The primary market is going to be action packed this week as three main-board and four small and medium enterprises (SME) initial public offerings (IPOs) will hit Dalal Street today, looking to collectively raise around ₹7,400 crore via public listing of shares on the domestic bourses. In the main board space, the issue of Bajaj Housing Finance, Tolins Tyres, and Kross will open for subscription today, with these three companies aiming to garner ₹7,290 crore. In the SME segment, IPOs of Aditya Ultra Steel Limited (₹45.88 crore), Shubhshree Biofuels Energy (₹16.56 crore), Share Samadhan (₹24.06 crore), and Gajanand International (₹20.65 crore) will open for bidding today.
Ahead of opening of the IPO, shares of Bajaj Housing Finance Limited (BHFL), finance service arm of Bajaj Finance, have created buzz in the unlisted market, commanding a grey market premium (GMP) of 81% over the issue price. While the GMP of Tolins Tyres and Kross was 13.27% and 20.83%, respectively.
Bajaj Housing Finance to raise ₹6,560 cr
The Bajaj Group company has set a price band of ₹66-70 per share for its IPO, which will close on September 9 and the tentative listing dates of stocks on the BSE and NSE is September 16. The public issue comprises a fresh issue of ₹3,560 crore and an offer for sale of ₹3,000 crore by parent Bajaj Finance. On the upper end of the price band, the total issue size is ₹6,560 crore and the market capitalisation of the Bajaj Group company is estimated at around ₹58,300 crore.
The housing finance company intends to use the net proceeds from issuance of fresh equities to augment its capital base to meet future business requirements of the company towards onward lending.
As per the DRHP filed with the SEBI, the company has reserved half of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors. The public offer also includes a reservation of equity shares for eligible employees.
Ahead of the IPO, the company has raised ₹1,758 crore by allocating 25.11 crore equity shares to anchor investors at a price of ₹70 per share.
Kross aims to garner ₹500 cr via IPO route
The Jharkhand-based forging components manufacturer is all set to launch its IPO today, which will remain for subscription till September 11. The company looks to raise ₹500 crore at a price band of ₹228-240 per share, while the minimum lot size for an application is 62 shares. It comprises a fresh issue of 1.04 crore shares worth ₹250 crore, and an offer for sale of 1.04 crore shares, amounting to ₹250 crore.
The company has already raised around ₹150 crore from 19 anchor investors (including 13 mutual funds) by allotting around 62.49 lakh equity shares at ₹240 per equity share (upper end of the price band).
Tolins Tyres’ ₹230 cr issue opens today
The tyre manufacturing company, which provides tyre retreading solutions in India and exports to 40 countries, has set IPO price band at ₹215-226 per share and the minimum lot size is 66 shares. The shares are expected to list on the stock exchanges on September 16.
The issue is a mixture of fresh issue of 0.88 crore shares worth ₹200 crore and offer for sale of 0.13 crore shares amounting to ₹30 crore. The company has already secured ₹69 crore from anchor investors before its initial public offering opens for public subscription. Under the anchor book, the company allocated 30.53 lakh shares to investors at the upper limit of the price band of ₹226 each.
The Kerala-based company intends to use capital raised from fresh equities to repay debts; invest in the subsidiary, Tolin Rubbers; and meet its long-term working capital needs.
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