IPO market set for a busy week; 4 firms to raise ₹4,500 cr via public offer


Talking about the IPO market, Vinod Nair, Head of Research at Geojit Financial Services said, “Volatility of the secondary market has led to a weak IPOs market in 2022 and it is expected to remain subdued going ahead.”

However, Nair added, “the response of investors in the offered IPOs was decent because of the opportunity to invest in new companies at attractive prices. This was also in the context of high liquidity available from HNIs & retail investors looking for listing gains. In majority, IPOs were also attractive for institutional investors to invest in high-quality new businesses bringing diversification to schemes.”

Here is the list of 4 IPOs that will be launched next week.

DCX Systems IPO:

Commencing operations in 2011, DCX Systems is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2022 in the defence and aerospace sector.

The company is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and is also involved in kitting.

DCX Systems IPO will open on October 31 and will be available for subscription till November 2, 2022. The company plans to raise about 500 crore through the issue.

The IPO consists of a fresh issue worth 400 crore and an offer for sale of up to 100 crore. The price band for the issue is fixed at 197 per share to 207 per share.

The total issue size will be 1,45,11,146 equity shares. Of the total issue, 75% of the IPO is reserved for qualified institutional buyers (QIB), while 15% is allocated to non-institutional investors (NII) and the remaining 10% of the size to be allocated to retail investors.

On October 28, the company garnered about 225 crore from anchor investors such as HDFC Mutual Fund, Motilal Oswal Mutual Fund, and BNP Paribas Arbitrage among others.

The minimum bid quantity in the IPO is 72 equity shares.

Companies like Edelweiss Finance Services, Axis Capital, and Saffron Capital Advisors are acting as the book-running lead managers.

Fusion Microfinance IPO:

This company is backed by global private equity major Warburg Pincus. It provides financial services to underserved women across India to facilitate their access to greater economic opportunities.

ICICI Securities, CLSA India, JM Financial, and IIFL Securities are the lead managers for the IPO.

Fusion Microfinance IPO is scheduled to open on November 2 and end on November 4. The issue comprises a fresh issue worth 600 crore and an offer of sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders.

Under the OFS, promoters like Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society U.A, and Global Financial Inclusion Fund will be participating.

For the IPO, the price band is fixed at 350 per share and 368 per share respectively.

Global Health IPO:

Global Health which operates Medanta hospitals, is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India in terms of bed capacity and operating revenues as of March 31, 2022. The company’s key specialties are in cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, and kidney and urology, according to CRISIL Report.

Global Health will launch its IPO on November 3 to raise about 2,205 crore. The bid will be available for subscription till November 7.

The IPO consists of a fresh issue aggregating to 500 crore and an offer for sale (OFS) of nearly 5.08 crore equity shares by promoters. Among the selling shareholders are — Anant Investments and Sunil Sachdeva.

The lead managers for the IPO are — Kotak Mahindra Capital, Credit Suisse Securities (India), Jefferies India, and JM Financial.

Of the total issue size, 50% of the IPO will be allocated to qualified institutional buyers (QIB), while 15% of the size will be kept for non-institutional investors and the remaining 35% for retail individuals.

The price band for the IPO is fixed at 319 per share and 336 per share respectively.

Bikaji Foods IPO:

This company is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and is the second fastest growing company in the Indian organised snacks market.

In the financial year 2022, Bikaji is the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes, and is the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes.

Bikaji IPO is purely an offer for sale (OFS) of up to 29,373,984 equity shares. The selling shareholders in the OFS are — Shiv Ratan Agarwal, Deepak Agarwal, India 2020 Maharaja, Intensive Softshare, and IIFL Special Opportunities.

The company plans to raise about 900 crore from the issue. Its price band is expected to be announced next week.

The IPO will open on November 3. The subscription here will be allowed till November 7. From the total size, 50% of the issue is to be allocated to QIBs, while 15% is set for NIIs, and the remaining 35% to retail investors.

JM Financial, Axis Capital, IIFL Securities, Intensive Fiscal Services, and Kotak Mahindra Capital Company are the lead managers for the IPO.

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