Five companies to launch IPOs this week, to raise Rs 4,200 crore
The IPO rush follows the conclusion of 10 IPOs last month, with Tata Technologies becoming first Tata Group company to go public in the last two decades.
- Republic Business
- 2 min read
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In a busy week for IPOs, five companies, including India Shelter Finance and DOMS Industries, are set to launch their public offerings, anticipating to collectively raise at least Rs 4,200 crore.
The IPO rush follows the successful conclusion of 10 maiden public issues last month, with Tata Technologies making history as the first Tata Group company to go public in almost two decades. The buoyant IPO market, witnessing over 44 issues raising around Rs 35,000 crore in the current fiscal year, is attributed to strong post-listing returns, robust macros, and positive market sentiments post BJP's state election victories.
V Prashant Rao, Director & Head-ECM of Investment Banking at Anand Rathi Advisors, highlighted the flurry of IPOs, indicating companies gearing up for launches before the general elections.
Among the upcoming IPOs, India Shelter Finance and DOMS Industries plan to raise Rs 1,200 crore each, with subscriptions opening from December 13 to 15. Inox India's IPO will run from December 14 to 18, while Motisons Jewellers and Suraj Estate Developers will open for subscription on December 18, concluding on December 20. The companies aim to utilise the fresh capital for business expansion, working capital requirements, loan repayments, and other corporate purposes.
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India Shelter Finance's IPO involves a fresh issue of equity shares worth Rs 800 crore and an Offer For Sale (OFS) of Rs 400 crore by investor shareholders, with a price band of Rs 469-493 per share.
DOMS Industries' IPO combines a fresh issue of 0.44 crore shares (Rs 350 crore) and an OFS of 1.08 crore shares (up to Rs 850 crore) at a price band of Rs 750-790 per share.
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Inox CVA's Rs 1,459 crore-IPO is entirely an offer for sale, priced between Rs 627 to Rs 660 per share. Suraj Estate Developers plans to raise Rs 400 crore through a fresh issue, allocating funds for debt repayment and subsidiaries' payment obligations.
Motisons Jewellers' IPO involves the fresh issuance of 2.74 crore equity shares for purposes such as loan repayment and working capital needs. The IPO market continues to be dynamic, with companies strategically positioning themselves amid favourable market conditions.