Happy Forgings Limited, one of the leading manufacturers of forged and machined components in India, is launching its initial public offering (IPO) today. The IPO will close on December 21, 2023. The company is looking to raise Rs 1,009 crore from the public issue, which comprises a fresh issue of Rs 400 crore and an offer for sale of Rs 609 crore by the existing shareholders. The price band for the IPO is set at Rs 808 to Rs 850 per share. Here are some compelling reasons why you should subscribe to the Happy Forgings IPO.
The Sensex, India’s benchmark stock index, plunged by over 900 points on Wednesday, wiping out more than Rs 3.2 lakh crore of investor wealth. The index closed at 70,938.06, down 1.26% from its previous close of 71,833.13. This was the biggest single-day fall for the Sensex since May 2021.
The market crash was triggered by a global sell-off, as investors feared the impact of the new Omicron variant of Covid-19 on the economic recovery. The US Federal Reserve’s hawkish stance on inflation and interest rates also added to the jitters.
The Sensex crash has left many investors worried about their portfolio value and future returns. If you are one of them, here are some tips to help you cope with the market volatility and protect your investments.
1. Don’t panic and sell in a hurry
The first and most important tip is to avoid panic selling. Selling your stocks in a hurry when the market is falling can lock in your losses and prevent you from benefiting from a possible rebound. Remember, the Sensex crash is a temporary phenomenon, and the long-term trend of the Indian economy and stock market is positive.
Instead of selling, you should review your portfolio and assess your risk appetite, investment goals, and time horizon. If you have invested in quality stocks with strong fundamentals and growth prospects, you should hold on to them and wait for the market to recover. If you have invested in speculative or low-quality stocks, you may consider exiting them and switching to safer or better-performing options.
2. Diversify your portfolio across asset classes
Another tip to survive the Sensex crash is to diversify your portfolio across different asset classes, such as equity, debt, gold, real estate, etc. Diversification can help you reduce your overall risk and cushion the impact of a market downturn. Different asset classes tend to perform differently in different market conditions, so having a mix of them can help you balance your returns and losses.
For example, when the equity market is falling, debt or gold may provide stability or appreciation to your portfolio. Similarly, when the equity market is rising, you can enjoy higher returns from your equity investments. The optimal allocation of your portfolio depends on your risk profile, return expectations and investment horizon. You can use online tools or consult a financial planner to help you create a diversified portfolio.
3. Invest systematically and regularly
A third tip to survive the Sensex crash is to invest systematically and regularly, rather than in lump sums. Investing systematically, such as through a systematic investment plan (SIP) or a systematic transfer plan (STP), can help you take advantage of the market fluctuations and average out your cost of acquisition. This can enhance your returns and reduce your risk in the long run.
For example, if you invest Rs 10,000 every month in an equity mutual fund through an SIP, you will buy more units when the market is low and less units when the market is high. This way, you will lower your average cost per unit and increase your chances of earning higher returns. Investing regularly can also help you inculcate a discipline of saving and investing, and achieve your financial goals.
4. Look for opportunities to buy quality stocks at lower prices
A fourth tip to survive the Sensex crash is to look for opportunities to buy quality stocks at lower prices. A market crash can offer you a chance to buy your favorite stocks or funds at a discount and increase your potential returns. However, you should be careful and selective while buying in a falling market, and avoid catching a falling knife
.5. Stay informed and updated about market developments
A fifth tip to survive the Sensex crash is to stay informed and updated about market developments and news. You should keep track of the factors that are affecting the market sentiment, such as the COVID-19 situation, the economic indicators, the corporate earnings, the policy actions, the global events, etc. You should also monitor the performance of your portfolio and the stocks or funds you have invested in.
Conclusion
The Sensex crash can be a stressful and challenging time for investors, but it can also be an opportunity to learn and grow. By following the tips mentioned above, you can survive the market volatility and protect your investments. You can also use the market crash as a chance to review your portfolio, rebalance your asset allocation, and realign your investments with your goals. Remember, the key to successful investing is to stay calm, patient, and disciplined, and follow a long-term and goal-oriented approach.
