After the launch of four IPOs (initial public offerings) this week, Dalal Street is set to witness more IPO action next week as well. Three more IPOs of companies including Archean Chemicals Industries Ltd, Five Star Business Finance Ltd and Kaynes Technology India Ltd will open for subscription next week to cumulatively raise around Rs 4,280 crore. Archean Chemicals IPO and Five Star Business IPO will both open for subscription on Wednesday and close on 11 November, while their anchor books open on Monday. Shares of these companies will be listed on exchanges on 21 November. Meanwhile, Kaynes Technology IPO will open on 10 November and conclude on 14 November.
Note that three more IPO may hit the primary market in mid-November. Uniparts India Ltd, Landmark Cars Ltd and Premji Invest-backed Gold Plus Glass Industries Ltd are expected to announce IPO dates, and price bands next week. “Indian market’s outperformance and strong fundamentals reflected by growth and corporate earnings have created a favourable atmosphere for good IPOs. Retail investors’ enthusiastic participation in the market is another positive. Reasonably priced good IPOs will have a good response,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
IPOs hitting Dalal Street next week
Five Star Business Finance IPO will open on Wednesday, 9 November 2022, and closes on Friday, 11 November 2022. The Chennai-based non-banking financial corporation has fixed the price band at Rs 450-474 per equity share for its maiden public offer. Investors can bid for a minimum of 31 equity shares and in multiples of 31 equity shares thereafter. The offer is an Offer for Sale (OFS aggregating to Rs 1960 crore by the company’s promoters and existing shareholders. The OFS comprises of Rs 166.74 crore by SCI Investments V, Rs 719.4 crore by Matrix Partners India Investment Holdings II, LLC, Rs 12.08 crore by Matrix Partners India Investments II Extension, LLC, Rs 361.4 crore by Norwest Venture Partners X – Mauritius, Rs 700.3 crore by TPG Asia VII SF Pte. Ltd.
Archean Chemical IPO is going to hit primary markets on 9 November and will close on 11 November. The chemical company has fixed the price band of the public offer at Rs 386-407 per equity share It aims to raise Rs 1,462.31 crore from the IPO, out of which, Rs 657.31 crore is reserved via offer for sale (OFS) route. A bidder will be able to apply in lots and one lot will comprise 36 company shares. The tentative date for share allocation is 16 November 2022. The public issue is proposed for listing on both NSE and BSE. Link Intime India Private Ltd has been appointed as official registrar of the IPO.
Kaynes Technology IPO is set to open for subscription on Thursday, 10 November. The company has filed its RHP with the capital markets regulator. The issue consists of issuance of fresh equity shares worth Rs 530 crore whereas existing shareholders and promoters will offload 55,84,664 equity shares via offer for sale (OFS). Promoter Ramesh Kunhikannan will sell up to 20,84,664 equity shares, whereas another shareholder Freny Firoze Irani will offload up to 35,00,000 equity shares in the OFS. The company has trimmed the fresh issue from Rs 650 crore earlier. Kaynes Technology will announce the IPO price band two days before the opening of the issue.
Grey market indicators for this week’s IPO
Grey market premiums (GMP) for four IPOs (DCX Systems Ltd, Fusion Micro Finance, Bikaji Foods International and Global Health) that opened this week, are trading higher, indicating that these shares are likely to open near or higher than their IPO prices. DCX Systems IPO GMP is at Rs 75-80 a share, Fusion Micro Finance IPO GMP at Rs 10-25 per share, Bikaji Foods IPO GMP at Rs 40 apiece, and Global Health IPO GMP at Rs 15-20 per share, according to people dealing in unlisted securities.