The next ten days are big for IPO investors ⁠— hope you have cash set aside

One 97 Communications — the parent company of digital payments giant Paytm — is all set to launch India’s biggest IPO of ₹18,300 crore ($2.4 billion) on November 8. This IPO will surpass Coal India’s ₹15,000 crore offering, which happened a decade ago.

Paytm IPO will open from November 8 to November 10, at a price range of ₹2,080-₹2,150 per equity share. The lot size has been set at six shares.

Valuation guru Aswath Damodaran, who is a professor at New York University’s Stern School of Business believes that one should allocate 5% of their portfolio on stocks like Paytm. “...This is the type of stock that you would put 5%, or perhaps 10% of your portfolio in, not 25% or 40%,” he said in a blog post.

PB Fintech — the parent company of insurance company PolicyBazaar and lending company PaisaBazaar — has launched its IPO today (November 1). The company intends to raise ₹5,709 crore with a price band of ₹940-₹980 per share, with a lot size of 15 shares.

The IPO will include fresh issue of ₹3,759 crore and an offer for sale (OFS) of ₹1,959 crore from existing investors.

According to reports, Policybazaar shares are available at a premium of ₹150 in the grey market. The company said it will use ₹1500 crore of the IPO proceeds to create brand awareness for PolicyBazaar and PaisaBazaar. Besides this, PolicyBazaar will also invest an additional ₹600 crore on funding strategic investments and acquisition.

Further, promoters are reportedly selling a lot fewer shares than they had initially planned with the belief that the stock has significant headroom for growth post listing.

Sapphire Foods India, the operator of KFC and Pizza Hut outlets, will open its IPO on November 9 and close on November 11. The IPO consists of a pure offer for sale of 1.75 crore shares by existing shareholders and promoters.

As of June 2021, the company owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka. Sapphire Foods is the largest franchisee of Yum! Brands in the Indian subcontinent. Besides, the company is backed by marquee investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss.

Analysts at Kotak Institutional Equities expect the company to grow its revenue at a compounded annual rate of 20% and the earnings before interest, tax, depreciation and amortisation (EBITDA) by 30% by March 2025. However, the revival from the COVID-19 lockdown this year was relatively slower because many of its outlets are located within malls which remained shut, or the footfalls remained low, for longer than in other restaurants.

SJS Enterprises, one of the leading players in the Indian decorative aesthetics products like decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes and many others, will also open its IPO alongside PolicyBazaar and Sigachi Industries on November 1.

The IPO consists of a pure offer for sale of ₹800 crore with ₹710 crore by Evergraph Holdings Pte -- subsidiary of private equity firm Everstone who invested in 2015 and ₹90 crore by KA Joseph KA Joseph, managing director of the company.

The price band of the IPO is set at ₹531 - 542 per share. The grey market premium of the company’s shares show a premium of ₹25 from the higher end of the price band.

Currently, Evergraph Holdings and KA Joseph hold 77.86% and 20.74% stake in the company, respectively.

It also manufactures a wide range of aesthetics products that cater to the requirements of the commercial vehicles, medical devices, farm equipment and sanitary ware industries. The company's manufacturing facilities are located in Bengaluru and Pune.

ICICIdirect gave a ‘subscribe’ rating to the IPO citing the company’s collaboration with Suzuki to design and develop graphics for Swift, Ertiga and WagonR models. SJS has also previously worked with Honda Motorcycle, Royal Enfield, TVS Motors, Eureka Forbes, Bajaj Auto and Whirlpool. “We believe SJS offers a unique play on vehicular premiumisation given its status as a leading aesthetics player with proven capabilities,” said ICICIdirect.

The Hyderabad-based manufacturer of cellulose-based excipients, Sigachi Industries, is looking to raise ₹125.43 crore by selling 76.95 lakh shares. The company is engaged in the manufacturing of microcrystalline cellulose, the polymer that is widely used for finished dosages in the pharmaceutical industry.

It operates through three manufacturing units in Hyderabad and Jhagadia, Dahej located in Gujarat. The proceeds from the issue will be used for expansion of production facilities of MCC at Dahej and Jhagadia in Gujarat.

Shares of the company are showing a premium of ₹150 from the higher price band in the grey market. The company has set a price band ₹161-163 per share.

“With over 30 years of continuous growth, three multi-locational manufacturing facilities and consistent focus on delivering premium quality product, the company is one of the leading manufacturers of cellulose based excipients in India, in terms of volume,” said a report by JM Financial.