Last Week's Dalal Street IPO Boom and Standout Companies

The recent weeks on Dalal Street have witnessed a surge of initial public offerings (IPOs), showcasing the dynamic pulse of the Indian primary market. In this period, a notable lineup of companies has entered or is poised to enter the market, underscoring the vibrant nature of financial activities. Let's explore the pivotal details and prospects of these noteworthy companies making waves in the market.

A Closer Look at Last Week's IPO Momentum

Last week, Dalal Street saw a flurry of IPOs, highlighting the dynamic nature of the Indian market. Diverse companies entered, contributing to a lively financial atmosphere. Explore the key highlights and prospects of these debuting IPOs.

 

Muthoot Microfin Limited    

Initiating the IPO season, Muthoot Microfin, a microfinance institution, launched its public offering on December 18, aiming to raise Rs 960 crore. The shares were priced in the range of Rs 277-291, and the subscription period for the IPO concluded on December 20.

IPO Highlights:

The Muthoot Microfin listed IPO, totaling Rs. 960.00 crore, combines a fresh issue and an offer for sale. It includes 3,29,89,690 shares, with an upper price of Rs. 291 per share. The listing on the NSE and the BSE is set for December 26, 2023. Managed by ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets, the IPO aims to enhance the capital base for future expansion. The basis of allotment was finalized on December 21, 2023, and demat credits are expected by December 22, 2023. Refunds to non-allottees were initiated on December 22, 2023.

 

Motisons Jewellers Limited       

Motisons Jewellers IPO concluded on December 20, 2023. With a face value of Rs. 10 per share, the book-building IPO had a price band of Rs. 52 to Rs. 55 per share, and the final price was determined within this range. 

IPO Highlights:

The IPO was exclusively a fresh issue, featuring 2,74,71,000 shares (274.71 lakh shares) at an upper price of Rs. 55 per share, amounting to a fresh issue size of Rs. 151.09 crore. As there was no offer for sale (OFS) component, the overall IPO comprised the issue of 2,74,71,000 shares at Rs. 55 per share, initially valued at Rs. 151.09 crore, later reduced to Rs. 142.06 crore. The stock of the Motisons Jewellers IPO will be listed on the NSE and the BSE.

The funds from the fresh issue are primarily allocated for repaying borrowings from commercial banks and meeting working capital requirements. Holani Consultants Private Ltd. Oversees the administration of the IPO, while Link Intime India Private Ltd. fulfills the role of the registrar for the matter.

 

Suraj Estate Developers Limited             

The Suraj Estate Developers IPO concluded on December 20, 2023. The shares of Suraj Estate Developers Ltd. have a face value of Rs. 5 per share, and the price band for the book-building IPO was set between Rs. 340 and Rs. 360 per share, with the final price determined within this range. 

IPO Highlights:

It was exclusively a fresh issue of shares, comprising 1,11,11,111 shares (approximately 111.11 lakh shares) at the upper price band of Rs. 360 per share, resulting in a fresh issue size of Rs. 400.00 crore. As there was no offer for sale (OFS) component, the overall Suraj Estate Developers IPO also comprised the issue of 1,11,11,111 shares at Rs. 360 per share, initially valued at Rs. 400.00 crore.

The proceeds from the fresh issue will be utilized for the repayment/prepayment of borrowings by the company and its subsidiaries, as well as for the acquisition of land and land development rights. ITI Capital Ltd. and Anand Rathi Securities Ltd. lead the management of the IPO, with Link Intime India Private Ltdacting as the registrar for the matter.

 

India Shelter Finance Corporation Limited

India Shelter Finance IPO is a book-built issue of Rs 1,200.00 crores, comprising a fresh issue of 1.62 crore shares, amounting to Rs 800.00 crores, and a sale offer of 0.81 crore shares, totaling Rs 400.00 crores.

The subscription period for the India Shelter Finance IPO was from December 13, 2023, to December 15, 2023. The allotment is anticipated to be finalized on Monday, December 18, 2023, with the listing on BSE and NSE tentatively scheduled for Wednesday, December 20, 2023.

The IPO's price band is set at Rs 469 to Rs 493 per share, and the minimum lot size for an application is 30 shares. Retail investors are required to invest a minimum amount of Rs 14,790. For sNII, the minimum lot size investment is 14 lots (420 shares), totaling Rs 207,060, and for bNII, it is 68 lots (2,040 shares), amounting to Rs 1,005,720. ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and Ambit Private Limited serve as the book-running lead managers, while Kfin Technologies Limited is the registrar for the issue.

 

A Look at This Week's IPO Lineup

 

Happy Forgings Limited

Happy Forgings IPO consists of a fresh equity issue amounting to Rs 400 crore and an offer for sale (OFS) of 71.59 lakh shares, with the company aiming to generate Rs 1,009 crore through the public offering.

The IPO, priced in the range of Rs 808-850, commenced on December 19 and will remain open for public bidding until December 21.

In the six months ending September 2023, the company recorded revenues of Rs 600 crore and a profit of Rs 116 crore. In FY23, revenues witnessed a 39% increase, reaching Rs 1,196 crore, while profits surged by 47% to Rs 209 crore.

JM Financial, Axis Capital, Motilal Oswal Investment Advisors, and Equirus Capital are the book-running lead managers overseeing the issue.

