As the Diwali celebrations, market holidays, and ICC Cricket World Cup come to an end, investors are likely to shift their focus to stock market as five initial public offerings (IPO) are set to hit Dalal Street this week. The week is going to be action packed for investors as these five main board IPOs are eyeing to collectively garner around ₹7,300 crore, which is going to be one of the highest amount of fund raise in a week this calendar year so far.
The five IPOs that are going to open for public subscription this week include Tata Technologies, Indian Renewable Energy Development Agency (IREDA), Fedbank Financial Services, Flair Writing Industries, and Gandhar Oil Refineray. While the public issue of IREDA will open for subscription on November 21, the rest IPOs will be launched on November 22.
This year, the primary market witnessed a surge of activity as record 96 IPOs (46 main boards and 53 SMEs) hit the D-Street so far, keeping investors busy with continuous listings and subscriptions.
“The market and the interest of retail investors have evolved significantly. According to the NSE’s monthly ‘Market Pulse’ report, there were three million retail investors in January 2020 and roughly 12 million in January 2022. Much of it can be attributed to pandemic-induced trading, both BSE & NSE witnessed a spike in retail investment during the pandemic. However, the interest of retail investors in the market was consistent. There has been a continuous increase in the number of active demat accounts and retail investors participation,” says Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Pvt. Ltd.
Here's all you need to know about upcoming IPOs.
The much-awaited IPO of Tata Technologies will open for subscription on November 22 and close on November 24. This is going to be the first public offering by a Tata Group company in 20 years.
The global engineering services company has set the price band of its IPO at ₹475-500 per share, aiming to raise ₹3,042 crore at the upper end of the price band.
The IPO is completely an offer for sale (OFS) of 6.08 crore equity shares, which will see Tata Motors offloading an 11.4% stake in the company. The lot size has been fixed at 30 equity shares and its multiples thereof. For retail investors, the minimum investment amount is ₹15,000 for 30 shares, and the maximum is ₹1.95 lakh for 390 shares.
Indian Renewable Energy Development Agency (IREDA)
State-owned company IREDA plans to raise ₹2,150.21 crore through a combination of a fresh issue of 40.31 crore shares and an OFS of 26.87 crore shares by existing shareholders. The IPO, which is going to be the first by a government-owned entity since LIC in May last year, will open for subscription on November 21 and close on November 23.
The price band has been fixed at ₹133-140 per share for the IPO, and investors can bid for a minimum of 460 equity shares and in multiples of 460 equity shares thereafter.
The company is a financial institution with over 36 years of experience in the business of promoting, developing and extending financial assistance for new and renewable energy (RE) projects, and energy efficiency and conservation (EEC) projects. The company provides a comprehensive range of financial products and related services, from project conceptualization to post-commissioning, for RE projects and other value chain activities, such as equipment manufacturing and transmission.
Gandhar Oil Refinery
The three-day public issue of Gandhar Oil Refinery India, the country’s largest white oil manufacturer, will open for bidding on November 22. The company is looking to raise ₹500.69 crore at a price band of ₹160-169 apiece. Bids can be made for a minimum of 14,872 equity shares and in multiples of 88 shares thereafter.
The IPO comprises fresh equity shares worth ₹302 crore and OFS of up to 1,17,56,910 equity shares by promoters and existing shareholders.
The company intends to use the IPO proceeds for investment in Texol by way of a loan for financing the repayment/pre-payment of a loan facility availed by Texol from the Bank of Baroda. A part of the raised capital will be used for capital expenditure through purchase of equipment and civil work required for expansion in capacity of automotive oil at the company’s Silvassa Plant. A part of the capital will be used for funding the company’s working capital requirement and meet general corporate purposes.
Fedbank Financial Services
The Federal Bank’s retail-focused NBFC, Fedbank Financial Services, will launch its public offering on November 22 and close on November 24. The IPO comprises a fresh issue of equity shares aggregating up to ₹600 crore and OFS of up to 35,161,723 equity shares by selling shareholders at a price band of ₹160-₹169 apiece, amounting to ₹1,092.26 crore.
The company proposes to utilise the net proceeds from the fresh issue towards augmenting its tier-1 capital base to meet future capital requirements, arising out of the growth of its business and assets. A portion of the proceeds from the fresh issue will be used towards meeting offer expenses.
The OFS comprises up to 5,474,670 shares by promoter The Federal Bank and up to 29,687,053 True North Fund VI LLP, which is the investor-selling shareholder.
Flair Writing Industries
Pen maker Flair Writing Industries looks to raise ₹593 crore via (IPO route, which comprises fresh equity shares of ₹365 crore and OFS of ₹380 crore by existing shareholders. The IPO will open for subscription on November 22 and end on November 24.
The company, which owns the over 45-year-old flagship brand 'Flair', has set a price band of ₹288-304 per share and the minimum order quantity is 49 shares.
The company proposes to utilise the net proceeds of the fresh issue for setting up a manufacturing facility for writing instruments at Valsad district, in Gujarat; funding its capital expenditure and its arm Flair Writing Equipments. A part of the capital will be used for funding its working capital requirements and its subsidiaries, FWEPL and Flair Cyrosil Industries, payment of the loan, and general corporate purposes.
According to a CRISIL report, the company is the largest player in the pens segment with a revenue of ₹754.18 crore in financial year 2023 from the pens writing instruments business in India. It holds a market share of approximately 9% in India's overall writing and creative instruments industry, as of March 31, 2023.