SEBI new rules🛑, SFB QIP issue price💹, BigBasket acquires Agrima Infotech🛒

SEBI plans new rules for IPOs, SFB has set a price of Rs53.59 per share, BigBasket has acquired startup Agrima Infotech, Funding Deals & more.

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Feb 21, 2022

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Sebi plans tougher pricing norms for startup IPOs amid share meltdown🚫

Market regulator SEBI has proposed that new-age technology startups, planning for IPOs, should first disclose their key performance indicators considered for arriving at the basis of issue price in the offer documents.

If the draft of proposals floated by the market regulator in a discussion paper is approved, companies will have to provide a relatively detailed explanation of how they have priced their issue, compare that to pre-IPO share sales, and also disclose all the presentations made to pre-IPO investors.

Sebi Plans Tougher Disclosure Norms for New-age Cos’ IPOs

As a result, the regulator believes the disclosures made under the ‘Basis of Issue Price’ section in an offer document need to be “supplemented with non-traditional parameters” and other key performance indicators (KPIs). The issue assumes significance; lately, there has been an increase in IPO filing by companies with no profit-making track record.

Equitas Small Finance Bank sets QIP issue price at Rs 53.59 per share🏦

Equitas Small Finance Bank (SFB) has fixed the price for its proposed QIP issue at Rs 53.59 per share.

The bank in October 2021 had said that it will raise up to Rs 1,000 crore through a qualified institutional placement (QIP) in order to fulfill the regulatory norms regarding minimum public shareholding.

The merger committee approved the closure of the issue period for the issue on February 18, 2022. The committee determined and approved the issue price of Rs 53.59 per equity share, which takes into account a discount of 4.98 per cent to the floor price of Rs 56.40 per equity share, it said.

As per RBI guidelines for SFBs, if a promoter holds more than 40 percent stake in the subsidiary, it should be brought down to 40 percent within a period of five years from commencements of banking operations. Here, the applicable date is September 4, 2021.

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What is QIP?

Qualified institutional placement (QIP) is a way through which listed companies can raise capital from institutional investors like mutual funds and private equity players. A company can raise capital through this route by issuing equity shares or any other securities which can be converted into equity shares. The company usually sets a floor price for the QIP for the shares. Also, individual or retail investors are not allowed to participate in QIP.

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BigBasket acquires Kerala-based startup Agrima Infotech👨🏻‍🌾

Tata Group-owned etailer BigBasket on Saturday announced that it has acquired the enterprise business unit of a deep-tech company Agrima Infotech in a bid to revolutionize offline retail.

As part of the deal, BigBasket will implement Agrima Infotech’s computer vision technology platform, Psyight, at the self-checkout counters of its retail stores. Psyight, created by Anoop Balakrishnan, Arun Ravi and Nikhil Dharman under Agrima Infotech, helps identify all Indian fruits and vegetables uniquely from an image without using barcodes.

COO and co-founder of the startup, Arun Ravi said, “Detecting raw food items such as fruits and vegetables uniquely from an image is a complex machine vision problem…We have captured thousands of images of each SKU (stock-keeping unit) across the seasons and from different locations to achieve cent percent accuracy.”

“BigBasket will use this expertise on AI (artificial intelligence) and ML (machine learning) to enrich and enhance a whole lot of technological innovation in the company,” Hari Menon, CEO, BigBasket said.