Akash Jha
Five public issues will hit Dalal Street in addition to three listings this week, suggesting that primary market activity is pointing to unstoppable movement in the IPO market.
These IPOs would raise a combined Rs 857 cr, of which Rs 170 cr would come from the SME (small and medium-sized firm) sector.
Only one IPO is being offered in the mainboard segment, and it is a hospital chain situated in Noida called Yatharth Hospital and Trauma Care Services. Subscriptions opened on July 26 with a price range of Rs 285 to Rs 300 per share. The offer period would end on July 28.
At the high end of the price range, the company hopes to raise Rs 686.55 crore with its first public offering. New shares worth Rs 490 crore are being issued, and the promoters are selling 65.51 million of their own shares in an OFS.
With a minimum investment of Rs 15,000 crore (one lot of 50 shares x Rs 300) and a maximum investment of Rs 1.95 lakh (13 lots x Rs 300), retail investors have a wide range of options.
The proceeds from the new issuance will be used for debt retirement, hospital capital improvements, and finance of inorganic growth strategies.
As per the IPO timetable, Yatharth Hospital will make its debut on the stock exchanges on August 7.Netweb Technologies India, a provider of high-end computing solutions, will begin trading on the stock market on July 27 after successfully finishing a Rs 631 crore public issue that was over 90 times subscribed to last week.
According to anonymous analysts, the grey market price of Rs 500 per share for Netweb shares was 75 percent more than the final issuance price. Until an initial public offering (IPO) is officially listed for trading, shares may be traded on the grey market.
SME Segment
SME IPOs have continued at a rapid pace, with four public issues expected to hit Dalal Street, raising a total of more than Rs 170 crore.
Khazanchi Jewellers, a manufacturer of gold products situated in Chennai, will launch its Rs 96.74 crore public issue at an issue price of Rs 140 per share on July 24. On July 28th, the offer will officially end.
Excluding issuance charges, the full amount raised will be put towards expanding operations at their current locations as well as opening a new store in Chennai.
Yasons Chemex Care, a manufacturer of dyes, would also launch its public offering on July 24 with a price of Rs 40 per share. With this initial public offering (IPO), the company hopes to raise Rs 20.57 crore (about $4.0 million).
The primary purpose of the public issuance that will end on July 26 is to meet the company’s growing need for working capital.
Shri Techtex will be the third small and medium-sized enterprise (SME) IPO. Shares will be offered between Rs 54 and Rs 61 throughout the offer period, which begins on July 26 and ends on July 28.
The manufacturer of polypropylene non-woven fabric hopes to raise Rs 45.14 crore through the public issue of 74 lakh shares. A factory shed will be built, a solar power plant will be put into operation, machinery will be purchased, and working capital needs will be satisfied with the proceeds.
Innovatus Entertainment Networks, a provider of direct marketing solutions, will also launch its IPO on 25 July. The company hopes to collect Rs 7.74 crore. Shares can be purchased at an issue price of Rs 50 each till the sale expires on July 27.
According to the IPO timetable, on August 3 and August 7, equity shares in Yasons Chemex Care and Shri Techtex will be listed on the NSE SME Emerge, while on August 4 and August 7, Innovatus Entertainment Networks and Khazanchi Jewellers will make their debut on the BSE SME.
Service Care is scheduled to be listed on the NSE SME on July 26, and Asarfi Hospital is scheduled to be listed on the BSE SME on July 27. Over 6 and 195 times as many people subscribed to these public concerns, respectively.
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