Yet another busy week is waiting to unfold in the primary market with two public issues to be rolled out for bidding and four listings lined up for bourses.
As the benchmark indices hit fresh all-time highs in the passing week, backed by consistent buying by foreign investors and favourable global cues, the momentum is reflected largely in the midcap and smallcap stocks.
In the mainboard segment, high-end computing solutions provider Netweb Technologies India will open its initial public offering on July 17, with a price band of Rs 475-500 per share.
The company plans to mop up Rs 631 crore through the public issue, which comprises a fresh issuance of shares worth Rs 206 crore, and an offer-for-sale of Rs 425 crore by promoters. The OFS portion is more than double, compared to the fresh issue.
The fresh issue proceeds will be used for civil construction of the building for the surface mount technology (SMT) line and interior development, and purchase of equipment/machinery for the new SMT production line. Working capital requirements and repaying debts are other objectives of the issue.
The public issue will close on July 19. Eligible investors will get shares of the IPO by July 26 and the listing on the bourses will take place on July 27.
This would be the 13th public issue in this calendar year after Utkarsh Small Finance Bank, Senco Gold, Cyient DLM, Ideaforge Technology, HMA Agro Industries, IKIO Lighting, Nexus Select Trust REIT, Mankind Pharma, Avalon Technologies, Udayshivakumar Infra, Global Surfaces, and Divgi TorqTransfer Systems. Apart from this, PKH Ventures was also launched but had withdrawn due to weak response from qualified institutional buyers.
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The demand seems to be huge for Netweb Technologies shares in the grey market as shares were available at 60 percent premium over upper price band of Rs 500 per share, analysts said on anonymity.
The second IPO of the next week will be Asarfi Hospital, from the SME segment. This issue will also open on July 17 and the closing would be on July 19, with a price band of Rs 51-52 per share.
The Jharkhand-based healthcare facilities provider intends to raise Rs 26.97 crore from the public issue of 51.8 lakh shares at the upper price band, comprising only fresh issue.
Hence, the entire issue proceeds, excluding issue expenses, will be utilised for capital expenditure of cancer hospital at Ranguni in Jharkhand, and acquisition of land on leasehold basis for Health Management and Research Institute at Ranchi, besides general corporate purpose.
Successful investors will get their shares in demat accounts by July 26 and Asarfi Hospital will debut on the BSE SME Platform on July 27.
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Listings
All four listings will be taking place in the SME segment, while there will be no listing in the mainboard segment.
Digital technology services company AccelerateBS India will be the first to debut next week on the BSE SME, on July 19. Its Rs 5.69-crore public issue saw strong response from investors, being booked 49 times during July 6-11.
Polymer-based profiles maker Kaka Industries will make its debut on the BSE SME platform on July 20 after fund raising of Rs 20.2 crore. The public issue witnessed robust demand from investors, subscribing over 290 times during July 10-12, indicating the possibility of bumper listing.
Kaka Industries shares traded at 86 percent premium over the expected issue price of Rs 58 per share, while AccelerateBS shares were available with around 10-12 percent premium in the grey market, analysts said.
The grey market is an unofficial market where IPO shares can be bought and sold till the listing.
Drone Destination and Ahasolar Technologies will also be listing next week on July 21, on the NSE SME Emerge and BSE SME platforms respectively.
The initial public offering of Drone Destination, the leading drone as a service and training company, was subscribed more than 190 times, while Ahasolar Technologies IPO was booked nearly 35 times.
Ahasolar Technologies is engaged in the business of CleanTech enabling energy transition through digital transformation.
In the grey market, Drone Destination shares were available at more than 75 percent premium over expected issue price of Rs 65 and Ahasolar Technologies was trading at 19 percent premium over offer price of Rs 157 per share.
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