Cricket legend Sachin Tendulkar’s Midas touch strikes again! His investee company, Azad Engineering, has smashed a six by raising a whopping ₹221 crore ahead of its much-anticipated IPO. Here’s why this pre-IPO funding frenzy has investors cheering:
Image- The Statesman
Sachin’s Star Power: Tendulkar’s backing adds instant credibility and investor confidence to Azad Engineering. His image as a cricketing icon with a keen business acumen attracts attention and potential subscribers.
High-Precision Play: Azad Engineering isn’t just another name in the game. They specialize in crafting high-precision machined components for aerospace, defense, energy, and oil & gas giants. This niche market expertise offers high growth potential and caters to crucial sectors.
Solid Financials: The company boasts a 31% increase in revenue to ₹261 crore in FY23, showcasing strong market demand. While net profit dipped 71%, analysts attribute it to strategic investments and anticipate an upward swing in profitability soon.
War Chest Ready: The pre-IPO funding empowers Azad Engineering to expand its operations, ramp up production, and fuel future growth. This financial muscle bodes well for potential investors.
IPO Buzz: With the listing date approaching, the grey market is abuzz with excitement. The premium per share has already crossed ₹400, pushing the expected listing price to a sky-high mark. This buzz indicates a strong investor appetite for the stock.
But is it all smooth sailing? A few things to consider:
Valuation Concerns: The ambitious price band of ₹499-₹524 per share raises questions about potential overpricing. Investors should carefully assess the company’s fundamentals before diving in.
Debt Dilemma: Azad Engineering carries a debt burden of ₹552 crore, which could impact future financial stability. Careful analysis of the company’s debt management strategy is crucial.
Competitive Landscape: Established players like Bharat Forge and Aeronáutica Ltd. dominate the market. Azad Engineering needs to prove its competitive edge to thrive in the long run.
Overall, Sachin Tendulkar’s Azad Engineering has all the ingredients for a potentially successful IPO. However, thorough research, careful consideration of market conditions, and a healthy dose of caution are essential before making any investment decisions. Remember, even the Master Blaster can’t guarantee a home run every time!
Azad Engineering’s IPO takes flight today, promising a potential high-altitude ride for investors. But before you buy your ticket, consider these 10 crucial points to ensure a smooth landing:
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1. Soaring Valuation: Azad Engineering sets its price band between ₹499 and ₹524 per share, aiming for a ₹740 crore haul. This ambitious valuation raises questions about potential overpricing.
2. Grey Market Mania: The grey market buzzes with excitement, with a ₹440 premium per share pushing the estimated listing price to a stratospheric ₹964. Is this hype justified, or just hot air?
3. Niche Player Power: Azad Engineering occupies a sweet spot in the niche market of high-precision machined components, catering to aerospace, defense, energy, and oil & gas giants. This specialization could be a double-edged sword, offering high growth potential but limited diversification.
4. Revenue Rise, Profit Plunge: The company’s revenue soared 31% to ₹261 crore in FY23, but net profit nosedived a staggering 71% to ₹8.4 crore. Can they turn the profitability tide?
5. Debt Dilemma: Azad Engineering carries a hefty debt burden of ₹552 crore, raising concerns about future financial stability. Can they handle the pressure without compromising growth?
6. Institutional Appeal: Institutional investors get 50% of the pie, while retail investors grab 35% and non-institutional players settle for 15%. How will this allocation affect demand and liquidity?
7. IPO Lead Lineup: Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Securities pilot the IPO ship. Can their experienced crew navigate the market turbulence?
8. Competitive Landscape: Azad Engineering faces competition from heavyweights like Bharat Forge and Aeronáutica Ltd. Can they hold their own in this high-stakes game?
