Financial Freedom
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19/10/2021
Govt may hike pension sector FDI limit to 74%; Bill likely in next session.
The National Association of Software and Service Companies (Nasscom) has projected 2.3 per cent revenue growth in FY21 for the country’s information technology (IT) industry despite the andemic.
Beware Of Digital National Motor Insurance Fraud: IRDAI
The country’s largest food company, Nestle India, is planning to avail the Union government’s production-linked incentive (PLI) scheme to boost exports.
Coal India board has approved an interim dividend of Rs 7.50 per share.
11/11/2020
11/11/2020
ITC eyes bigger pie in chocolate segment.
Life insurers record 32% jump in
new business premium income....
while non-life insurers report decline
Marico ups focus on digital brands:
“WE WILL CONTINUE TO LOOK AT DIGITAL BRANDS FROM AN ACQUISITIONS PERSPECTIVE. INVESTING BEHIND ENTREPRENEUR DRIVEN BRANDS IS GREAT FROM BOTH A LEARNING AS WELL AS A GROWTH POINT OF VIEW”- Saugata Gupta, MD & CEO, Marico
TCS agrees to buy Deutsche Bank's postbank systems AG:
TCS will acquire 100% of the shares of postbank systems.
Postbank's 1500 employees will become part of TCS.
GLAND PHARMA IPO OPENS 09/11/2020 : KEY THINGS TO KNOW BEFORE YOU SUBSCRIBE:--
1. Gland Pharma IPO is the biggest initial public offering by a pharmaceutical firm in India.
2. The company is offering 4.3 shares in the IPO.
The nearly ₹6,500 crore IPO of Gland Pharma opens on 9/11/2020 and will close on 11/11/2020. This will be biggest initial public offering by a pharmaceutical firm in India, according to Bloomberg. The company has fixed a price of ₹1,490-1,500 per share for the initial public offer (IPO). Ahead of the IPO, Gland Pharma raised ₹1,944 crore from anchor investors at the price of ₹1,500 per equity share. The anchor investors include Government of Singapore, Nomura, Goldman Sachs, Morgan Stanley, SBI Mutual Fund and Axis Mutual Fund.
The IPO comprises issuance of fresh shares worth up to ₹1,250 crore (0.8 crore shares) and an offer of sale (OFS) of up to 3.48 crore shares. The proceeds from the fresh issue of shares will be utilised for working capital, capital expenditure and general corporate purposes. The face value of the equity shares is Re 1.
Gland Pharma shares are likely list on BSE and NSE on November 20 and the IPO allotment is likely to be finalised around November 17. Link Intime India Pvt is the registrar of the Gland Pharma IPO and will manage allocation and refund.
Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, Haitong Securities India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd are the book running lead managers to the IPO.
Hyderabad-based Gland Pharma was established in 1978 and has a global footprint across 60 countries. It develops, manufactures and markets complex injectables. Gland Pharma has seven manufacturing facilities in India. China's Fosun Pharma had acquired a 74% stake in the company in 2017. Post IPO, the promoter shareholding will fall to 58% from 74%.
The company mainly operates in the B2B space with tie ups with leading pharmaceutical companies.
For FY18-20, revenue grew at a CAGR of 27% while PAT grew by 55% CAGR, according to Geojit Financial Services. In FY20, GPL reported PAT of ₹773 crore on revenue of ₹2,633 crore with EBITDA margin at around 36%. Gland Pharma gets around two-third of the revenue from US. Top five customers in FY20 accounted for 49%, of the total revenue from operations.
What analysts say on Gland Pharma IPO
"Gland Pharma has a number of factors working for it. Firstly, it will be the only listed player in the pure formulations space in India. Secondly, the company follows a B2B model with sales in 60 different countries and long-term contracts with various partners which provide a good forward looking pipeline in terms of sales. Its top 5 clients contribute over 40% to its revenue. Financially too, Gland is extremely strong with a CAGR of upwards of 25% in both its top and bottom line from 2018-20. Margins were around 39% in FY20 and its Q1FY21 margins were even more impressive at 48%," says Nirali Shah, Senior Research Analyst, Samco Securities.
"Moreover, the company believes in utilizing internal cash for its working capital needs and future expansion plans which is clearly visible through its debt levels which are nil. Even before the IPO, Gland has sufficient cash on its books and post IPO, the management aims to look for inorganic growth opportunities to strengthen its vertical integration. From a valuation perspective too, on a P/E basis, Gland Pharma trades at a 30x multiple while its global peers such as Recipharm and Lonza trade much higher at 44x and 55x respectively. Due to the abundant positives and tailwinds from the pharma sector in general, we feel this IPO is a good bet and can be subscribed to for the long term."
Geojit Financial Services also has a subscribe rating. "At the upper price band of Rs.1500, GPL is available at a PE of 20x on an annualized basis, which appears attractive. With a solid business model, no listed peers and the positive outlook for pharma, we assign a subscribe rating for the issue."
When money is involved, human emotions in the form of greed and fear run high.
13/09/2020
SEBI updated Margin rules are as follows:
Traders' Diary: Nifty has key support in 11,200-11,180 zone
Why should you invest in stocks?
13/07/2020
OPEN DEMAT ACCOUNT WITH US IN SAMCO(STOCKNOTE) and get less brokerages and higher margin in all segments.
11/07/2020