Reblog: Newgen Software IPO review


IPO Snapshot:

Newgen Software Technologies is entering the primary market on Tuesday 16th Jan 2018, via a fresh issue-cum-offer for sale of equity shares of Rs. 10 each, in the price band of Rs.240 to Rs. 245 per share. The issue comprises a fresh issue of up to Rs. 95 crore and an offer for sale (OFS) of 1.35 crore equity shares by 4 PE investors. Representing 25.01% of the post issue paid-up share capital at the upper end, total issue size is Rs. 485 crore at the upper end, of which, 80% or Rs. 390 crore is the OFS portion. The issue will close on Thursday 18th Jan while the listing is expected on 29th Jan.

Company Overview:

Newgen Software Technologies is a software product company serving banking, Govt agencies, BPO / IT, insurance, healthcare verticals, through its basket of 3 product platforms – enterprise content management, business process management, customer communication management. While 40% revenue comes from India, approximately 27% comes from the US and Middle East each, and balance from Asia Pacific. Broadly, 27% of revenue is generated through sale of software product, 28% from implementation service, 22% from annuity based support service and 17% from AMC.

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Reblog: HDFC Standard Life IPO Review


IPO Snapshot:

HDFC Standard Life Insurance is entering the primary market on Tuesday 7thNovember 2017, with an offer for sale (OFS) of up to 29.98 crore equity shares of Rs. 10 each, by both the promoters HDFC (64% of OFS) and Standard Life (36% of OFS), in the price band of Rs. 275 to Rs. 290 per share. Representing 14.92% of the post issue paid-up capital, OFS will raise Rs. 8,695 crore at the upper price band and will close on Thursday 9th November. Listing is likely on 17th November.

Company Overview:

HDFC Standard Life, HDFC’s 61.21% subsidiary, with 34.75% owned by foreign partner Standard Life, is India’s 3rd largest private sector life insurer, after ICICI Pru and SBI Life, based on market share of 16.5% among private insurers, on FY17 total premium.

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Reblog: Khadim India IPO review


IPO Snapshot:

Khadim India is entering the primary market on Thursday 2nd November 2017 to raise Rs. 50 crore via fresh issue of equity shares and an offer for sale (OFS) of up to 66 lakh equity shares of Rs. 10 each by promoters (11% of OFS) and Fairwinds PE (89% of OFS), both in the price band of Rs.745 to Rs. 750 per share. Representing 40.32% of the post issue paid-up share capital at the upper end, total issue size is Rs. 543 crore. The issue will close on Monday 6th November and listing is expected on 14thNovember.

Company Overview:

Khadim India is India’s second largest footwear retailer, and the largest in East India, with 853 Khadim’s branded retail outlets (80% of which are franchised out) and 377 distributors, as of 30-6-17, with retail accounting for 73% of Rs. 621 crore FY17 topline and distributors accounting for 22%. The company has a dual strategy to grow both retail outlets and deepen distribution pipeline. The company offers a bouquet of 9 brands across different footwear categories, besides parent brand Khadim. Positioned as a value retailer focusing on mass and mass premium category, 55% of its stores are located in tier 3 cities.

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Reblog: New India Assurance IPO Review


IPO Snapshot:

The New India Assurance Company is entering the primary market on Wednesday 1st November 2017 with an IPO of up to 12 crore equity shares of Rs. 5 each, comprising fresh issue of upto 2.40 crore equity shares and an offer for sale (OFS) of 9.60 crore equity shares by promoter Indian Government, both in the price band of Rs.770 to Rs. 800 per share, with Rs. 30 per share discount for retail investors. Representing 14.56% of the post issue paid-up share capital, issue will raise Rs. 9,474 crore, at the upper end, of which, Rs. 1,895 crore will flow into the company via fresh issue and balance Rs. 7,579 crore will meet FY18 divestment target of Rs. 72,500 crore. Issue will close on Friday 3rd November and listing is expected on 13thNovember.

Company Overview:

New India Assurance, 99.99% subsidiary of Government of India, is the country’s largest general insurance company, with 15% market share (down from FY16’s 15.7%) in gross direct premium, enjoying leadership in all segments, such as motor, health, fire, marine, except crop. In FY17, motor, health, fire, marine, crop segments accounted for 39%, 26%, 15%, 3% and 5% of company’s gross written premium, respectively, which is more-or-less in line with the industry structure, except for crop insurance where all private sector insurers have been more aggressive. Company has a robust pan India multi-channel distribution network, comprising 2,452 offices, 68,389 agents, 16 corporate agents, 25 bancassurance partners (including Bank of India and Canara Bank), with individual agents, direct sales and brokers accounting for 42%, 31% and 26% of business respectively.

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