Mumbai: After a brief hiatus, India’s primary market is ready for action: Up to four companies have lined up initial public offerings over the coming week, seeking to raise a total of â¹9,132 crore in share sales.
These companies are steel producer Shyam Metalics and Energy Ltd, auto parts maker backed by Blackstone Sona BLW Precision Forgings, hospital chain backed by General Atlantic Krishna Institute of Medical Science (KIMS) and Dodla Dairy backed by TPG Capital.
After a busy start to the first quarter of the calendar year, which saw 16 IPOs increase â¹14,994 crore, the primary market has calmed down. There has been only one IPO since March 31, the â¹Sale of 2,500 crore of shares of real estate firm Macrotech Developers Ltd, formerly known as Lodha Developers, according to data from leading market tracker Prime Database.
The cooling of the primary market was the result of strict new guidelines for investment bankers and other intermediaries introduced by the Securities and Exchange Board of India (Sebi). But the regulator having delayed the implementation of some of these provisions in a circular of June 2, activity should resume its pace from the second half of June.
âThe markets are at an all time high and now is the perfect time to take advantage of the market euphoria. The rush of many companies to be listed is justified, âsaid Aditya Kondawar, COO of JST Investment.
Sona BLW Precision Forgings and Shyam Metalics and Energy will open for subscription on June 14 and close on June 16. Sona BLW has set a price range of â¹285-292, and Shyam Metalics set their price range at â¹303-306 per share.
Sona BLW Precision aims to lift nearly â¹5,550 crore, consisting of a new issue of â¹300 crore and a sale offer of â¹5,250 crore by Singapore VII Topco III Pte Ltd, a subsidiary of Blackstone. Shyam Metalics is trying to stand up â¹909 crore, which includes a new issue of â¹657 crore and a sale offer of â¹252 crores.
KIMS and Dodla Dairy will open for subscription on June 16 and close on June 18. KIMS has set a price range of â¹815-825 a share and Dodla Dairy â¹421-428 per share, aimed at increasing â¹2,143 crores and â¹530 crores, respectively.
âInvestor appetite for upcoming IPOs is likely to be high given the strong business model of most companies. Also, given the surge in NFOs (new fund offerings) launched in recent months by domestic mutual funds, they would be looking to deploy money for upcoming IPOs, which also offer good prospects for trading. long-term growth. However, since most IPOs have been reasonably priced, given the high growth prospects, significant listing gains appear to be limited. Investors should participate in these IPOs with a long-term perspective, âsaid Binod Modi, head of strategy at Reliance Securities.
The consolidation of many IPOs into a single week is the result of a long pipeline of share sales with nearly 40 companies filing their draft red herring prospectuses with Sebi since the start of the year. Many of these issuers have been given the green light from Sebi and will be looking for the right time to launch their IPOs.
While the recent drought in launches may spark some excitement among investors after several IPOs over the past 2-3 quarters have generated solid listing gains, analysts said investors should be careful when they are trading. choose which IPOs they want to support.
âWe believe most high net worth investor funds need to be routed to the IPOs of Shyam Metalics and Dodla Dairy, while the other two IPOs could see a mixed response. Principal investors in all four IPOs can play a key role in determining final demand in IPOs, âsaid RK Gupta, advisor at IPO Mantra, a primary market consultancy.
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