The mainboard segment of the primary market is going to be quiet for the next week starting April 29, but the major action will remain in the SME segment as four companies would be hitting Dalal Street with their initial public offerings with the aim of collectively raising Rs 68.62 crore.
Storage Technologies & Automation IPO
Storage Technologies & Automation, which designs and manufactures storage racking system under the trademark Racks & Rollers, will open its Rs 29.95-crore IPO for subscription on April 30, with a price band at Rs 73-78 per share.
The public issue, which comprises only a fresh issue of 38.4 lakh equity shares with no offer-for-sale (OFS) component, will close on May 3.
The leading rack supported warehouse solutions provider, which competes with domestic players such as Godrej & Boyce, Nilkamal., Silver Lining Storage, Jugenheinrich AG and SSI Schaefer, will spend majority of the fresh issue money for its working capital requirements, besides general corporate purposes and IPO expenses.
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The Maharashtra-based healthcare products maker will also launch its public issue on the same date i.e. April 30 and the closing date will be May 3. It aims to raise Rs 12.61 crore via an IPO of 22.92 lakh equity shares, comprising only a fresh issue, at the upper end of the price band.
The price band for the book built offer has been fixed at Rs 52-55 per share.
Amkay Products produces medical devices, disposables, face masks, alcohol swabs, lancet needles, nebulizers, and more, and plans to utilise the issue money for installation of additional machinery, working capital requirements, and general corporate purposes.
This will be the third maiden public issue hitting Dalal Street during the same period in the coming week. The stainless steel products trader intends to mobilise Rs 15 crore through its fixed price issue of 25 lakh equity shares.
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The issue price has been fixed at Rs 60 per share.
The Ahmedabad-based company is going to use its IPO funds for its incremental working capital requirements, investment in a subsidiary company, purchase of machineries, and general corporate purpose.
Slone Infosystems IPO
Slone Infosystems, the IT hardware solutions provider, has also planned for fund raising via the IPO route on May 3, the last day of the coming week. The closing date will be May 7.
It aims to raise Rs 11.06 crore via IPO of 14 lakh equity shares at a price of Rs 79 per share. It is also a fixed price issue.
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The Mumbai-based company will spend the fresh issue money for purchase of laptops, desktops, SSD, and RAM. It will also use the funds for the repayment of debts and general corporate purposes.
Listings
Four companies are scheduled for listing in the coming week with one from the mainboard segment and the rest from the SME segment. JNK India, the heating equipment manufacturer, will debut on the BSE and NSE on April 30 after its IPO gained 28.13 times subscription during April 23-25.
JNK IPO shares traded at more than 20 percent premium over the issue price of Rs 415 pe share, in the grey market, market observers said. The grey market is an unofficial platform for trading in IPO shares till the listing.
Generally, investors look at the grey market to know the possible listing price of any IPO, but that may not be 100 percent accurate, experts feel.
Meanwhile, the trading in equity shares of Emmforce Autotech, Shivam Chemicals, and Varyaa Creations will also commence on the BSE SME with effect from April 30.
Emmforce Autotech shares remained in strong demand in the grey market, quoting at more than double the issue price of Rs 98 considering the robust subscription numbers. However, there has been no trading premium for Shivam Chemicals and Varyaa Creations, market observers noted.
The Emmforce Autotech IPO was subscribed 339 times last week, while Shivam Chemicals saw a 6.3 times subscription and Varyaa Creations 3.45 times.
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