Primary market update: Three IPOs to hit the Street, two stocks to make a debut next week

In the coming week, initial public offerings of three companies - Paytm, Sapphire Foods and Latent View Analytics - will hit the Street raising nearly Rs 21,000 crore, and two new stocks will make a debut.

One97 Communications-owned Paytm plans to raise Rs 18,300 crore through its public issue and will be the largest-ever fund raising by a single firm. Before this, state-run coal mining company Coal India had raised Rs 15,475 crore via IPO in October 2010.

The offer comprises a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by some shareholders, including founder Vijay Shekhar Sharma and investors Saif III Mauritius Company & SVF Panther (Cayman). The company has already mopped up Rs 8,235 crore from anchor investors, ahead of the IPO.

Also read - Paytm signs up over 100 institutional investors for IPO

Its offer will open for subscription on November 8 and will close on November 10. The price band for the issue has been fixed at Rs 2,080-2,150 per share.

KFC and Pizza Hut operator Sapphire Foods will launch its IPO on November 9 and the issue will close on November 11. The company is planning to raise Rs 2,073 crore through its public issue at the higher end of the price band of Rs 1,120 to 1,180 per share.

The offer is entirely an offer for sale whereby promoters QSR Management Trust & Sapphire Foods Mauritius will offload their stakes.

"I believe Paytm's IPO might be a blockbuster for primary markets as initial share sale of One97 Communications (parent firm for Paytm) is going to be the largest IPO after Coal India, Reliance Power and GIC. I will recommend going for Paytm as I am expecting decent listing gains in Paytm compared to Sapphire Foods IPO," said Gaurav Garg, Head of Research at CapitalVia Global Research.

Also read - After a record Samvat 2077, IPOs may mop up over Rs 1 lakh crore next year, say analysts

"Paytm is a digital wallet-based platform services like lending, banking, money transfer, insurance, wealth advisory, e-commerce, travel and event bookings, gaming, and obviously recharge and bill payments. It also offers software and cloud services to merchants. Its deep penetration in India might turn out to be a sustainable business," he added.

Data analytics services Latent View Analytics will be the third public offer which will open for subscription on November 10, with a price band of Rs 190-197 per equity share.

The Rs 600-crore public offer, which will close on November 12, comprises a fresh issue of Rs 474 crore and an offer for sale of Rs 126 crore by promoter and other selling shareholders.

Apart from IPOs, Nykaa and Nykaa Fashion operator FSN E-Commerce Ventures and Fino Payments Bank are expected to make their debut on the BSE and NSE on November 11 and November 12, respectively. Nykaa raised Rs 5,351.92 crore through its public issue during October 28-November 1 and Fino Payments Bank mopped up Rs 1,200 crore via IPO during October 29-November 2. Their public issues were subscribed 81.78 times and 2.03 times respectively.

The share allotment of both IPOs will get finalised in the first half of the next week.

Also read - Policybazaar IPO oversubscribed by 16.6 times on final day, QIB portion booked 25 times

In the week gone by, three companies - Policybazaar (owned by PB Fintech), Sigachi Industries and SJS Enterprises - closed their public issues on November 3. These were launched on November 1, to raise Rs 6,550 crore from investors.

Also read - IPOs in Samvat 2077 | 47 Issues raise Rs 86,650 crore; 15 companies yield over 100% returns