Primary market action: 5 IPOs opening for subscription, with 6 listings scheduled next week

Five IPOs to be raising nearly Rs 2,700 crore

Given the healthy activity in the equity markets, the primary market action will remain strong in the coming week starting from February 5. The mainboard segment will be more active compared to SME section as there will be four IPOs from the mainboard segment and one from SME.

The total fund raising by these five initial public offerings will be close to Rs 2,700 crore. With this, the primary market saw little more than Rs 6,500 crore worth of IPOs in the current calendar year including Rs 632 crore by SME segment.

Apeejay Surrendra Park Hotels IPO

The Kolkata-based Park Hotels will be the first, to open its maiden public issue next week on February 5, with a price band at Rs 147-155 per share.

The Rs 920-crore IPO that closes on February 7 comprises fresh issuance of shares worth Rs 600 crore by the company, and an offer-for-sale (OFS) of Rs 320 crore worth shares by three selling shareholders. Promoter Apeejay, and investor RECP IV Park Hotel will be offloading shares in the OFS.

Also read: Northern Arc Capital files IPO papers again, increases fresh issue size to Rs 500 crore

The hotels chain already mobilised Rs 409.5 crore, of the total IPO size, from several anchor investors on February 2 including Carnelian Capital, Troo Capital, Julius Baer India, Citigroup Global, Societe Generale, ICICI Prudential Mutual Fund, 360 One Special Opportunities Fund, HDFC Life Insurance Company, Quant Mutual Fund, and Whiteoak Capital.

Of the net fresh issue proceeds, Park Hotels will spend Rs 550 crore for repaying debts.

Rashi Peripherals IPO

The Mumbai-based information and communication technology (ICT) products distributor is planning to raise Rs 600 crore through its public issue during February 7-9. The IPO consists of only a fresh issue by the company and there is no OFS component in the offer.

The price band for the offer has been fixed at Rs 295-311 per share.

The Pansari and Choudhary-family promoted company will utilise Rs 326 crore of the net fresh issue proceeds for repaying debts and Rs 220 crore for working capital requirements.

Jana Small Finance Bank IPO

The Bengaluru-based small finance bank will also open its Rs 570-crore public issue on February 7 and the closing date will be February 9. The price band has been set at Rs 393-414 per share.

The IPO comprises a fresh issue of shares worth Rs 462 crore and an OFS of 26,08,629 equity shares worth Rs 108 crore by six investors including Client Rosehill, CVCIGP II Employee Rosehill, Global Impact Funds, and Hero Enterprise Partner Ventures.

Also read: Kronox Lab Sciences refiles IPO papers with only OFS component, drops fresh issue

The bank will utilise net fresh issue proceeds mainly for augmenting its Tier - 1 capital base to meet its future capital requirements.

Capital Small Finance Bank IPO

The Punjab-based small finance bank, too, is set to launch its initial public offering next week during the same period i.e. February 7-9, while its price band has been fixed at Rs 445-468 per share.

The bank intends to mobilise Rs 523.07 crore through its IPO which is a mix of fresh issue shares worth Rs 450 crore, and an OFS of 15,61,329 equity shares worth Rs 73.07 crore by the existing shareholders including investors Oman India Joint Investment Fund II, and Amicus Capital.

The fresh issue component will be primarily used for augmenting the bank's Tier – I capital base to meet future capital requirements.

The anchor book of all the three above-mentioned IPOs - Capital SFB, Jana SFB, and Rashi Peripherals - will be opened for a day on February 6, a day before the issue opening.

Alpex Solar IPO

Alpex Solar will be the only IPO from SME (small and medium enterprise) segment, opening on February 8 and closing on February 12. The solar panels manufacturer is planning to mobilise Rs 74.52 crore through its maiden public issue of 64.8 lakh equity shares, at the upper price band.

The price band for the offer, which comprises only a fresh issue, is Rs 109-115 per share.

The IPO funds will be utilised mainly for upgradation and expansion of the existing solar module manufacturing facility by increasing 750 MW, setting up of a new manufacturing unit for aluminum frame for the solar module, and working capital requirements.

Meanwhile, Indore-based confectionery products maker Italian Edibles will be closing its Rs 27-crore IPO on February 7. It is a fixed price issue.

Listing

Business correspondence services provider BLS E-Services will be the only company from the mainboard segment making its debut on the bourses on February 6, after healthy subscription numbers. The issue price for the Rs 311-crore offer, which was subscribed 162.47 times, has been fixed at Rs 135 per share.

The SME segment will have total five listings. Mayank Cattle Food, and Harshdeep Hortico will debut on the BSE SME on February 5, while Megatherm Induction will list its shares on the NSE Emerge on the same day.

Among these three, the Megatherm Induction IPO has seen strong subscription of 182.4 times during January 31, followed by Harshdeep Hortico which was subscribed 96.36 times, and Mayank Cattle Food 8.4 times.

Baweja Studios will be listing shares on the NSE Emerge on February 6 after its IPO getting bids 2.52 times, while Gabriel Pet Straps will debut on the BSE SME segment on February 7 after the IPO witnessing massive 255.5 times subscription.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.