As the secondary market is high with bull spirit, the primary market is raising the toast too. A lot of companies are gearing up for their initial public offering (IPO), gaining attention of investors in the off market as well. A handful of strong unlisted players are eyeing listing after a spectacular run up broader markets:
1. Nazara Technologies IPO
This mobile gaming company, backed by celebrity investor Rakesh Jhunjhunwala, has filed DRHP with market regulator SEBI. The firm is popularly known for its games on the World Cricket Championship, Chhota Bheem and Motu Patlu series.
The company operates on a Subscription, Freemium and Esports based business model. Nazara operates in the Middle East, Africa, South East Asia, Latin America along with India. It owns a number independent subsidiaries including key names like Next Wave Multimedia, Trivia games and Nodwin Gaming.
Industry experts believe that India is a huge market for the mobile gaming industry, with strong growth prospects. As the more hands hold smartphones, the prospects are brighter for the company. For the half fiscal ended September 30, 2020, Nazara Technologies reported a profit of Rs 10.1 crore, while in the financial year 2020, it posted a profit of Rs 26.6 crore.
Interestingly, the early investor WestBridge Capital exited Nazara Technologies with a whopping hefty profit of 43 times. It sold its stake to Plutus Wealth Management.
ICICI Securities, Nomura Financial Advisory and Securities (India) Private Limited, Jefferies India Private Limited and IIFL Securities are book running lead managers to the issue.
Nazara Tech unlisted share price = 1400 per share
2. Barbeque Nation Hospitality IPO
This firm owns and operates one of the most popular casual dining restaurant chains, Barbeque Nation, throughout 42 cities in the country. The company owns over 150 outlets in India, United Arab Emirates, Oman and Malaysia.
Founded in 2005, the company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. It is backed by private equity firm CX Partners, which made its first investment in 2013 and again in 2015.
The promoters hold 60.24%, CX Partners owns 33.79%t and renowned stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital holds 2.05% in the company.
The company has got SEBI’s twice to float an IPO. In july 2020, the dining firm obtained “observations” from the regulator, but has not initiated the process in the primary market as the sector is brutally hit by Covid-19 pandemic. In 2017, the company had filed IPO papers, which was approved in January 2018 but the issue was not launched.
The company clocked a revenue of Rs 237 crore in nine months of FY 2020-21 ending on 31 December 2020. It has incurred a net loss Rs. 99 crore. In FY2 2019-20, it clocked revenue of Rs 850 crore with a net loss of Rs. 33 crore.
Barbeque Nation Unlisted share price = 650 per share
3. Suryoday Small Finance Bank IPO
Incorporated in 2008, Suryoday Small Finance Bank has been consistently promoting financial inclusion by serving the unbanked and the underbanked segments in the country. The company obtained a Small Finance Banking (SFB) license from Reserve Bank of India (RBI) in the year 2017.
Suryoday SFB is active in business of Microfinancing, Loan Against Property (LAP) & Housing Loan, MSME loans, Commercial Vehicle loans, financial Intermediary Group Loans, SME lending. The bank has received top notch ratings from agencies like Crisil and ICRA.
This small sized bank has about 4,700 employees serving over 14 lakh customers through its wide network of 477 banking outlets in 12 states and union territories of the country. It has key presence in Maharashtra, Tamil Nadu, Odisha and Karnataka, with 80% of its outlets residing in the quadruple of these states.
Suryoday SFB generated Rs 854 crore revenue in FY20 compared with Rs 599.25 crore in FY19 and clocked profit after tax (PAT) of Rs 110 crore in FY20 compared to Rs 86.6 crore in the previous year. However, gross NPA surged to 2.79 per cent from 1.81% during this period.
The bank’s net worth as on March 31, 2020 stood at Rs 1,066 crore, up 21 per cent from the year-ago period. The company had a net worth of Rs 880 crore last year. Deposits have gone up from Rs 1,593 crore in FY19 to Rs 2,848 crore in FY20. This bank received a nod from SEBI to raise primary funds in the beginning of 2021, but the issue is still awaited.
