Seven IPOs to hit D-Street this festive season; ₹10,000 cr at stake

Despite volatile market conditions, the Indian initial public offer (IPO) market continues to see new offerings from a diverse array of sectors. Dalal Street is heading for a busy time this festive season as seven IPOs are likely to hit the primary market by the end of October. The list includes INOX Green Energy Services, Le Travenues Technology Limited (Ixigo), Uniparts India Limited, Global Health Limited (Medanta Hospital), Navi Technologies Ltd, Signature Global, and Senco Gold and Diamonds, which are going to raise around ₹10,215 crore collectively. Both, the issue size and date, are tentative and might change subject to market conditions and other factors.

Here are key details about upcoming IPOs:

INOX Green Energy Services Ltd (IGELS)

INOX Green Energy, an arm of INOX Wind, is planning to file new offer documents with the capital markets regulator SEBI by end of October this year to raise ₹740 crore through an IPO. This would be the second attempt by the wind power operation and maintenance (O&M) service providers to list its shares on the bourses. The INOX GFL group company made its first attempt to launch an IPO in February this year but withdrew the Draft Red Herring Prospectus (DRHP) in late April without disclosing any reason.

As per the previous document filed with SEBI on February 7, the company was slated to raise ₹370 crore by issuing fresh shares and ₹370 crore through an offer for sale (OFS) of equity shares by promoter, Inox Wind. The company intended to use IPO capital for payment of debt and general corporate purposes.

Le Travenues Technology (Ixigo)

Ixigo (Le Travenues Technology Ltd), the digital travel aggregator, filed its prospectus with SEBI in August 2021, which was approved in December 2021. However, the company is yet to announce the dates of its IPO, which will be a combination of a fresh issue and an offer for sale. The company plans to raise ₹750 crore by issuing fresh shares and ₹850 crore by an offer for sale, taking the total issue size to ₹1,600 crore.

The technology company, focused on empowering Indian travellers to plan, book and manage their trips across rail, air, buses and hotels, is backed by marquee private equity names globally and includes Sequoia Capital, Elevation Capital, Government of Singapore (GIC), apart from Micromax. 

Uniparts India

Engineering systems and solutions provider Uniparts India has filed documents with SEBI to raise up to ₹1,000 crore through an IPO. According to the Draft Red Herring Prospectus (DRHP), the initial share sale is entirely an Offer for Sale (OFS) of 15,731,942 equity shares by promoter group entities and existing investors at a face value of ₹10.

This would be the third attempt by the company to go public. It had earlier filed its document in December 2018 and in September 2014 for which it had received clearances but did not go ahead with the initial share sale.

Uniparts India is a global manufacturer of engineered systems and solutions and is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors on account of their presence across over 25 countries.

Global Health Limited (Medanta Hospital)

Global Health Limited, which operates and manages hospitals under the Medanta brand, plans to garner around ₹2,000 crore from the public listing of shares, which will be used to pay debt and meet general corporate purposes. The IPO consists of a fresh issue of equity shares aggregating to ₹500 crore, and an offer for sale of up to 4.84 crore equity shares.

Founded by Naresh Trehan, the company is a leading private multi-speciality tertiary care provider in north India, backed by private equity investors such as Carlyle Group and Temasek. It has a network of 4 hospitals currently in operation (Gurugram, Indore, Ranchi and Lucknow), a hospital which is under construction with an operational outpatient facility (Patna), and one hospital (Noida) planned for development.

Navi Technologies

Flipkart co-founder Sachin Bansal-led fintech firm Navi Technologies has received the green signal from the SEBI for its ₹3,350 Cr IPO. The issue will be completely a fresh issue, which will be used in its subsidiaries Navi Finserv Private Limited (NFPL) and Navi General Insurance Limited (NGIL). As per the offer document, the company intends to invest ₹2,370 crore in NFPL and ₹150 crore in NGIL, while the remaining capital will be used for general corporate purposes. The company mulls a pre-IPO placement of equity shares worth ₹670 crore.

The company was founded by Bansal and his former Flipkart colleague Ankit Agarwal in 2018. It is a technology-driven financial products and services company focusing on the digitally connected young middle-class population of India.

Senco Gold and Diamonds

Jewellery major Senco Gold and Diamonds is also planning to hit D-Street to raise ₹525 crore through IPO route. According to the DRHP filed with capital market regulator SEBI, the issue comprises fresh issue of equity shares aggregating up to ₹325 crore and an offer for sale of equity shares aggregating up to ₹200 crore by selling shareholder SAIF Partners India IV Limited. Besides, the company may consider a pre-IPO placement of equity shares worth ₹65 crore.

The Kolkata-headquartered Senco Gold, which operates under the tradename Senco Gold & Diamonds, is the largest organised jewellery retailer in the eastern region of India based on the number of stores, as per Crisil report. It primarily sells gold and diamond jewellery and also sells jewellery made of silver, platinum and precious and semi-precious stones and other metals.

Signature Global 

Real estate major Signature Global has filed a draft red herring prospectus with the capital markets regulator to raise ₹1,000 crore through the initial public issue route. As per the preliminary papers filed with the markets watchdog, the IPO comprises a fresh issue of shares worth ₹750 crore, and an offer for sale of ₹250 crore. The OFS portion will see promoter shareholder Sarvpriya Securities Private Limited and investor shareholder International Finance Corporation offloading stakes worth ₹125 crore each.

The net proceeds of the IPO, after deducting the OFS portion, will be utilised for re-payment or pre-payment, in full or in part, of certain borrowings availed by Signature Global.

Signature Global has roped in ICICI Securities, Axis Capital and Kotak Mahindra Capital Company as book running lead managers (BRLMs). Link Intime India is the registrar to the issue.

How IPO market fared so far in 2022

So far in 2022, as many as 54 companies have floated their IPOs to raise ₹40,304 crore from the primary market. The ₹755-crore IPO of Harsha Engineers International was the most recent one which closed last Friday after receiving an overwhelming response from investors. The offer, which consisted of a fresh issue of ₹455 crore and an offer for the sale of shares worth ₹300 crore by promoters, was subscribed 74.70 times. The shares are likely to be listed on BSE and NSE on September 26.

Among others, Tamilnad Mercantile Bank and DreamFolks Services raised ₹831.6 crore and ₹562 crore, from their respective IPOs this month. While DreamFolks Services listed at 56% premium, Tamilnad Mercantile Bank debuted at 3% discount as compared to their issue price.

The fundraising so far in this year remained subdued as compared to the previous year due to a slew of factors such as global financial tightening, geopolitical tensions, a record rise in commodity prices, weakening of the rupee against the U.S. dollar, and higher inflation.