The week that was: Genesis Colors gets Sebi nod for IPO; clouds over NSE issue sours mood
NEW DELHI: It was a buzzing week for the capital market with Avenue Supermarts (owned by DMart) hogging the limelight on reports that its initial public offering (IPO) would be floated in the next few weeks.
Sebi's clearance to the IPO of Genesis Colors, the holding company of fashion brand Satya Paul, filing of draft papers by drug maker Eric Lifesciences and Au financiers, and further delays to clearance of NSE's IPO too made headlines last week.
Radhakishan Damani-promoted Avenue Supermarts was in news amid reports that India's most profitable retailer both online and offline was expecting a valuation of Rs 18,000 crore when it gets listed. This was much higher than the earlier Street expectation of Rs 7,000 crore, ET reported.
At Rs 18,000 crore, Avenue Supermarts will be valued at 40 times its expected FY18 earnings, the ET report said.
Genesis Colors received the capital markets regulator's approval to make Rs 500 crore initial public offering. Of the total proceedings, Rs 380 crore will be raised through issue of fresh shares, while the rest will go to existing shareholders' pockets who will offload their stakes during the issue.
Eric Lifesciences has also filed draft papers with the market regulator as the existing promoters intend to offload 28,875,000 equity shares via offer for sale (OFS).
"The company expects that listing of the equity Shares will enhance visibility and brand image and provide liquidity to shareholders. Listing will also provide a public market for the equity shares in India," the company said in its draft prospectus.
Moreover, PTI reported Sebi as saying that the work is underway to address the concerns related to systems and processes at NSE, arising out of a probe into alleged lapses involving the co-location facility of the country's biggest stock exchange. The probe is seen as a roadblock for NSE's proposed mega IPO, estimated to be worth about Rs 10,000 crore, even as Sebi Chairman UK Sinha has remained non-committal on whether clearance to the public offer would be withheld till the investigation was completed but insisted that the regulator would insist on proper disclosures, the agency reported on Sunday.
Meanwhile, Steel City Securities, SME IPO that ran between Monday and Thursday last week closed with the issue getting subscribed five times. The price was fixed at Rs 55 per equity share and the stock will be listed on the SME Platform of National Stock Exchange of India (NSE). Meanwhile, there were also talks on Au financiers, which has come up with draft papers for its IPO earlier this month after receiving a licence from RBI to set up a small finance bank in December 2016.
Sebi's clearance to the IPO of Genesis Colors, the holding company of fashion brand Satya Paul, filing of draft papers by drug maker Eric Lifesciences and Au financiers, and further delays to clearance of NSE's IPO too made headlines last week.
Radhakishan Damani-promoted Avenue Supermarts was in news amid reports that India's most profitable retailer both online and offline was expecting a valuation of Rs 18,000 crore when it gets listed. This was much higher than the earlier Street expectation of Rs 7,000 crore, ET reported.
At Rs 18,000 crore, Avenue Supermarts will be valued at 40 times its expected FY18 earnings, the ET report said.
Genesis Colors received the capital markets regulator's approval to make Rs 500 crore initial public offering. Of the total proceedings, Rs 380 crore will be raised through issue of fresh shares, while the rest will go to existing shareholders' pockets who will offload their stakes during the issue.
Eric Lifesciences has also filed draft papers with the market regulator as the existing promoters intend to offload 28,875,000 equity shares via offer for sale (OFS).
"The company expects that listing of the equity Shares will enhance visibility and brand image and provide liquidity to shareholders. Listing will also provide a public market for the equity shares in India," the company said in its draft prospectus.
Moreover, PTI reported Sebi as saying that the work is underway to address the concerns related to systems and processes at NSE, arising out of a probe into alleged lapses involving the co-location facility of the country's biggest stock exchange. The probe is seen as a roadblock for NSE's proposed mega IPO, estimated to be worth about Rs 10,000 crore, even as Sebi Chairman UK Sinha has remained non-committal on whether clearance to the public offer would be withheld till the investigation was completed but insisted that the regulator would insist on proper disclosures, the agency reported on Sunday.
Meanwhile, Steel City Securities, SME IPO that ran between Monday and Thursday last week closed with the issue getting subscribed five times. The price was fixed at Rs 55 per equity share and the stock will be listed on the SME Platform of National Stock Exchange of India (NSE). Meanwhile, there were also talks on Au financiers, which has come up with draft papers for its IPO earlier this month after receiving a licence from RBI to set up a small finance bank in December 2016.
