After a lackluster period due to the second wave of COVID-19, IPOs are back, with three companies – Shyam Metalics, Sona Comstar and Navoday Enterprises – all set to launch their initial public offerings next week. All three will launch their IPOs on June 14.
The national stock market showed decent resilience in the middle of the second wave with limited impact. The market continued its uptrend, with the benchmark Nifty hitting a record high in June.
With the slow recovery in economic activity and the cheers of investors, experts believe the time has come for companies to go public.
Read also: IPO market action set to pick up, market experts say
“We believe this will be a very good opportunity for the retail investor to make money from the quotation gains in a very short period of time,” said Yash Gupta, Equity Research Associate Angel Broking.
Here are the details of the IPO opening next week:
Metallic Shyam & Energy
Steelmaker Shyam Metalics & Energy will launch its IPO on June 14 at a price range of Rs 303 to 306 per share. The public issue of Rs 909 crore includes a new issue of a maximum of Rs 657 crore and an offer to sell (OFS) up to Rs 252 crore by the promoters.
The three-day offer ends on June 16. It will open for one day on June 11 for key investors. Investors can make minimum bids for 45 shares and in multiples of 45 shares thereafter.
The company proposes to use the proceeds of the new issue for debt repayment and general corporate purposes.
The initial public offering of automotive components maker Sona Comstar will open for subscription on June 14 and close on June 16. The price range for the issue has been set at Rs 285-291 per share.
The Rs 5,550 crore offer includes a new issue of Rs 300 crore and an offer to sell up to Rs 5,250 crore by Singapore VII Topco III Pte Ltd.
Blackstone will sell half of its stake and own just over 33% of Sona Comstar.
The company proposes to use the new product of the show to repay debts and for general business purposes. The issue market lot size is 51 shares and a private investor can request up to 13 lots.
Navoday Enterprises, a marketing and event management company, will also launch its IPO on June 14 with a price range set at Rs 20 apiece.
The SME aims to raise around Rs 46.08 crore from the issue which closes on June 17th. The shares will be listed on the BSE SME platform.
Going forward, the second half of 2021 is expected to see a number of listings, as many companies have filed their draft prospectus for IPOs with the capital market regulator. Securities and Exchange Board of India (Sebi).
Many companies have also received the green light from SEBI. Investors would eagerly await IPOs of companies like LIC, Zomato, Paytm, GoAir, among others.