- Date : 31/10/2022
- Read: 3 mins
Four firms are looking to raise Rs. 4,500 collectively through IPOs in the upcoming week.
It is a busy time for the primary market as Global Health Ltd. (Medanta), and Fusion Micro Finance Ltd get ready to float their IPOs along with two other companies next week. The other two companies are Bikaji Foods International and DCX Systems.
Also Read: How do you decide IPO prices?
Public Subscription Dates
DCX Systems: October 31 - November 2
Fusion Micro Finance: November 2-4
Global Health: November 3-7
Bikaji Foods: November 3-7
Performance of IPOs in 2021 and 2022
Twenty-two companies have collectively raised Rs. 44,000 crores through IPOs this year. 63 IPOs came in 2021, raising over Rs. 1.19 lac crores. Head of Research at Geojit Financial Services, Vinod Nair, said that the secondary market's volatility has resulted in weak IPOs in 2022 and the future does not look promising for the time being. However, the investors' response to the IPOs was decent, as they had the opportunity to invest in attractive companies at reasonable prices. He also said retail investors were looking to get listing gain. Nair said IPOs looked attractive to institutional investors as high-quality businesses brought diversification in schemes.
Also Read: SME IPOs of 2022
1. DCX Systems
DCX Systems offers Rs. 400 crore-worth fresh equity shares and an OFS (offer for sale) of up to Rs. 100 crores equity shares through promoters VNG Technology and NCBG Holdings Inc. The company is based in Bengaluru, and anchor investors have already helped it raise Rs. 225 crores. The price band for its issue has been fixed at Rs. 197-207. It will use the fresh issue proceeds for debt payment, working capital funding, investment in Raneal Advanced Systems, which they fully own, and other corporate purposes.
2. Fusion Micro Finance
The company looks to raise Rs. 1,104 through its IPO. Fresh issue equity shares will be worth Rs. 600 crores, and an OFS (offer for sale) of 13,695,466 equity shares by existing shareholders and promoters. OFS sellers are Global Financial Inclusion Fund, Oikocredit Ecumenical Development Co-operative Society U.A, Creation Investments Fusion LLC, Honey Rose Investment Ltd, Mini Sachdev, and Devesh Sachdev. The company will use the fresh issue proceeds to augment its capital base. The price band has been set at Rs. 350-368/share.
3. Global Health
Its IPO has aggregate fresh issue equity shares worth Rs. 500 crores and up to 5.08 crore equity shares OFS by Sunil Sachdeva/Suman Sachdeva and Anant Investments. The price band will be Rs. 3190336/share, and the company expects to raise Rs. 2,206 crores through its IPO. It will use the fresh issue proceeds to repay debt and corporate purposes.
Also Read: What is the IPO grey market?
4. Bikaji
The company wants to raise Rs. 1,000 crores through initial share sales. The company is based in Rajasthan, and its promoters, Deepak Agarwal and Shiv Ratan Agarwal want to offload 2.94 crore shares by OFS.
Conclusion
We expect these four companies to raise around Rs. 4,500 crores through their IPOs. Merchant banking sources suggest Five Star Business Finance and Uniparts India will launch their IPO in November. The equity shares will be listed on the NSE and BSE.
It is a busy time for the primary market as Global Health Ltd. (Medanta), and Fusion Micro Finance Ltd get ready to float their IPOs along with two other companies next week. The other two companies are Bikaji Foods International and DCX Systems.
Also Read: How do you decide IPO prices?
Public Subscription Dates
DCX Systems: October 31 - November 2
Fusion Micro Finance: November 2-4
Global Health: November 3-7
Bikaji Foods: November 3-7
Performance of IPOs in 2021 and 2022
Twenty-two companies have collectively raised Rs. 44,000 crores through IPOs this year. 63 IPOs came in 2021, raising over Rs. 1.19 lac crores. Head of Research at Geojit Financial Services, Vinod Nair, said that the secondary market's volatility has resulted in weak IPOs in 2022 and the future does not look promising for the time being. However, the investors' response to the IPOs was decent, as they had the opportunity to invest in attractive companies at reasonable prices. He also said retail investors were looking to get listing gain. Nair said IPOs looked attractive to institutional investors as high-quality businesses brought diversification in schemes.
Also Read: SME IPOs of 2022
1. DCX Systems
DCX Systems offers Rs. 400 crore-worth fresh equity shares and an OFS (offer for sale) of up to Rs. 100 crores equity shares through promoters VNG Technology and NCBG Holdings Inc. The company is based in Bengaluru, and anchor investors have already helped it raise Rs. 225 crores. The price band for its issue has been fixed at Rs. 197-207. It will use the fresh issue proceeds for debt payment, working capital funding, investment in Raneal Advanced Systems, which they fully own, and other corporate purposes.
2. Fusion Micro Finance
The company looks to raise Rs. 1,104 through its IPO. Fresh issue equity shares will be worth Rs. 600 crores, and an OFS (offer for sale) of 13,695,466 equity shares by existing shareholders and promoters. OFS sellers are Global Financial Inclusion Fund, Oikocredit Ecumenical Development Co-operative Society U.A, Creation Investments Fusion LLC, Honey Rose Investment Ltd, Mini Sachdev, and Devesh Sachdev. The company will use the fresh issue proceeds to augment its capital base. The price band has been set at Rs. 350-368/share.
3. Global Health
Its IPO has aggregate fresh issue equity shares worth Rs. 500 crores and up to 5.08 crore equity shares OFS by Sunil Sachdeva/Suman Sachdeva and Anant Investments. The price band will be Rs. 3190336/share, and the company expects to raise Rs. 2,206 crores through its IPO. It will use the fresh issue proceeds to repay debt and corporate purposes.
Also Read: What is the IPO grey market?
4. Bikaji
The company wants to raise Rs. 1,000 crores through initial share sales. The company is based in Rajasthan, and its promoters, Deepak Agarwal and Shiv Ratan Agarwal want to offload 2.94 crore shares by OFS.
Conclusion
We expect these four companies to raise around Rs. 4,500 crores through their IPOs. Merchant banking sources suggest Five Star Business Finance and Uniparts India will launch their IPO in November. The equity shares will be listed on the NSE and BSE.
