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From June 9, Meta Platform Will Be Traded Under Symbol ‘Meta’

Meta Platforms Inc said Tuesday that its Class A common stock will begin trading on the Nasdaq before the market opens on June 9 under the ticker “META,” replacing the current ticker “FB.”


Last October, the company changed its name from Facebook Inc to Meta Platform Inc to focus on building the “Metaverse,” a shared virtual environment betting on becoming the successor to the mobile internet. The current ticker symbol “FB” has been in use since the company’s 2012 IPO.


Last October, the company changed its name from Facebook Inc to Meta Platform Inc, rebranding to focus on building the “Metaverse,” a shared virtual environment that is betting on becoming the successor to the mobile internet.

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Breaking Down the Ixigo IPO in 2024: What Investors Need to Know

Esha Somadder

Introduction

Ixigo, an online travel portal based in Gurugram, India, is gearing up for its upcoming initial public offering (IPO). The IPO price band is set at INR 88-93 per equity share.

The parent company of Ixigo, Le Travenues Technology Limited, has announced the price band for the IPO, set to open on June 10.

At the upper price band, the company aims to raise INR 740 crore. The IPO consists of a fresh issue of shares worth INR 120 crore and an offer-for-sale component of 6.67 crore shares worth INR 620 crore.

Ixigo plans to target Tier II and smaller markets in India, with a focus on railway ticketing, positioning these as strengths for its IPO.

The founders, Rajnish Kumar and Aloke Bajpai, along with key investors such as SAIF Partners India and Peak XV Partners, will be selling shares as part of the offer for sale (OFS) component.

Ixigo’s journey to an IPO has experienced fluctuations due to market conditions. Initially eyeing to raise INR 1,600 crore, the company has adjusted its IPO size in response to market developments.

About the company

Le Travenues Technology Limited was founded in 2006. It is an online travel agency that helps travellers book train, flight, and bus tickets and hotels through its OTA platforms under the brand name “ixigo.” The company provides various unique services, such as PNR status and confirmation predictions, train seat availability alerts, flight status updates, and AI-based travel planning.

The company provides real-time travel information for flights, trains, buses, and hotels. The platform allows users to book tickets through its website and apps.

Ixigo offers different OTA platforms, including the ixigo trains and the Confirmtkt app. These platforms allow users to search for and book train tickets across India and receive real-time information and post-sales support. The ixigo-flights mobile app enables users to search and book travel products, including air tickets, train tickets, buses, and hotels. The Abhibus app allows users to check bus amenities and compare booking prices and schedules.

According to data.ai, the company had the highest app usage among OTAs in September 2023, with 83 million monthly active users across its apps.

Le Travenues Technology Limited is dedicated to continuous innovation. They recently launched ixigo PLAN, an intelligent, AI-based travel planner providing detailed itineraries and real-time destination information. They also introduced a generative AI plugin for conversational interactions with ixigo PLAN to enhance the user experience.

The company also launched an additional service, ixigo Assured Flex, which allows the purchase of flexible air or rail tickets with no extra payment for cancellation or rebooking, besides the price difference for domestic flights and rail bookings at a low cost. As of December 31, 2023, the company employed 486 full-time employees and 4 consultants under consultancy agreements.

History and Earlier Fundings

Ixigo was founded by Rajnish Kumar and Aloke Bajpai, IITK alumni. 2008, the platform introduced a hotel search engine, and in 2014, it launched a train ticket booking app.

Ixigo has received strategic investments to support its growth. In August 2011, the company received a substantial USD 18.5 million investment from SAIF Partners and MakeMyTrip.

This was followed by an undisclosed investment from smartphone maker Micromax Informatics in June 2015. In March 2017, ixigo closed funding of USD 15 million in a Series B round by venture capital firm Sequoia Capital India and Fosun RZ Capital, further bolstering its financial stability.

In July 2021, the company raised USD 53 million in its pre-IPO round. GIC led the round, which included investors such as Orios Venture Partners, Trifecta Capital, and Info Edge Ventures.

In February 2021, ixigo expanded its services by acquiring Confirmtkt, a train discovery and ticketing platform. It also acquired AbhiBus, a bus ticket booking and fleet management portal, in August 2021.

IPO Details

1) The ixigo IPO will open for subscription from June 10 to June 12, 2024. The allotment is expected to be finalised by June 13, 2024, with the listing on the BSE and NSE scheduled for June 18, 2024.

ixigo IPO Timeline (Tentative Schedule)

IPO Open DateMonday, June 10, 2024
IPO Close DateWednesday, June 12, 2024
Basis of AllotmentThursday, June 13, 2024
Initiation of RefundsFriday, June 14, 2024
Credit of Shares to DematFriday, June 14, 2024
Listing DateTuesday, June 18, 2024
Cut-off time for UPI mandate confirmation5 PM on June 12, 2024

2) The minimum lot size for application is 161 shares, requiring a minimum investment of Rs 14,973 for retail investors.

For sNII, the minimum lot size investment is 14 lots (2,254 shares), totaling Rs 2,09,622; for bNII, 67 lots (10,787 shares), amounting to Rs 10,03,191.

