This week, five companies will launch initial public offerings (IPOs) to raise about Rs 3,740 crore, making it one of the busiest IPO weeks in recent time. An initial public offering is when a private corporation sells shares of stock to the general public for the first time (IPO).
In fact, an IPO signifies the transfer of a company's ownership from private to public ownership. Companies normally go public to raise capital to pay off debts, finance growth projects, raise their public profile or allow business insiders to diversify their assets or build liquidity. If you're thinking about investing in one of the IPOs mentioned below, be careful not to get caught up in the excitement that can surround a promising young business. Many businesses have started out with high hopes, only to struggle and fail within a few years. Experts believe that the IPO rush is primarily due to the availability of low-cost capital, which has boosted stock markets in the last year.
Kalyan Jewellers IPO Details
Kalyan Jewellers is one of the popular gold jewelry companies in India. Kalyan Jewellers, a Kerala-based retail jeweller backed by Warburg Pincus, is set to launch its Rs. 1,175 crore initial public offering (IPO) on March 16. The three-day promotion will end on March 18. The issue's price band has been set at Rs. 86-87 per share. According to the firm, half of the total issue size has been reserved for QIBs, 35% for retail investors, and 15% for non-institutional players. The global coordinators and book running lead managers are Axis Capital, Citigroup Global Markets India, ICICI Securities, and SBI Capital Markets. The company recorded total sales of Rs. 55497 million for the quarter ending December FY21, with a profit margin of 1.4 percent. Its EPS for FY2020 is Rs 1.49, and its average EPS over the last three years is Rs 0.98.
Nazara Technologies IPO Details
The first company to apply for an IPO is Nazara Technologies, India's first mobile gaming company, backed by ace investor Rakesh Jhunjhunwala. The issue price is set at Rs1100-1101 per share. The initial public offering will open on 17 March, and the offer expires on March 19th. As of September 30, Jhunjhunwala owned 11.51 percent of the online gaming business. The issue's book running lead managers are ICICI Securities, IIFL Securities, Jefferies India, and Nomura. The IPO consists of promoters and shareholders selling up to 5.29 million equity shares. The IPO will raise Rs583 crore at the top of the price band. Over the years, it has made acquisitions in the gaming and sports media space, including Esports, edutainment, infotainment, fantasy sports, multiplayer games like carrom, and mobile cricket games.
Laxmi Organic Industries IPO Details
The price band for Laxmi Organic, a leading manufacturer of acetyl intermediates and specialty intermediates, has been set at Rs 129-130 per share. According to the firm, it is in talks with book-running lead managers for a pre-IPO placement of 15.50 million equity shares worth up to Rs 200 crore. Its Rs 600 crore IPO consists of a fresh issue of equity shares worth up to Rs 300 crore and an offer for sale (OFS) by its current promoters and shareholders worth up to Rs 300 crore. The issue's book running lead managers are Axis Capital and DAM Capital. The IPO, which began on March 15, consists of a Rs 300 crore new issue and a Rs 300 crore bid for sale by promoter Yellow Stone Trust.
Craftsman Automation has set a price range of Rs 1,488-1,490 for its initial public offering. The offer consists of a fresh issue of equity shares worth up to Rs 150 crore and an offer for sale (OFS) by the promoter and existing shareholders of up to 45,21,450 shares. Srinivasan Ravi currently owns 52.83 percent of the auto component manufacturer, while IFC, Marina III (Singapore), and K Gomatheswaran each own 14.06 percent, 15.50 percent, and 7.04 percent. Craftsman Automation's IPO proceeds will be used to repay some of the company's debts. The company had total secured borrowings (long and short term) of Rs 963.48 crore as of September.
Suryoday Small Finance Bank's IPOs
The initial public offering (IPO) of Suryoday Small Finance Bank is set to begin next Wednesday, March 17. With a face value of Rs 10 per share, the company has set a price range of Rs 303-305 per share. Axis Capital Limited, ICICI Securities Limited, IIFL Securities Limited, and SBI Capital Markets Limited are the lead managers for the Suryoday Bank IPO. The IPO, which involves a fresh issuance of 81,50,000 equity shares and an offer for sale of up to 1,09,43,070 equity scrips by established shareholders, was announced in a virtual press conference by the small finance bank. At the top of the price band, the IPO will raise Rs 582 crore.