9. GMP Guesses: While the grey market premium whispers promises, remember, it’s not crystal ball foresight. Be cautious and invest based on your own research and risk tolerance.
10. Long-Term Vision: Weigh the short-term IPO buzz against Azad Engineering’s long-term potential. Can their niche expertise and growth plans propel them to new heights?
Remember, investing is a journey, not a sprint. Buckle up, research thoroughly, and make informed decisions to reach your financial destination.
The initial public offering (IPO) of INOX India, a leading manufacturer of cryogenic equipment, was a huge success. The IPO was oversubscribed by 51.22 times, receiving bids for 1.24 billion shares against the offer size of 24.24 million shares.
The company had fixed the price band of the IPO at ₹575-585 per share and raised ₹300 crore from anchor investors before the public issue.
Inox India allotment date: The basis of the allotment of shares under the IPO of cryogenic tank maker INOX India is set to be finalised on December 19. | Image: Official website
If you have applied for the INOX India IPO, you might be wondering how to check your allotment status. Here are the steps to follow:
Step 1: Visit the BSE website
Go to the BSE website and select ‘Equity’ in the issue type. Then, enter ‘INOX India’ in the issue name and click on ‘Search’.
Step 2: Enter your application details
You will see a screen where you can enter your application number and PAN number. Alternatively, you can also enter your DP ID/Client ID or account number. After entering the details, click on ‘Submit’.
Step 3: View your allotment status
You will see a screen that shows the number of shares you have applied for, the number of shares you have been allotted, and the amount that will be deducted from your bank account.
If you have received the allotment, you will see the message ‘Congratulations’. If you have not received the allotment, you will see the message ‘Sorry’.
You can also check your allotment status on the website of the registrar, KFin Technologies. You will need to select ‘INOX India’ from the drop-down menu and enter your application number or DP ID/Client ID.
What to do next?
If you have received the allotment, you can expect the shares to be credited to your demat account by March 23, 2023. The listing of the shares on the stock exchanges is expected to happen on March 25, 2023.
If you have not received the allotment, you can expect a refund of your application money by March 22, 2023.
INOX India is a part of the INOX Group, which also owns INOX Leisure, a leading multiplex chain, and Gujarat Fluorochemicals, a producer of refrigerants and fluoropolymers. The company has a market share of over 60% in the domestic cryogenic equipment industry and exports its products to over 100 countries.
The company plans to use the net proceeds of the IPO for capital expenditure, working capital requirements, and general corporate purposes. The IPO was managed by Axis Capital, ICICI Securities, and IIFL Securities.
Varun Beverages, the largest PepsiCo bottler in India, is set to acquire South Africa’s BevCo for ₹1,320 crore. The acquisition will expand Varun Beverages’ geographical footprint in Africa and make it the leading PepsiCo bottler on the continent.
Bevco reached sales volumes of 117 million 8oz cases in FY23. Image: Reuter
About BevCo
BevCo is a leading beverage company in South Africa with a strong portfolio of brands, including Pepsi, Lipton, and Schweppes. The company has a wide distribution network and a significant market share in South Africa.
RBZ Jewellers, a well-known jewellery company in Ahmedabad, Gujarat, is making its debut on the stock market with an initial public offering (IPO). The IPO opens on December 19, 2023, and closes on December 21, 2023. The price band for the issue is set at ₹95-₹100 per share.
Company Financials
RBZ Jewellers has shown steady growth in recent years. The company’s operating revenue increased by 14.21% in fiscal 2023. However, some analysts are cautious about the IPO due to risks associated with the gold industry. Gold prices are volatile and can fluctuate significantly in the short term. Additionally, the Indian jewellery market is highly competitive.
IPO Details
Issue size: ₹100 crore
Price band: ₹95-₹100 per share
Issue type: Book building
Listing date: December 28, 2023
Should You Subscribe?
