After a spate of initial public offerings in the recent weeks, the mainboard is slated to witness a temporary lull as only two new issues would be hitting the primary market next week, which would raise Rs 365 crore. As many as 12 IPOs were issued in the mainboard segment and 40 in the SME or small and medium enterprise segment in September.
The next week, starting October 7, several IPOs, which include Garuda Construction and Engineering on the main board and Shiv Texchem on the SME segment. This IPO, Garuda Construction, is seeking to raise Rs 264 crore, while Shiv Texchem hopes to garner more than Rs 101 crore through their respective IPOs, up for public subscription on October 8-10.
Conflicts between Israel and Iran have been given a considerable correction in the equity market since starting October. Overall, however, the IPO market promises to remain in good shape, with 26 firms proposing to raise Rs 72,000 crore presently holding the approval of Sebi, while another 55 companies looking to garner about Rs 89,000 crore are awaiting clearance from the regulator, Primedatabase says.
This month Hyundai Motor India Ltd, a subsidiary of South Korean automobile firm Hyundai, will mop up around Rs 25,000 crore in the primary market. Sources expect the IPO to be launched on 14th October. If it all goes well, it will beat LIC's public offer of Rs 21,000 crore and will become the biggest in the history of India.
More so, 63 companies have raised Rs 64,000 cr through the mainboard so far, a 29 percent jump from Rs 49,436 cr raised by 57 companies through the route in 2023. According to experts, several key macroeconomic, sector-specific factors and willingness of funds to look at new ideas are driving robust momentum in the IPO markets. In this context, experts have cited strong capital formation in corporate India and strong inflows into domestic mutual funds as key playing roles. The IPO of Garuda Construction and Engineering offers fresh issuance of 1.83 crore equity shares and an OFS of 95 lakh equity shares by promoter PKH Ventures. The price band stands at Rs 92 to Rs 95 per share. About Rs 100 crore from its fresh issue proceeds would be utilized for working capital requirement and the balance towards general corporate purposes, including unidentified inorganic acquisitions.
Shiv Texchem is offering 61 lakh shares through a completely new issue. The Rs 101.35 crore book-built issue has set a price band between Rs 158 and Rs 166 per equity share for the IPO.
Besides, Khyati Global Ventures will open for public subscription of SME IPO from October 4 while it will close on October 8. Six companies from SME will list during the next week.
October 7, HVAX Technologies, and Saj Hotels, Subam Papers, and Paramount Dye Tec on October 8, NeoPolitan Pizza and Foods on October 9, Khyati Global Ventures on October 11.
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