The primary market is gearing up for another stellar week as three companies are set to launch their initial public offerings (IPOs) in the upcoming week to raise just over Rs 2,700 crore. With political stability restored, stock markets are once again on the rise, with Nifty and Sensex hitting record highs.
Optimism is especially pronounced in the IPO market, as Hyundai Motor India, the country's second-largest carmaker, is planning a huge Rs 25,000 crore IPO this year, which would be the biggest in India's history.
Additionally, India's solid macroeconomic environment and promising growth prospects create an ideal backdrop for this vibrant IPO market. Analysts expect significant capital to be deployed in public markets and strong demand for both new-age and conventional companies in the near-term.
In the coming week, the IPOs of Emcure Pharmaceuticals, in which shark tank fame Namita Thapar is the Executive Director and Bansal Wire will open for subscription in the mainboard segment, while Ambey Laboratories is the sole SME issue.
Apart from the above 3 public offers, the Street will see as many 11 listings including that of Allied Blenders and Vraj Iron and Steel, which received healthy investors' response for their IPOs in the week gone by.
Emcure Pharma IPO
Pune-based Emcure Pharmaceuticals is set to launch its maiden public issue for subscription on July 3 and will close on July 5. It has fixed a price band of Rs 960 to Rs 1,008 per share for its Rs 1,952-crore IPO.
The issue is a mix of fresh issuance of equity shares worth Rs 800 crore, and an offer-for-sale (OFS) of 1.14 crore equity shares by existing shareholders including promoters. The anchor book of the issue will be launched for a day on July 2.
Also Read | Emucare Pharma sets price band of Rs 960-1008 a share for upcoming IPO
Promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta are the selling shareholders in the OFS. In addition, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, BC Investments IV, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta will also be offloading shares in the OFS.
50 percent of the net issue size has been reserved for qualified institutional buyers (which includes up to 60 percent portion for anchor investors), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors (NIIs)/High networth individuals (HNIs).
The pharma company will utilise Rs 600 crore out of the net fresh issue proceeds for repaying debts as it has a debt of Rs 2,091.9 crore on its books by the end of March 2024. The remaining funds will be used for general corporate purposes.
The initial public offering (IPO) of Bansal Wire will open for subscription on July 3 and close on July 5. The company has set a price band of Rs 243-256 per share. At the upper end of the price band, the company aims to raise approximately Rs 745 crore. Investors can bid for a minimum of 58 shares in one lot and multiples thereafter.
The public offer is being conducted through the book-building process, with around 50% of the issue reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. The company plans to use the IPO proceeds to repay some of its debt, meet working capital requirements, and cover other general corporate purposes.
Ambey Laboratories SME IPO
The Rs 45 crore IPO of Ambey Laboratories will open for subscription on July 4 and close on July 8. The issue consists of a fresh equity sale of 62.5 lakh shares and an offer for sale (OFS) of 3.12 lakh shares. The IPO is priced in the range of Rs 65-68 per share, with investors able to bid for a minimum of 2,000 shares in one lot.
Listings next week
Apart from the three public issues, as many as 11 companies will debut on D-street debut next week. In the mainboard segment, Vraj Iron and Steel, Allied Blenders and Distillers, are set to list on the bourses on July 3 and July 2, respectively.
Also Read | Vraj Iron & Steel IPO day 3: Issue subscribed over 119 times; HNIs, QIBs drive demand
On the SME segment front, there will be 9 listings including Nephro Care India, Diensten Tech, Petro Carbon and Chemicals, Divine Power Energy, Akiko Global Services, Visaman Global Sales, Mason Infratech, Sylvan Plyboard (India), Shivalic Power Control.
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