Given the optimistic mood at Dalal Street with benchmark indices as well as broader markets and several sectors achieving new milestones day after day, the primary market also seems to be more energetic now providing several investment opportunities for investors as a total of 12 companies will be opening their initial public offerings this week along with lined up of eight new listings.
More than Rs 4,600 crore of fundraising will be taking place by the 12 companies in the coming week starting from December 18, after nearly Rs 4,000 crore worth of IPOs launched in the last week ended December 15.
All the optimism is attributed to the strong economic growth, increasing hopes for policy continuation after recent state election results, easing monetary policy by central banks in the coming year, favourable oil prices, expectations of strong earnings growth and healthy domestic money flow.
With the upcoming week's data, the total fundraising by 239 companies is going to be Rs 57,720 crore in the current calendar year including SMEs, which is lower than Rs 61,900 crore of 150 IPOs launched in the previous year.
Also read: Muthoot Microfin IPO: 10 things to know before you invest in Rs 960-crore issue
"The trend of a high volume of IPOs in India is likely to persist into 2024, buoyed by strong economic initiatives and the evolving maturity of Indian startups. With over 65 IPO filings already with SEBI, and many approved, the upcoming year promises to be active for the Indian IPO market," Sonam Srivastava, founder, and fund manager at Wright Research, PMS said.
Microfinance institution Muthoot Microfin will be the first among the eight companies launching an IPO next week on December 18, with a price band of Rs 277-291 per share. It intends to raise Rs 960 crore through public issue at the upper price band. The closing date will be December 20.
It has already raised Rs 285 crore via anchor book on December 15, a day before the issue opening.
The Jaipur-based jewellery retailer will also be opening its Rs 151-crore IPO during December 18-20, with a price band at Rs 52-55 per share.
Ahead of its IPO, Motisons Jewellers has mopped up Rs 36.3 crore from a couple of anchor investors on December 15.
Along with Muthoot and Motisons, the Mumbai-based real estate developer, too, is ready to launch its Rs 400-crore maiden public issue during the same period, i.e. December 18-20. The price band has already been fixed at Rs 340-360 per share.
Of the total issue size, it has already mobilised Rs 120 crore from several anchor investors on December 15.
The following day, i.e. December 19, will also be busy next week with other three IPO launches. Happy Forgings, the Punjab-based heavy forgings and high-precision machined components maker will open its Rs 1,009-crore public issue for subscription during December 19-21, with a price band at Rs 808-850 per share.
Also read: Happy Forgings IPO: 10 things to know before you buy into Rs 1,009-crore issue
The Rs 100-crore maiden public issue by the antique bridal gold jewellery maker will also open during the same period i.e. December 19-21.
The Ahmedabad-based company has set a price band for its IPO at Rs 95-100 crore. This will be the fourth company coming out with IPO in current calendar year, after Motison Jewellers, Senco Gold and Vaibhav Jewellers.
The Mumbai-based Mufti Jeans brand owner will be the third company getting ready for IPO launch next week during December 19-21.
Also read: Mufti Menswear IPO: 10 things to know before subscribing to Rs 549-crore issue
Credo Brands aims to raise Rs 549.78 crore via initial public offering at the higher end of price band of Rs 266-280 per share.
The Rs 740-crore Azad Engineering IPO will be opening for subscription on December 20, with a price band at Rs 499-524 per equity share. The bidding for the offer will close on December 22.
The Telangana-based company manufactures products for global original equipment manufacturers in the energy, aerospace and defence, and oil and gas industries.
This will be the last public issue in the mainboard segment for the upcoming week. The subscription for IPO by the Himachal Pradesh-based pharmaceutical finished dosage formulation manufacturing company will start on December 21 and continue will December 26.
The contract development and manufacturing organization in the pharma industry is planning to raise Rs 570 crore via public issue. The price band for the offer has been fixed at Rs 426-448 per share.
Cryogenic storage tanks manufacturer Inox India will be closing its Rs 1,459-crore public issue in the coming week on December 18. It was opened for subscription on December 14, with a price band at Rs 627-660 per share.
In the last two days, the issue has seen 7.14 times subscriptions.
Small and medium Enterprise (SME) segment
In the SME segment, there will be four companies ready to launch their maiden public issues next week. Sahara Maritime will be the first amongst them, opening Rs 6.88-crore IPO on December 18. The fixed price issue will close on December 20 and the issue price has been fixed at Rs 81 per share.
The initial public offerings by Shanti Spintex, and Electro Force (India) will be open for subscription during December 19-21. The former is planning to mobilise Rs 31.25 crore via IPO at the upper end of the price band of Rs 66-70 per share, while Electro intends to raise Rs 80.68 crore at a fixed issue price of Rs 93 per share.
The subscription for Trident Techlabs IPO will be starting from December 21 and will continue till December 26, with a price band of Rs 33-35 per share. The total fundraising by the firm is Rs 16.03 crore.
Shree OSFM E-Mobility, Siyaram Recycling Industries and Benchmark Computer Solutions will be closing their public issues on December 18. All three IPOs opened for bidding on December 14.
In the last two days, the Shree OSFM E-Mobility IPO subscription stood at 2.88 times, Siyaram Recycling Industries at 55.79 times, and Benchmark Computer Solutions at 28.54 times.
Listings Next Week
In the mainboard segment, stationery and art products manufacturing company Doms Industries, and affordable housing finance company India Shelter Finance Corporation are set to list on the bourses on December 20, while Inox India will debut on December 21, i.e in the T+3 timeline.
Also read: IPO Weekly Wrap: DOMS, India Shelter Finance, Inox and 8 SME issues in market spotlight
On the SME segment front, there will be five listings. Presstonic Engineering and S J Logistics (India) will debut on the NSE Emerge on December 18 and December 19, respectively, while Shree OSFM E-Mobility will list shares on December 21.
Further, the trading in Siyaram Recycling Industries and Benchmark Computer Solutions shares on the BSE SME will also commence with effect from December 21.
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