The number of IPOs last year was relatively low but, fetched high returns for the investors. Attractive valuations, global liquidity and growth in the economy are few factors that will contribute to growth of capital markets and define the fate of some of the most anticipated IPOs in 2020.
Here is a tentative list of 20 upcoming IPOs in this year which can fetch good returns for investors:
1. SBI Cards and Payments
SBI Cards and Payment Services Limited, subsidiary of India’s largest commercial bank SBI, is expected to be one of the biggest upcoming IPOs of 2020. With a market share of 18% in the Indian credit card market, it is the second-largest credit card issuer in the country. The size of the issue of the likely IPO is estimated to be around Rs 8500 crore to Rs 9500 crore.
State Bank of India currently has a 74% stake in the company and will divest up to 4% through the IPO. The remaining 26% is owned by CA Rover Holdings of the Carlyle group.
2. UTI AMC
Unit Trust of India AMC, India’s oldest mutual fund is looking at selling up to 8.25% of the stake through an IPO. The size of the issue is expected to be around Rs 3,800–4,800 crore. The IPO will consist of the sale of shares by its five stakeholders which include State Bank of India, Bank of Baroda, LIC, Punjab National Bank and T Rowe Price.
3. Burger King(India) Limited
The Indian arm of the QSR chain Burger King had filed for a proposed IPO in November last year. The IPO is expected to raise approximately Rs 400 crore through fresh issue of shares. The company currently operates 202 outlets in 47 cities and intends to increase the number of outlets to 325 by the end of the year.
4. Home First Finance
Home First Finance Company (HFFC), a Mumbai-based mortgage financier, is looking to raise Rs 1500 crores from an IPO this year. In November last year, the company had filed a draft red herring prospectus with SEBI for its proposed IPO. If launched, this IPO is expected to raise Rs 1,500 crore. It would comprise of a fresh issue of Rs 400 crore and an offer for sale by promoters and investors of Rs 1,100-crore.
5. HDB Financial Services
HDB Financial Services, the NBFC subsidiary of India’s largest private sector bank HDFC is currently valued over Rs 80,000 crore. It is ranked as the fourth most valuable non-banking lender in the country. HDFC Bank which currently holds a 95.53% stake in HDB, is planning to offload a part of its holding through an initial public offer and raise around Rs 10,000 crore this year. So, if this IPO is launched this year, it would surely be one of the most anticipated IPOs of 2020.
After its IPO being delayed for nearly three years, India’s largest bourse NSE is likely to launch the most awaited IPO in 2020. The company aims to raise around Rs 10,000 crore from the IPO. Stakeholders are likely to offload 20%-25% of their holdings.
7. Rossari Biotech
Rossari Biotech, a Mumbai-based speciality chemicals maker, founded by Edward Menezes and Sunil Chari in 1996, is looking at raising Rs 700 crore through an IPO. The company has an impressive clientele which includes brands like Vim, Lifebouy, IFB, Bosch, Panasonic to name a few.
8. Equitas Small Finance Bank
Chennai-based Equitas Small Finance Bank is looking to raise fresh capital of Rs 550 crore through a fresh issue IPO and remaining via the OFS route. The total IPO size is estimated to be around Rs 1000 crore
EaseMyTrip, an online travel company has filed papers to float an IPO of Rs 510 crore in 2020 through the OFS route. The founders of the company, Nishant Pitti and Rikant Pitti would sell shares worth Rs 255 crore each in case the IPO is launched this year.
10. Energy Efficiency Services Ltd (EESL)
State-run EESL, which is a part of India’s ambitious energy efficiency program, is looking to raise money through the capital markets to fund its energy efficiency plans. The company is currently valued at around Rs 5,000 crore
11. Computer Age Management Services(CAMS)
CAMS, a registrar and transfer agent which is leading technology-driven service provider to the growing mutual fund industry is likely to come out with an IPO of Rs 1500 to Rs 1600 crore by the end of this year. The IPO is expected to be an OFS which will see investors offloading part of their stake holdings in the company.
12. Integrated Renewable Energy Development Agency(IREDA)
IREDA, a 100% government-owned entity, which is registered as a non-banking financial company, received approval from SEBI last year for an IPO. The government is looking at offloading a part of its stake worth Rs 700 crore. The company will also issue fresh shares worth Rs 13.90 crore.
13. Mazgaon Dock Shipbuilders
Mazagon Dock Shipbuilders, the country’s leading shipyard company is likely to float an IPO this year after receiving approval from SEBI. The company is a fully owned subsidiary of the Government of India and the stake sale is a part of the divestment plan to offload 13% of government share in the company.
14. SAMHI hotels
SAMHI Hotels Ltd, a Gururgram-based hotel company, owning the largest number of Marriot, IHG, and Hyatt hotels in the country, has received approval for an IPO. The company aims to raise Rs 1,100 crore of fresh capital through the IPO.
