Mumbai: After a short hiatus, Indian primary markets are poised to resume activity with four firms posting their initial public offerings this week. Together, these four companies aim to improve ₹9,132 crores from the sale of their shares.
Shyam Metalics and Energy Ltd, Blackstone-backed auto parts maker Sona BLW Precision Forgings, General Atlantic-backed Krishna Institute of Medical Science (KIMS) hospitals, and TPG Capital-backed Dodla Dairy are due to hit the markets next week …
After a busy start to the first quarter of the calendar year with 16 IPOs, ₹14,994 crores, the primary market from 31 March passed with just one offer – ₹ ₹The sale of Rs 2,500 crores of shares in real estate company Macrotech Developers Ltd, formerly known as Lodha Developers, according to Prime Database.
The Mint said on June 8 that the primary market chill was the result of tough new guidelines for merchant bankers and other intermediaries imposed by the Securities and Exchange Board of India (Sebi), but the regulator is delaying some of them. According to the June 2 circular, activity is expected to pick up again from the second half of June.
“The markets are at an all-time high and this is the perfect time to capitalize on this market euphoria. The desire of many companies to go public is justified, ”said Aditya Kondavar, Chief Operating Officer 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 in size ₹285-292 and Shyam Metalics fixed the price range at ₹303-306 promotion.
Sona BLW Precision will increase almost ₹Rs.5,550 crores including fresh issue ₹Rs.300 crores and offer for sale ₹5250 Singapore VII Topco III Pte Ltd, a subsidiary of Blackstone. Shyam Metalics will rise around ₹Rs 909 crore which includes the fresh issue ₹Rs 657 crores and OFS ₹Rs 252.
Both KIMS and Dodla Dairy IPO will open for subscription on June 16 and close on June 18. KIMS has set a price range ₹815-825 per share, and the price range of Dodla Dairy will be at the level of ₹421-428 per share. KIMS will raise almost ₹Rs 2,143, while Dodla Dairy will raise almost ₹Rs 530 crores via IPO.
“Investor appetite for upcoming IPOs is likely to be high given the sound business models of most companies. In addition, given the rise in the number of NFOs launched in recent months by domestic mutual funds, they will be looking to channel money towards upcoming IPOs, which equally offers the prospect of healthy growth over the long term. However, as most IPOs have been valued with strong growth prospects in the coming years, significant listing gains appear to be limited. Investors should participate in these IPOs with a long-term perspective, ”said Binod Modi. Head of Strategy at Reliance Securities.
Having multiple IPOs in one week is also a factor in the long flow of share sales: almost 40 companies have submitted a preliminary prospectus to Sebi since the beginning of the year. Many of these issuers have received Sebi approval for their deal and will be looking for the right time to go ahead with an IPO.
To be sure, while many of the IPOs that have entered the markets in the past two to three quarters have been able to generate significant listing gains for investors, and the recent short-term drought of new launches may spark some investor interest in the upcoming IPOs, analysts suggest that investors need to be careful when choosing The IPO they want to support.
“We believe that most of the high net-worth investment funds should be directed towards the IPOs of Shyam Metalics and Dodla Dairy. While the remaining two IPOs may receive a low-key response. Anchor lists of all four IPOs can play a key role in determining the final demand during the IPO, ”R.K. Gupta, Mantra IPO Advisor.
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