Lot size for different types of investors

ApplicationLotsSharesAmount
Retail (Min)1161Rs 14,973
Retail (Max)132093Rs 1,94,649
S-HNI (Min)142,254Rs 2,09,622
S-HNI (Max)6610,626Rs 9,88,218
B-HNI (Min)6710,787Rs 10,03,191
Lot size for different types of investors

 ixigo IPO Reservation

Investor CategoryShares Offered
QIB Shares OfferedNot less than 75.00% of the Net offer
Retail Shares OfferedNot more than 10.00% of the Offer
NII (HNI) Shares OfferedNot more than 15.00% of the Offer
 ixigo IPO Reservation
 

3) Book-running lead managers

The book-running lead managers for the ixigo IPO are Axis Capital Limited, Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd), and JM Financial Limited. The registrar for the issue is Link Intime India Private Ltd.

4) Financials

Period Ended31-Dec-2331-Mar-2331-Mar-2231-Mar-21
Assets678.71585.93538.47185.07
Revenue497.1517.57384.94138.41
Profit After Tax65.7123.4-21.097.53
Net Worth437.13373.76342.6929.94
Reserves and Surplus399.83334.17303.22-212.6
Total Borrowing43.360.542.7314.94
Financials (Amount in Rs Crores)

5) Objectives behind the IPO

The company intends to use the funds raised in the IPO for the following purposes:

The company plans to use the proceeds from the fresh issue of Rs 120 crore as follows:

a) Rs 45 crore will be allotted for supplying partial funding for the company’s working capital must support its day-to-day operations.

b) Rs 26 crore will be allotted for the following purposes –

i) Making investments in cloud infrastructure and advanced technology to enhance its services and operational efficiency.

ii) Allocating resources for potential acquisitions and other strategic initiatives aimed at driving inorganic growth and general corporate purposes.

6) Risks associated with ixigo IPO

It’s crucial to consider the following risks for the Ixigo IPO:

a) The offer price, market capitalisation to revenue multiple, and price-to-earnings ratios, all based on the company’s offer price, may not accurately reflect the company’s market price at the time of listing or in the future.

b) The company’s train ticketing services depend entirely on its agreement with IRCTC. Terminating this agreement could prevent the company from providing train ticketing services, significantly impacting its performance, cash flows, financial condition, and business prospects.

Frequently Asked Questions (FAQs)

1.Who are the Peer competitors to ixigo and how are they compared?

As per the Red Herring Prospectus (RHP) of ixigo, its peer competitors are – Easy Trip Planners and Yatra Online.

CompanyTotal Revenue (Rs in million)EPS (Basic) (in Rs)Return on Net Worth (%)
Le Travenues Technology (Ixigo)5,175.700.65.7
Easy Trip Planners4,641.900.836.2
Yatra Online3,974.700.74.5
Its Peer Comparison

2. Where can we find the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) of ixigo?

The Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) of ixigo can be found on the ixigo’s website and on the SEBI’s website.

3. What are the other Risks associated with ixigo?

Many services rely on outside companies that pay commissions and incentives. If these are reduced or removed, the business will suffer. Some services use information from the public. False or misleading information can make customers unhappy and cause a loss of business.

To get a full list of the upcoming, current, and closed IPOs, check our Unicorn Signals App – IPO Scanners tool, and fetch the latest updates.

Disclaimer: Investing in the Equity market in India is subject to risks, i.e. the market keeps on fluctuating. This article is purely for educational purposes. The views expressed and data provided here are by Equitypandit’s team. Kindly do not completely depend on the information provided as the risk appetite differs from individual to individual and there are various other factors in the market to determine the factors to invest in the market.

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The Road Ahead: BJP’s 2024 Election Triumph and Indian Stock Market

Esha Somadder

The Bharatiya Janata Party (BJP) Manifesto of 2024 focuses on Prime Minister Modi’s promise to make India a developed nation by 2047. The government aims to sustain economic growth by prioritising infrastructure and renewable energy sources.

The manifesto also highlights a renewed emphasis on the manufacturing sector and agricultural reforms to reduce dependency on imports and improve exports.

The plan includes investments in railway, road, and airport infrastructure and initiatives to promote renewable energy, especially solar and wind power. The migration from being a hydrocarbon and a thermal-based country to solar, wind, and other green fuel sources.

Additionally, there is a commitment to support small and medium-sized enterprises and improve lending processes. The overall goal is to achieve self-sufficiency in energy and reduce India’s dependency on external factors such as imports.

The US Federal Reserve’s decision to hold off on rate cuts until the end of the year is expected to have a sustained impact on foreign investments in India and other emerging markets.

Listed companies on the BSE saw their market capitalisation decrease by Rs 7, 34,513.48 crore to Rs 3, 93, 34,896.14 crore (USD 4.71 trillion). This was due to continuous outflows of foreign funds and significant selling pressure in HDFC Bank, Larsen & Toubro, and Reliance Industries, which negatively affected investor confidence.

A BJP win is expected to bring continuity and stability to policies and programs, which may lead to increased economic reforms. The continuation of the same Government in India in 2024, will gain the investors’ confidence in India, due to stable rules, policies, and governance.

India is expected to continue as an important investment destination driven by its economic growth as the BJP government wins.

What will be the effect on the Indian share market in the long term as the BJP wins the Lok Sabha elections in 2024?

In the short term, on June 4, 2024, the day of the election result date, the market saw a drastic decline as the winning party, NDA, received tough competition from the opposition party, India Alliance.


On June 4, Tuesday, the stock market experienced significant declines. The Nifty 50 opened at 23,179.50 and dropped 8.5% to a low of 21,281.45, while the Sensex started at 76,285.78 and fell 8.2% to 70,234.43.


