Two companies Star Health and Allied Insurance Company and Tega Industries are expected to launch their initial public offerings (IPOs) next week to cumulatively raise Rs 7,868 crore.
The initial three-day sale of Star Health shares will open on November 30 and end on December 2, while that of Tega Industries will be open for public subscription from December 1 to 3.
It comes after 10 companies successfully closed their initial public offerings in November.
So far in 2021, up to 51 companies have launched their IPOs to raise more than Rs 1 lakh crore, according to data analysis with exchanges.
Apart from that, PowerGrid InvIT, the Infrastructure Investment Trust (InvIT) sponsored by the Power Grid Corporation of India, recovered Rs 7,735 crore from its IPO and Brookfield India Real Estate Trust raised 3 800 crore rupees through its initial stock sale.
Fundraising so far this year is well above the Rs 26,611 crore raised by 15 companies through initial share sales throughout 2020.
Such impressive fundraising via IPOs was last seen in 2017, when companies raised Rs 67,147 crore through 36 IPOs.
Star Health’s IPO includes a new issue of shares valued at Rs 2,000 crore and an offer to sell up to 58,324,225 shares by existing promoters and shareholders.
Those offering shares as part of the offer for sale are the promoter and group of promoters – Safecrop Investments India LLP, Konark Trust, MMPL Trust – and the existing investors – Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai.
Star Health has set a price range of Rs 870-900 per share and at the high end of the price range the initial sale of the share is expected to reach Rs 7,249.18 crore.
The proceeds of the new issue would be used to increase the capital of the company.
Star Health, the country’s leading private health insurer, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.
The IPO of Tega Industries, manufacturer of consumables for the mining industry, is purely an offer to sell 1,3669,478 shares by the promoters and an existing shareholder.
As part of the sale offer, promoters Madan Mohan Mohanka will unload up to 33.14 lakh capital shares and Manish Mohanka will sell 6.63 lakh capital shares.
In addition, Wagner, a subsidiary of US-based private equity firm TA Associates, will get rid of 96.92 lakh shares through the offer to sell.
The price range has been set at Rs 443-453 per share and the upper end of the price range, the initial public offering is expected to reach Rs 619.22 crore.
Tega Industries, based in Kolkata, provides complete solutions to renowned global customers in the mineral enrichment, mining and bulk solids handling industry through its broad product portfolio.
The shares of both companies will be listed on the BSE and the NSE.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.
As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.