At least five West Bengal-based companies engaged in a variety of businesses such as packaged food and ethnic wear are planning to raise over Rs 7,000 crore through the IPO route by FY’22, according to market sources.
As the BSE Sensex has recently scaled the 60,000 mark, there is a beeline of companies across the country to tap the primary market.
“IPOs have come mainly from the West and South in recent times. Kolkata-based companies are now joining the IPO bandwagon in a big way to make the most of the current bullish enthusiasm towards equities in general and IPOs in particular,” HDFC Securities Retail Research Head Deepak Jasani told PTI.
There are at least five companies from West Bengal that are estimated to hit the market through the Initial Public Offer route with Rs 7,300 crore.
They are Vedant Fashions Ltd which owns leading ethnic and celebration wear brand ‘Manyavar’, Tarsons Products engaged in manufacturing and marketing of various laboratory equipment, dairy and packaged food company Keventer Agro, Arohan Financial Services and Tega Industries which is in the design and production of consumables for mineral beneficiation.
“The mix of industries is interesting. From packaged foods and beverages to finance, from ethnic outfit retailers to mining… these companies spread across the spectrum of new age and traditional businesses. About Rs 7,000 crore worth IPOs are in the pipeline which will bring the focus back on Kolkata,” he said.
Vedant Fashions Ltd has filed papers with the market regulator for an offer for sale (OFS) of 3.64 crore equity shares by the promoter and existing shareholders. The company intends to raise Rs 2,500 crore, as per the market sources.
Tarsons Products has also filed its draft papers with SEBI in August to raise around Rs 1,500 crore – a fresh issue of Rs 150 crore and OFS of up to 1.32 crore shares by the promoter and existing shareholders.
Keventer Agro, which has filed DRHP in August 2021, is looking to raise around Rs 800 crore which comprises fresh issuance of equity shares worth Rs 350 crore and an OFS of 1.07 crore equity shares.
Tega Industries is reportedly planning to raise Rs 700-750 crore.
Arohan Financial Services, which has received the market regulator’s go-ahead for an IPO and the float could be around Rs 1,800 crore, market watchers estimated.
In June, city-based Shyam Metalics raised about Rs 900 crore.
According to available information, some 80 companies across the country are in the process to tap the primary market to raise around Rs 50,000 crore in FY 2021-22.