At the end of the trading day, the Sensex concluded at 72,079.05, marking a 5.74% decrease of 4,390 points, and the Nifty 50 finished at 21,884.50, down 5.93% or 1,379 points.


On the NDA government’s win, the market is expected to recover back in the next few days.


The Indian stock markets bounced back from election result losses as both the NSE Nifty 50 index and the BSE Sensex experienced a significant surge of over 3% by the closing session on June 5, Wednesday.


The Nifty 50 index settled at 22,620.35, up by 3.36%, while the BSE Sensex closed at 74,382.24, marking a robust increase of 3.20%. Both indices surpassed their closing levels from the previous Friday.


Since then, the Nifty has made a remarkable recovery, gaining 1,346 points, and the Bank Nifty has shown a strong rebound, gaining 3,250 points from the previous lows.


The market’s recovery on June 5, Wednesday indicates the return of investor optimism and confidence, with broad-based gains across various sectors.


The volatility around the outcome is expected to decrease over the next few days, and the market focus will shift back to strong macro and fundamental factors in the long term.


The new government will soon present its first Union budget for FY25, with an emphasis on areas such as capital expenditure, manufacturing, rural development, consumption, and credit lending.


The rural and consumption sectors are expected to gain momentum with the beginning and progress of the Monsoon season, which is forecasted to be above normal this year.

Let’s discuss the probable impact on major sectors of the Indian Stock Market on the BJP win. The sectors most likely to be impacted are based on the manifesto and the interim budget provided by the BJP government.

The 2024 Lok Sabha elections BJP manifesto outlines plans to expand infrastructure under the Modi government, including more bullet train projects, access-controlled speed highways, and developing India as an international aviation hub.

Infrastructure Sector:

The return of the Modi government indicates that railways, roads, and aviation are expected to remain top priorities. Under the Modi government, national highways have expanded by 60%, increasing from 91,287 km in 2014 to 146,145 km by the end of 2023.

The Indian Railways carried around 5.85 billion passengers in FY23. The aviation sector has also seen growth, with the modernisation of airports and the inclusion of smaller cities on the aviation map.

Experts hope for further infrastructure development, including increased private player participation in the highways sector.

Highway project awards slowed down in Q1FY25 due to the model code of conduct, but this is expected to pick up in July. In the aviation sector, the ministry is working on a master plan to transform airports into regional international hubs.

Manufacturing Sector:

The BJP focuses on strengthening the manufacturing sector by establishing global hubs for automotive/EVs, electronics/ semiconductors, and railways. The party also aims to localise defence manufacturing.  The manifesto highlights two areas of particular interest:

Textiles, which have the potential for substantial employment generation and

Active pharmaceutical ingredient (API) manufacturing, where India has inherent advantages.

There is also an effort to strengthen India’s position as an aviation hub. The manufacturing sector is expected to continue performing well, driven by policy initiatives and the global trend of supply-chain diversification. As a result, the brokerage prefers asset-heavy manufacturing companies over asset-light services players.

Renewables Sector:

Under the leadership of Prime Minister Modi, our government is not just advocating for a lifestyle that cares for the environment, but actively implementing a comprehensive approach to managing all aspects of the environment.

Their commitment to leading the world in sustainable living is not a mere aspiration but a firm resolve. They will harness both traditional wisdom and modern practices to contribute significantly to a healthier planet.

As a testament to environmental focus, they have already produced 44% of the electricity from non-fossil fuel sources. This is a significant milestone.

The BJP government will continue on this path, increasing the use of non-fossil fuel sources in line with Panchamrit (Modi’s net-zero pledge at Glasgow). Their goal is to reach a state of net-zero emissions by 2070.

Frequently Asked Questions (FAQs)

1. Who won the Lok Sabha 2024 Elections in India?

The National Defence Academy (NDA) Government won the Lok Sabha Elections in India on June 4, 2024. Bhartiya Janta Party (BJP) being a member of the NDA Government won the Loksabha 2024 elections with 240 seats in India.

2. What is the NDA Government?

The National Democratic Alliance (NDA) is a significant Indian parliamentary group. It was formed in 1998 by former Prime Minister Atal Bihari Vajpayee and former Deputy Prime Minister L. K. Advani. In 1998 and 1999, Atal Bihari Vajpayee won both elections as the prime ministerial candidate. However, the NDA lost the elections in 2004 and 2009 when Atal Bihari Vajpayee and L. K. Advani led the alliance respectively. In 2014 and 2019, the NDA, with Narendra Modi as its prime ministerial candidate, won with a majority and formed the government. Narendra Modi is also the prime ministerial candidate for the 2024 Indian general election and has won the election with a majority.

