The initial public offerings (IPO) market is going to be action packed this week as two main board public issues - R K Swamy and Bharat Highways InvIT – made its debut on the stock exchanges today, while JG Chemicals and Gopal Snacks shares are lined up to list their shares on bourses on March 13 and March 14, respectively. Besides, two main board IPOs, namely Popular Vehicles and Krystal Integrated, and six SME IPOs, including Pratham EPC and Signoria Creation, will open for subscription this week.
While shares of R K Swamy listed at a 13.2% discount over the IPO price, Bharat Highways InvIT debuted 1% higher against their issue prices, in an otherwise positive broader market.
Shares of R K Swamy opened at ₹250 apiece on the NSE, down 13.2% over the IPO price of ₹288, which was mostly in line with Dalal Street expectations.
On the other hand, Bharat Highways InvIT listed at ₹101.1, up 1.1% over the IPO price of ₹100 on the NSE.
Post listings, R K Swamy shares hit a high and low of ₹263.40 and ₹243, respectively, while the market capitalisation stood at ₹1,359.35 crore.
Meanwhile, Bharat Highways InvIT shares touched a high of ₹101.45 in the early trade so far, while the mcap rose to ₹4,490.51 crore.
Ahead of the listing, R K Swamy was commanding grey market premium (GMP) of ₹0 in the unlisted market, implying a flat to negative start for the stock on the bourses. On the other hand, Bharat Highways InvIT was commanding a GMP of ₹2 over the issue price in the grey market, indicating listing to be around ₹102 per share.
“The muted pre-listing GMP and negative listing indicate a cautious investor approach, possibly due to volatile market conditions or concerns about competition and working capital requirements. This negative listing presents a challenge. Investors are advised to evaluate their risk tolerance before making any decisions,” says Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.
R K Swamy raises ₹423.56 cr via IPO
The ₹423.56 crore IPO of R K Swamy, comprising a fresh issue of ₹173 crore, and an offer for sale (OFS) of worth ₹250.56 crore by the promoters and other investors, had received decent demand for its public offering, which was subscribed 25.78 times amid good response from all three categories of investors. The price band for the IPO was ₹270-288 per share, and the minimum lot size for an application was 50 shares.
The portion reserved for retail investors was booked 34.03 times, while that for non institutional investors (NIIs) and qualified institutional buyers (QIB) were subscribed 34.36 times and 20.58 times, respectively. The employee portion was booked 2.52 times, as per the exchange data. The company had reserved 75% of the shares in the public issue for QIBs, 15% for NIIs, and remaining 10% for retail investors.
R K Swamy, engaged in the business of integrated marketing communications, customer data analysis, full-service market research and syndicated studies, intends to use capital raised from fresh equities for financing its working capital needs and capital expenditures to establish a digital video content production studio. A part of the fund will be used for financing investments in the development of the company's IT infrastructure and its material subsidiaries, Hansa Research and Hansa Customer Equity. The capital will be also used for financing the establishment of new customer experience centres and computer-aided telephone interview centres.
Bharat Highways InvIT garners ₹2,500 cr
Meanwhile, Bharat Highways InvIT, an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India, raised ₹2,500 crore via IPO, which was subscribed 8.01 times. Ahead of the IPO, the infrastructure investment trust garnered ₹825.97 crore from anchor investors. The price band for the IPO was ₹98-100 per share and the lot size was 150 shares.
The InvIT intends to use net proceeds from the IPO for providing loans to the project special purpose vehicles (SPVs) for repayment, in part or in full, of their respective outstanding loans (including any accrued interest and prepayment penalty); and for general purposes.
Bharat Highways InvIT is a SEBI registered infrastructure investment trust, having a portfolio of seven road assets, all operating on a hybrid annuity model (HAM) basis, in the states of Punjab, Gujarat, Andhra Pradesh, Maharashtra and Uttar Pradesh. These roads are operated and maintained under concession rights granted by the NHAI and are owned and operated by the project SPVs, which are currently wholly owned by G R Infraprojects Limited (GRIL) (an Associate of the Investment Manager). Additionally, InvIT has entered into a right of first offer (ROFO) agreement with G R Infraprojects under which it has been granted a right of first offer to acquire certain GRIL road assets.
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