3 cos to raise a whopping Rs 21,000 cr IPO this week

Hyderabad The upcoming week is going to be a grand one for the IPO market as three companies comprising of Paytm, Sapphire Foods, and Latent View Analytics are raising a huge Rs 21,000 crore worth of IPO. Paytm's parent One 97 Communications will be the first to offer its IPO, on Monday followed by Sapphire Foods and Latent View Analytics which will be open for subscription on Tuesday and Wednesday, respectively.

One 97 Communications - Paytm

The company will raise Rs 18,300 crore which comprises a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore. The selling shareholders include founder Vijay Shekhar Sharma and investors Saif III Mauritius Co Ltd and SVF Panther (Cayman).

The company has already wiped up Rs 8,235 crore from names like Singapore's GIC, Canada's CPPIB, BlackRock, Alkeon Capital, Abu Dhabi Investment Authority, there are 122 names that have picked up stakes in the fintech major. This also includes four domestic mutual funds, HDFC, Aditya Birla, Mirae Asset and BNP Paribas, that took nearly 13 per cent of total anchor allotments.

However, analysts are not that in favour of the buzz, initial reviews by analysts are not that encouraging as two out of three are suggesting an avoid, citing high valuations. However, they agree that their opinions will not stop the issue from sailing through.

Sapphire Foods

Sapphire Foods, the operator of KFC and Pizza Hut food chain stores, is ready to raise Rs 2,073 crore through its public issue on November 9. The issuer had set a price band of Rs 1,120-1,180 per share. "Considering the trailing twelve month (TTM) adjusted EBITDA on post issue basis, the company is going to list at a EV/EBITDA of 41.38 with a market cap of Rs 7498 crore while its peers namely Jubilant Foodworks and Westlife Development are trading at a EV/EBITDA of 49.26 and 73.55 respectively," said analyst at Marwadi Shares and Finance.

"We assign 'subscribe' rating to this IPO as the company is a leading QSR brand with a substantial market presence and has a scalable new restaurant economic model for expansion. Also, it is available at reasonable valuation as compared to its peers."

Latent View Analytics

Data analytics services provider Latent View Analytics will be the third public offer of the week to open for subscription. The Rs 600 crore public opening comprises a fresh issue of Rs 474 crore and an offer for sale of Rs 126 crore by promoter and other selling shareholders. The public offering is going to open on November 10 and will close by November 12.