Six initial public offerings (IPOs) together worth Rs 3,734 crore hit Dalal Street this week amid bloodletting in the market over the worsening situation in West Asia, worries surrounding US bond yields and FII selling. Two companies also make their market debut this week.
Equity benchmarks the Sensex and the Nifty tanked 2.5 percent in the week gone by and are down 6 percent from their record highs. Will the gloom rub off on the public offerings, including those of Cello World and Honasa Consumer, remains to be seen.
In the mainboard segment, consumer product company Cello World will be the first to launch its IPO on October 30. The Rs 1,900-crore issue, which is an offer for sale of shares by promoters Rathod family, closes on November 1 and the price band has been fixed at Rs 617-648 a share.
The Mumbai-based firm mopped up Rs 567 crore from anchor investors on October 27. Several marquee names participated in the anchor book including Nomura, Goldman Sachs, Florida Retirement System, Morgan Stanley, HSBC, CLSA, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Trustee, HDFC Mutual Fund and SBI Life Insurance Company.
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The much-awaited IPO by the Mamaearth parent firm, Honasa Consumer, will open for bidding on October 31 in a price band of Rs 308-324. The Rs 1,701-crore offer will close on November 2, while the bidding for the anchor book will take place on October 30.
The offer comprises a fresh issue of shares worth Rs 365 crore and an offer-for-sale (OFS) of 4,12,48,162 equity shares, worth Rs 1,336 crore, by promoters and investors.
Varun Alagh, Ghazal Alagh, Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl, Rishabh Harsh Mariwala, Rohit Kumar Bansal, and Shilpa Shetty Kundra are the selling shareholders of the Gurugram-based direct-to-consumer (DTC) company.
Transteel Seating Technologies IPO
In the SME segment, Karnataka-based furniture company Transteel Seating Technologies will open its Rs 49.98-crore offering for subscription on October 30. The price band for the offer, which closes on November 1, has been fixed at Rs 67-70 a share.
The 71.4 lakh-share IPO comprises a fresh issue of 67.84 lakh shares worth Rs 47.49 crore and an OFS of 3.56 lakh shares worth Rs 2.49 crore by promoter Nasreen Shiraz.
Gujarat-based Vrundavan Plantation, which runs a nursery business, will launch its Rs 15.29-crore IPO from October 30 to November 1.
The fixed-price offer comprises a fresh issue of 14.16 lakh shares at an issue price of Rs 108 a share.
Garment manufacturer Mish Designs's offer will open for bidding on October 31 and close on November 2. The offer, a fresh issue of 8 lakh shares, is looking to raise Rs 9.76 crore at Rs 122 a share.
Telecommunication solutions provider SAR Televenture will be the fourth SME company to open its public issue during the week. The IPO, which is purely a fresh issue, opens on November 1 and closes November 3. The price band for the offer has been fixed at Rs 52-55 a share.
The Gurugram-based company is looking to mop up Rs 24.75 crore through the issue of 45 lakh shares at the upper price band.
Baba Food Processing India IPO
The IPO of the agro-food manufacturing company Baba Food Processing India will open on November 3. The closing date for the Rs 33-crore IPO, again only a fresh issue, will be November 7.
It is a book-built public issue by the Ranchi-based company in a price band of Rs 72-76 a share.
Issues Closing Next Week
Paragon Fine and Speciality Chemicals' Rs 51.66-crore IPO closes on October 30. After opening on October 26, the offer got an overwhelming response and has been subscribed 34.18 times.
Maitreya Medicare IPO, which, too, has been got a strong response, will close on November 1. The Rs 14.89-crore issue by the Surat-based by multispeciality hospital has been subscribed 21.40 times.
The Rs 16.07-crore IPO of Karnataka-based Shanthala FMCG Products will close on October 31. The issue got fully subscribed on October 27, the day it opened for subscription with bids coming in 1.36 times the offer size.
KK Shah Hospitals' Rs 8.78-crore public issue will close on October 31. The IPO was subscribed 1.4 times on Day 1, October 27, of the offer.
This week’s listings
In the mainboard segment, pharma company Blue Jet Healthcare is expected to debut on the bourses on November 1, sources told Moneycontrol. It means the firm is going for T+3 listing timeline, instead of T+6 timeline as said in the IPO schedule.
The Rs 840.27-crore public issue was subscribed 7.94 times during the October 25-27 subscription period. Blue Jet was trading at around 6 percent premium in the grey market, slipping from 10 percent, analysts said. The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.
Castor oil-based products manufacturer Rajgor Castor Derivatives will list on the NSE Emerge on October 31.
The Rs 47.81-crore offer was subscribed 108.3 times during October 17-20 and shares were trading at around 10-15 percent premium to the issue price of Rs 50 in the grey market.
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