The primary market, which grabbed headlines last week as five mainboard IPOs - IREDA, Tata Technologies, Flair Writing, Fedbank Financial Services, and Gandhar Oil Refinery India - launched their IPOs to collectively raise ₹7,377 crore, is back in action as five more companies are lined up to raise funds via this route. India Shelter Finance Corporation, DOMS Industries, Jana Small Finance Bank, Onest, and Shiva Pharmachem have received the green light from the Securities and Exchange Board of India (SEBI) for their upcoming initial public offering (IPO) issues.
While India Shelter Finance Corporation received SEBI’s observation letter on November 13, Onest and DOMS Industries on November 16. Jana Small Finance Bank obtained the observation letter on November 7, while Shiva Pharmachem also got regulatory approval this month. The observation letter from SEBI means that companies can go-ahead to launch IPOs within a year from the date of receiving the letter. All these five companies filed their IPO papers with the SEBI between July-August this year.
Here’s all you need to know about upcoming IPOs.
India Shelter Finance Corporation
The Gurugram-based Housing financing company, backed by marquee investors WestBridge Crossover Fund and Nexus Ventures, is eyeing to raise around ₹1,800 crore through the IPO route, which would be a mixture of fresh equities and an offer for sale (OFS) by existing shareholders. The issue comprises a fresh issue of equity shares worth ₹1,000 crore and OFS of up to ₹800 crore by existing shareholders.
IndiaShelter Home Loans, which provides home loans and loans against property to customers in the low and middle-income segments, intends to use the capital raised from the issue of fresh equities to meet future capital requirements towards onward lending. A part of the fund will be also used to meet general corporate purposes.
DOMS Industries
The Gujarat-based company, a leading player in the Indian stationery and art products market, looks to raise ₹1,200 crore via IPO route. The pencil maker is the third company in the stationery sector to file for an IPO recently after pen makers Flair Writing Industries and Cello World.
DOMS’ IPO comprises a fresh issue of equity shares worth up to ₹350 crore and an offer for sale (OFS) aggregating up to ₹850 crore. The OFS will see a corporate promoter, F.I.L.A. selling equity shares worth up to ₹800 crore, while domestic promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will be offloading shares worth ₹25 crore each.
The company intends to use funds raised through the fresh issue to fund the cost of establishing a new manufacturing facility, to expand the company’s production capabilities for a wide range of writing instruments, water colour pens, markers, and highlighters, as well as for general corporate purposes.
Jana Small Finance Bank
The small finance bank filed its Draft Red Herring Prospectus (DRHP) with the SEBI in July this year. The company’s public offer comprises a fresh issue of up to ₹575 crore and an offer for sale of up to 4,051,516 equity shares by investor sharing shareholders.
The company intends to use net proceeds from fresh equity shares to augment the bank’s Tier–1 capital base to meet its future capital requirements such as organic growth and expansion and to comply with the regulatory requirements for enhanced capital base, as may be prescribed by the RBI from time to time.
According to a Fitch report, Jana Small Finance Bank is the fourth largest small finance bank in terms of AUM and deposit size as of March 31, 2023. The bank had 754 banking outlets, including 272 banking outlets in unbanked rural centres, in 22 states and two union territories as of March 31, 2023. It has served nearly 1.2 crore customers since 2008, including 45.7 lakh active customers.
Shiva Pharmachem
The Vadodara-based company, one of the largest manufacturers of acid and alkyl chlorides, eyes to raise ₹900 crore via IPO, which is entirely an offer for sale (OFS) by existing shareholders. Under the OFS, promoters Vishal Rakesh Agrawal and Rahul Rakesh Agrawal will offload shares worth ₹383 crore, while Geetganga Investment will pare stocks worth ₹134 crore.
Shiva Pharmachem has three facilities located at Luna and Dahej SEZ in Gujarat, as well as Sajóbábony in Hungary. In the fiscal year 2023, the company generated 80% of its business from exports by serving 181 multinational and domestic clients during this period.
Onest
The IPO of Mumbai-based FMCG company comprises a fresh issue of ₹77 crore and an OFS of up to 3.25 million shares by promoter and other selling shareholders. The OFS part includes offloading of up to 2.66 million equity shares by Pawan Kumar Gupta, up to 4.69 lakh equity shares by Glentrade DMCC, up to 62,250 equity shares by Ramesh Girdharilal Lulla, up to 30,000 equity shares by Rahul Porwal, up to 15,000 equity shares by Pankaj Jain, up to 7,500 equity shares by Piyush Dungarpuria, and up to 1,875 equity shares by R Sambhu Kumar.
Out of the net proceeds from the fresh issue of equity shares, ₹60 crore will be used to meet the company's working capital needs and other general corporate objectives.
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