Three IPOs, including much-awaited Policybazaar, will open for subscription on Monday. Other two issues are Sigachi Industries and SJS Enterprises.
The primary market has been buzzing with Initial Public Offers (IPOs). Two IPOs—Nykaa and Fino Payments Bank — opened last week within a gap of a day, while three are lined up for the next week. Three IPOs, including much-awaited Policybazaar, will open for subscription on Monday. Other two issues are Sigachi Industries and SJS Enterprises. This is also the day when the three-day Nykaa IPO will close.
The three IPOs, together, aim to raise Rs 6,550 crore from share sale this week. PB Fintech Ltd (PBFL), which operates online insurance marketplace Policybazaar will raise maximum amount from share sale. Policybazaar will raise around Rs 5,710 crore. SJS Enterprises Ltd, a decorative aesthetics product company, to get Rs 800 crore, while Sigachi Industries, manufacturer of cellulose-based excipient, will have an issue size of Rs 125.43. All the three IPOs will close on November 3, 2021.
Earlier, cosmetic e-tailer Nykaa came up with an issue size of Rs 5,352-crore, while Fino Payments Bank, a digital-backed lender, opened with an objective to raise Rs 1,200 crore from the issue. The two IPOs will fetch Rs 6,552 crore from share sale.
1 Policybazaar IPO Key Details and Timeline:
Issue size: Rs5710 crore
Price band: Rs940 to Rs980
Minimum quantity: 15
Application start date: November 1, 2021
Application end date: November 3, 2021
Allotment beginning date: November 10, 2021
Refund initiation date: November 12, 2021
Share allotment date: November 12, 2021
Listing date: November 15, 2021
*Details as per Upstox
Policybazaar IPO purpose for going public:
PB Fintech, the parent company of policybazaar, proposes to allocate the proceeds towards enhancing the visibility of its brands, including Policybazaar and Paisabazaar, expand customer base, funding strategic investments and acquisitions. Besides, the company also aims to enhance its offline presence, replicate and adapt its business model in other countries and for general business requirements.
2 SJS Enterprises Ltd key details and timeline:
Issue size: Rs800 crore
Price band: Rs531 to Rs542
Minimum quantity: 27
Application start date: November 1, 2021
Application end date: November 3, 2021
Allotment beginning date: November 10, 2021
Refund initiation date: November 11, 2021
Share allotment date: November 12, 2021
Listing date: November 15, 2021
*Details as per Upstox
SJS Enterprises IPO Purpose:
SJS Enterprises is planning to offer liquidity to the selling shareholders with Rs800 crore IPO
3. Sigachi Industries Ltd Key Details and Timeline:
Issue size: Rs125 crore
Price band: Rs161 to Rs163
Minimum quantity: 90
Application start date: November 1, 2021
Application end date: November 3, 2021
Allotment beginning date: November 10, 2021
Refund initiation date: November 11, 2021
Share allotment date: November 12, 2021
Listing date: November 15, 2021
*Details as per Upstox
Sigachi Industries Purpose For Raising Money:
One of the largest manufacturers of Microcrystalline Cellulose (MCC) in India, Sigachi Industries will use the proceeds from the IPO for expansion of production facilities at its two plants at Dahej and Jhagadia in Gujarat. The company will also use money to manufacture croscarmellose Sodium at Kurnool in Andhra Pradesh, besides for geral corporate purposes.
Meanwhile, as IPO frenzy have caught retail investors’ attention, Nikhil Kamath, Co-founder, True Beacon and Zerodha, had recently warned them not to just make their decisions based on media hype. Kamath had said one should not blindly believe in the media hype and should do a thorough research before applying for an IPO. “As an investor, don’t believe the media hype, you need to study the company and its journey before investing in an IPO. Plenty of IPOs start out at high levels and fizzle out later,” Nikhil had said.
Zerodha Broking Limited Founder and Chief Executive Officer (CEO) Nithin Kamath had earlier said that IPOs have played crucial role in attracting investors under 30 years to the stock market of late. “They have an added advantage of being young and less to invest. Unlike the previous bull runs, most of the new investors starting especially because of IPOs this time are under 30 years. The good thing is that they are younger and have less to invest. Meaning they can learn hands-on and bounce back quicker if money mistakes are made,” he had said in a tweet.
Over 60 companies have hit the stock market and have been listed on the National Stock Exchange alone between November 9, 2020 and October 25, 2021, while at least, six IPOs will be listed on bourse this year alone.
