IPO frenzy continues; 2 public issues to open on Sep 1 to garner Rs 2,465 cr

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August 29, 2021 12:03 PM

Going forward, market analysts expect the IPO environment to remain buzzing during the entire financial year 2021-22.

Going forward, market analysts expect the IPO environment to remain buzzing during the entire financial year 2021-22.The initial share-sale will see stake dilution of 35 per cent by the promoter and existing shareholders.

The IPO rush will continue in September with two more companies Vijaya Diagnostic Centre and Ami Organics launching their initial share-sales on Wednesday to raise a total of Rs 2,465 crore. This comes after eight companies including Devyani International, Nuvoco Vistas Corporation and CarTrade Tech floated their initial share-sales last month to mobilise Rs 18,243 crore.

So far in the current fiscal, a total of 20 companies have mopped up more than Rs 45,000 crore through IPOs. This is much higher than Rs 31,277 crore raised by 30 firms in the entire 2020-21. Going forward, market analysts expect the IPO environment to remain buzzing during the entire financial year 2021-22. The initial public offer (IPO) of healthcare chain Vijaya Diagnostic Centre and specilalty chemicals maker Ami Organics will open for subscription on September 1 and conclude on September 3.

Vijaya Diagnostic’s IPO is entirely an offer for sale of 35,688,064 equity shares by the promoter, S Surendranath Reddy, and investors Karakoram Ltd and Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I. As a part of the offer for sale, Reddy will sell 50.98 lakh equity shares, Karakoram will offload 2.95 crore equity shares and Kedaara Capital will divest 11.02 lakh shares. The initial share-sale will see stake dilution of 35 per cent by the promoter and existing shareholders.

At present, promoter and promoter group own 59.78 per cent shareholding in the company. This included Reddy’s 37.78 per cent stake.

Karakoram and Kedaara Capital hold 38.56 per cent and 1.44 per cent stake, respectively, in Vijaya Diagnostic. The company has fixed a price band of Rs 522-531 a share for its IPO. At the upper end of the price band, the initial share-sale is expected to fetch about Rs 1,895 crore.

Vijaya Diagnostic Centre offers a one-stop solution for pathology and radiology testing services to customers through its extensive network, which consists of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh, and the National Capital Region and Kolkata.

The IPO of Ami Organics comprises fresh issue of equity shares worth Rs 200 crore and an offer for sale of up to 6,059,600 equity shares by existing shareholders. The company has reduced its fresh issue size to Rs 200 crore from Rs 300 crore after raising Rs 100 crore in a pre-IPO placement.

The price band has been set at Rs 603-610 a share for the public issue. At the upper end of the price band, the initial share-sale is expected to fetch Rs 569.63 crore.

Proceeds from the fresh issue will be used towards repayment of certain debt and funding working capital requirements.
Ami Organics is one of the leading R&D driven manufacturers of specialty chemicals with varied end usage, focussed towards the development and manufacturing of pharma intermediates for regulated and generic APIs (active pharmaceutical ingredients) and NCE (new chemical entity) and key starting material for agrochemical and fine chemicals. The equity shares of both companies will be listed on BSE and NSE.

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