The prime time in the primary market seems to be far from over. Two public issues, worth nearly Rs 2,000 crore, will hit Dalal Street this week, taking the number of offerings in December so far to five.
This calendar year has seen 36 IPOs, mopping up nearly Rs 62,000 crore. Add the two upcoming issues and the total fundraising by main board IPOs would reach Rs 64,000 crore.
In December alone, the fundraising is estimated at more than Rs 3,800 crore, including the two IPOs scheduled for this week.
The first IPO to the market this week is that of KFin Technologies, a technology-driven financial services platform, which will be open for subscription from December 19 to 21.
The company that provides services and solutions to asset managers and corporate issuers across asset classes in India aims to garner Rs 1,500 crore from the issue which is only an offer-for-sale.
Promoter entity General Atlantic Singapore Fund Pte Ltd will be selling shares worth Rs 1,500 crore. The price band for the offer has been fixed at Rs 347-366 a share.
The company has reserved 75 percent of the offer for qualified institutional buyers (QIBs), 15 percent for high net-worth individuals (HNIs) and the remaining 10 percent for retail investors.
Electronics manufacturing services (EMS) provider Elin Electronics’ would be the second public issue opening for bidding on December 20, with a price band of Rs 234-247 per share.
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The public issue will fetch the company Rs 475 crore, and consists of a fresh issuance of shares worth Rs 175 crore and an offer for sale of Rs 300 crore on the part of the promoter Sethia family members.
The fresh issue proceeds will be used to retire debt and fund the expansion of facilities at Ghaziabad (Uttar Pradesh) and Verna (Goa).
The offer closes December 22. Half of the offer size is reserved for QIBs, 15 percent for HNIs and the balance 35 percent for retail investors.
Elin Electronics is a leading manufacturer of end-to-end product solutions for major brands of lighting, fans and small/ kitchen appliances in India and is one of the largest fractional horsepower motors manufacturers in India.
Listings
The market will see three listings this week with Sula Vineyards being the first to debut on December 22. India’s largest wine producer closed its public issue on December 14 with just 2.33 times subscription.
The other two — financial services firm Abans Holdings and premium automobile retailer Landmark Cars — will list on December 23 after closing their offers on December 15. Abans was subscribed 1.1 times and Landmark was bought 3.06 times.
In the grey market, Sula Vineyards as well as Landmark Cars shares traded at a moderate discount, analysts said. The grey market is an unofficial platform for trading in IPO shares. Generally, investors look at the grey market to know the expected listing price of an IPO.
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