Primary market stays upbeat with 4 IPOs lined up to raise Rs 1,350 crore

Primary Market Activity | Four IPOs launch next week

Momentum in the primary market seems to be far from slowing down with four public issues lined up for debut and four listings in queue for the week beginning September 4.

An optimistic mood in the broader markets seems to be the key reason behind all the action in the IPO space.

Four companies are waiting to raise more than Rs 1,350 crore from the public in the coming week with Ratnaveer Precision Engineering being the first to hit the market with a Rs 165-crore offer on September 4. The price band for the issue, which closes on September 6, has been fixed at Rs 93-98.

The stainless steel-based products maker, which plans to raise Rs 135.24 crore from fresh issues and Rs 29.79 crore from an offer-for-sale (OFS), caters to industries such as automotive, power plants, oil and gas, pharmaceuticals, building and construction, and electrical appliances.

Healthcare service provider Jupiter Life Line Hospitals will keep its public issue open for bidding from September 6-8 at a price band of Rs 695-735 per share.

The IPO comprises a fresh issuance of shares worth Rs 542 crore, and an offer-for-sale (OFS) of 44.5 lakh shares, amounting to Rs 327.08 crore, at the upper price band, by promoters and other shareholders. At a projected mop-up of Rs 869.08 crore, Jupitar is the largest among the four IPOs.

Also read: Jyoti CNC Automation files papers for Rs 1,000-crore IPO

Sewerage solution provider EMS is likely to launch its Rs 320-crore issue on September 8 with a likely price band of Rs 200-211 a share. The offer consists of a fresh issue of around Rs 145-146 crore and an offer-for-sale of 82.94 lakh shares, amounting to Rs 175 crore at the upper price band by promoter Ramveer Singh. Bidding ends on September 12, sources said.

The fourth public issue scheduled for launch next week comes from the SME (small and medium enterprise) segment. Mumbai-based bulk packaging solutions provider Kahan Packaging will open the offer on September 6 and close it September 8. It plans to raise Rs 5.76 crore from the IPO at a price of Rs 80 per share.

The company provides packaging solutions to business-to-business manufacturers catering to industries like cement, chemical, fertiliser and food products.

Also read: Ratnaveer Precision Engineering mops up Rs 49.5 crore via anchor book ahead of IPO

Test and measuring instruments manufacturer Rishabh Instruments, which closed its Rs 491-crore public issue last week, is going to finalise the basis of allotment of IPO shares on September 6. The shares will be transferred to demat accounts of eligible investors by September 8.

Among SMEs, specialty chemicals and API trader Saroja Pharma Industries India will close its Rs 9.11-crore initial issue on September 5, which has so far been subscribed 2.01 times, while Chennai-based visual effects (VFX) studio Basilic Fly Studio as well as promotional products and gift items provider Pramara Promotions will close their IPOs on the same day.

Also read: Arkade Developers files draft papers for Rs 430-crore IPO

The Rs 66.35-crore IPO of Basilic Fly Studio was subscribed 26.08 times, while the Rs 15.27-crore offer of Pramara Promotions was booked 44 percent till the first day of bidding on September 1.

On the mainboard, Rajasthan-based infrastructure company Vishnu Prakash R Punglia will debut on the bourses on September 5 after closing the public issue with 87.82 times subscription last week.

The remaining three listings due next week are from the SME segment with Sahaj Fashions being the first to list on September 6, Mono Pharmacare on September 7, and CPS Shapers on September 8, as per the IPO schedule.

The maiden public issue of Sahaj Fashions, the garment fabric manufacturer, was subscribed 7.4 times, while IPOs by pharmaceutical products distributor Mono Pharmacare and CPS Shapers, the shapewear maker for men and women, were subscribed 12.77 times and 236.67 times.