The ongoing correction in equity markets seems unlikely to spoil the mood in the primary market, as the flow of IPOs in the mainboard and SME segments will remain strong in the coming week, starting from October 21. Nine initial public offerings worth Rs 10,985 crore will hit Dalal Street, with three companies, including Hyundai Motor India, scheduled for listing.
The benchmark indices corrected for the third consecutive week, although the selling pressure reduced significantly in the second and third weeks compared to the first week. The Nifty 50 shed 5.4 percent and the BSE Sensex tanked 5.9 percent from their record highs. According to experts, this is a short-term correction and will not hit the market sentiment for the long term given the stability in growth and a pickup in capex. Hence the IPO flow is expected to remain robust for the coming years.
The much-awaited Waaree Energies IPO will be the first one to open for subscription next week, on October 21 with a price band of Rs 1,427-1,503 per share. The Rs 4,321-crore public issue comprising a fresh issue of Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh shares worth Rs 721.44 crore will close on October 23. Promoter Waaree Sustainable Finance and Chandurkar Investments will be selling shareholders in the OFS.
The solar photovoltaic modules maker, which competes with listed peers like Premier Energies and Websol Energy, raised Rs 1,277 crore via anchor book on October 18, ahead of the IPO opening.
Deepak Builders & Engineers India IPO
The second public issue from the mainboard segment will be Deepak Builders & Engineers India which is also scheduled between October 21 and October 23. The price band for the Rs 260-crore initial share sale has been fixed at Rs 192-203 per share.
The IPO is a combination of the construction company's fresh issue of 1.07 crore equity shares worth Rs 217.21 crore and an offer-for-sale of 21.1 lakh shares worth Rs 42.83 crore by promoter Deepak Kumar Singal and his wife Sunita Singal. On October 18, the company mobilised Rs 78 crore from five anchor investors ahead of the IPO.
The ethanol-based chemicals maker that operates a biorefinery with an ethanol production capacity of 570 KLPD will launch its Rs 555-crore initial public offering on October 23, with a price band of Rs 334-352 per share. The IPO, consisting of a fresh issue of shares worth Rs 325 crore and an offer-for-sale of 65.26 lakh shares worth Rs 229.75 crore promoters, and investor Mandala Capital AG.
Private equity firm Mandala Capital AG will be exiting Godavari Biorefineries by selling its entire 49.26 lakh equity shares. The issue will close on October 25.
The last initial share sale in the mainboard segment will be from Shapoorji Pallonji group-owned Afcons Infrastructure, opening for subscription on October 25. The price band for Rs 5,430-crore IPO will be announced on October 21.
The infrastructure and engineering construction company targets to raise Rs 1,250 crore via fresh issue, and Rs 4,180 crore through offer-for-sale. Goswami Infratech, which already raised nearly Rs 3,000 crore in the pre-IPO round last week, will be the sole selling shareholder in the OFS.
Premium Plast, the first initial public offering from the SME segment will hit Street on October 21, with a price range of Rs 46-49 per share. The subscription will close on October 23.
The Rs 26-crore IPO consists of an entirely fresh issue of 53.46 lakh equity shares by the automotive and industrial plastic parts and packaging components maker.
The biggest-ever initial share sale in the SME segment will open on October 22, with a price band of Rs 360-380 per share. The transformers maker targets to raise Rs 197.90 crore via IPO which comprises solely fresh issue of 52.08 lakh shares. The last day for bidding on the issue will be October 24.
The Rs 30-crore maiden public issue from the Maharashtra-based heat exchangers, pressure vessels, and process flow skids manufacturer will also open on October 22 and close on October 24. The price band for IPO has been fixed at Rs 56-59 per share.
The subscription for Rs 66-crore IPO by the precision metal components manufacturer, too, will start on October 22 and remain open till October 24. The company has fixed a price range for initial share sale at Rs 95-100 per share.
The non-banking finance company targets to raise Rs 98.45 crore through its initial public offering of 58.6 lakh shares, which will be the last public issue from the SME segment. Investors can subscribe to the issue at a price range of Rs 160-168 per share, during October 24-28.
Freshara Agro Exports, the preserved gherkins and other pickled goods exporter will close its Rs 75.4-crore public issue on October 21. The price band for the IPO is Rs 110-116 per share. The initial share sale has been subscribed 32.55 times so far.
Listings Next Week
Much-awaited Hyundai Motor India, a part of South Korean Hyundai Motor Company, is scheduled for listing on October 22 after its mega IPO of Rs 27,870 crore. The issue managed to get subscribed majorly with the help of qualified institutional buyers whose reserved portion was booked nearly 7 times, while the portions set aside for retail and non-institutional investors were undersubscribed. The Hyundai Motor India IPO shares are expected to see a flat to negative listing on the bourses, according to experts.
In the SME segment, Lakshya Powertech shares will start trading on the NSE Emerge effective October 23 after its IPO getting more than 550 times subscriptions last week. Freshara Agro Exports will also list next week on October 24.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
