Two IPOs will hit Dalal Street in the beginning of second half of this calendar year, including one from the mainboard segment, but experts believe the number of IPO launches may increase significantly if the Nifty stays above 18,000 in the current quarter.
Kolkata-based jewellery retail company Senco Gold will open its initial public offering for subscription on July 4, with an aim to raise Rs 405 crore.
The IPO comprises a fresh issuance of shares worth Rs 270 crore and an offer for sale of Rs 135 crore shares by investor SAIF Partners India IV. Half of the issue size is reserved for qualified institutional investors, 15 percent for high networth individuals and the rest 35 percent for retail investors.
The price band for the offer, which will close on July 6, has been fixed at Rs 301-317 per share.
The fresh proceeds will mainly be utilised for working capital requirements, besides general corporate purposes, while the offer for sale money will go to selling shareholder SAIF Partners.
Suvankar Sen and his family members along with two trusts as promoters hold 76.92 percent shareholding in the gold and diamond jewellery retailer, while the investors SAIF Partners and OIJIF II have 19.23 percent and 3.85 percent stakes, respectively.
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Senco Gold has 136 showrooms in 96 cities and towns over 13 states across India as of March 2023.
The second IPO launching next week is from the SME segment. Alphalogic Industries, a subsidiary of BSE listed software development company Alphalogic Techsys, will open its public issue on July 3, with a offer price of Rs 96 per share, with the closing date on July 6.
The Pune-based industrial and institutional storage systems maker is planning to raise Rs 12.88 crore via an IPO of 13.41 lakh shares that comprises only a fresh issue. The main objective behind fundraise is to fulfill the working capital requirements, besides general corporate purposes.
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Apart from these two, the public issue of Mumbai-based construction and development company PKH Ventures will remain open for bidding till July 4, with a price band of Rs 140-148 per share in the mainboard segment. The Rs 379-crore offer was opened on June 30.
In the SME segment, there will be three issues closing next week. PET stretch blow moulding machines manufacturer Global Pet Industries will close its over 13-crore offer on July 3. The issue was opened on June 28.
The maiden public issues by IT solutions companies Synoptics Technologies and Tridhya Tech will be closing on July 5. Both were opened on June 30.
Synoptics Technologies will be raising Rs 54 crore and Tridhya Tech's fund raise is Rs 26.4 crore.
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Frozen buffalo meat exporter HMA Agro Industries will make its debut on the bourses on July 4, while in the SME segment, we will have listing of Veefin Solutions on July 5. Essen Speciality Films, Greenchef Appliances, and Magson Retail and Distribution will debut on July 6.
Overall, the year ahead is expected to see more offerings hitting Dalal Street as several companies are keenly interested in value unlocking, but for that, the secondary market conditions need to be strong and if the Nifty manages to sustain above psychological 18,000 mark in current quarter, the flow may increase significantly, experts said.
Also read: PKH Ventures IPO: 10 things to know before you buy it
"In this day and age whenever we speak to the promoters of any unlisted companies, they express their interest for unlocking their value of their businesses by listing on Indian stock market," said Amit Jain, Co-founder of Ashika Global Family Office Services.
He believes if Nifty sustains above its 200 DMA or above 18,000 for next three months, then there will be a lot of IPOs in the Indian stock market.
Sonam Srivastava, Founder and CEO at Wright Research, also believes several IPOs are set to energize the market this fiscal year, riding the momentum of strong past performances and positive market conditions.
Indian equities hit new milestones on the first day of July series with the Nifty at 19,000 mark and Sensex at 64,000 levels, rising 14 percent and 13 percent from their March lows, respectively, after easing fear of rate hike cycle, healthy economic data, good corporate earnings growth, and renewed FIIs buying interest.
High-profile firms, including start-ups, are planning to go public and rightly so as the market makes higher highs, Sonam said, adding names on her radar include Mobikwik, Ixigo, Oyo, Tata Technologies, and Bajaj Energy attracting investors seeking stable returns.
Despite the allure of substantial returns, investors should perform thorough due diligence given the associated risks, understanding the company's business model, financials, and share price, she advised.
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