Latest news with #InitialPublicOfferings
Observer
02-07-2025
- Business
- Observer
Chancellor's IPO push still lacks momentum
The most recurring question in the financial district of London is: how do you reverse the alarming decline in the capital's attractiveness as a destination for Initial Public Offerings (IPOs). Going by the statistics, it's a question that needs to be addressed with some urgency. Data compiled by EY, the professional services firm, shows that in the first quarter of this year, only five companies listed on the London stock market. Collectively, they raised just £74.7m in proceeds – a 74 per cent year-on-year fall in the same period in 2024. It was hoped that the Chinese on-line fashion giant, Shein, valued at $100 billion, might be the panacea to London's listing struggles. But the company dumped its plan for an IPO in London after failing to win support from regulators in China, as sources told Reuters. They now plan to list in Hong Kong. Economic secretary to the Treasury, Emma Reynolds met executives from technology companies including the bank Revolut, Monzo, Oaknorth, to seek to address London's IPO conundrum. Ministers' level of engagement with industry cannot ne faulted – both Reynolds and the Chancellor Rachel Reeves, have held numerous meetings with company bosses on this matter hoping to convince them to list on the London Stock Exchange. Listing of these top fintech names would provide a badly needed boost to the embattled LSE. The prospect of meaningful action remains unclear, however, in the latest meeting, executives cited the need for tax breaks both on buying UK shares and a capital gains tax cut for employees when offloading their stock, according to people close to the discussions. They called for restrictions on non-executive directors holding – or being paid – shares in order to give them greater incentive to benefit from the growth of their businesses to be removed. One of those who attended the meeting put it starkly: unless a cluster of the companies represented in the meeting choose to list in London, the potential for any real momentum to be injected back into Uk markets will be severely curtailed, they warned. For that to happen they will need significantly greater incentives than those currently on offer. While both Revolut and Monzo have been rumoured to be considering IPOs, and have engaged with UK authorities about listing in London, neither has made a formal announcement or set a date for an IPO. FILE PHOTO: A worker shelters from the rain as he passes the London Stock Exchange in London Revolut has expressed interest in listing on either the London Stock Exchange (LSE) or Nasdaq, but has also indicated a preference for the US market. A potential IPO for Revolut has been discussed. They have been given a banking licence but are building out their banking operations before launching fully as a bank. Revolut CEO Nik Storonsky has publicly stated that a London listing is "not rational" compared to the US market's liquidity and lower trading costs. Monzo, the UK-based digital bank, is also considering an IPO, with potential listings in London or New York. While the LSE is a likely contender due to Monzo's UK headquarters and customer base, the company is also weighing the benefits of a US listing. Some investors fear Monzo may snub the LSE for a US listing, particularly given Monzo's rapid expansion in the US. Oaknorth has been the subject of discussions with UK authorities regarding a potential London listing. The UK government is reportedly trying to persuade these fintech companies to list in London, rather than New York. While Oaknorth is also considering an IPO, details about their plans are less publicly available than those of Revolut and Monzo. Changes have been encouraged by a task force set up to try to revive London's market. But LSE boss Julia Hoggett, who is spearheading the campaign, admitted in a speech last week: 'We still have not seen the real turning point in terms of risk capital within and into the UK.
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Business Standard
01-07-2025
- Business
- Business Standard
India's IPO market eyes $2.4 bn in offerings in July on confidence revival
So far this year, India continues to the world's No. 2 IPO market with $5.86 billion raised, accounting for the 12 per cent of total proceeds globally, LSEG data shows Reuters Indian firms could raise some $2.4 billion through Initial Public Offerings (IPOs) in July, investment bankers said, raising hopes of a sustained revival in primary offerings after demand was dented by the US trade war and global geopolitical tensions earlier this year. That amount would mark the strongest month since December and would follow a robust $2 billion raised in June, though most of that was raised by one company, HDB Financial Services. Education loan provider Credila Financial Services, National Securities Depository Ltd (NSDL), surveillance firm Aditya Infotech and power-transmission-goods maker M&B Engineering are conducting roadshows and are expected to go public this month, bankers said. They spoke on condition of anonymity as the companies have yet to make the timing of their IPOs and other details public. The companies did not respond to Reuters requests for comment. India's IPO market had its best-ever year in 2024, with $20.5 billion raised, second only to the US, riding high on money inflows from domestic investors who have become wealthier on growth in the world's fifth-largest economy and were optimistic about more economic