The week ahead, starting from July 20, is expected to be another busy period for the primary market, as a total of seven IPOs will hit Dalal Street. Additionally, five new companies are scheduled to list on the bourses next week.
The total amount of funds to be raised by these seven companies through initial public offerings (IPOs) is not yet known, as two of them—Indo-MIM and Lohia Corp—have not disclosed their price band details. The remaining five firms will collectively mobilise around Rs 5,254 crore through public issues.
The Cube Highways and Infrastructure-sponsored Cube Highways Trust InvIT public issue will be the first among four mainboard IPOs, opening on July 22 and closing on July 24. The price band for the offer has been fixed at Rs 151-152 per unit.
The infrastructure investment trust, which operates a diversified portfolio of highway assets, is raising Rs 5,000 crore through an IPO that is entirely an offer-for-sale (OFS) by existing unitholders. Currently, it is a privately listed infrastructure investment trust and will become a public InvIT through this offer-for-sale.
This will be followed by three maiden public issues—Indo-MIM, Lohia Corp, and Xtranet Technologies—all of which will open for public subscription on July 23 and close on July 27.
IT solutions provider Xtranet Technologies has approached the capital markets to raise Rs 170 crore through an IPO at the upper end of the price band of Rs 120-127 per share. The issue is entirely a fresh issue, with no offer-for-sale component.
The funds raised will be utilised for repayment of loans, the purchase of systems and hardware, working capital requirements, and general corporate purposes.
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Bangalore-based Indo-MIM, a precision engineering components manufacturer using metal injection molding (MIM) technology, has launched its IPO with a combination of a fresh issue of shares worth Rs 500 crore and an offer-for-sale of 6.82 crore equity shares by existing shareholders—Green Meadows Investments, Anuradha Koduri, and the Indian Institute of Technology Madras.
The proceeds from the fresh issue will be utilised mainly for repayment of borrowings, with the remaining funds earmarked for general corporate purposes.
Kanpur-based Lohia Corp, a manufacturer of technical textile machinery and equipment, has tapped the capital markets with an IPO consisting entirely of an offer-for-sale of 2.59 crore equity shares by the Lohia family, with no fresh issue component. Therefore, the entire IPO proceeds will go to the selling shareholders.
Further, the remaining three companies will be from the SME segment. The first among them will be Gulf Lloyds India, the Ahmedabad-based third-party certification and inspection services provider, which will open its fixed-price public issue on July 20.
The company is raising Rs 18.19 crore through an IPO of 18.19 lakh shares at a price of Rs 100 per share. The proceeds will be utilised for capital expenditure towards office premises, repayment of unsecured loans, meeting working capital requirements, and general corporate purposes.
This will be followed by Metalic Technoforge, the Gujarat-based manufacturer of closed-die forged and precision-machined components, which will open its Rs 50-crore initial share sale on July 21. The offer consists entirely of a fresh issue of 64.88 lakh shares, with the price band fixed at Rs 72-77 per share.
The company will utilise the IPO proceeds for setting up Manufacturing Unit IV, upgrading the existing units at its manufacturing facility in Rajkot, repayment of loans, and general corporate purposes.
Shree Balaji Mala Textiles, the Kolkata-based manufacturer and wholesaler of cotton sarees, will be the last public issue among the seven. The Rs 18.9-crore maiden public issue, consisting of a fresh issue of 27 lakh shares, will open for subscription on July 22 with a price band of Rs 66-70 per share.
The company intends to utilise the IPO proceeds for meeting its working capital requirements and general corporate purposes.
Apart from the seven new launches mentioned above, Maharashtra-based coal mining services provider Caliber Mining & Logistics will close its Rs 450-crore IPO on July 21. The issue has been subscribed 1.21 times so far.
Further, the subscription for Kolkata-based automated parking solutions provider Sotefin Bharat's SME public issue will remain open until July 20. The issue has received 81 percent subscription so far.
On the listing front, the country's largest asset manager, SBI Funds Management, will make its much-awaited market debut on July 21 after closing its Rs 9,813-crore IPO last week. On the same day, textile company Alpine Texworld will also list its shares on the stock exchanges, while precision engineering and manufacturing company Millworks Technologies will make its trading debut on the BSE SME platform.
This will be followed by Sotefin Bharat from the SME segment on July 23 and Caliber Mining & Logistics from the mainboard segment on July 24.
Among them, Millworks Technologies' IPO shares were trading at a massive 117 percent premium in the grey market, while Caliber Mining shares commanded a 27 percent premium. SBI Funds Management shares were trading at around a 16 percent premium, and Sotefin Bharat at around 7 percent. However, Alpine Texworld saw a muted response in the grey market, according to market observers.