5 new public issues will open for subscription
A huge stir is going to start once again in the primary market. Investors may be ready for many new investment opportunities this week. In this business week starting from 27th October, 5 new companies are coming with their Initial Public Offering (IPO). Including these five new IPOs, there will be a total of 15 public issues in the month of October. If we look at the figures, this month has been tremendous so far.
Before this week, 10 IPOs had been launched in October, out of which seven were in the mainboard segment. These 10 companies together have raised Rs 35,791 crore from the market. This included big names like Tata Capital (Rs 15,512 crore) and LG Electronics (Rs 11,607 crore). Now with the addition of these new issues, the total amount raised through IPO this month is expected to cross the Rs 45,000 crore mark.
Everyone’s eyes will be on these big names
One of the most talked about IPOs of this week is Orkla India. It is backed by a Norwegian parent company and owns highly popular spices and food brands in India such as MTR Foods, Eastern Condiments and Rasoi Magic. This IPO will open for subscription on 29th October and will close on 31st October. The company has fixed the price band of Rs 695 to Rs 730 per share for this.
This Bengaluru-based company is expecting a valuation of Rs 10,000 crore in the market. Rs 1,667.5 crore will be raised through this IPO. However, it is important for investors to know that this IPO is completely an offer-for-sale (OFS). This means that the company is not issuing any new shares, rather the existing promoter Orcla Asia Pacific and public shareholders Navas Miran and Firoz Miran are selling their 2.28 crore shares. All the money received from the IPO will go to these shareholders instead of going to the company.
After Orkla, two more big names are in the queue. The IPO of famous helmet manufacturing company Studds Accessories will open on October 30 and will remain open till November 3. This issue will also be a complete offer-for-sale (OFS), in which the promoter and other existing shareholders will sell 77.86 lakh shares.
Subsequently, the glasses giant lenskart The IPO of Lenskart Solutions will open on 31 October and close on 4 November. The issue of Lenskart is different from the others. In this, new shares worth Rs 2,150 crore will be issued, the money of which will be used in the expansion of the company. Besides, its promoters and investors will also sell (OFS) 12.75 crore equity shares. Market experts estimate that the IPO size of Lenskart could be around Rs 7,278.01 crore, if the issue price is kept at Rs 402 per share. This is the same price at which veteran investor Radhakishan Damani had recently bought a pre-offer stake of 0.13 percent in the company. According to this, the total valuation of the company can reach Rs 72,719.26 crore.
Logistics and textile companies also in the field
Apart from the mainboard IPO, this week two companies are also entering the market in the SME (Small and Medium Enterprises) segment. Among these, the IPO of Jayesh Logistics, a logistics solutions company, will open on October 27 (i.e. today) and close on October 29. The company has fixed the price band of Rs 116 to Rs 122 per share for this issue. This IPO is a completely fresh issue of 23.47 lakh shares, through which the company wants to raise Rs 28.63 crore. The company will use the funds to purchase side wall trailers, meet working capital requirements, implement the second phase of its ‘Smart Logistics Application’ and other corporate needs.
The second IPO in the SME segment is of Game Changers Texfab, which will open on 28th October and close on 30th October. This company supplies fabric to garment manufacturers, designers and export houses. The price band of this IPO has been kept at Rs 96 to Rs 102 per share. This issue of Rs 55 crore is also a completely fresh issue of 53.76 lakh shares, i.e. there is no OFS in it. This New Delhi-based supplier will use the funds raised from the IPO for its capital expenditure, working capital needs and general corporate purposes.