Oversubscribed IPO Benefits
A lot of business entities are taking
keen interest in proposing IPO ever since the horrifying pandemic took place.
Today, the 810 crore initial public offering (IPO) of Burger King India will
debut on the stock exchanges, i.e., 14 of December. The IPO of the
rapid-service restaurant chain generated an overwhelming reaction from the
investor community. The public offer was signed 156.65 times, attracting over
1,100 crore bids compared to 7.45 crore shares on offer.
The initial public offer from Burger
King India was open from 2 to 4 December. A new issue of equity
shares amounting to Rs450 crore and a bid by the promoter QSR Asia for sales
worth Rs360 crore was the key market offering. In the price range of Rs59-60
per share, the shares were offered. Burger King India will use equity sale
proceeds to open restaurants operated by the group and for general corporate
purposes. By December 31, 2026, the restaurant chain plans to open about 700
restaurants, including business outlets and sub-franchised organizations. Already
there are about 261 restaurants in 57 towns, including Delhi-NCR, Mumbai, Pune,
Chennai, Hyderabad, Bengaluru, Chandigarh and Ludhiana.
On the very first day, the Burger
King India IPO was oversubscribed more than three times, making it the sixth
IPO to be entirely subscribed on the first buying day this year.
Some of the other IPO offerings which
saw an overwhelming response and were oversubscribed on Day 1 itself were
Happiest Minds Innovations, Route Mobile, Chemcon Speciality Chemicals, Mazagon
Dock and Likhita Infrastructure.
Mazgaon Dock Shipbuilders IPO
The initial public offering (IPO) of
Mazagon Dock Shipbuilders, the country''s largest defense firm, was finalized on
October 8. Mazagon Dock Shipbuilders'' Rs 444-crore public issue generated an
overwhelming reaction from investors and was subscribed up to 157.41 times
between September 29 and October 1. The public issue had a subscription in the
retail category of 35.63 times by Oct 1, 2020, 89.71 times in QIB, and 678.88
times in the NII category.
Indian Railway Finance Corporation
Another IPO which is likely to gain a
lot of interest by the investors is by Indian Railway Finance Corporation
(IRFC). In order to float an initial public offering of over 178 crore shares, Indian
Railway Finance Corporation (IRFC) had filed papers with market regulator SEBI.
According to an additional point to the draft red herring prospectus (DRHP)
filed with SEBI, the public offering will consist of a new issue of 118 crore of
equity shares and an offer to sell 59.4 crore equity shares by the Government
Life Insurance Corporation (LIC) has
planned to launch their IPO. The launch of the LIC IPO will be the biggest IPO
launch in India ever. The insurer is India's oldest and biggest, controlling 72%
of the market and having a 66.24% share in the overall collection of premiums
for the first year. LIC''s overall value is between Rs9-10 lakh crore. With a
cumulative premium accumulation of Rs 45 lakh crore, LIC has 28 crore policies
in force. LIC plans to launch an IPO to sell about 10% of its stake and
to be listed on the BSE and NSE stock exchanges. Through this IPO, the
government of India aims to collect funds between 80,000 to 1 lakh crore.
Although IPO’s have always kept the
investors hunting and keen to invest in the best ones coming up in the market, as
IPO’s offer a great deal if the offering firm certainly does well in the