15. Bajaj Energy
Bajaj Energy, which is a fully owned by Bajaj Power has received capital Sebi’s approval for an IPO of Rs 5,450 crore and is expected to comprise a fresh issue of shares up to Rs 5,150 crore and an offer for sale of up to Rs 300 crore by Bajaj Power Ventures.
16. Fincare Small Finance Bank
The Bengaluru-based financial bank Fincare is planning an IPO of Rs 1200 crore by the mid of 2020. The IPO will be a combination of stake sale of existing shareholders and a fresh issue of shares. Incorporated in June 2017, the company is likely to come out with an IPO this year as per the new RBI guidelines which require small banks to list themselves within 3 years of commencement of operations.
17. ESAF Small Finance Bank
The Kerala-based ESAF Small Finance Bank has filed draft papers with SEBI for an IPO issue which would be a combination of fresh issue of Rs 800 crore and offer-for-sale of Rs 176.2 crore, after approval. The bank currently has a presence in 16 states and 1 union territory.
18. Route Mobile
Route Mobile has recently received SEBI’s approval to raise capital through the IPO route and likely to raise Rs 600 crore through the IPO. The IPO will comprise a fresh issue of shares worth Rs 240 crore and the remaining Rs 360 crore through stake sale of promoters.
19. Mukesh Trends Lifestyle Ltd
Ahemdabad–based Mukesh Trends Lifestyle, in the fabric processing business, has filed draft papers with markets regulator SEBI for its proposed initial public offer. The size of the IPO is expected to be between Rs 70 crores to 90 crores, once launched.
20. Angel Broking Ltd
Angel Broking Ltd which received SEBI’s approval for an IPO in June last year will come out with the IPO this year. The size of the IPO is expected to be Rs 600 crore.
2020 could be a rewarding year for investors with some of the big IPOs likely to come out this year which have the potential to give huge returns to the investors. Reach out to our experts at IndiaNivesh to help you with your IPO investments.
Disclaimer: These are only the list of IPOs that would be coming in 2020. However, whether you should invest or not should be a decision one should take on the basis of the research reports. "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."
Online Trading – 5 Essential Tips for Trading Online in 2020
Technological advancements and digitalisation have changed the online arena for every business, and the online share trading is no exception to the trend. Over the last few years, online trading has become very popular, especially amongst the millennials and generation Y. Prevalence of smartphones, lower costs, opportunity to earn extra income, low entry barriers, ease of access, etc has had a profound impact on online trading. Even though online stock trading today is huge, and many people are motivated to explore online trading for a rewarding career, by no figment of imagination it should be assumed that it is easy, and they can become financially self-sufficient in a short period. Here are 5 essential online trading tips to help improve your chances of success in your endeavours as a trader-1. Do the research and gain relevant information about the markets The economic conditions are constantly changing and it has a significant impact on the stock markets. To be successful in online share trading you have to do your research, collect relevant information and be updated about matters relating to markets. With information being available at the click of a button, it is easy to get access to information from various sources. Keeping your eyes and ears open about the official announcements being made, reading up market-related articles and financial publications can help you ace the game of online stock trading and avoid making whimsical trade calls. 2. Get acquainted with the trading terminologies and tools Getting yourself familiar with various terminologies and trading tools beforehand is extremely important so that you do not falter when you start trading. Clearing your basics about the important workings, different types of trades, important terms are critical. If you are not clear about the basics, then you may end up placing a wrong order. Once you are trading online, you are investing real capital and you cannot undo the trade. So, it is essential that you must be familiar with the features and the functions of the trading platform which you are going to use. Practice trading on dummy versions to get a hang of the trading interface before you can start with online trading. Once you have enough practice you will not be flustered and confused at the time of real trading. 3. Start with small capital and practice risk management There are infinite opportunities in the trading world and you do not want one experience to be the deciding factor for you. As online trading is risky, you should always make a small start in the beginning and invest little capital. Even the most successful traders do not put their entire investible surplus for trading but use only the capital which they have to spare after they have put aside for their long-term goals such as retirement. So, invest only the capital which you can afford to lose and which will not affect your financial planning. Another important thing to keep in mind at the time of executing trades is that the risk associated with trading is high and hence you should take adequate measures to minimise risk. Setting a stop-loss to your order will automatically stop a trade if the losses hit a particular mark and help minimise your losses. 4. Be patient and disciplined Online trading is a great way to make an income and many have successfully made a career out of it. If the success stories of other traders have motivated you to take the plunge, then, let’s be honest, online trading is risky and not for the light-hearted. Moreover, it is not something you can master overnight or become rich overnight on a single trade. To be successful, you need to have the right mindset and should be disciplined in your approach. Make a trade plan and stick to it. Trading out of impulse or greed will not help you become successful but following a plan and trading when you see opportunities can help you achieve the desired results. 5. Select the right broker and trading platform Last but not least, choosing the right broker and opening the best trading account online is important, and hence you should be careful about your selection. Choose a trading platform that best meets your needs and has a user-friendly interface. You should be comfortable using their software. Your success rate would be greatly affected by the timely execution of your orders. Other aspects to consider are a level of customer service and satisfaction, market reputation and competitive fee structure. Conclusion With the above essential online trading tips, you can give your income a boost. We at IndiaNivesh have one of the best online trading platforms at the most competitive price and also offer expert advisory and research to meet your investment needs.Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."