3. Who are the members of the NDA Government in India in 2024?

National Party  Bharatiya Janata PartyBJPNational party
National PartyNational People’s PartyNPPNational party
State partyAll India N.R. CongressAINRCPuducherry
State partyApna Dal (Soneylal)ADSUttar Pradesh
State partyAsom Gana ParishadAGPAssam
State partyHill State People’s Democratic PartyHSPDPMeghalaya
State partyIndigenous People’s Front of TripuraIPFTTripura
State partyJanata Dal (Secular)JDSArunachal Pradesh, Karnataka and Kerala
State partyJanata Dal (United)JDUBihar
 State party  Lok Janshakti Party (Ram Vilas)LJPRVBihar and Nagaland
State partyMaharashtrawadi Gomantak PartyMGPGoa
State partyNaga People’s FrontNPFManipur and Nagaland
State partyNationalist Congress PartyNCPMaharashtra and Nagaland
State party  Nationalist Democratic Progressive PartyNDPPNagaland
State partyRashtriya Lok Janshakti PartyRLJPBihar
State partyShiv SenaSHSMaharashtra
State party  Sikkim Krantikari MorchaSKMSikkim
State partyTelugu Desam PartyTDPAndhra Pradesh and Telangana
State partyTipra Motha PartyTMPTripura
State party  United Democratic PartyUDPMeghalaya
State partyUnited People’s Party LiberalUPPLAssam
Unrecognised Party                                      Amma Makkal Munnettra Kazhagam  AMMKTamil Nadu
Unrecognised PartyTamizhaga Makkal Munnetra KazhagamTMMKTamil Nadu
Unrecognised PartyBharath Dharma Jana SenaBDJSKerala
Unrecognised PartyGorkha National Liberation FrontGNLFWest Bengal
Unrecognised PartyHaryana Lokhit PartyHLPHaryana
Unrecognised PartyHindustani Awam MorchaHAMBihar
Unrecognised PartyJan Surajya ShaktiJSSMaharashtra
Unrecognised PartyJana Sena PartyJSPAndhra Pradesh
Unrecognised PartyKerala Kamaraj CongressKKCKerala
Unrecognised PartyNISHAD PartyNPUttar Pradesh
Unrecognised PartyPrahar Janshakti PartyPJPMaharashtra
Unrecognised PartyPattali Makkal KatchiPMKTamil Nadu
Unrecognised PartyPuthiya Needhi KatchiPNKTamil Nadu
Unrecognised PartyRashtriya Lok DalRLDUttar Pradesh and Rajasthan
Unrecognised PartyRashtriya Lok MorchaRLMBihar
Unrecognised PartyRashtriya Samaj PakshaRSPMaharashtra
Unrecognised PartyRepublican Party of India (Athawale)RPIAMaharashtra
Unrecognised PartySuheldev Bharatiya Samaj PartySBSPUttar Pradesh
Unrecognised PartyTamil Maanila Congress (Moopanar)TMCM Tamil Nadu

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Kronox Lab Sciences IPO: A Closer Look at the Offerings

Esha Somadder

Kronox Lab Sciences Limited will be soon launching its Initial Public Offering (IPO) on June 3, 2024, and will be closing on June 5, 2024. The company plans to sell its shares through a book-building process in a secondary IPO. The company aims to achieve the following through this offer to sell up to 95,70,000 equity shares by the promoter selling shareholders and list the equity shares on the Stock Exchanges.

About the company

Kronox Lab Sciences Ltd. (KLSL) manufactures high-purity specialty fine chemicals. Its products are used in various industries, such as pharmaceuticals, nutraceuticals, veterinary, food, biotech, chemical analysis, research, metallurgy, and personal care.

The Company offers over 185 products, including acetates, carbonates, chlorides, citrates, hypophosphates, nitrates, nitrites, phosphates, and sulphates.

These products are used as reacting agents and raw materials in the manufacturing of Active Pharmaceutical Ingredients (APIs), excipients in pharmaceutical formulations, reagents for scientific research, ingredients in nutraceutical formulations, process intermediates in biotech applications, ingredients in agrochemical formulations, ingredients in personal care products, and refining agents in metal refineries, among other uses.

KLSL manufactures products that comply with industry standards and also undertakes custom manufacturing to achieve high levels of purity as specified by the client.

The Company has served more than 592 customers and has a blue-chip customer list that includes Sanofi, Divi’s, Mankind Pharma, Lupin, Dr Reddy’s, Sun Pharma, and Zydus.

The Company’s portfolio comprises over 185 products, with another 122 products in the pipeline. KLSL’s export revenue has grown at a CAGR of 37.46% between Fiscal year 2021 and 2023.

As of December 31, 2023, it had 212 employees (including 155 on a contract basis) on its payroll.

Issue Details

  • The company plans to sell its shares through a book-building process in a secondary IPO.

What is a secondary IPO and how it works?

When a company decides to go public and launch an IPO, it sells shares in the primary market to investors for the first time. This allows the company to raise funds.

After the shares are listed on the stock exchange, investors can buy and sell them in the secondary market.

In a secondary offering, the company may sell new shares to raise funds for research programs, debt payments, and other similar purposes. This type of offering refers to selling shares to potential buyers on the secondary market, and the sellers may be existing investors or the company itself.

  • They aim to sell 9570000 equity shares at Rs. 10 each to raise Rs. 130.15 crore (at the upper cap). The price range for each share is set between Rs. 129 and Rs. 136. The IPO will be open for subscription from June 3, 2024, to June 5, 2024.
  • Investors can apply for a minimum of 110 shares and multiples after that. After the allocation, the shares will be listed on both the BSE and NSE. The IPO represents 25.79% of the company’s post-IPO paid-up capital.
  • This is an Offer for Sale (OFS), so the company will not receive any funds. The issue aims to provide some stakeholders with an exit opportunity and gain the benefits of listing.
  • The IPO will allocate a maximum of 50% to QIBs, at least 15% to HJNIs, and at least 35% to retail investors. Pantomath Capital Advisors Pvt. Ltd. provides expert guidance for the IPO, and KFin Technologies Ltd. is the registrar for the issue.
  • Pentagon Stock Brokers Pvt. Ltd. and Asit C Mehta Investment Intermediates Ltd. are the syndicate members for the IPO. Although the offer document does not include details about the underwriting arrangement, the company is committed to providing transparent information.
  • The company initially issued equity shares at par and later issued bonus shares in the ratio of 161 for 1 in August 2022. The promoters/selling stakeholders acquired the shares at an average cost of Rs. 0.07 per share.
  • As this is a pure OFS, the company’s paid-up capital will remain unchanged at Rs. 37.10 crore. The company’s stability, along with its strong performance, positions it for future success.
  • Based on the upper cap of the IPO price band, the company is targeting a market capitalization of Rs. 504.61 crore, reflecting its potential for growth and value creation.

