The euphoria in the IPO market is far from over as strong listing gains, excessive liquidity, as well as an increase in retail investor participation have prompted private companies to go public and list their shares on stock exchanges. So far this month, 10 companies already launched public issues, including Sai Silks (Kalamandir), Signature Global, Yatra Online, Manoj Vaibhav Gems N Jewellers, Zaggle Prepaid Ocean Services, SAMHI Hotels, RR Kabel, EMS, Jupiter Life Line Hospitals, and Ratnaveer Precision Engineering.
In the calendar year 2023, 72 companies launched public offer, including 28 mainboards and 44 small and medium sized enterprises (SMEs). As per BSE data, 62 out of 72 IPOs debuted this year have delivered positive returns to investors, while 55 companies gained on listing day.
This week is also going to be action-packed for the primary market as three mainboard IPOs and 19 SME issues opened for subscription, eyeing to raise a total of around ₹4,200 crore. The mainboard IPOs include JSW Infrastructure, Updater Services, and Valiant Laboratories.
From the SME segment, Vishnusurya Projects, Digikore Studios, Arabian Petroleum, Newjaisa Tech, Inspire Films, Saakshi Medtech, Sunita Tools, Goyal Salt, Canarys Automations, Oneclick Logistics, Vinyas Innovative Tech, and E-factor Experiences, and others will open for subscription this week.
Here’s all you need to know about upcoming IPOs.
Updater Services
The IPO of Updater Services opened today and it will close on September 27, 2023. The facility management and business support services firm has set a price band of ₹280 to ₹300 per equity share, which would fetch ₹640 crore at the upper end of the offer price. Out of ₹640 crore, ₹400 crore will be raised through the issuance of fresh equity shares while the rest ₹240 crore will be garnered via offer for sale (OFS).
Ahead of the IPO, Updater Services raised ₹288 crore from 18 anchor investors at the upper price band of ₹300 per equity share. Anchor Book included marquee Domestic Institutional Investors such as ICICI Prudential, BNP Paribas, Aditya Birla Sunlife, Motilal Oswal etc. and Foreign Institutional Investors such as Copthall Mauritius, Franklin India, Societe Generale, CitiGroup Global Market and Nomura Singapore.
The IPO of Sajjan Jindal-led JSW Group opened for subscription today at a price band of ₹113-119 per share. The public offer of the ports business of JSW Group is completely a fresh issue of 23.53 crore shares, which at the upper end of price band will translate into an issue size of ₹2,800 crore. JSW Infra has reserved up to 75% of the issue for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.
The company intends to use the capital raised from IPO proceeds for repaying debts and expansion of Jaigarh Port, owned by subsidiary, JSW Jaigarh Port. As per the offer document, it will use ₹880 crore for debt repayment, and ₹1,029.04 crore for expansion of Jaigarh Port. A part of the fund will also be used to invest in the subsidiary, JSW Mangalore Container, as part of the expansion of the Mangalore port franchise.
Valiant Laboratories
The ₹152.46-crore IPO of Mumbai-based pharmaceutical company will open for subscription on September 27 and close on October 3. It has fixed the price band at ₹133-140 per share. The public offer comprises a fresh issue of 1.09 crore equity shares, while there is no offer for sale portion in the IPO. The issue will open the anchor book for a day, on September 26. Valiant Labs is an active pharmaceutical ingredient (API)/bulk drug manufacturing company with a focus on producing Paracetamol.
SME IPOs
In the SME segment, thirteen companies will launch their issues this week, with five IPOs opening today. The ₹20.2-crore IPO of Arabian Petroleum, Digikore Studios (₹30.48 crore), Newjaisa Tech (₹39.9 crore), Inspire Films (₹21.2 crore), and Saakshi Medtech (₹45.16 crore) opened for subscription today.
On September 26, IPOs of Sunita Tools, City Crops Agro, and Goyal Salt will open, while Canarys Automations, Oneclick Logistics, Vinyas Innovative Tech, Kontor Space, Vivaa Tradecom, and E-factor Experiences will be launched on September 27.
On September 29, Vishnusurya Projects’ ₹50 crore IPO will open for bidding. Among others, Plada Infotech Services, Sharp Chucks and Machines, Plaza Wires, Karnika Industries will also open for bidding on September 29.
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