The primary market activity seems to be indicating that we are going to see unstoppable action in the IPO market as five public issues will hit Dalal Street apart from three listings this week.
The total fundraising via these public offerings would be Rs 857 crore, including Rs 170 crore by SME (small and medium enterprise) segment.
Noida-based hospital chain Yatharth Hospital and Trauma Care Services is the only IPO from the mainboard segment, opening for subscription on July 26 with a price band of Rs 285-300 per share. The closing date for the offer would be July 28.
The company is planning to raise Rs 686.55 crore via its maiden public issue, at the upper price band. The offer comprises a fresh issuance of shares worth Rs 490 crore and an offer for sale (OFS) of 65.51 lakh equity shares by promoters.
Given the lot size of 50 shares and in multiples of 50 shares thereafter, retail investors can invest a minimum of Rs 15,000 crore (one lot of 50 shares X Rs 300) and the maximum investment by them would be Rs 1.95 lakh (13 lots X Rs 300).
The fresh issue proceeds will be utilised to repay debts, capital expenditure for hospitals and funding inorganic growth initiatives.
Yatharth Hospital will make its debut on the bourses on August 7, as per the IPO schedule.
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On the listing front, the trading in high-end computing solutions provider Netweb Technologies India will take place on July 27 after closing the Rs 631 crore public issue last week, which was subscribed by over 90 times.
Netweb shares traded with a 75 percent premium over the expected final issue price of Rs 500 per share, in the grey market, analysts said on anonymity. The grey market is an unofficial platform for trading in IPO shares till the listing.
SME Segment
The flood of IPOs continued in the SME segment, as we will have four public issues hitting Dalal Street with total fundraising of over Rs 170 crore.
Chennai-based jewellery products maker Khazanchi Jewellers will be opening its Rs 96.74 crore public issue on July 24, with an issue price of Rs 140 per share. The closing date for the offer would be July 28.
The entire issue proceeds, excluding issue expenses, will be used mainly for the establishment of the new showroom in Chennai and to meet the working capital requirements of the existing operations.
Public issue of dyes manufacturer Yasons Chemex Care will also be opening on July 24, with an offer price of Rs 40 per share. The company intends to raise Rs 20.57 crore via an IPO of 51.42 lakh shares, comprising only fresh issue.
The utilisation of the funds for the incremental working capital requirement is the main objective of the public issue that will close on July 26.
Also read: Is 2023 going to be the stellar season for IPOs?
Shri Techtex will be the third IPO in the SME segment. The offer will open on July 26 and close on July 28, with a price band of Rs 54-61 per share.
The polypropylene non-woven fabric maker is planning to mop up Rs 45.14 crore via the public issue of 74 lakh shares. The funds will be utilised for the construction of a factory shed, commissioning of a solar plant, purchase of machinery and to meet working capital requirements.
Direct marketing solution provider Innovatus Entertainment Networks is also going to open its IPO on July 25 with a target to raise Rs 7.74 crore. The offer will close on July 27 and the issue price is Rs 50 per share.
Yasons Chemex Care and Shri Techtex will list equity shares on the NSE SME Emerge on August 3 and August 7, respectively, while Innovatus Entertainment Networks and Khazanchi Jewellers will make their debut on the BSE SME on August 4 and August 7, respectively, according to IPO schedule.
On the listing front, we will have listing of Service Care on the NSE SME on July 26 and Asarfi Hospital on the BSE SME on July 27. These public issues were subscribed over 6 times and 195 times.
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