The primary market will have a busy schedule next week, starting July 13, as three IPOs worth more than Rs 10,100 crore, including the mega SBI Funds Management IPO, open for public subscription.
In fact, all three public issues, including one SME IPO (Millworks Technologies), will open on July 14 and close on July 16.
Much-awaited SBI Funds Management, promoted by the country's largest lender, State Bank of India, and French asset manager Amundi, is raising Rs 9,812.91 crore through its initial public offering (IPO) of 17.09 crore equity shares at the upper end of the price band of Rs 545-574 per share. The offer size has been reduced from Rs 11,692.9 crore following a pre-IPO round involving 30 investors.
The IPO comprises entirely an offer-for-sale by the two promoter entities, which will offload 9.95 crore equity shares (4.8851 percent stake) and 7.14 crore equity shares (3.5082 percent stake), respectively.
SBI Funds Management, which is valued at Rs 1.17 lakh crore, will not receive any proceeds from the IPO, as the issue is entirely an offer-for-sale. All the proceeds will go to the selling shareholders.
The calendar year so far has witnessed the launch of 30 mainboard IPOs worth Rs 24,404 crore. With the addition of SBI Funds Management and Alpine Texworld, the total fund-raising through 32 mainboard IPOs will reach Rs 34,343 crore.
Click Here To Read All IPO News
In the SME segment, 90 companies have successfully completed their public issues worth Rs 3,861 crore so far this year. Including Millworks Technologies, the total fundraising will increase to Rs 4,022 crore.
Gujarat-based textile company Alpine Texworld will be the second IPO in the mainboard segment, opening alongside the SBI Funds Management public issue.
Alpine Texworld is raising Rs 126.25 crore through an initial public offering of 1.2 crore equity shares, comprising an entirely fresh issue. The price band has been fixed at Rs 100-105 per share, valuing the company at Rs 401.5 crore.
The IPO proceeds will be utilised to set up a new weaving unit (Manufacturing Unit 3) to expand its grey fabric production capacity, repay loans, and meet general corporate purposes.
Apart from the mainboard IPOs of SBI Funds Management and Alpine Texworld, Millworks Technologies will be the only SME IPO opening on the same date. The company plans to raise Rs 160.3 crore through an initial share sale of 48.44 lakh equity shares, comprising entirely a fresh issue, at the upper end of the price band of Rs 315-331 per share.
The Bengaluru-based precision engineering company will utilise the net proceeds from the IPO to purchase plant and machinery, meet its working capital requirements, and for general corporate purposes.
Meanwhile, the Rs 742-crore IPO of power transmission and distribution products manufacturer Laser Power & Infra will close on July 13 after being fully subscribed.
The SME IPOs of Devson Catalyst and Happy Steels will also close on July 13.
The IPO of Devson Catalyst, which manufactures catalysts, adsorbents, and ceramic balls for industrial processes, was subscribed 27.35 times during the first two days of bidding, while automotive components maker Happy Steels received 2.95 times subscription during the same period.
All three companies—Laser Power & Infra, Devson Catalyst, and Happy Steels—are scheduled to debut on the stock exchanges on July 16.
According to market observers, the IPO shares of all three companies are commanding double-digit premiums in the grey market. Laser Power & Infra is quoting at around a 17 percent premium, Devson Catalyst at approximately 38 percent, and Happy Steels at around 21 percent.