Financials of the company:

  • Over the last three financial years, the company’s total revenue and net profit are as follows:

– FY21: Total revenue of Rs 63.24 crore, net profit of Rs 9.73 crore

– FY22: Total revenue of Rs 83.34 crore, net profit of Rs 1.36 crore

– FY23: Total revenue of Rs 97.5 crore, net profit of Rs 1.66 crore

– FY24 (9M): Total revenue of Rs 68.44 crore, net profit of Rs 1.55 crore

The company has consistently grown revenue and profit during this period.

  • The average earnings per share (EPS) over the last three financial years is Rs. 3.71, and the average Return on Net Worth (RoNW) is 35.90%.
  • The company’s issue is competitively priced at a price-to-book value (P/BV) of 8.37 based on its Net Asset Value (NAV) of Rs. 16.25 as of December 31, 2023.
  • The post-IPO NAV remains the same. However, the IPO advertisement displays a post-IPO NAV of Rs. 12.04 based on the last completed fiscal year (March 31, 2023).
  • This results in the issue being priced at a P/BV of 11.30. According to the lead manager, this aligns with revised SEBI guidelines on disclosures.
  • If we attribute the annualized FY24 earnings to the post-IPO paid-up capital, the asking price results in a Price-to-earnings (P/E) ratio of 24.46. Based on the company’s financial performance, the issue is fully priced. 
  • The market capitalisation of Kronox Lab Sciences Limited IPO is Rs 504.61 Crore
  • The following financial information for Kronox Lab Sciences Limited, has been restated.

Amount in Crores (Rs.)

Period Ended31-Dec-2331-Mar-2331-Mar-2231-Mar-21
Assets66.9654.0356.7937.65
Revenue68.4497.583.3463.24
Profit After Tax15.4716.6213.639.73
Net Worth60.2844.6840.3526.81
Reserves and Surplus15.567.5840.1126.57
Total Borrowing  0.640.01

Other Details:

The status of the Kronox Lab Sciences IPO allotment will be available on or around June 6, 2024.

The allotted shares will be credited to the demat account by June 7, 2024. You can check the allotment status on the Kronox Lab Sciences IPO website.

The Kronox Lab Sciences IPO listing date is not yet available. It will be listed on June 10, 2024, at BSE or NSE.

Objectives of the Company for IPO:

The company aims to achieve the following through this offer:

– Sell up to 95,70,000 Equity Shares by the Promoter Selling Shareholders.

– List the Equity Shares on the Stock Exchanges.

It expects this strategic move to:

– Enhance our visibility and brand image.

– Provide liquidity to our existing Shareholders.

– Establish a robust public market for Equity Shares in India.

IPO Details:

1) Kronox Lab Sciences IPO Details

IPO DateJune 3, 2024 to June 5, 2024
Face ValueRs 10 per share
Price BandRs 129 to Rs 136 per share
Lot Size110 Shares
Total Issue Size (aggregating up to Rs 130.15 Cr)9,570,000 shares
Offer for Sale (aggregating up to Rs 130.15 Cr)9,570,000 shares of Rs 10
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share holding pre issue3,71,04,000
Share holding post issue3,71,04,000
Kronox Lab Sciences IPO Details

2) Kronox Lab Sciences IPO Reservation

Investor CategoryShares Offered
QIB Shares OfferedNot more than 50% of the Net Issue
Retail Shares OfferedNot less than 35% of the Net Issue
NII (HNI) Shares OfferedNot less than 15% of the Net Issue

3) Kronox Lab Sciences IPO Lot Size

ApplicationLotsSharesAmount
Retail (Min)1110Rs 14,960
Retail (Max)131430Rs 194,480
S-HNI (Min)141,540Rs 209,440
S-HNI (Max)667,260Rs 987,360
B-HNI (Min)677,370Rs 1,002,320

4) Kronox Lab Sciences IPO Promoter Holding

Share Holding Pre-Issue99.98%
Share Holding Post Issue74.21%
The Kronox Lab’s promoters are Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani.

Our Analysis or Verdict

Should Apply

The Kronox Lab Sciences initially filed a Draft Red Herring Prospectus (DRHP) for a combined Initial Public Offering (IPO) consisting of a fresh equity issue worth Rs. 45 crores and an offer for sale (OFS) of 7,800,000 equity shares. However, according to the Lead Manager, the Securities and Exchange Board of India (SEBI) returned this document. SEBI reasoned that the company has strong earnings and does not need additional cash, advising it to opt for the OFS route only. Consequently, the company reapplied for an IPO focusing solely on the OFS.