Analysts are divided on whether or not to subscribe to the RBZ Jewellers IPO. Some recommend the IPO for medium to long-term investment, while others are more cautious due to the risks mentioned above. If you are considering investing in an IPO, it is important to do your research and carefully consider the risks involved.
Here are some additional factors to consider:
The company’s financial performance
The size and price of the IPO
The risks associated with the gold industry
Your own investment goals and risk tolerance
I hope this summary helps you make an informed decision about the RBZ Jewellers IPO.
Disclaimer: This is not financial advice. Please consult with a financial advisor before making any investment decisions.
Credo Brands Marketing Limited, the company behind the popular men’s casual wear brand Mufti, is launching its initial public offering (IPO) on December 19, 2023. The IPO aims to raise Rs 550 crore through an offer for sale (OFS) of 1.96 crore shares by the promoters and other shareholders. The price band for the IPO is set at Rs 266-280 per share.
About Credo Brands and Mufti
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Credo Brands was established in 1999 by Kamal Khushlani, who envisioned Mufti as a brand that would redefine menswear in India. Mufti offers a wide range of products, such as shirts, t-shirts, jeans, chinos, jackets, blazers, and sweaters, catering to various categories, such as relaxed holiday casuals, authentic daily casuals, urban casuals, party wear, and athleisure. Mufti’s products are designed to provide a youthful and stylish appearance while keeping up with the latest fashion trends.
Mufti has a pan-India presence, with 1,807 touchpoints across 591 cities, comprising of 404 exclusive brand outlets (EBOs), 71 large format stores (LFSs), and 1,332 multi-brand outlets (MBOs). Mufti also sells its products through its website and other e-commerce platforms.
Financial Performance and Valuation
Credo Brands has shown a strong financial performance in the last three fiscal years, with its revenue growing at a compound annual growth rate (CAGR) of 29.8%, from Rs 261.15 crore in FY21 to Rs 509.32 crore in FY23. Its net profit also increased at a CAGR of 374.6%, from Rs 0.57 crore in FY21 to Rs 77.51 crore in FY23. Its earnings before interest, tax, depreciation, and amortization (EBITDA) margin improved from 26.7% in FY21 to 35.1% in FY23, while its return on net worth (RONW) improved from 0.4% in FY21 to 43.8% in FY23.
At the upper end of the price band, Credo Brands is valued at Rs 1,802.49 crore, which translates to a price-to-earnings (PE) ratio of 23.2, based on its FY23 earnings. This is lower than the industry average PE ratio of 33.6, as per the red herring prospectus (RHP). The company also has a healthy balance sheet, with no debt and a cash balance of Rs 64.5 crore as of September 30, 2023.
Strengths and Risks
Some of the key strengths of Credo Brands are:
A well-established and recognized brand in the men’s casual wear segment
A diversified and innovative product portfolio that caters to various customer preferences and occasions
A wide and efficient distribution network that ensures high visibility and accessibility
A strong and experienced management team with a proven track record
A robust financial performance and attractive valuation
Some of the key risks that investors should be aware of are:
The company’s business is dependent on the performance and popularity of its Mufti brand, which may be affected by changing consumer preferences, fashion trends, and competition
The company’s business is subject to seasonal fluctuations and may be adversely affected by factors such as weather conditions, festivals, and holidays
The company’s business is exposed to various operational risks, such as inventory management, quality control, supply chain disruptions, and regulatory compliance
The company’s business is vulnerable to the impact of the COVID-19 pandemic and any other public health emergencies that may affect the demand and supply of its products
Conclusion
Credo Brands IPO is a good opportunity for investors who are looking for a well-established and profitable company in the men’s casual wear segment, which has a strong brand, a diversified product portfolio, a wide distribution network, and an attractive valuation. However, investors should also consider the risks and uncertainties associated with the company’s business and the industry, and make an informed decision based on their risk appetite and investment objectives.
