooms as of May 31, 2024. Its portfolio includes The Leela Palaces, The Leela Hotels, and The Leela Resorts, spread across 10 locations throughout India.

• Schloss Bangalore, the operator of Leela Palaces Hotels and Resorts, is currently in the final day of its three-day initial public offering (IPO), which concludes today (Wednesday, May 28).
• The IPO price band for Leela Hotels has been set at ₹413 to ₹435 per share. Investors can bid in lots of 34 equity shares, with subsequent bids required in multiples of 34 shares. Of the total offering, 75% of the shares are reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 10% allocated to retail investors.

Some market analysts also urged a cautious approach. “Considering the current market momentum and potential risks, we advise long-term investors who received allotments to hold their positions. However, conservative investors might consider booking profits on the day of listing,” said Prashanth Tapse, Senior Vice President (Research) at Mehta Equities.

“For investors who were allotted shares, holding the stock for the medium to long term would be a prudent approach,” said Mahesh M Ojha, AVP – Research and Business Development at Hensex Securities. “Those considering a post-listing entry should wait for the price to stabilise. If the stock pulls back to the Rs 100–105 range and the fundamentals remain strong, it could present a favourable buying opportunity,” he added.

Market participants anticipate the stock to debut at a 20–25% premium over its issue price of Rs 90. Analysts recommend a hold strategy for those who received allotments, unless there is unforeseen market volatility.

PDD Holdings, the parent company of Chinese shopping platform Temu, reported weak earnings on Tuesday.The company’s net profit for the first quarter fell sharply by 47% to 14.74 billion yuan ($2.05 billion), as its domestic business faced intense local competition and its international operations were impacted by growing global trade uncertainty. (Read More)

“We expect the company to list at a premium, given the strong investor interest and overall optimism surrounding the IPO,” said Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Wealth. He noted that the IPO was “fairly priced” and maintained a “Subscribe – Long Term” recommendation, advising investors to retain the stock after listing for long-term wealth generation.

At the upper end of the price band, the company is valued at 26 times its FY24 earnings per share. Following the issue, its market capitalisation amounts to Rs8,008.9 crore, reflecting a market cap-to-sales ratio of 1.07 based on FY24 data.

The company is recognised for its expertise in process engineering and manufacturing, with an increasing emphasis on enhancing content per vehicle and expanding its presence in electric vehicles (EVs), four-wheelers, and commercial vehicles.

The IPO comprised solely a fresh issue of equity shares, with no offer-for-sale (OFS) element, and was priced in the range of Rs85 to Rs90 per share. Prior to the public issue, the auto components manufacturer had raised Rs645 crore from anchor investors.

Market analysts anticipate a premium listing for the stock, driven by strong investor demand and optimistic sentiment surrounding the company's growth potential.

Belrise Industries is set to list on the stock exchanges today after its Rs2,150-crore initial public offering (IPO) garnered a strong investor response, being subscribed 41.30 times. The IPO was entirely a fresh issue of equity shares, with no offer-for-sale (OFS) component, and was offered within a price band of Rs85 to Rs90 per share. Before the IPO opened to the public, the auto components company had raised Rs645 crore through anchor investors.