There has been a hiatus in the primary market activity currently amid sombre mood in the secondary market but in the near term i.e. by June 2021 many IPOs are expected to hit the street. So, if you too are keen to tap on any of these investment opportunities to make listing or long term gains, here is the list of the likely IPOs by June 2021:
1. Dodla Dairy- IPO Size: Rs. 800 crore
Hyderabad based dairy product manufacturing company is expected to come up with its Rs. 800 crore IPO in May. The company in its segment is the third leading player in terms of milk procurement per day, with 1.02 million litres of raw milk being procured per day. Major chunk of the company's revenue are derived from milk.
IPO of the Dodla Dairy includes fresh share issuance of up to Rs. 50 crore. Additionally as per the DRHP, the public offer includes an OFS or offer for sale of up to 10,085,444 equity shares by TPG Dodla Dairy Holdings Pte Ltd (83 lakh), Dodla Sunil Reddy (4,16,604 shares), Dodla Deepa Reddy (3,27,331 shares), and 10,41,509 shares of the Dodla Family Trust.
Proceeds from the IPO will be used for clearing off certain debt of the company, for financing capex requirements as well as for general corporate purposes.
2. KIMS Hospitals:
The SEBI has given its approval to the healthcare group to launch its IPO. Krishna Institute of Medical Sciences (KIMS) is among the leading corporate healthcare entity operating in Andhra Pradesh and Telangana. KIMS provides speciality as well super-speciality treatment in various medical fields including cardiac sciences, gastric science, neuroscience and child care among others.
Through its public offer, the company plans a fresh issuance of shares worth Rs. 200 crore and an OFS of up to 21,340,931 shares by promoters and investors. General Atlantic i.e. an investor in the company will offload 1.39 crore shares and reduce its stake in the company which is currently at 41 percent.
3. India Pesticides- IPO Size: Rs. 800 crore
The agrochemical chemical company will come up with a Rs. 800 crore IPO. The issue includes a fresh issuance of shares of Rs. 100 crore and an OFS of Rs. 700 crore by the company's shareholders. The proceeds from the issue will be put for meeting the company's working capital requirements.
As per the DRHP, the company may even opt for a pre-IPO placement of Rs. 75 crore and in this case the fresh issuance size will be lessened accordingly.
4. Arohan Financial- IPO size: Rs. 1750- Rs. 1800 crore
The NBFC company is expected to launch a Rs. 1750- Rs. 1800 crore IPO. The offer shall include fund raising through fresh issue of share worth up to Rs. 850 crore. Also, the issue will comprise an offer for sale of 2,70,55,893 shares by different entities including
Maj Invest Financial Inclusion Fund II K/S, Tano India Private Equity Fund II, Aavishkaar Goodwell India Microfinance Development Company II Limited, TR Capital III Mauritius and Michael & Susan Dell Foundation
The proceeds from the IPO shall be put to augment the company's capital for financial future capital needs.
5. Sona BLW Precision Forgings (Sona Comstar)-IPO size: Rs. 6000 crore
The company into auto parts manufacturing will likely come up with a Rs. 6000 crore IPO. The issue shall comprise a fresh issuance of shares worth Rs. 300 crore. Also, the issue shall comprise an offer for sale by the company's shareholders. Blackstone Group which is one of the promoters will pare its holding in the firm which is currently at 66.28 percent.
The company shall use the sum mopped up through the issue for pre-paying or repaying some of its borrowings.
6. Shyam Metallics and Energy-IPO size: Rs. 1107 crore
Shyam Metallics, a Kolkata-headquartered company, is the leading producer of ferro alloys in the country. Some of its clientele include JSW Steel, Jindal Stainless Steel, BHEL and SAIL. The company is planning to launch a Rs. 1107 crore IPO. Earlier in the year 2018, it approached the capital markets and received SEBI's go ahead in early 2019 but deferred its listing plans. The retail portion of the IPO has been fixed at 35% while the quota for NII and QIB is decided at 15% and 50%, respectively.
The company's IPO offer will include a fresh issuance of shares worth up to Rs. 657 crore together with an OFS of Rs. 450 crore by the company's shareholders. The company's promoters and promoter group entities looking at stake sale include Subham Capital, Kalpataru Housefin & Trading, Toplight Mercantiles, Narantak Dealcomm, Dorite Tracon and Subham Buildwell.
The proceeds from the issue will be put towards pre-paying or repaying the company's and its subsidiary's-Shyam SEL and Power's debt worth Rs. 470 crore and other general corporate tasks.
7. Seven Island Shipping- IPO size: Rs. 600 crore
The seaborne logistics service provider was incorporated in the year 2003 and primarily transports crude oil. As of January 2021, the company operates with a fleet of 20 ships. The issue includes fresh share issuance of Rs. 400 crore and Rs. 200 crore OFS, in which FIH Mauritius Investment will sell shares worth Rs. 100 crore, while Rs. 85.64 crore and Rs. 14.35 crore will be raised by Thomas Wilfred Pinto and Leena Metylda Pinto, respectively.
Through the net proceeds from the fresh equity issuance the company would take over a huge carrier vessel together with a medium-range vessel at an estimated price of Rs. 352.43 crore.
8. Glenmark Life Sciences
Glenmark Life Sciences, a fully-owned subsidiary firm of Glenmark Pharmaceuticals filed a DRHP with SEBI for its public issue. The offer includes fresh equity issuance worth up to Rs. 1160 crore and an offer for sale of 73,05,245 shares of Rs. 2 per share of Glenmark Life Sciences by its parent company Glenmark Pharma.
9. ESAF Small Finance Bank- Issue size: Rs. 976.24 crores
Started in the year 2016, ESAF Small Finance Bank has quickly strengthening its standing in the banking space and has over 400 branches in the country. IPO shall comprise fresh equity issue worth Rs. 800 crore and an OFS that is likely to garner an additional Rs. 176.24 crores.
Promoters will pare their stake amounting to Rs. 150 crores, while Bajaj Allianz and PI Ventures LLP will sell stake worth Rs. 17.49 crore and Rs. 8.75 crore, respectively. The issue as per maketsguruj.com is expected to launch in June 2021.