The IPO market is getting back on track after a lull of two months, with four companies launching their initial share-sales next week to raise Rs 9,123 crore collectively.
The last initial public offering (IPO) was that of Macrotech Developers (erstwhile Lodha Developers), which opened during April 7-9.
Shyam Metalics and Energy Ltd and Sona BLW Precision Forgings (Sona Comstar) will launch their IPOs on Monday, while Krishna Institute of Medical Sciences and Dodla Dairy will be open for public subscription on Wednesday, information with exchanges showed.
In addition, Clean Science & Technology expects to hit the primary markets in the first week of July 2021 with IPO size of Rs 1,500 crore, while India Pesticides is likey to come out with its public issue this month or July, Yash Gupta, Equity Research Associate at Angel Broking, said.
“The equity markets are flushed with liquidity and retail participation is at an all-time high. It is difficult to imagine a better time frame for small and mid cap companies to raise public money. So, it is quite natural for companies to tap the IPO market,” Naveen Kulkarni, Chief Investment Officer, Axis Securities, said.
The companies are raising funds to retire their debt, funding capital expenditure requirement and for general corporate purposes.
Auto component maker Sona Comstar’s Rs 5,550-crore IPO comprises fresh issue of shares amounting to Rs 300 crore and an offer-for-sale (OFS) aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.
The issue, with a price band of Rs 285-291 a share, will open on June 14 and close on June 16.
The Rs 909-crore IPO of Shyam Metalics and Energy Ltd, leading integrated metal producing company, consists of fresh issuance of equity shares worth up to Rs 657 crore and an OFS to the tune of Rs 252 crore by existing shareholders.
The price band has been fixed at Rs 303-306 per share for the IPO, which will open for public subscription during June 14-16.
Krishna Institute of Medical Sciences’ IPO comprises fresh issue of shares aggregating up to Rs 200 crore and an OFS of up to 2,35,60,538 equity shares from promoters and existing shareholders.
Those offering shares in the OFS include General Atlantic Singapore KH Pte Ltd, Dr Bhaskara Rao Bollineni, Rajyasri Bollineni and Bollineni Ramanaiah Memorial Hospitals.
The company has set a price band of Rs 815-825 a share for its three-day initial share-sale, which will conclude on June 18.
At the upper end of the price band, the IPO is expected to fetch Rs 2,144 crore.
The IPO of Dodla Dairy comprises fresh issuance of shares worth up to Rs 50 crore besides an OFS of up to 1,09,85,444 equity shares by TPG Dodla Dairy Holdings Pte Ltd, Dodla Sunil Reddy, Dodla Deepa Reddy and Dodla Family Trust.
The leading dairy company in South India has fixed a price a band of Rs 421-428 a share for its initial share-sale, which will open for public subscription on June 16 and conclude on June 18.
At the upper end of the issue price, the IPO is expected to garner Rs 520 crore.
Shares of these companies will be listed on BSE and NSE.
According to Angel Broking’s Gupta, this will be a very good opportunity for the retail investors to make money due to listing gains in a very short time of period.
So far this year, 17 firms have come out with IPOs to raise Rs 17,503 crore.
Apart from this, companies including Utkarsh Small Finance Bank, Glenmark Life Sciences, Rolex Rings and Seven Islands Shipping have received Sebi‘s go-ahead to float the IPO.
Moreover, around 26 companies are awaiting Sebi’s approval to launch the initial share-sale, data with Sebi showed.
Sandeep Bhardwaj, CEO, Retail at IIFL Securities said that the great IPO story of FY21 will continue well into FY22. There is enough liquidity in the system and robust investor appetite for primary issues.
“Also the pandemic has reset businesses across industries and many rising sectors will look to tap the markets,” he added.