Tax Saving Investments - 5 Income Tax Saving Schemes Other Than Sec 80C
The taxpayers are always in search of ways through which they can save their taxes. The most popular section for saving taxes among the taxpayers is section 80C. You can claim deduction up to Rs. 1,50,000 under section 80C of the Income Tax Act, 1961 by investing in specified avenues listed by the government. However, there are many other sections under which you can save your taxes but due to lack of awareness, many people miss out on them. In this article, we will list down five income tax saving schemes other than section 80C. Tax Saving Schemes Other Than 80C National Pension System (NPS) National Pension System (NPS) is one of the popular tax saving investment schemes. Here you can invest in the NPS and get an additional tax deduction up to Rs. 50,000. This scheme was launched by the government of India in 2009. This tax saving scheme makes you eligible for an additional tax deduction for investment up to Rs 50,000 under subsection 80CCD (1B) of the Income Tax Act, 1961. The main advantage of investing in NPS is that the tax benefits under this scheme are not clubbed with the tax benefits under section 80C which allows tax benefits on investments of up to Rs. 1,50,000 lakhs only. Investment in NPS can be done by employees of the public, private and unorganized sectors. Apart from saving tax, NPS is also a good investment scheme for the long term. Health Insurance Premium The health insurance premium is another good tax saving investment option. Paying health insurance premiums can help in saving your taxes. You can claim deduction under section 80D of the Income Tax Act, 1961. The maximum exemption limit under this section is up to Rs. 1,00,000. The exemption limit is up to Rs. 25,000 for health insurance premium paid for self, spouse or dependent children. However, when the premium is paid for the health insurance of senior citizen parents, the maximum deduction limit is Rs. 50,000. Therefore, when the health insurance premium is paid for policies for self, spouse and senior citizen parents, the total deduction that can be availed is Rs. 25,000 plus Rs 50,000 i.e. Rs 75,000. A mediclaim policy is essential these days because if any of your family members fall sick or meets an accident, the cost of treatment can wipe out a large part of your savings. The deduction under this section can be claimed only when the premium is paid by any mode other than cash. Also, the central government or the Insurance Regulatory and Development Authority of India (IRDAI) must have approved the insurer. Payment Of Interest On Education Loan Education loans are one of the popular tax saving investments. The tax deduction is available to you on the interest paid on the education loan taken for self, spouse, children, or a student (whose legal guardian is you). The tax deduction on payment of interest on education loan is available under section 80E of the Income Tax Act, 1961. What makes it a good tax saving scheme is the fact that interest paid on education loan is eligible for deduction without any limit. However, to claim deduction under section 80E, you must make sure that the loan is taken for higher education i.e. for any course after the completion of the 12th standard. The deduction on interest is available for a period of eight years from the year in which the payment of interest started. Savings Account Interest Interest in the savings account is eligible for tax exemption. The tax exemption limit on the interest of the bank’s savings account is Rs. 10,000. Therefore, if the interest income from the bank’s savings account is more than Rs. 10,000 then you have to pay tax on it. However, you must remember that the interest on fixed deposits in the bank is not eligible for tax exemption. Donations Donations made to institutions or organisations that are notified by the Central Government of India are eligible for tax exemption. Such deduction is available under section 80G of the Income Tax Act, 1961. However, while availing this income tax saving scheme, the amount donated must not exceed 10 per cent of the adjusted gross total income. Under this tax saving scheme, the donation of more than Rs. 2,000 in cash in not eligible for a tax deduction. Some of the funds that are notified by the government include Swachh Bharat Kosh, Clean Ganga Fund, Prime Minister's Drought Relief Fund, Prime Minister's National Relief Fund, National Children Fund, National Defence Fund, Jawaharlal Nehru Memorial Fund, etc. In addition to the notified institutions, deduction under section 80G is also available on donations given to churches, temples and mosques for renovation purposes. Such churches, temples and mosques must be approved by the Central Government. The above mentioned are some of the popular tax saving funds other than section 80C. It is always advisable to invest in multiple funds to avail the tax deductions. This is because there is a cap of Rs. 1,50,000 lakhs for tax deduction under section 80C. By investing in the other income tax savings schemes, you can avail the deduction of more than Rs. 1,50,000. By exploring other tax saving investment options, you can further reduce your tax liability. If you want to learn more about tax saving funds or need any financial advice, you can contact IndiaNivesh. We are one of the leading broking and financial advisory firm in India with highly qualified professionals who can help you in reducing your tax liability.Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."
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