Financial Position

This Kronox Lab Sciences is debt-free and currently does not require any additional funds, indicating a robust financial position. The primary objective of issuing this IPO is to benefit from being listed on the stock exchanges.

Customer Base and Market Segment

The Kronox Lab Sciences boasts a prestigious list of blue-chip customers in the pharmaceutical industry, including Sanofi, Divis Laboratories, Mankind, Lupin, and Dr. Reddy’s. It operates in the high-purity specialty chemicals segment and enjoys a virtual monopoly in certain products.

Product Portfolio and Industry Outlook

The Kronox Lab Sciences has an extensive product portfolio featuring 185 products, with an additional 122 products in the pipeline. With the growing demand for specialty chemicals globally, particularly in major markets like China and India, the industry is experiencing exponential growth. The company has successfully adapted to changes in the chemical industry and is expanding its range of products accordingly.

Conclusion

Given Kronox Lab Sciences ‘s strong financial health, debt-free status, and strategic positioning in a rapidly growing industry, applying for this IPO could be a worthwhile investment. The company’s impressive list of blue-chip clients, extensive product portfolio, and market leadership in specialty chemicals further reinforce its potential. Thus, potential investors may find this IPO attractive for long-term gains.

To get a full list of the upcoming, current, and closed IPOs, check our Unicorn Signals App – IPO Scanners tool, and fetch the latest updates.

Disclaimer: Investing in the Equity market in India is subject to risks, i.e. the market keeps on fluctuating. This article is purely for educational purposes. The views expressed and data provided here are by Equitypandit’s team. Kindly do not completely depend on the information provided as the risk appetite differs from individual to individual and there are various other factors in the market to determine the factors to invest in the market.

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Go-Digit’s Second Day of IPO: Latest Updates and RHP Details

Esha Somadder

About Go-Digit

Go Digit General Insurance Limited plans to raise over Rs 2,600 crore through its Initial Public Offering (IPO). The IPO opened for subscription on May 15 and will close on May 17. The latest IPO updates of the company and key details of the Red Herring Prospectus (RHP) are discussed in this blog.

Investing in an IPO is thrilling as it enables you to join a company’s growth journey. When a company offers shares through an IPO, numerous investors eagerly seek to gauge its potential. To do so, they require a wealth of detailed information about the company, including its business, competition, and financials.

The Securities and Exchange Board of India (SEBI) requires companies launching an IPO to share specific information about their business, finances, and risks in the Red Herring Prospectus or RHP document.

Go-digit is an insurance company founded by Mr. Kamesh Goyal. The company offers motor, health, travel, property, marine, and liability insurance.

The shares will be listed on both BSE and NSE on May 23, 2024.

Pre-offer details of the Promoters in Go-digit

Sr. No.Name of the PromoterNo. of Equity Shares% of Pre-Offer issued, subscribed, and paid-up Equity Share Capital
1.Kamesh GoyalNilN.A.
2.Go Digit Infoworks Services Private Limited729,565,22083.30
3.Oben Ventures LLPNilN.A.
4.FALNilN.A.
Total729,565,22083.30

Summary of the ongoing IPO, as of May 16, 2024, 6:03 pm

The Go Digit IPO was subscribed 0.79 times. The retail category had a subscription of 2.56 times, while the QIB category had a subscription of 0.24 times, and the NII category had a subscription of 0.73 times by May 16, 2024, at 6:03:06 PM.

Investor CategorySubscription (times)Shares OfferedShares bid forTotal Amount (Rs Crores)
Anchor Investors14,32,57,0094,32,57,0091,176.591
Qualified Institutions0.242,88,38,00768,65,980186.755
Non-Institutional Buyers0.731,44,19,0021,04,97,740285.539
 bNII (bids above ₹10L)0.6496,12,66861,72,155167.883
 sNII (bids below ₹10L)0.9048,06,33443,25,585117.656
Retail Investors2.5696,12,6682,46,36,150670.103
Total0.795,28,69,6774,19,99,8701,142.396

Total Applications: 315,336

Go Digit’s IPO Subscription Details (in number of times)

DateQIBNIIRetailTotal
Day 1
May 15, 2024		0.000.351.500.37
Day 2
May 16, 2024		0.240.732.560.79

Go Digit IPO is offering 96,126,686 equity shares to the public. Of these, 9,612,668 shares are available to retail investors, 28,838,007 to qualified institutional buyers, and 14,419,002 to non-institutional investors.

CategoryShares OfferedAmount (Rs Cr)Size (%)
Anchor Investor43,257,0091,176.5945.00%
QIB28,838,007784.3930.00%
NII14,419,002392.2015.00%
bNII (bids above ₹10L)9,612,668261.4610.00%
 sNII (bids below ₹10L)4,806,334130.735.00%
Retail9,612,668261.4610.00%
Total96,126,6862,614.65100%

IPO Investors’ Categories

Investors can be categorised into different groups when participating in an IPO:

1. Qualified Institutional Buyers (QIB): This group includes Financial Institutions, Banks, FIIs, and Mutual Funds registered with SEBI.

2. Non-Institutional Investors (NII): This category consists of retail individual investors (HNIs), NRIs, companies, and trusts bidding for shares worth more than Rs 2 lakhs. The NII category has two sub-categories:

   – Small NII: Includes NII investors bidding for shares between Rs 2 lakhs and Rs 10 lakhs.

   – Big NII: Comprises NII investors bidding for shares worth more than Rs 10 lakhs.

