Upcoming IPO

Introduction

It’s November, which is time for Upcoming IPOs in November 2023. In the financial world, Initial Public Offerings (IPOs) are like grand openings for companies, inviting the public to invest in their future. It’s when a private company takes its first steps into the public market by offering shares to the general populace. But what’s the nitty-gritty of this process? Let’s break it down.

What’s an IPO?

An IPO essentially marks the transition of a private company into a publicly traded entity. This means that the company’s ownership shifts from a select group of private investors to the wider public. It’s a significant financial event for both the company and potential investors.

Fresh Capital or Existing Shares?

When a company goes public, it can either issue new shares to raise capital or let existing shareholders sell their shares, a process known as an Offer for Sale (OFS), without generating fresh capital.

We have three Upcoming IPOs in November 2023. Let’s sneak peek into the IPOs set to make waves in November 2023.

Upcoming IPOs in November 2023

1. Cello World Limited

Another upcoming IPO in November 2023 is Cello World. Cello World Limited is a prominent name in India’s consumer ware industry, with a footprint extending to consumer houseware, writing instruments, stationery, moulded furniture, and related products.

As of March 31, 2023, it operates 13 manufacturing facilities across 5 locations in India. The company is even in the process of setting up a glassware manufacturing facility in Rajasthan. To learn more, check the DRHP.

Details of Cello World Limited’s IPO:

• Type: 100% Offer for Sale (OFS)
• Number of Shares: 2,93,20,987
• Share Price Range: ₹617 to ₹648
• Aggregated Amount: ₹1,900.00 Cr
• Minimum Investment (Retail): ₹14,904
• Listing Date: November 09, 2023
• Exchanges: BSE and NSE

2. Honasa Consumer Limited(Mamaearth)

Honasa Consumer Limited wears the crown as India’s largest digital-first Beauty and Personal Care (BPC) company by revenue for FY 2023. What sets it apart is its unwavering commitment to providing toxin-free beauty products, all crafted from natural ingredients. Its marquee brand, Mamaearth, has become synonymous with natural, safe-to-use products. To get a better idea, check the DRHP and read our in-depth article on Mamaearth IPO.

Details of Honasa Consumer Limited’s IPO:

• Type: Fresh Issue and Offer for Sale (OFS)
• Fresh Capital Raised: ₹365.00 Cr
• OFS Shares: 4,12,48,162
• Share Price Range: ₹308 to ₹324
• Aggregated Amount: ₹1,701.00 Cr
• Minimum Investment (Retail): ₹14,904
• Listing Date: November 10, 2023
• Exchanges: BSE and NSE

3. ESAF Small Finance Bank

ESAF Small Finance Bank Limited is all set to launch its Initial Public Offering (IPO) with utmost confidence. Founded in 1992, ESAF is a renowned Small Finance Bank that primarily focuses on providing loans to customers residing in rural and semi-urban areas.

The Bank offers a wide range of products such as Micro Loans, Retail Loans, MSME Loans, Loans to Financial Institutions, and Agricultural Loans. As of March 2023, the Bank has a widespread network of 700 outlets, 743 customer service centers, 20 business correspondents, and 481 business facilitators. The Bank also has 581 ATMs located across 21 states in India. Read the DRHP to learn more.

Details of ESAF Small Finance Bank

• Issue Size: Rs 463.00 crores
• Issue: Fresh Issue: Rs 390.70 crores and Offer for Sale: Rs 72.30 crores,
• Subscription Period: November 3 to November 7, 2023
• Allotment Date: Friday, November 10, 2023
• Listing Date: Thursday, November 16, 2023
• Stock Exchanges: BSE, NSE
• Price Band: Yet to be announced

IPOs are akin to a mutually beneficial dance. Companies gain capital by offering shares, free from interest obligations. Investors, in turn, can buy in at a potentially lower price, reaping returns in the long run. Additionally, IPOs can lead to listing gains if the company debuts on a high note. However, you must always do your due diligence before investing in any IPO.

FAQs

The skincare and wellness industry has evolved in the past few years, and Mamaearth has been a forerunner. Honasa Consumer Ltd., the parent company of this direct-to-consumer (DTC) brand, is launching its IPO on the last day of October.  This IPO will have a fresh issue and an Offer for sale (OFS).

Apart from Mamaearth, Honasa Consumer Ltd. has other brands under its umbrella. Such as The Derma, BBlunt, Dr. Sheth’s, Ayuga, Momspresso, and Aqualogica. So, if you are interested in investing in this FMCG brand, here are the details you must know.

Honasa Consumer Limited IPO Date, Lot Size & More

The IPO will have a Fresh issue of equity shares summing up to Rs. 4000 million and OFS of up to 46819635 equity shares. The price band for the total issue has been fixed with a price band of Rs. 308 to Rs. 324.

The entrepreneur-couple running the company, Varun and Ghazal Alagh, are the promoters selling shareholders selling up to 3186300 and 100000 equity shares, respectively. However, the investors selling shareholders Sofina, offering up to 19133948 equity shares, are offloading the highest number.

Honasa Consumer Limited IPO SWOT Analysis

Strengths

• Natural and eco-friendly products: One of the company’s primary strengths is its commitment to eco-friendliness. Most products are made from natural ingredients such as vegetables, herbs, fruits, and other natural resources.
• Digital First Approach: The famous brand Mamaearth of Honasa Consumers Ltd. has started selling its products online. It is still a digital-first Company, with most of its sales coming from online portals. Likewise, the other companies under the parent company primarily offer their products and services online.
• Consumer-centric Innovative products: The products Honasa Consumers offers are all made keeping in mind the needs and preferences of the clients.
• Brand Building: As consumers are more awakened these days, brand building requires quality products and wise choices, and Honasa Consumer Ltd. knows that well. Its flagship brand, Mamaearth, has become the fastest-growing brand in the BPC sector in the country, with over Rs. 10 billion in annual turnover.

