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After some quiet weeks, the primary market getting busy again in June with at least four public issues—Sona Comstar, Shyam Metalics, Dodla Dairy and KIMS Hospitals—hitting the street next week.
The year 2021 is shaping up well for public issues. So far, 19 IPOs, including those of Brookfield REIT and PowerGrid Infrastructure Investment Trust, have raised more than Rs 29,000 crore in 20201.
The four IPOs are expected to raise another Rs 9,122.92 crore. Once these four IPOs close, the count of public issues—23—will not only be higher than that of 2020 in which 16 such offers were launched but also the funds raised. The 23 IPOs would raise more than Rs 38,100 crore compared to Rs 31,000 crore in the previous year.
"We expect this will be a very good opportunity for the retail investor to make money due to listing gains in a very short time of period," said Yash Gupta Equity Research Associate at Angel Broking.
The four IPOs hitting the street next week:
Sona BLW Precision Forgings
Blackstone-backed automotive technology company Sona BLW Precision Forgings (Sona Comstar) will open its initial public offering for subscription on June 14 and will close on June 16. The price band for the offer has been fixed at Rs 285-291 per equity share.
The public issue of Rs 5,550 crore comprises a fresh issue of Rs 300 crore and an offer for sale of Rs 5,250 crore by Singapore VII Topco III Pte Ltd, an affiliate of The Blackstone Group Inc. The company has garnered Rs 2,498 crore from anchor investors on June 11.
The company intends to use net proceeds from fresh issue for repaying a debt of Rs 241.12 crore and general corporate purposes. Bids can be made for a minimum of 51 equity shares and in multiples of 51 shares thereafter.
Sona BLW is primarily engaged in designing, manufacturing and supplying of highly engineered, mission-critical automotive systems and components to automotive original equipment manufacturers (OEMs).
At the time of filing the red herring prospectus, Sona Autocomp Holding and Singapore VII Topco III Pte Ltd were the only shareholders in the company with a 33.72 percent stake and a 66.28 per share shareholding, respectively.
Also read: A look at the 5 IPOs that will hit the Street next week
Shyam Metalics and Energy
The Rs 909-crore initial public offering of Shyam Metalics and Energy will open for bidding on June 14. The price band for the offer has been fixed at Rs 303-306 per equity share.
The offer comprises a fresh issue of Rs 657 crore and an offer for sale of Rs 252 crore by the selling shareholders. The company already mopped up Rs 270 crore from anchor investors on June 11.
The proceeds from the fresh issue will be used for servicing the debt Rs 470 crore and general corporate purposes. The offer closes on June 16.
Investors can bid for a minimum of 45 equity shares and in multiples of 45 shares thereafter. The minimum investment amount for retail investors will be Rs 13,770, and Rs 1,92,780 will be the maximum investment at a higher end of the price band.
Shyam Metalics is a leading integrated metal producing company with a focus on long steel products and ferro alloys. It is among the largest producers of ferro alloys in terms of installed capacity in India, as of February 2021.
The company operates three manufacturing plants in Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of December 2020, the aggregate installed metal capacity of the plants was 5.71 million tonne per annum (MTPA). Its manufacturing plants also include captive power plants with an aggregate installed capacity of 227 MW, as of December 2020.
TPG-backed Dodla Dairy will be the third initial public offering to open next week on June 16, with a price band at Rs 421-428 per share.
The IPO consists of a fresh issue of Rs 50 crore and an offer for sale of up to 1,09,85,444 equity shares. The offer for sale comprises 92 lakh equity shares by investor TPG Dodla Dairy Holdings Pte Ltd, and 4,16,604 equity shares by Dodla Sunil Reddy, 10,41,509 shares by Dodla Family Trust and 3,27,331 equity shares by Dodla Deepa Reddy. Dodla Sunil Reddy, Dodla Family Trust, and Dodla Deepa Reddy are part of the promoter and promoter group.
Bids can be made for a minimum of 35 equity shares and in multiples of 35 thereafter. Investors can invest for a minimum of Rs 14,980 worth of shares and a maximum of Rs 1,94,740 worth of shares.
The Hyderabad-based dairy company will utilise fresh issue proceeds for repaying debt of Rs 32.26 crore and for capital expenditure requirements of Rs 7.15 crore. As of December 31, 2020, the company had a total outstanding debt off Rs 87.37 crore comprising term loans, working capital facilities and NCDs.
Dodla Dairy is an integrated dairy company based in south India primarily deriving all of its revenue for FY20 and for the nine months period ended December 2020 from the sale of milk and dairy based value-added products (VAPs) in the branded consumer market.
Its operations in India are primarily across Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra, with brands Dodla Dairy, Dodla and KC+, while overseas operations are based in Uganda and Kenya with brands Dodla Dairy, Dairy Top and Dodla+.
Krishna Institute of Medical Sciences
The public issue of General Atlantic-backed Krishna Institute of Medical Sciences (KIMS Hospitals) will open for bidding on June 16 and close on June 18. The price band of the offer has been fixed at Rs 815-825 per share.
The IPO comprises a fresh issue of Rs 200 crore and an offer for sale of 2,35,60,538 equity shares by existing selling shareholders. The offer for sale consists of 1,60,03,615 equity shares by General Atlantic Singapore KH Pte, 3,87,966 shares by Dr Bhaskara Rao Bollineni, 7,75,933 shares by Rajyasri Bollineni, 3,87,966 shares by Bolllineni Ramanaiah Memorial Hospital, 60,05,058 shares by others.
The offer includes Rs 20 crore worth of shares set aside for the company's employees who will receive shares at a discount of up to Rs 40 per share on the final offer price.
The total fund raising would be Rs 2,143.74 crore at the higher end of the price band. The company will utilise fresh issue proceeds for repayment of certain borrowings of Rs 150 crore, and general corporate purposes.
Investors can apply for a minimum of 18 equity shares and in multiples of 18 thereafter. The minimum investment amount for retail investors would be Rs 14,850 and the maximum amount Rs 1,93,050.
Krishna Institute of Medical Sciences is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of number of patients treated and treatments offered.
The company operates nine ulti-specialty hospitals under the 'KIMS Hospitals' brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of March 31, 2021, which is 2.2 times more beds than the second-largest provider in AP and Telangana.