The Christmas week is going to be very busy for the primary market as 7 mainboard initial public offerings (IPOs) are lined up to hit Dalal Street, eyeing to cumulatively raise about ₹3,910 crore. Adding to it, four SME (Small and Medium Enterprises) companies will also launch their IPOs to raise ₹135 crore. Last week, three companies - India Shelter Finance, DOMS Industries, and INOX India - opened for subscription to collectively raise ₹3,909 crore via the IPO route.
From the mainboard, IPOs of Muthoot Microfin, Azad Engineering, Motisons Jewellers, Happy Forgings, Suraj Estate Developers, RBZ Jewellers, and Credo Brands are scheduled to open this week. On the SME platform, issues of Sahara Maritime, Electro Force, Shanti Spintex, and Trident Techlabs will be launched.
Here is all you need to know about upcoming IPOs:
Muthoot Microfin
Muthoot Microfin, a subsidiary of Muthoot Pappachan Group, will launch its three-day IPO on December 18. The non-banking finance company has fixed price band at ₹277-291 apiece, and looks to raise ₹960 at the upper end of the price band, which includes a fresh issue of ₹760 crore.
The company, which provides micro-loans to female customers with a focus on rural areas, has reserved 50% of the issue for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. The employees bidding in the reserved portion will get a discount of ₹14 apiece. The minimum lot size for the bidding is 51 shares and in multiples thereafter.
Ahead of the IPO, Muthoot Microfin raised ₹284.99 crore from 26 anchor investors by allotting 97,93,812 equity shares at ₹291 per equity share.
Happy Forgings
The three-day IPO of Happy Forgings will open on December 19 at a price band of ₹808 to ₹850 per equity share. The public issue of engineering led manufacturer of forged and high precision machined components comprises of a fresh issuance of Equity Shares aggregating up to ₹400 crore and an offer for sale (OFS) of shares worth ₹608 crore, amounting to a total issue size of ₹1,008 crore.
Investors can apply for a minimum of 17 equity shares and in multiples thereafter. Half of the issue is reserved for QIB, 15% for non-institutional investors, and 35% for retail investors. The company intends to use the capital raised from the issue of fresh equities to buy machinery, plant, and equipment; pay off all or a portion of some outstanding loans, and meet general corporate purposes.
Suraj Estate Developers
The issue of Mumbai-based realtor will open on December 18, 2023, and close on December 20, 2023. The total issue size is ₹400 crore at a price band of ₹340-₹360 per share. On Friday, the company collected ₹120 crore from anchor investors by allotting 33.33 lakh equity shares to 11 funds.
The IPO of Suraj Estate Developers Limited is entirely a fresh issue of 1.11 crore shares. Investors can bid for a minimum of 41 equity shares and in multiples thereafter.
The IPO proceeds will be utilised for repayment or prepayment of the aggregate outstanding borrowings of the company and its subsidiaries; the acquisition of land or land development rights; and general corporate purposes. The company's focus area of operation is the South-Central region in Mumbai, mainly consisting of Mahim, Matunga, Dadar, Prabhadevi and Parel, as its expertise lies in the redevelopment of tenanted properties.
Credo Brands
Mumbai-based Credo Brands Marketing, which owns Mufti brand, has set the price range at ₹266-280 per share, looking to raise ₹550 crore at the upper end of the price band. The issue will be available for subscription from December 19 to December 21.
The lot size for an application is 53 shares and in multiple thereafter, which means the minimum investment amount will be ₹14,840.
Azad Engineering
The Hyderabad-headquartered company will launch its IPO between December 20-22 at a price band at ₹499-₹524 per equity share. The issue of aerospace components and turbine manufacturer comprises 1.41 crore shares, which at the upper price band translates into a total IPO size of ₹740 crore. Bids can be made for a minimum of 28 equity shares and multiples thereafter.
The company proposes to utilise the net proceeds from the offer towards funding capital expenditure, repayment of borrowings, and general corporate purposes.
The company has reserved half of the issue for QIB, 15% for non-institutional investors, and 35% for retail investors. Employees portion have been reserved equity shares aggregating up to ₹4 crore.
Motisons Jewellers
The ₹151 crore IPO of Jaipur-based jewellery retailer will open for public subscription on December 18 and close on December 20. Ahead of the IPO, Motisons Jewellers mobilised ₹36.3 crore from anchor investors on December 15, with only two investors participating in the anchor book.
The price band of the Motisons Jewellers IPO has been fixed at ₹52-55 per share. The minimum lot size for an application is 250 shares, which means the minimum amount for retail investors will be ₹13,750.
RBZ Jewellers
The IPO of jewellers will open for subscription on December 19 and close on December 21, with the company aiming to raise ₹100 crore via the issuance of fresh equity shares. The net proceeds from the issue will be used towards funding the working capital requirements of the company and general corporate purposes. The jewellers has set the IPO price band at ₹95 to ₹100 per equity share with a face value of ₹10.
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