growth. This year was widely expected to be another record year but US President Donald Trump's trade war, tensions with Pakistan and in the Middle East took much wind out of those IPO sails. South Korean conglomerate LG Electronics' India unit and other companies ended up delaying their capital raising plans. Things now look to be getting back on track, particularly with the Nifty 50 and Sensex having regained lost ground to trade about 3 per cent off from their peaks. "The IPO market has come back.... The absence of most of the negatives is driving the market more than anything else," said Suraj Krishnaswamy, the managing director of investment banking at Axis Capital. So far this year, India continues to the world's No. 2 IPO market with $5.86 billion raised, accounting for the 12 per cent of total proceeds globally, LSEG data shows. A thick pipeline The largest offering this month is likely to be Credila, which has said it is seeking $584 million. NSDL, India's largest stock depository, is looking to raise $400 million, according to a banker. NSDL received its regulatory nod for a listing as far back as September but market sentiment trended lower not long after on concerns about slower growth for the economy and corporate profits. Details about the two firms' valuations and IPO dates could be announced soon, bankers said. Other major offerings in the pipeline are LG Electronics India's $1.8 billion IPO, and issues from JSW Cement and defence equipment maker SMPP worth around $470 million each, they added. According to PRIME Database, there are 143 Indian IPOs being planned worth a potential $26 billion. Of those, 73 have been approved by regulators. "We expect the upcoming months to be the best for Indian IPO market as compared to what we have seen so far this year," Bhavesh Shah, the managing director and head of investment banking at Equirus. Others, however, were more cautious in their optimism, saying that participation from high net worth individuals and ordinary retail investors is unlikely to be as strong as it was last year. "Investors have become far more selective and are now much more mindful about where they see higher potential for returns," said Umesh Agrawal, fund manager at 360 ONE Asset.
Time of India
24-06-2025
- Business
- Time of India
IPO market heats up, but analysts urge investors to tread carefully
Mumbai: Kalpataru Ltd, Ellenbarrie Industrial Gases, HDB Financial Services and Sambhv Steel Tubes are set to launch their Initial Public Offerings (IPO) this week. The issues of Kalpataru and Ellenbarrie Industrial Gases will open for subscription on Tuesday, while HDB and Sambhv will be available from Wednesday. ET spoke to analysts on which IPO investors should bet on. HDB Financial Services The ₹12,500-crore issue - the largest IPO in India since Hyundai Motor India's offering in October last year - is the most widely watched. With HDB's grey market premium (GMP) - the additional price that investors are willing to pay over the IPO price in the grey market before the stock lists on the stock exchange - halving from ₹93 last week to ₹46 on Monday, expectations of a strong listing have diminished. Analysts said investors looking to hold the shares for three to five years could subscribe to the issue. "The NBFC (non-banking financial company) has a lot of competition in the space that it operates in and commands a slight premium in its valuations due to its parent value," said Krishna Appala, fund manager at Capitalmind PMS. Sunny Agrawal, head of fundamental research at SBI Securities, also said HDB Financial is a long-term investment opportunity since its not cheaply valued. Live Events Geetanjali Kedia, IPO expert at SPTulsian Investment Adviser, advices against subscribing to HDB IPO either. "Despite brand association with HDFC group, the company's asset quality is concerning and the IPO appears fully priced in relation to peers," she said. Agencies Kalpataru Ltd Analysts are advising investors to skip the Kalpataru IPO. "We recommend avoid Kalpataru IPO, given the company's high debt even post IPO and unattractive valuation for the low realisation on its projects," said Kedia. Agrawal said SBI Securities is 'neutral' on the offering as the net debt level of Kalpataru will continue to be high despite utilising ₹1,193 crore of net IPO proceeds towards debt repayment. Ellenbarrie Industrial Gases Analysts are most bullish on the Ellenbarrie IPO among the four offerings this week. "It is undervalued relative to peers like Linde India and is likely to benefit from reduced interest cost post debt repayment from IPO proceeds and capacity addition from October 2025 onwards will aid earnings growth," said Agrawal, who recommends subscribing for listing gains as well as for the long term investments. Kedia of SPTulsian said investors may consider subscribing to the IPO with a one-year or longer investment horizon. "The company has robust capex plans, healthy margins and is priced more attractively than its sole listed peer, besides being offered below the last transaction price (₹428)," she said. Sambhv Steel Tubes Analysts recommend subscribing to the IPO of the Chhattisgarh-based company for the longer period as the company's facility is entirely a backward-integrated one Agrawal suggests investors subscribe to the ₹540-crore issue for a longer-term horizon of 2-3 years. "Debt reduction from IPO proceeds will lower the finance costs and capacity expansion of high-margin value-added products is likely to be the earnings growth driver for FY26 and FY27," he said.
