Three IPOs to hit D-Street this week, eye to raise ₹1,850 cr

The initial public offering (IPO) market is going to be action-packed this week as three companies will launch their offer to raise ₹1,850 crore via the public listing of shares. Sula Vineyards, the country’s largest wine producer and seller, and financial services provider Aban Holdings will hit Dalal Street on December 12, while automobile services provider Landmark Cars will launch its public offer on December 13. Adding to it, Uniparts India, a manufacturer of agriculture and construction equipment components, will make its debut on the domestic stock exchange on December 12 after raising ₹835.61 crore via IPO, which opened between November 30 to December 2. 

Here’s all you need to know about IPOs to open this week:

Sula Vineyards

The highly anticipated IPO of wine producer Sula Vineyards will open on December 12 and close on December 14. The Nashik-based company plans to raise ₹960.35 crore via its IPO, which is completely an offer or sale (OFS) of about 2.69 crore shares by promoters and existing shareholders. The issue will see promoter Rajeev Samant paring his stake in the company, along with investors such as Haystack Investments, Cofintra S.A, Saama Capital III, SWIP Holdings, Verlinvest S.A, among others.

As the IPO is completely an OFS, the company will not utilise the fund garnered from the IPO proceeds, which will go to the shareholders who participate in the issue.

The price band for the issue has been fixed at ₹340-357 apiece with a lot size of 42 shares. This means a retail investor can invest a maximum of ₹194,922 to buy up to 13 lots or 546 shares.

As per the document filed with SEBI, 50% of the IPO is reserved for qualified institutional buyers (QIB), 15% for non-institutional investors (NIIs), and the remaining 35% is kept for retail individual investors.

Ahead of the IPO, Sula raised around ₹288.10 crore from anchor investors on December 9.

Established in 2003, Sula Vineyards is India's largest wine producer and seller, which owns some popular brands including RASA, Dindori, The source, Satori, Madera & Dia, with its flagship brand Sula being the "category creator" of wine in India.

Aban Holdings

Aban Group-backed financial services provider, Aban Holdings will also launch its four-day IPO between December 12-15 to raise about ₹345.60 crore. The IPO is a mixture of fresh equity shares and OFS by existing shareholders. The issue includes a fresh issue of 38 lakh equity shares worth ₹102.6 crore and OFS of nearly 90 lakh shares valued at around ₹243 crore. Promoter Abhishek Bansal will be offloading his shareholder in the OFS.

The Mumbai-based company has fixed a price band of ₹256-₹270 per share for the issue. The lot size is 55 shares, which means retail-individual investors can apply for up to 13 lots or 715 shares for ₹193,050.

About 10% of the issue size is reserved for QIBs, 30% for non-institutional investors, and up to 60% for retail individual investors.

Aban Holdings will use the capital raised from the fresh issue of equity shares to invest in its NBFC subsidiary, Aban Finance for financing the augmentation of its capital base to meet its future capital requirements. A part of the capital will be also utilised to meet general corporate purposes.  

Incorporated in 2009, Abans Holdings provides NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stock broking, depositary services, asset management services, investment advisory services and wealth management services to corporates, institutional and high net worth clients.

Landmark Cars

This ₹552 crore IPO of the automobile services provider will open for subscription on December 12 and close on December 15. The price band for the issue has been fixed at ₹481-₹506 per share.

The offer comprises of fresh issue of ₹150 crore equity shares, whereas existing shareholders and promoters will sell shares worth ₹402 crore via OFS. The fund from fresh issue plans will be utilised for pre-payment of borrowings availed by its subsidiaries and meet general corporate purposes.

The company has reserved 50% of the IPO size for QIBs, 35% for retail investors, and the remaining 15% for non-institutional investors.

Formed in 1998, Landmark Cars is the leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. It also caters to the commercial vehicle retail business of Ashok Leyland in India. The company offers services such as selling new vehicles and after-sales servicing and repairing, which includes selling spare parts, lubricants and other products. Besides, it sells pre-owned passenger vehicles and provides third-party finance and insurance products.