This week, IPOs of three companies including RR Kabel, SAMHI Hotels, and Chavda Infra (SME), will open for subscription.
“A strong pipeline of over USD 9 billion, which has been approved by capital markets regulator Sebi, and another USD 6 billion filed with the capital markets watchdog, of which USD 10 billion should fructify. Remaining fiscal 2023 looks promising for primary markets,” Mahavir Lunawat, Managing Director of Pantomath Capital Advisors.
“Next week looks promising with IPOs like EMS Limited, RR Kabel among others on the horizon, targeting to raise cumulative funds amounting to Rs 3200+ crore,” Lunawat added.
Further, it is encouraging to note that as the IPO market is sizzling, FPIs have poured over Rs 21,000 crore into IPOs in Apr-Aug’23, he said.
Mainboard IPOs
RR Kabel
The initial public offer (IPO) of consumer electrical product maker RR Kabel would open for public subscription on September 13. The IPO will close on September 15, while the anchor book will be opened for a day on September 12.
RR Kabel’s IPO price band has been fixed at Rs 983-1,035 per share. At the upper end of the price band, RR Kabel aims to raise Rs 1,964 crore from the IPO.
The IPO comprises a fresh issue of equity shares worth Rs 180 crore and an offer for sale (OFS) of 1.72 crore equity shares worth Rs 1,784 crore by the promoters and investors.
RR Kabel plans to utilise the fresh issue proceeds mainly for repaying debt amounting to Rs 136 crore, and for general corporate purposes.
SAMHI Hotels
The IPO of SAMHI Hotels will open for subscription on September 14. The issue will be available for the public to bid on until September 18.
The IPO comprises a fresh equity issue of up to Rs 1,200 crore (revised upwards from Rs 1,000 crore) and an offer for sale (OFS) of 1.35 crore shares by selling shareholders.
Under the OFS, Blue Chandra Pte will offload 84.2 lakh shares, Goldman Sachs will sell up to 49.31 lakh equity shares and GTI Capital Alpha will give up 1.4 lakh shares.
Some of the marquee names in its portfolio are Hyatt Regency, Pune, and Courtyard by Marriott, Bengaluru.
Net proceeds from the issue worth Rs 900 crore will be used towards repaying debt and the remaining for general corporate purposes.
SME IPO
Chavda Infra
The Rs 43.26 crore initial public offer of Gujarat-based Chavda Infra will open for subscription on September 12. The IPO will close on September 14.
Chavda Infra IPO price band has been fixed at Rs 60-65 per share. The IPO comprises only a fresh issue of 66.56 lakh equity shares by the company.
50% of the net issue size, i.e. 31.6 lakh shares, is reserved for qualified institutional buyers, 15% (9.48 lakh shares) for high-net-worth individuals and the remaining 35% (22.12 lakh shares) for retail investors.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
