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Indigo Paints IPO opens next week as Sequoia Capital, promoter look to trim stake; check details

Indigo Paints initial public offering (IPO) will open for subscription next week, paving the way for its much-awaited debut on Dalal Street. Sequoia Capital-backed Indigo Paints IPO, which received a go-ahead from Securities and Exchange Board of India (SEBI) earlier this month, will open for subscription on January 20 and close on January 22. The paints manufacturer is looking to raise Rs 1,000 crore from the capital markets with a combination of fresh issuance and an offer for sale (OFS) by existing shareholders of the company. This will be among the first few IPOs of 2021. In the previous year 2020, as many as 15 companies made stock market debuts.

Indigo Paints public issue will consist of a Rs 300 crore fresh issue of equity shares and an OFS of 58.4 lakh equity shares. The existing shareholders looking to sell part of their stakes in Indigo Paints include venture capital firm Sequoia Capital, SCI Investments, and promoter Hemant Jalan. While Sequoia is looking to sell 20 lakh equity shares of the 85.34 lakh shares it currently owns, SCI Investments will offload 21.65 lakh stocks from the 92.08 lakh currently held. Hemant Jalan owns 1.02 crore equity shares in the firm and will reduce his stake by 16.7 lakh shares. Indigo Paints has not disclosed the issue price of its IPO so far. However, it is likely to be in the range of Rs 1480-1500 per share, two traders dealing in unlisted shares told Financial Express Online.

Face value of the equity shares has been set at Rs 10 apiece by Indigo Paints. The firm will not receive any funds from the OFS proceeds. However, from the fresh issue proceeds, Indigo Paints plans to fund capital expenditure for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu. Along with this, it plans to purchase tinting machines and gyroshakers and repay/prepay all or certain borrowings of the firm.

Indigo Paints is the fifth-largest company in the Indian decorative paint industry in terms of the revenue from operations for fiscal year 2020. “The company has achieved this position in a highly competitive Indian decorative paint industry on the back of their multi-pronged approach,” said Axis Securities in a note. Indigo Paints has an extensive distribution network across 27 states and seven union territories.

Financially, the company reported a net profit of Rs 27.21 crore at the end of September last year. Revenue from operation during the same period stood at Rs 259.42 crore. During the financial year 2020, Indigo Paints reported a revenue of Rs 624.79 crore and a net profit of Rs 47.82 crore.

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Antony Waste Handling Cell IPO: Check share allotment status via BSE, Link Intime India website

The share allotment in Rs 300-crore Antony Waste Handling Cell initial public offer (IPO) is likely to be finalised today. The last public issue of the calendar year 2020 was subscribed 15.04 times and received bids for 10.02 crore shares against the offer size of 66.66 lakh shares. The grey market premium in the municipal solid waste management company has fallen to Rs 115 from Rs 180 last week. Antony Waste Handling Cell shares were last seen trading at Rs 430 per share in the grey market, implying a premium of 36.5 per cent over the issue price of Rs 315 apiece.

Antony Waste Handling Cell shares are likely to be listed on January 1, 2021, on BSE and NSE. Those who had placed bids for Antony Waste Handling Cell issue can check the subscription status on the registrar’s website, i.e. from Link Intime India and from BSE website. Pavitra Shetty, Independent Analyst/ Co-Founder and Trainer, Tips2Trade, told Financial Express Online that investors who have received allotted shares should remain patient and not get swayed by short term volatility.

How to check Antony Waste share allotment status via Link Intime India’s website
The registrar to the Antony Waste Handling Cell issue is Link Intime India, a SEBI-registered entity responsible for the IPO allotment and refund processing. To check the share allotment status, select the company name as ‘Antony Waste Handling Cell – IPO’ from the drop-down list on Link Intime India website. Check box either PAN, Application Number or Depository/Client ID. Accordingly, enter permanent account number or Application Number or Depository/Client ID in the box. Enter the given captcha in the provided space and click the submit button.

Check Antony Waste Handling Cell share allotment status via BSE website
Another way to check the allotment status in Antony Waste Handling Cell is through BSE website (https://www.bseindia.com/investors/appli_check.aspx). Select the issue type as ‘equity’, and the issue name as ‘Antony Waste Handling Cell Ltd’ from the drop-down list. After that enter application number and PAN (permanent account number). In the last step, click on the search tab to view the status details.

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FAANG stocks fail to shine last week despite NASDAQ’s jump; 3 of the 5 big tech shares tumble

The holiday-shortened previous week saw the NASDAQ index gain 1% overall, after having suffered a steep fall during the initial hours of trade on Monday morning. The star constituents of the index — the FAANG stocks — witnessed a mixed bag of a week, with some gaining and others losing. So far this year, FAANG stocks have gained 50% on average, outperforming the benchmark NASDAQ index. Apple has been the best stock so far this year among the big-tech names that make up the FAANG stock list.

Facebook in the previous week registered a 3.3% fall as it failed to recover after Monday’s fall and only added to the losses. At the end of the trading session Thursday, the stock was quoting a price of $267.4 per share. During the week, reports claimed that Facebook has shut one of its intellectual property units in Ireland. The unit was claimed to be a tax-saving mechanism used by the social media behemoth. Another news around Facebook that hogged the limelight this past week was the news of Mark Zuckerberg selling 44,750 shares of the company for a total amount of $12.2 million.

The manufacturer of the iPhone, Apple, had a way better week than Facebook as stock price gained 4.2%. This stock movement came in a week when reports claimed that the company was planning to make electric vehicles by 2024. The news of Apple preparing to launch a car by 2024 was reported by Reuters, they said it is most likely the passenger car of the company will be powered by its own battery technology. Stocks of the technology giant closed at $131.97 per share last week.

Amazon was also one of the laggards in the previous week. Jeff Bezos’ firm saw it stock price slip 0.90% in the week to close at $3,172.69 per share. Streaming service Netflix was also in the red last week, slipping 3.7%. The Co-CEO of the frim, Reed Hastings has sold 437,311 shares of the firm this month for $527 per share, according to reports. The total stake sale value was $230.6 million. This comes less than a month after Reed Hastings had sold over 213,000 shares of the firm.

Technology giant Google recovered sharply from the initial fall in the week gone by and ended flat with a positive bias. Shares of the firm closed at $1,734.16 per share. Since December 2, shares of Google are down 5%.

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PVR fundamentals intact despite near-term hiccups

PVR has scheduled a board meeting on December 18 to consider raising funds through issue of equity (or other instruments) by way of QIP (or other modes). We believe that the company is adequately funded to sustain operations for 6-7 months even if occupancy remains subdued and cash burn elevated at current levels. Additional funding would help reduce debt to enable investments in organic/inorganic opportunities post-Covid, or in event of resurgence of Covid-19.

PVR had liquidity of Rs 5.5 billion as at end-October 2020. It has to repay debt of Rs 1 billion by March 2021. As per our estimate, PVR is incurring Ebitda loss of Rs 500-600 million/month and interest expense of Rs 110 million/month at present (from November 2020).

Cash burn is higher (on expected lines) versus 1HFY21, as operations have resumed at subdued occupancy pending release of key movies. PVR is adequately funded to sustain operations for 6-7 months even if one assumes cash burn to continue at the current run rate.

PVR’s gross/net debt is about Rs 15 billion/Rs 10 billion as of date; equity fund raise would reduce leverage enabling PVR to invest in organic and inorganic growth opportunities post-Covid. We note that PVR raised Rs 3 bn in August 2020 through a rights issue.

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