INSUBCONTINENT EXCLUSIVE:
Over the last few weeks, Indian stock market has been turbulent.2021 was a ground-breaking year in terms of initial public offerings (IPOs)
But 2022 has kicked off on a sour note.Over the last few weeks, Indian stock market has been turbulent.Investors are facing geopolitical
This is bound to affect the primary and secondary markets adversely.While the markets may remain choppy for some time, an attractive lineup
The state-owned Life Insurance Company's IPO will be the largest with a valuation of Rs 15 trillion.Moreover, the strong momentum in
closer look at these three IPO bound companies.1
API Holdings (PharmEasy)API Holdings, the parent of e-pharmacy firm PharmEasy, on Monday said it has received approval from the market
This essentially means the existing shareholders of API Holdings will not sell their stakes.The company will use Rs 19.3 billion from the
also consider a private placement aggregating up to Rs 12.5 billion
If such placement is completed, the fresh issue size will be reduced.PharmEasy is one of the largest e-pharmacy firms in the country
It recently acquired a majority stake in Thyrocare Technologies
This deal was considered as the first-ever acquisition of a publicly listed firm by a unicorn startup in India.The approval comes amid
speculation that PharmEasy may postpone its IPO due to market volatility, which has been particularly harsh on the shares of new age firms
that went public last year.The online pharmacy company had filed its draft red herring prospectus (DRHP) with the regulator in November last
This was on the back of a slew of public offers and listings of new age companies such as Nykaa, Zomato, PolicyBazaar, and Paytm.PharmEasy,
which was founded in 2015 by Dharmil Sheth and Dhaval Shah, claims to link more than 60,000 pharmacies and 4,000 doctors in 16,000 pin codes
The startup claims to have served over 20 million consumers.It reported a net loss of Rs 6.4 billion in the financial year 2021 against a Rs
3.4 billion loss in the previous year.2
Wellness Forever MedicareWellness Forever Medicare is another healthcare firm whose IPO papers have been accepted by the market regulator
The Adar Poonawalla backed pharmacy chain is planning to raise Rs 15-16 billion.It filed draft papers with the regulator on 1 October last
The IPO consists of a fresh issue of equity shares aggregating to Rs 4 billion and an offer for sale (OFS) up to 16 million equity shares,
as per the draft red herring prospectus (DRHP).As part of OFS, up to 7.2 lakh equity shares will be offloaded by Ashraf Mohammed Biran, up
to 7.2 lakh equity shares by Gulshan Haresh Bhahtiani, up to 1.2 lakh equity shares by Mohan Ganpat Chavan, and up to 14.5 lakh equity
shares by other existing shareholders.The company proposes to use the net proceeds from the fresh issue to the tune of Rs 702 million for
funding capital expenditure to set up new outlets, repayment or prepayment in part or full of certain borrowings amounting to Rs 1 bn,
funding its working capital requirements to the extent of Rs 1.2 billion besides general corporate purposes.Recently, the pharmacy chain
announced the nomination of three new independent directors - Avani Davda, Ranjit Shahani, and Kewal Handa - to its board of directors, with
broad experience in banking, healthcare, and retail.Wellness Forever Medicare is India's third-largest retail pharmacy and wellness
network by number of stores, with a leading position in western India in revenues
customers' wellness needs with most of their stores operating 24x7.As of 30 June 2021, it serves a registered customer base of 6.7 million
It now intends to deepen its penetration in tier 2 and 3 markets
It will also participate in the growing e-commerce pharmacy segment which is expected to grow at a 45% compounded annual growth rate
CMR Green TechnologiesAlong with these two companies, market regulator gave the green light to CMR Green Technologies as well to float its
IPO.According to the DRHP, metal recycling company CMR Green Technologies has offered to raise funds through an initial share sale of a
corporate purposes.The company filed preliminary papers with capital markets regulator in September 2021.CMR Green Technologies is one of
the leading metal recyclers in the domestic aluminium recycling industry
It's primarily focused on the recycling of aluminium.Among the major key end-use industries, the automotive industry forms a large portion
of total volumes of secondary aluminium in India
It's headed for its worst month since March 2020.One out of every three IPOs this financial year is presently trading below its offer
price.Among the top losers, CarTrade Tech and One97 Communications (Paytm) suffered the maximum value erosion with shares trading more than
In the last few months, market participants have become more cautious due to a sell-off in the markets.Before investing in any IPO,
investors must evaluate many aspects
It's important to remember, like the stock market, IPOs come with risks
Due diligence is essential before investing in them.There are some precautions you can follow before investing in IPOs
These include studying the company's business, reading the prospectus, and understanding its financial health.Also evaluate the
post-listing valuation of the stock, the background of the promoters, the key management team and all the risk factors.In the long run, a
knowledgeable and well-informed investor always wins.To know more, check out the current and upcoming IPOs.Happy Investing!Disclaimer: This
article is for information purposes only
been edited by TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)
