IPO market set for a busy week; 4 firms to raise ₹4,500 cr via public offer

Regarding the IPO market, Vinod Nair, Head of Research at Geojit Financial Services said, “The secondary market activity has led to a weakening of the IPO market in 2022 and is expected to continue.”

However, Nair added, “Investor response to the IPOs offered has been favorable given the opportunity to invest in new companies at attractive prices. This is also in the context of increased liquidity available to HNIs and retail investors looking for listed gains. .mostly, IPOs were also attractive for institutional investors to invest in high-quality new businesses and diversify plans.”

Here is the list of 4 IPOs that will be launched next week.

DCX IPO Systems:

Starting operations in 2011, DCX Systems is among India’s leading players for manufacturing electronic sub-systems and cable harnesses in terms of manufacturing capacity and revenue in Fiscal 2022 in the defense and aerospace sector.

The company is primarily engaged in system integration and manufacturing a wide range of cables and wiring harness assemblies and is also involved in kitting.

The DCX Systems IPO will open on October 31 and will be available for subscription until November 2, 2022. The company plans to add on ₹500 billion through the issue.

An IPO consists of a valuable new issue ₹400 billion and an offer to sell up to ₹100 billion. The price range is fixed for the issue ₹197 per share ₹207 per share.

The total number of shares will be 1,45,11,146 equal shares. Of the total issue, 75% of the IPO is earmarked for qualified institutional buyers (QIBs), while 15% is earmarked for non-institutional investors (NIIs) and the remaining 10% is earmarked for retail investors. .

On October 28, the company collected ₹225 crore from anchor investors such as HDFC Mutual Fund, Motilal Oswal Mutual Fund, and BNP Paribas Arbitrage among others.

The minimum amount issued in the IPO is 72 equal shares.

Companies like Edelweiss Finance Services, Axis Capital, and Saffron Capital Advisors are acting as lead book managers.

Fusion Microfinance IPO:

The company is backed by global private equity firm Warburg Pincus. It provides financial services to underprivileged women across India to facilitate their access to greater economic opportunities.

ICICI Securities, CLSA India, JM Financial, and IIFL Securities are the lead managers for the IPO.

The Fusion Microfinance IPO is scheduled to open on November 2nd and close on November 4th. The problem constitutes a valuable new problem ₹600 crore and an offer for sale (OFS) of 13,695,466 equity shares by the promoters and existing shareholders.

Under OFS, developers like Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA, and Global Financial Inclusion Fund will participate.

For an IPO, the price threshold is fixed at ₹350 per share and ₹368 per share respectively.

Global Health IPO:

Global Healthcare, which operates Medanta Hospitals, is one of the largest multi-specialty tertiary care providers operating in the North and East regions of India in terms of bed capacity and operating revenues as of March 31, 2022. The main specialties of the company are in cardiology. and cardiac sciences, neurosciences, oncology, digestive and liver sciences, orthopedics, liver transplantation, and kidney and urology, according to the CRISIL Report.

Global Health will launch its IPO on November 3rd to raise the stake ₹2,205 billion. The offer will be available for subscription until November 7.

An IPO consists of a new issue that is put together ₹500 crore and an offer for sale (OFS) of about 5.08 equity shares by the promoters. The selling shareholders include – Anant Investments and Sunil Sachdeva.

The lead managers of the IPO are – Kotak Mahindra Capital, Credit Suisse Securities (India), Jefferies India, and JM Financial.

Of the total issue size, 50% of the IPO will be allocated to qualified institutional buyers (QIBs), while 15% of the growth will be reserved for non-institutional investors and the remaining 35% for retail individuals.

The price range for the IPO is fixed ₹319 per share and ₹336 per share respectively.

Bikaji Foods IPO:

The company is the third largest ethnic food company in India with an international footprint, selling Indian snacks and sweets, and the second fastest growing company in the organized Indian snack market.

In fiscal year 2022, Bikaji is the largest producer of Bikaneri bhujia with an annual production of 29,380 tons, and the second largest producer of handmade papad with an annual production capacity of 9,000 tons.

The Bikaji IPO is simply an offer for sale (OFS) of up to 29,373,984 equivalent shares. The retail partners in OFS are — Shiv Ratan Agarwal, Deepak Agarwal, India 2020 Maharaja, Intensive Softshare, and IIFL Private Opportunities.

The company plans to add on ₹900 billion from the issue. The price band is expected to be announced next week.

The IPO will open on November 3. Subscriptions here will be allowed until November 7th. Of the total size, 50% of the issue will be allocated to QIBs, 15% to NIIs, and the remaining 35% to retail. investors.

JM Financial, Axis Capital, IIFL Securities, Strong Financial Services, and Kotak Mahindra Capital Corporation are the lead managers for the IPO.