Happy Forgings, a leading manufacturer of heavy forgings and high-precision machined components, is making its grand debut on the stock market with its initial public offering (IPO). The IPO opens on December 19, 2023, and closes on December 21, 2023. Here are 10 key things to know before you invest in Happy Forgings IPO:
1. Company Overview:
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Happy Forgings is a well-established company with over three decades of experience in the forging industry. It caters to a diverse range of sectors, including automobiles, railways, infrastructure, and defense. The company boasts a strong track record of profitability and growth.
2. Issue Details:
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The Happy Forgings IPO will offer 36,300,000 shares for subscription at a price band of ₹808 to ₹850 per share. The IPO size is estimated to be around ₹312 crore.
3. Gray Market Premium (GMP):
The GMP for Happy Forgings IPO is currently at ₹430 per share. This indicates strong investor interest in the issue. However, it is important to remember that GMP is not a guarantee of listing gains and should be taken with a pinch of salt.
4. Objective of the IPO:
The proceeds from the IPO will be used to fund the company’s expansion plans, including setting up a new manufacturing facility and upgrading existing infrastructure.
5. Strengths:
Strong brand reputation and established track record
Diversified product portfolio and customer base
Experienced management team
Attractive valuation compared to peers
6. Risks:
Dependence on a few key customers
Cyclical nature of the forging industry
Competition from larger players
7. Management Team:
The Happy Forgings IPO is backed by a team of experienced professionals with a proven track record in the forging industry. This is a positive factor for investors to consider.
8. Financial Performance:
Happy Forgings has demonstrated consistent financial performance over the past few years. The company has reported healthy revenue and profit growth.
9. Analyst Recommendations:
Most analysts have given Happy Forgings IPO a positive rating, citing the company’s strong fundamentals and growth prospects. However, it is important to conduct your research before making an investment decision.
10. Conclusion:
Happy Forgings IPO appears to be a promising investment opportunity for those seeking exposure to the growing forging industry. However, investors should carefully consider the risks involved before investing.
Attention, maritime enthusiasts and savvy investors! Today, December 18th, 2023, marks the grand launch of the Sahara Maritime IPO, opening a lucrative opportunity to navigate the exciting waters of India’s booming shipping industry.
Sahara Maritime IPO (Image Credit-IPO Watch)
Key Dates for Smooth Sailing:
Subscription Period: Brace yourself for a three-day voyage, as the IPO subscription window opens today and runs until December 20th, 2023. Don’t miss your chance to board!
Listing Date: Mark your calendars for December 26th, 2023, when the shares are expected to set sail on the BSE SME platform. Be among the first to witness the company’s debut!
Allotment and Demat: Anticipate the anchor to drop around December 21st, 2023, with the final allotment of shares. Get ready to see your shares credited to your demat account on December 22nd, 2023.
Setting the Right Course: Issue Price and Size:
Issue Price: Navigate the waters with confidence, as the fixed issue price is set at Rs. 81 per share, offering a clear and stable course for investment.
Issue Size: Prepare for a voyage of Rs. 6.88 crores, with the entire issue constituting a fresh issue of 8.5 lakh shares.
Riding the Grey Market Momentum:
While the official journey has just begun, whispers of the Grey Market Premium (GMP) are already stirring the currents. The latest reports suggest a GMP hovering around Rs. 7-8 per share, hinting at potential investor interest. However, remember, the GMP is an unofficial indicator and not a guarantee of future performance.
Why Consider Boarding the Sahara Maritime Ship?
Growth Potential: The Indian shipping industry is projected to witness significant growth in the coming years, fueled by rising trade volumes and infrastructure development. Sahara Maritime, with its focus on coastal shipping and cargo handling, is well-positioned to ride this wave.
Experienced Captain: Led by a seasoned team with over 25 years of experience in the maritime sector, Sahara Maritime boasts a wealth of knowledge and expertise to navigate the choppy waters.
Attractive Valuation: With a fixed issue price of Rs. 81 per share, the IPO might offer an entry point at a relatively lower valuation compared to established players in the industry.
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