3. Retail Individual Investors (RII): This category includes retail individual investors or NRIs applying for up to Rs 2 lakhs in an IPO.

4. Employee (EMP): This category is for eligible employees with a reserved IPO quota.

5. Others: This category includes eligible shareholders or other investors with a reserved IPO quota.

Risks associated with this IPO, as per RHP.

  • This is the Company’s first offering of Equity Shares to the public. Since there is yet to be a formal market for the Equity Shares, their face value is Rs 10 each.
  • Through a book-building process, the Company’s Board of Directors has determined the Floor Price and cap Pre-offer Price in consultation with the BRLMs. However, these prices may not reflect the market price of the Equity Shares after they are listed.
  • They cannot guarantee active or sustained trading in the Shares or the price at which they will be traded after listing.
  • It’s important to understand that equity investments and equity-related securities carry a degree of risk. Investors should only invest funds if they are fully prepared to risk losing their entire investment.
  • Investors are advised to carefully read the risk factors before investing in the Offer as per the RHP. It is important for investors to thoroughly examine our Company and the Offer, including the associated risks, before making an investment decision.
  • The Equity Shares in the Offer have not been recommended or approved by SEBI, and SEBI does not guarantee the accuracy or adequacy of the contents of this Red Herring Prospectus. Investors are encouraged to pay specific attention to the “Risk Factors” on page 41 of the RHP of Go Digit Company on SEBI’s website.

Details of Pre-IPO issue

Go Digit General Insurance raised Rs 1,176.59 crore from anchor investors as part of the IPO, on May 14, 2024.

They allocated a little over 4.32 crore shares at Rs 272 per share.

The anchor investors included Fidelity Investment Trust, Bay Pond Partners L.P., Goldman Sachs, Abu Dhabi Investment Authority (ADIA), Schroder International, East Spring Investments India, Custody Bank of Japan, SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, and others.

Virat Kohli, the famous Cricketer purchased 2,66,667 equity shares at Rs 75 per share, investing Rs 2 crore in February 2020. Anushka Sharma acquired 66,667 equity shares at the same price, amounting to an investment of Rs 50 lakh in the company, in a private placement.

Virat Kohli also has preemptive rights and a tag-along right, as mentioned in the Red Herring Prospectus (RHP).

Furthermore, Go Digit Infoworks Services Private Limited respects the legal rights of all parties involved. In line with this, we grant Go Digit Infoworks Services Private Limited the right of first offer if Virat Kohli wishes to sell any or all of his shares to a third party other than Go Digit Infoworks Services Private Limited or Kamesh Goyal.

ICICI Securities Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, HDFC Bank Limited, IIFL Securities Limited, Nuvama Wealth Management Limited, and Link Intime India Private Limited are the registrars to the Offer.

The company has reduced its offer-for-sale (OFS) component to 5.47 crore equity shares from the previously proposed 10.94 crore shares.

IPO Details

  • The IPO is divided, with 75% reserved for qualified institutional bidders (QIBs), 15% for non-institutional investors, and 10% for retail investors.
  • The company achieved profitability in the financial year 2023-24, reporting a net profit of Rs 35.54 crore with a revenue of Rs 39.19 crore.
  • For the nine months ending December 31, 2023, its net profit was Rs 129.02 crore with a revenue of Rs 130.83 crore.
  • The company plans to use the new funds to expand its capital base, maintain solvency levels, and for general corporate purposes.
  • The promoter, Go Digit Infoworks Services Private Ltd, will sell up to 5.475 crore shares. Additionally, other selling shareholders plan to sell a total of 10,778 shares.
  • The company’s operating loss decreased from Rs 185.49 crore in FY21 to Rs 10.12 crore in 9MFY24, and this trend is expected to continue in FY25 due to the company’s robust growth and industry prospects in India.
  • The company’s exchange filing shows that it offered 43.25 million equity shares to anchor investors at Rs 272 per share.
  • Fidelity Investment Trust was allocated the highest portion at 7.95%.
  • Other major foreign investors included Bay Pond Partners L.P., Goldman Sachs, Abu Dhabi Investment Authority (ADIA), Schroder International, East Spring Investments India, and Custody Bank of Japan.
  • Among domestic investors, SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, HDFC Life Insurance, ITPL Invesco India Mutual Fund, Tata Mutual Fund, Volrado Venture Partners Fund, Motilal Oswal Mutual Fund, Edelweiss Trusteeship Co Ltd AC, Max Life Insurance, Tata AIA Life Insurance Company, Bajaj Allianz Life Insurance Company, and Morgan Stanley Asia (Singapore) PTE ODI participated as anchor investors in the Go Digit IPO.
  • The IPO, valued at Rs 2,615 crore, opened for subscription on Wednesday, May 15. It has a price range of Rs 258 to Rs 272 per equity share and will close for subscription on Friday, May 17, 2024.
  • The IPO consists of a fresh issue of 41.4 million shares worth Rs 1,125.00 crore and an offer for sale (OFS) of 54.8 million shares totaling Rs 1,489.65 crore.

To get a full list of the upcoming, current, and closed IPOs, check our Unicorn Signals App – IPO Scanners tool, and fetch the latest updates.

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Top Indian Stocks to Benefit on FII Boost From MSCI Rejig

Esha Somadder

What is the MSCI World Index?

The MSCI All Country World Index measures the performance of both developed and emerging markets and includes almost 3,000 stocks from 47 markets across the world.