Suryoday Small Finance Bank unlisted share price = 330 per share
4. Studds Accessories IPO
Studds Accessories is an exemplary story of rags to riches. Starting its journey in 1972 by manufacturing a helmet in a garage, the company now produces about 70 lakh helmets every year. It has grown as the global leader in two wheeler helmet manufacturers, with almost one-third share of the organized two-wheeler helmet market.
Faridabad headquartered Studds Accessories holds the bragging rights for the only laboratory in the country which is certified by European Safety Agency, and Safety – They use one of the best technologies in the world to produce certified products. The company boasts a presence in over three dozen nations of the world.
It has a quadruple of business verticals, including helmets for two wheelers, motorcycle accessories, face shields and bicycle helmets. The pandemic hit life has given a strong push to face shield business and studds has led the way in it. Likewise, focus on healthy lifestyle has raised demand for bicycle helmets multifold in metro and tier-I cities.
Studds posted Rs 436.94 crore revenue for FY20 against Rs 397.25 crore reported for FY19. PAT surged to Rs 74.59 crore in FY20 from Rs 40.48 in the previous year. EPS zoomed to 37 from 20.58. The company has a healthy balance sheet, where debt-to-equity ratio for fiscal 2019-20 stood at 0.12 times, return on equity (ROE) at 34 per cent and return on capital employed at 40 per cent.
Studds unlisted share price = 1300 per share
5. National Stock Exchange (NSE) IPO
NSE is the leading stock exchange of the country. Incorporated in 1992, NSE was elevated to the status of stock exchange by Sebi in 1994 and commenced operation in the same year. NSE owns a number of subsidiaries.
According to the Futures Industry Association (FIA), NSE emerged the world’s largest derivatives exchange for the second consecutive year in 2020 in terms of number of contracts traded. The bourse has been ranked fourth in the world in terms of the number of cash trades by the World Federation of Exchanges (WFE) for Calendar 2020.
NSE has a fully-integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education offerings.
Life Insurance Corporation of India (LIC) is the largest shareholder of NSE with a 12.51% stake, followed by State Bank of India with 4.42% holding. However, owning a slice of India’s largest stock exchange can be a time-consuming task with a lot of paperwork required due to regulatory restrictions.
In FY 2019-20, NSE clocked Rs 1,885 crore PAT on a Rs 3,896 crore revenue, with a net profit margin (NPM) of 48.38 per cent. In H1 of FY21, NSE managed Rs 1,383 crore PAT on a Rs 2,384 crore revenue and with a NPM of 58.01 per cent.
NSE Unlisted share price = 1850 per share with 2000 minimum lot size.
6. HDB Financial Services IPO
HDB Financial Services is a non-banking financial (NFBC) arm of the renowned HDFC group. It is one of the industry leaders, serving both retail and commercial clients. The financial firm swanks over the peak accreditation by Care Ratings and Crisil for its long term and short term bonds.
With the strong parentage of HDFC group, one of the prime conglomerates of the country, HDB financial Services has a well-established business of loans, fee-based products and BPO services with a strong capital base. It is active in segments like gold loan, consumer durable loan, Auto loans, personal loans and loan against mutual funds.
The board of the company is chaired by Mr. Aditya Puri, a marquee name in industry and Mr. Ramesh G is the Managing Director and Chief Executive officer of the company. HDFC Banks holds over 95.3% stake of the company.
In H1 FY21, the NBFC clocked revenue of Rs. 5,371 crore, with a PAT of mere Rs. 26 crore, leading to a steep fall in EPS to 0.33. The asset under management (AUM) stood at Rs. 57,528 crore for the . However, it generated revenue of Rs. 10,756.5 crore in FY20 with a PAT of Rs. 1,0756.5 crore and EPS of 12.78
In FY19-20, the loan disbursements were Rs. 29,853 crores. As of March 31, 2020, the outstanding borrowings of the Company amounted to 47,093.93 crores which they sourced from public sector banks, private sector banks, mutual funds, insurance companies and other financial institutions.
HDB Financials Unlisted Share Price = 975 per share