Weaknesses

• Limited offline reach: While the company has a digital-first approach and has reached millions of customers in India, the growth can be stagnant without an offline presence.
• Higher price bands: The price range of the products is slightly higher, which doesn’t appeal to many segments of the population in the country.

Risks

• Excessive dependency on online marketing: The Company depends on online marketing, influencers, and celebrities. This extreme dependency can be a risk to its reputation and brand value.
• Highly competitive segment: The flagship brands like Mamaearth of Honasa must have garnered immense popularity. However, the competition in the personal care and wellness segment is fierce, which is why the other company brands are yet to grow.

Opportunities

Rising income: As the income levels are increasing, especially for middle-class and upper-middle-class households, they are spending on quality wellness and healthcare products.

Digitalization: With the rise of digitization, the company’s products are becoming readily available to every corner of the country. Moreover, the increasing influence of social media is another factor driving the demand.

What will Honasa Consumer Limited do with IPO Money?

As the IPO is a mix of OFS and fresh issues, the company will not receive the proceeds from OFS. It is entitled to the selling shareholders after deducting expenses and taxes related to the offer.
The proceeds from the fresh issue shall be mainly used for –
• Building brand presence through advertisement
• Setting up new EBOs – this will be a capital expenditure
• Setting up new salons for BBlunt or Bhabani Blunt Hairdressing Pvt. Ltd., the subsidiary of Honasa Consumer Ltd.

Honasa Consumer Limited: Overview of the Company

In 2016, Mamaearth was first launched, which is the primary business of Honasa Consumer Ltd. Post that, all the other six subsidiaries were established, with a primary focus on personal care products.
The company offers products in all these segments – Face care, Body care, Hair care, Baby care, Colour cosmetics, and Fragrances. The use of all-natural products and the direct-to-consumer approach of the company has made it stand out from the rest. To understand the business better, check the video below.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Recently, Valiant Laboratories, a prominent Indian pharmaceutical ingredient manufacturer, made its foray into the world of Initial Public Offerings (IPOs). From September 27 to October 3, 2023, the IPO attracted a frenzy of investor interest, and the subscription rate reached a staggering 29.76 times the number of shares on offer by the final day.

Interestingly, Valiant Laboratories has experienced consistent revenue growth in recent years. The company’s IPO, which was open for subscription from September 27, was priced at a band of ₹133 to ₹140 per equity share for the public offering.

The distribution of shares in the IPO was divided as follows:

• Qualified Institutional Buyers (QIBs) – up to 50%
• Non-Institutional Investors (NIIs) – at least 15%
• Retail Investors – a minimum of 35%

Valiant Laboratories IPO Subscription Status

As the days progressed, the subscription status kept investors on the edge. Retail investors displayed remarkable enthusiasm on the fourth day, subscribing to their portion 16.06 times. Meanwhile, Non-Institutional Investors (NIIs) exhibited extraordinary interest by subscribing a whopping 73.64 times, and Qualified Institutional Buyers (QIBs) followed closely behind, oversubscribing their portion by 20.83 times.

Here is a brief overview of Valiant Laboratories IPO subscription status throughout its offering:

With such robust demand, it’s clear that Valiant Laboratories’ IPO has captured the market’s attention and investor confidence.

Valiant Laboratories IPO Allotment & Listing Date

For those eagerly awaiting their allotment, the schedule is as follows:

The Valiant Laboratories IPO details are as follows:

How do you check Valiant Laboratories IPO allotment status?

You can check your allotment status online if you’ve applied for the Valiant Laboratories IPO. There are two methods to do so:

Option 1: Checking on the BSE Website:

Visit the BSE IPO allotment page: BSE IPO Allotment

• Select “Equity” under “Issue Type.”
• Choose “Valiant Laboratories Ltd” from the dropdown under “Issue Name.”
• Enter your Application Number or PAN.
• Complete the CAPTCHA verification.
• Click the “Search” button.

Option 2: Checking on Link Intime India Private Limited’s Website (IPO Registrar):

Visit the Link Intime IPO status page: Link Intime IPO Status.

• Select “Valiant Laboratories Ltd” from the dropdown (once the data is available).
• Choose one of the four options to access your allotment status: PAN, Application Number, DPID/Client ID, or Bank Account/IFSC.
• Enter the relevant details.
• Click the “Search” button.

When will the basis of allotment for Valiant Laboratories IPO be finalized?

The basis of allotment for Valiant Laboratories Ltd is set to be finalized on October 5, 2023. The company will initiate the refund process on October 6, 2023. You can expect their shares to be credited to their demat accounts on October 6, 2023.

It’s worth noting that the listing of Valiant Laboratories’ stock on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) is scheduled for October 9, 2023.

Further, the stock is expected to list on Monday, October 9, 2023, and given the robust demand and the current grey market premium of +22, investors can anticipate an estimated listing price of ₹162 per share, representing a 15.71% premium over the IPO issue price of ₹140.

With a strong grey market premium and an estimated listing price, Valiant Laboratories IPO not only reflects the company’s potential but also showcases the enthusiasm of investors to be a part of its journey. As the stock is poised to hit the market on October 9, 2023, we can anticipate an exciting and rewarding chapter ahead for all of you.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