Economic Times
24-06-2025
- Business
- Economic Times
IPO market heats up, but analysts urge investors to tread carefully
Mumbai: Kalpataru Ltd, Ellenbarrie Industrial Gases, HDB Financial Services and Sambhv Steel Tubes are set to launch their Initial Public Offerings (IPO) this week. The issues of Kalpataru and Ellenbarrie Industrial Gases will open for subscription on Tuesday, while HDB and Sambhv will be available from Wednesday. ET spoke to analysts on which IPO investors should bet on. ADVERTISEMENT HDB Financial Services The ₹12,500-crore issue - the largest IPO in India since Hyundai Motor India's offering in October last year - is the most widely watched. With HDB's grey market premium (GMP) - the additional price that investors are willing to pay over the IPO price in the grey market before the stock lists on the stock exchange - halving from ₹93 last week to ₹46 on Monday, expectations of a strong listing have diminished. Analysts said investors looking to hold the shares for three to five years could subscribe to the issue. "The NBFC (non-banking financial company) has a lot of competition in the space that it operates in and commands a slight premium in its valuations due to its parent value," said Krishna Appala, fund manager at Capitalmind PMS. Sunny Agrawal, head of fundamental research at SBI Securities, also said HDB Financial is a long-term investment opportunity since its not cheaply Kedia, IPO expert at SPTulsian Investment Adviser, advices against subscribing to HDB IPO either. ADVERTISEMENT "Despite brand association with HDFC group, the company's asset quality is concerning and the IPO appears fully priced in relation to peers," she said. Kalpataru LtdAnalysts are advising investors to skip the Kalpataru IPO. ADVERTISEMENT "We recommend avoid Kalpataru IPO, given the company's high debt even post IPO and unattractive valuation for the low realisation on its projects," said said SBI Securities is 'neutral' on the offering as the net debt level of Kalpataru will continue to be high despite utilising ₹1,193 crore of net IPO proceeds towards debt repayment. ADVERTISEMENT Ellenbarrie Industrial GasesAnalysts are most bullish on the Ellenbarrie IPO among the four offerings this week."It is undervalued relative to peers like Linde India and is likely to benefit from reduced interest cost post debt repayment from IPO proceeds and capacity addition from October 2025 onwards will aid earnings growth," said Agrawal, who recommends subscribing for listing gains as well as for the long term investments. ADVERTISEMENT Kedia of SPTulsian said investors may consider subscribing to the IPO with a one-year or longer investment horizon."The company has robust capex plans, healthy margins and is priced more attractively than its sole listed peer, besides being offered below the last transaction price (₹428)," she said. Sambhv Steel Tubes Analysts recommend subscribing to the IPO of the Chhattisgarh-based company for the longer period as the company's facility is entirely a backward-integrated oneAgrawal suggests investors subscribe to the ₹540-crore issue for a longer-term horizon of 2-3 years. "Debt reduction from IPO proceeds will lower the finance costs and capacity expansion of high-margin value-added products is likely to be the earnings growth driver for FY26 and FY27," he said. (You can now subscribe to our ETMarkets WhatsApp channel)
The Print
13-06-2025
- The Print
Odisha Police arrests Bengal woman in Rs 74 lakh online fraud case
The accused has been brought to Odisha on a transit remand and was produced before a local court here on June 7. She is currently in judicial custody, a crime branch officer said. Police identified the arrested accused as Anushka Mitra (24), a resident of Durgapur in Bardhaman district. Bhubaneswar, Jun 13 (PTI) Odisha's crime branch has arrested a woman from West Bengal for her alleged involvement in a Rs 75.10 lakh investment fraud case, an official said. Mitra, along with her associates, posed as trade analysts and duped Rs 74.10 lakh from a resident of Balasore district through an elaborate investment scam, the officer said. The accused allegedly lured the complainant with promises of high returns through investments in international metal trading, Initial Public Offerings (IPOs), and Over-the-Counter (OTC) trading. Despite suffering losses, the victim continued investing under their influence, officials said. When he tried to withdraw his funds, the fraudsters demanded additional money. Realising it was a scam, the victim filed an FIR, following which she was arrested, police said. In a separate development, five persons from Gujarat have been arrested over the past few days by the crime branch in connection with three separate cyber fraud cases. According to an official statement, two persons from Gujarat were arrested for their alleged role in a Rs 1.4 crore online trading scam. In another case, two more persons from Gujarat were held for allegedly duping a Bhubaneswar resident of Rs 1.06 crore by placing him under what investigators termed a 'digital arrest'. Impersonating themselves as officials of Mumbai crime branch and a courier service, the cyber fraudsters threatened arrest and media exposure and forced him to transfer the money to their bank accounts, the crime branch said. In a third case, a 22-year-old man from Gujarat was arrested for allegedly cheating Rs 50 lakh from a man in Chhatrapur, Ganjam district, on the pretext of providing high returns from stock market investments, officials added. PTI BBM BBM MNB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