MSCI, short form for Morgan Stanley Capital International, is a company that provides investment data and analytics services. It was established in 1986 when Morgan Stanley acquired the licensing rights to data from Capital International.

MSCI is well-known for its stock indexes, which are used by mutual funds, ETFs, and individual investors as market benchmarks. These indexes track different sectors of the global economy, including emerging, frontier, developed, and global markets.

What is the MSCI India Index?

Morgan Stanley Capital International (MSCI) has set up many global indices, one of which is a composite of Indian stocks MSCI India index. Many reputed Indian companies across sectors are included in the index. These companies amount to at least 85% of the total equity offered by Indian companies. The index includes 10 major sectors of the economy such as IT, finance, and energy sectors. There are 64 companies listed on the MSCI India index, as of May 2015.

India’s influence in the MSCI’s Global Standard index, which monitors stocks in emerging markets, has reached a new peak, indicating the potential for increased investment in its stock market.

Please click on the link – MSCI India Index Data as of May 10, 2024, to know more.

India vs China’s weight in the MSCI Index

India’s weight in the index has risen to 19%, narrowing the gap with China, whose weight will decrease to 25% from 25.4%. These changes, announced on Wednesday, will take effect on May 31.

Following the May adjustments, India’s stock count in the MSCI Global Standard index will reach 149, the highest ever for the country.

India’s growing prominence in emerging markets is attributed to the strong performance of its equities, particularly in the mid-cap segment, while other emerging markets, especially China, have underperformed.

Rearrangements (rejig) in the MSCI India’s securities

India’s representation in the MSCI Emerging Markets Index is set to increase from 18.3% to closer to 19%, making it the highest increase in weight in terms of basis points among any EM Index in this rejig. This will lead to possible Foreign Institutional Investment (FII) inflows worth about USD 2.5 billion.

MSCI updated its Global Standard Index on May 15, 2024, by adding 13 new stocks. It includes Canara Bank, JSW Energy, NHPC, Indus Towers, Phoenix Mills, PB Fintech, Sundaram Finance, Bosch, Jindal Stainless, Solar Industries, Torrent Power, Mankind Pharma, and Thermax. These additions are expected to attract more investment into these stocks.

Serial No.Securities NameMarket Capitalisation as of May 15, 2024 (INR in crores)CAGR of last 3 years (in %)Sector Name
1.Canara Bank1,07,99857%Banks, PSU
2.JSW Energy1,04,45674%Power Generation & Distribution
3.NHPC97,82956%Power Generation & Distribution
4.Indus Towers92,11312%Telecomm Equipment & Infra Services
5.Phoenix Mills52,46959%Realty
6.PB Fintech57,473N/AIT – Software
7.Sundaram Finance52,63926%Finance
8.Bosch91,32631%Auto Ancillaries
9.Jindal Stainless56,42195%Steel
10.Solar Industries75,58990%Aerospace & Defence
11.Torrent Power65,57147%Power Generation & Distribution
12.Mankind Pharma87,990N/APharmaceuticals
13.Thermax60,49054%Capital Goods-Non-Electrical Equipment

Conversely, three stocks were removed from the index: Berger Paints, Indraprastha Gas, and Paytm.

Serial No.Securities NameMarket Capitalisation as of May 15, 2024 (INR in crores)CAGR of last 3 years (in %)Sector Name
1.Berger Paints56,681-8%Paints/Varnish
2.Indraprastha Gas30,755-5%Gas Distribution
3.Paytm (One 97 Communications Ltd)21,843N/AE-Commerce/App based Aggregator

MSCI is a top provider of equity, fixed income, and hedge fund indices globally. The MSCI Global Standard Index is widely used by institutional investors such as mutual funds, exchange-traded funds, and pension funds to track their investments.

The weights of certain stocks within the index have also changed. Notable increases were seen in YES Bank, Zomato, Vedanta, AU Small Finance Bank, Macrotech Developers, Polycab India, Samvardhana Motherson, and Suzlon Energy. These rearrangements are expected to attract more investment into these stocks.

Serial No.Securities NameMarket Capitalisation as of May 15, 2024 (INR in crores)CAGR of last 3 years (in %)Sector Name
1.YES Bank67,96820%Banks
2.Zomato1,69,204N/AE-Commerce/App based Aggregator
3.Vedanta1,62,36517%Mining & Mineral products
4.AU Small Finance Bank46,27910%Banks
5.Macrotech Developers1,18,28554%Construction
6.Polycab India97,17359%Cables
7.Samvardhana Motherson85,6540%Auto Ancillaries
8.Suzlon Energy56,957101%Capital Goods – Electrical Equipment

Conversely, the weights of Dabur, ICICI Lombard General Insurance Company, Jubilant Foodworks, and PI Industries have decreased.

Serial No.Securities NameMarket Capitalisation as of May 15, 2024 (INR in crores)CAGR of last 3 years (in %)Sector Name
1.Dabur96,7531%FMCG
2.ICICI Lombard General Insurance Company81,5164%Insurance
3.Jubilant Foodworks31,065-6%Quick Service Restaurant
4.PI Industries55,28911%Agro Chemicals

The changes in the indices will be effective from 31 May 2024. After the update, India’s net stock count in the MSCI Standard/EM Index will be 146.

Sector-wise weights of different sectors listed in the MSCI India Index

Source: MSCI India

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