This week is going to be very busy for the primary market with as many as seven companies are set to launch their public offer, which include three main board initial public offerings (IPOs) and four from the small and medium enterprises (SME) segment. Overall, the seven firms are eyeing to raise a total of over ₹1,600 crore, including ₹110 crore by SME segment. From main board, drone manufacturing company ideaForge Technology, Cyient DLM, the subsidiary of IT services firm Cyient, and construction and development company PKH Ventures have proposed to launch their IPO this week, while Pentagon Rubber, Global Pet Industries, Tridhya Tech, and Synoptics Technologies will be from the SME segment.
Here’s all you need to know about upcoming IPOs:
ideaForge Technology
The drone manufacturing company will open its initial public offering for subscription on June 26 and close on June 29. The company has set a price band of ₹638-672 apiece for the public issue. The unmanned aircraft systems manufacturer is expected to raise around ₹567 crore as per the upper price band. The shares of the company are set to be listed on the exchanges on July 7, 2023.
The public offer comprises a fresh issue by the company and an offer for sale by the selling shareholders. The overall issue comprises fresh issuance of shares worth ₹240 crore, and an offer for sale of 48.69 lakh equity shares by selling shareholders. A total of 13,112 shares have been reserved for employees.
The company, in consultation with the BRLMs, had undertaken a pre-IPO placement worth ₹60 crore, which is why the size of the fresh issue has been reduced by ₹60 crore to up to ₹240 crore.
The company intends to deploy the net proceeds from the issue to repay or prepay certain indebtedness, fund the working capital gap, invest in product development, and general corporate purposes.
As of March 31, 2022, ideaForge Technology had a total assets, of ₹487.9 crore. The consolidated financials show it recorded a profit worth ₹40.7 crore as of March 31, 2023, and its income stood at ₹196.4 crore.
Cyient DLM
The three-day IPO of electronic manufacturing services company Cyient DLM will begin on June 27 and close on June 30 as the markets will observe a holiday on June 28. The anchor investors' subscription will open on June 26. The price band for the IPO has been fixed at ₹250-265 apiece. Shares of Cyient DLM are expected to be listed on domestic exchanges, BSE and NSE, on July 10.
The company has cut issue size to ₹592 crore, as against ₹740 crore earlier. It has undertaken a private placement of 4,075,471 equity shares at a price of ₹265 apiece, amounting to ₹108 crore.
The issue is completely a fresh issue of 2,23,39,623 equity shares, aggregating up to ₹592 crore. Investors can apply for a minimum of 56 equity shares and its multiples thereafter.
As per the offer document filed with SEBI, the company has reserved up to 75% of the issue for qualified institutional buyers (QIBs), 15% for high net-worth individuals (HNIs), and 10% for retail investors.
The company intends to use the capital raised from the IPO for funding incremental working capital requirements, capital expenditure, as well as repayment or prepayment, in part or full, of certain of the borrowings. A part of the fund will be also used to achieve inorganic growth through acquisitions and meet general corporate purposes.
PKH Ventures
PKH Ventures, a construction and development, hospitality, and management services, will launch its public offer on June 30 and close on July 4, while the stocks are expected to make debut on July 12, 2023. The company has set the price band for its initial public offering at ₹140-148 a share.
The IPO comprises of a fresh issue of up to 18,258,400 shares and an offer-for-sale of up to 7,373,600 shares by its promoter Pravin Kumar Agarwal, who owns 63.69% stake in the firm. On the upper band price, the issue size is estimated to be ₹379.35 crore.
The net proceeds from the fresh issue of equity shares will be used to invest in its arm Halaipani Hydro Project (₹124.12 crore) for development of hydro power projects. The firm will also utilise ₹80 crore for investment in its arm Garuda Construction for funding long-term working capital requirements. Besides, it will also use ₹40 crore to pursue inorganic growth through acquisitions and other strategic initiatives.
SME IPOs
Conveyor belt manufacturer Pentagon Rubber will launch its ₹16.17 crore IPO on June 26. The IPO, which closes on June 30, will see an issue of 23.1 lakh equity shares at price band at ₹65–70 per share. The offer is completely fresh shares of equity shares.
Global Pet Industries, a manufacturer and exporter of two stage PET stretch blow moulding machines, will open for subscription on June 29 and close on July 3. The company has fixed issue price of ₹49 per share. The company intends to raise ₹13.23 crore by issuing 27 lakh equity shares.
Software development and solutions company Tridhya Tech eyes to garner ₹26.41 crore via fresh issue of 62.88 lakh shares at the upper end of the price band. The company has fixed price band at ₹35–42 per share. The fund raised through the IPO will be used to repay unsecured and secured loans, as well as to meet general corporate purposes.
IT infrastructure solutions provider Synoptics Technologies plans to raise Rs 54.03 crore through a public issue of 22.8 lakh shares at a price of ₹237 per share. The IPO comprises a fresh issuance of shares worth ₹35.08 crore and an OFS of ₹18.96 crore by the promoters.
All four SMEs will make their debut on the NSE Emerge platform next month. While Pentagon Rubber will list on July 10, Global Pet Industries on July 11, Tridhya Tech and Synoptics Technologies on July 13.
