IPO market ready for a busy week; 4 companies raise ₹ 4,500 cr via public offer

Speaking of the IPO market, Vinod Nair, Head of Research at Geojit Financial Services, said: “Secondary market volatility has led to a weak IPO market in 2022 and is expected to remain subdued.”

However, Nair added: “The response from investors to the offered IPOs has been reasonable due to the opportunity to invest in new companies at attractive prices. This was also in the context of the high liquidity available from HNIs and retail investors who IPOs were also attractive for institutional investors to invest in high-quality new companies that brought diversification of schemes.”

Here is the list of 4 IPOs that will be launched next week.

DCX Systems IPO:

DCX Systems, which starts operations in 2011, is one of the leading Indian players for the production of electronic subsystems and wiring harnesses in terms of production capacity and revenues in fiscal 2022 in the defense and aerospace sector.

The company is mainly engaged in system integration and the production of a comprehensive range of cables and harness assemblies and is also involved in kitting.

The DCX Systems IPO will kick off on October 31 and will be available for subscriptions until November 2, 2022. The company plans to raise approximately ₹500 crore through the issuance.

The IPO consists of a new issue worth 400 crore and a sale offer of up to ₹100 crore. The price range for the issue is set at 197 per share to ₹ 207 per share.

The total volume of the issue will amount to 1.45.11.146 shares. Of the total issuance, 75% of the IPO is reserved for Qualified Institutional Buyers (QIB), while 15% is allocated to Non-Institutional Investors (NII) and the remaining 10% of the volume is allocated to retail investors.

On October 28, the company collected approximately ₹225 crore from anchor investors such as HDFC Mutual Fund, Motilal Oswal Mutual Fund and BNP Paribas Arbitrage.

The minimum bid amount at the IPO is 72 shares.

Companies such as Edelweiss Finance Services, Axis Capital and Saffron Capital Advisors act as the book-running lead managers.

Fusion Microfinance IPO:

This company is backed by global private equity giant Warburg Pincus. It provides financial services to disadvantaged women across India to facilitate their access to more economic opportunities.

ICICI Securities, CLSA India, JM Financial and IIFL Securities are the lead managers for the IPO.

Fusion Microfinance’s IPO is scheduled to open on November 2 and close on November 4. The issuance includes a new issue worth ₹600 crore and an offer to sell (OFS) of 13,695,466 shares by promoters and existing shareholders.

Under the OFS, promoters such as Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund will participate.

For the IPO, the price range is set at 350 per share and 368 per share, respectively.

Global Health IPO:

Global Health, which operates Medanta hospitals, is one of the largest private multi-specialty tertiary healthcare providers operating in the North and East regions of India in terms of bed capacity and operating income as of March 31, 2022. The main specialties of the company include cardiology and heart sciences, neuroscience, oncology, digestive and hepatobiliary sciences, orthopedics, liver transplantation, and renal and urology, according to the CRISIL report.

Global Health will launch its IPO on November 3rd to raise approximately ₹2,205 crore. The offer is available for registration until November 7.

The IPO consists of a new issue totaling ₹500 crore and an offer for sale (OFS) of nearly 5.08 crore shares by promoters. Among the selling shareholders are — Anant Investments and Sunil Sachdeva.

The lead managers for the IPO are — Kotak Mahindra Capital, Credit Suisse Securities (India), Jefferies India and JM Financial.

Of the total size of the issuance, 50% of the IPO will be allocated to Qualified Institutional Buyers (QIB), while 15% of the size will be held for non-institutional investors and the remaining 35% for private individuals.

The price range for the IPO has been set at 319 per share and ₹336 per share, respectively.

Bikaji Foods IPO:

This company is the third largest ethnic snacks company in India with an international presence and sells Indian snacks and sweets, and is the second fastest growing company in the Indian organized snacks market.

In the fiscal year 2022, Bikaji is the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tons and the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tons.

Bikaji IPO is purely an offer for sale (OFS) of up to 29,373,984 shares. The selling shareholders in the OFS are — Shiv Ratan Agarwal, Deepak Agarwal, India 2020 Maharaja, Intensive Softshare and IIFL Special Opportunities.

The company plans to raise approximately ₹900 crore with the matter. The price range is expected to be announced next week.

The IPO will open on November 3. The subscription here is allowed until November 7. Of the total volume, 50% of the issuance will be allocated to QIBs, while 15% is committed to NIIs and the remaining 35% to retail investors.

JM Financial, Axis Capital, IIFL Securities, Intensive Fiscal Services and Kotak Mahindra Capital Company are the lead managers for the IPO.

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