IPO fever has returned on Dalal Street with multiple IPOs lined up in coming weeks. Syrma SGS Technology in August became the first company to tap the primary market in two-and-a-half months when its IPO opened for subscription on 12 August. After the Syrma SGS Tech IPO, DreamFolks hit the markets this month with its Rs 562 crore IPO. Several other companies have filed IPO papers with capital markets regulator SEBI. These include Balaji Solutions, Fairfax-backed Go Digit, Rare Enterprises-backed Concord Biotech. The IPO fever took a breather after February when markets turned volatile as geopolitical factors, inflation, recession fears soured investor sentiment. FII selling also weighed heavily on the IPO market. However, as market sentiment has reversed with a sharp rally in markets, IPOs are now gaining traction once more.
Here are three upcoming IPOs you need to watch
Tamilnad Mercantile Bank
Tamilnad Mercantile Bank’s IPO will open for subscription on 5th September, at a price band of Rs 500-525 apiece. The public issue will close on 7th September. The IPO is entirely a fresh issue of up to 1.58 crore shares with a face value of Rs 10 each, aggregating to Rs 831.6 crore, according to RHP. The lead managers to the issue include Axis Capital, Motilal Oswal, and SBI Capital Markets. Link Intime India is the registrar to the issue. Upon successful listing, Tamilnad Mercantile Bank will join the likes of City Union Bank, CSB Bank, DCB Bank, Federal Bank, Karur Vysya Bank, Karnataka Bank, RBL Bank, and South Indian Bank.
Go Digit General Insurance
Fairfax-backed Go Digit General Insurance filed a draft red herring prospectus with markets regulator SEBI on 16 August for a Rs 1,250-crore initial public offering. The proposed IPO will also include an offer-for-sale (OFS) of up to 10.94 crore (10,94,45,561) equity shares by the company’s promoter and existing shareholders. Under OFS, the promoter entity – Go Digit Infoworks Services – will sell 10,94,34,783 equity shares and remaining 6,778 equity shares will be put up for sale by existing investors in the startup. The company’s promoters include insurance industry Kamesh Goyal, who earlier worked with Allianz, Go Digit Infoworks Services, Oben Ventures LLP and FAL Corporation, which is a part of Fairfax Financial Holdings.
Oravel Stays (Oyo)
Oyo parent company Oravel Stays Ltd filed a draft red herring prospectus (DRHP) in October with capital markets regulator SEBI to launch Rs 8,430-crore IPO. The public issue comprises fresh issuance of shares worth Rs 7,000 crore and an offer-for-sale (OFS) worth Rs 1,430 crore by existing shareholders. The company said it would also consider issuing shares worth up to Rs 1,400 crore in a pre-IPO placement. The prospectus got approval in January this year, and the IPO is expected to launch sometime soon. The global coordinators and book running lead managers to the issue are Kotak Mahindra Capital Company, JP Morgan India Private Ltd, Citigroup Global Markets India Private Ltd, ICICI Securities, Nomura Financial Advisory and Securities and JM Financial Ltd.