 

RBZ Jewellers Limited 

RBZ Jewellers Limited IPO has set the price range for its public offering at Rs 95-100, with plans to raise Rs 100 crore at the upper end. The subscription period for the IPO will commence on December 19 and conclude on December 21.

The IPO comprises a fresh issue of 1 crore shares. Over the past three fiscal years leading up to 2023, the company has witnessed a remarkable compound annual growth rate (CAGR) of 64.05% in its revenue from operations. Additionally, the profit after tax has experienced a CAGR of 51.36% from FY21 to FY23.

Arihant Capital Markets serves as the exclusive book-running lead manager for the IPO, and Bigshare Services is the appointed registrar to the offer.

 

Credo Brands Marketing

Credo Brands Marketing is preparing to debut its initial public offering (IPO) on December 19. The price range for this public issue has been established at Rs 266-280, with the company aiming to raise Rs 550 crore at the upper end.

In the fiscal year 2023, the company experienced a 46% year-on-year surge in revenue from operations, reaching Rs 498 crore, while the profit increased to Rs 8.5 crore.

The book-running lead managers for the IPO are DAM Capital Advisors, ICICI Securities, and Keynote Financial Services.

 

Azad Engineering Limited 

Azad Engineering is set to launch its initial public offering (IPO) on December 20, with a price range of Rs 499-524. The public offer concludes on December 22.

The Azad Engineering Limited IPO includes a fresh equity issuance of Rs 240 crore and an offer for sale (OFS) of Rs 500 crore. The OFS will see shares being divested by promoter Rakesh Chopdar, investor Piramal Structured Fund, and DMI Finance.

In the fiscal year 2023, the company recorded a 31% year-on-year increase in revenue from operations, reaching Rs 261 crore. However, the net profit for the same period declined by 71% to Rs 8.4 crore.

The book-running lead managers for the IPO are Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi.

 

Innova Captab Limited 

Innova Captab, an integrated pharmaceutical company in India, is launching its IPO with a price range of Rs 426-448. The company aims to raise Rs 570 crore at the upper end. The allotment is expected on December 27, shares will be credited to demat accounts on December 28, and the listing is scheduled for December 29. The IPO structure allocates 50% to qualified institutional buyers, 35% to retail investors, and 15% to non-institutional investors.

 

Market Optimism and Investor Opportunities

The surge of IPOs from diverse sectors offers investors a unique chance to diversify their portfolios, minimizing risk. With Dalal Street’s positive momentum and optimistic market sentiments, there’s potential for capital appreciation. While promising ventures present lucrative opportunities, investors are advised to conduct careful due diligence to navigate potential risks.

As the IPO market continues to thrive, the cumulative fundraising from numerous companies this year is projected to reach Rs 57,720 crore by the end of 2023. With over 65 IPO filings already with SEBI and many more approved, 2024 promises to be an active year for the Indian IPO market.

 

Conclusion

In conclusion, the recent surge in IPOs on Dalal Street reflects the dynamic nature of the Indian primary market, offering diverse investment opportunities. Highlighted IPOs like Muthoot Microfin, Motisons Jewellers, Suraj Estate Developers, India Shelter Finance, Happy Forgings, RBZ Jewellers, Credo Brands Marketing, Azad Engineering, and Innova Captab showcase a thriving market. With positive momentum and an optimistic outlook, investors have the chance to diversify their portfolios and capitalize on potential gains. The cumulative fundraising is projected to reach Rs 57,720 crore by the end of 2023, and with over 65 filings with SEBI, 2024 promises to be an active year for Indian IPOs. Caution is advised, and investors should conduct due diligence to navigate potential risks.

 

Frequently Asked Questions

1. Which companies are highlighted in the recent IPO wave, and what are their key details?

Noteworthy companies like Muthoot Microfin, Motisons Jewellers, Suraj Estate Developers, India Shelter Finance, Happy Forgings, RBZ Jewellers, Credo Brands Marketing, Azad Engineering, and Innova Captab are part of the thriving market. Each IPO has unique features such as face value, price band, lot size, and total issue amount.

2. What precautions should investors take in the current IPO scenario?

While the surge in IPOs presents lucrative opportunities, investors are advised to exercise caution and conduct thorough due diligence to navigate potential risks. Positive momentum and an optimistic outlook offer potential gains, but careful consideration is essential.

3. When is the listing date for Muthoot Microfin?

Muthoot Microfin is scheduled to list on NSE and BSE on December 26, 2023.

4. What are the key details of Motisons Jewellers' recent IPO?

Motisons Jewellers concluded its IPO on December 20, 2023, with a face value of Rs. 10 per share. The book-building IPO had a price band of Rs. 52 to Rs. 55 per share.

5. What are the highlights of Happy Forgings' IPO?

The IPO consists of a fresh equity issue of Rs 400 crore and an offer for sale (OFS) of 71.59 lakh shares, aiming to generate Rs 1,008.59 crore. The price band is Rs 808-850 per share.

 

Related Blogs

• INOX India Limited IPO 2023

• DOMS Industries IPO 2023

• Gandhar Oil Refinery India IPO 2023

• Flair Writing Industries IPO 2023

• FedBank Financial Services IPO 2023

• Tata Technologies Limited IPO 2023

• IPO - Latest IPO, Upcoming IPO, Recent Closed IPO

• Initial Public Offerings IPO Account

 

Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.