Busy schedule for primary market as 4 big IPOs open next week amid Dalal Street slump

IPOs Schedule for Next Week

After a quiet week passed by, the primary market will see a lot of action next week starting from November 4 as four big IPOs will hit Dalal Street, including the much-awaited Swiggy IPO from the mainboard segment, apart from only one public issue from the SME segment.

This optimism is despite the bearish rule of Dalal Street since October. The benchmark Nifty 50 shed 7.5 percent from its record high of September 27, dented by the weak September quarter earnings, a shift in FII flow from India (due to high valuations) to attractively valued countries like China, and geopolitical tensions in the Middle East. Even in this correction, six mainboard companies including Hyundai Motor India's mega IPO successfully closed in October, raising Rs 38,700 crore.

Hence, November is also expected to be on similar lines as Swiggy, the second biggest IPO of the current year, will be opening next week and experts believe is expected to be making a good start to the Samvat 2081. A total of 85 companies in the mainboard segment raised Rs 1.21 lakh crore via IPOs in Samvat 2080, while in the first week of Samvat 2081, four companies will be raising Rs 18,534 crore via their public issues, which is 15 percent of the amount raised in last Samvat.

Sagility India IPO

Healthcare-focused services provider Sagility India will be the first amongst four companies to open its Rs 2,107-crore initial share sale next week, on November 5. The price band for the issue, which closes on November 7, has been fixed at Rs 28-30 per share.

The IPO comprises solely an offer-for-sale of 70.2 crore equity shares by its promoter Netherlands-based Sagility BV, an affiliate of global investment firm EQT Private Capital Asia. In addition to the IPO, the promoter already raised Rs 366 crore by selling its Rs 2.61 percent stake in Sagility India to nine institutional investors on October 30-31.

Swiggy IPO

The next will be Swiggy, the country's second-largest food delivery giant, which is scheduled to open for subscription on November 6. The price band for Rs 11,327-crore initial share sale has been set at Rs 371-390 per share.

The IPO is a combination of fresh issuance of equity shares worth Rs 4,499 crore and an offer-for-sale of 17.5 crore shares worth Rs 6,828.4 crore at the upper price band. The offer subscription will close on November 8.

Post issue, this will be the second listed company in the food delivery space after Zomato.

ACME Solar Holdings IPO

Gurugram-based ACME Solar Holdings, one of the largest producers of electricity from wind and solar energy in India, will also launch its Rs 2,900-crore initial public offering on November 6, with a price band at Rs 275-289 per share. The subscription to the offer will be closing on November 8.

The IPO is a mix of a fresh issue of Rs 2,395 crore worth of shares by the company and an offer-for-sale of Rs 505 crore worth of shares by promoter ACME Cleantech Solutions.

Niva Bupa Health Insurance IPO

Niva Bupa Health Insurance Company will be the fourth IPO from the mainboard segment, opening on November 7 and closing on November 11.

The Rs 2,200-crore maiden public issue is a combination of a fresh issue of Rs 800 crore, and an offer-for-sale of Rs 1,400 crore by promoters Bupa Singapore Holdings Pte, and global private equity firm True North-owned Fettle Tone LLP. The price band for the issue will be announced on coming Monday.

Post issue, this will be the fourth health insurer getting listed on the bourses after Star Health and Allied Insurance Company, ICICI Lombard General Insurance Company, and The New India Assurance Company.

Neelam Linens and Garments IPO

Meanwhile, this will be only one public issue from the SME segment next week. The soft home furnishing company will open its Rs 13-crore initial share sale on November 8 and close on November 12. The price band for the book-built issue has been fixed at Rs 20-24 per share.

Listing Next Week

Shapoorji Pallonji group-owned engineering and construction company Afcons Infrastructure will debut on the bourses on November 4. Experts expect it to start possibly on a flat to negative note considering the lower-than-expected subscription of 2.63 times for its Rs 5,430-crore IPO. The issue price has been fixed at Rs 463 per share.

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