The IPO train is unlikely to slow down this month as nearly Rs 2,000 crore worth of initial public offerings (IPOs) will hit Dalal Street next week, taking the total number of IPOs in December to five. So far this year, 36 IPOs have hit the market, raising nearly Rs 62,000 crore. With the two upcoming IPOs next week, the total fundraising by main board IPOs would rise to almost Rs 64,000 crore. In just the last month of this calendar year, the fundraising including the two IPOs would be a little more than Rs 3,800 crore.
IPOs opening next week
KFin Technologies IPO
The first IPO that opens for public subscription next week is that of KFin Technologies, a technology-driven financial services platform. The KFin Tech IPO will be open for subscription from 19 to 21 December. The company that provides services and solutions to asset managers and corporate issuers across asset classes in India aims to raise Rs 1,500 crore via the IPO which is only an offer for sale (OFS). Promoter entity General Atlantic Singapore Fund Pte Ltd will be selling shares worth Rs 1,500 crore. The price band for the offer has been fixed at Rs 347-366 a share.
Read More: Bank Holidays 2023: Banks to remain closed THESE days in 2023, detailed list here
The company has reserved 75% of the offer for qualified institutional buyers (QIBs), 15% for high net-worth individuals (HNIs) and the remaining 10% for retail investors. Ahead of the IPO, the company raised Rs 675 crore from 44 anchor investors at the upper price band. It allotted 18.44 million equity shares to the anchor investors at Rs 366 per equity share, which includes a premium of Rs 356 per equity share with a face value of Rs 10 per share.
Elin Electronics IPO
Electronics manufacturing services (EMS) provider Elin Electronics’ will be the second public issue to open next week. Elin Electronics Limited IPO is set to open for public subscription on 20 December, and will close on 22 December. The company has fixed the price band at Rs 234 – 247 per share for its maiden public offer. The Rs 475 crore public issue with a face value of Rs 5 per share comprises a fresh issue aggregating up to Rs 175 crore, and an offer for sale (OFS) of up to Rs 300 crore by existing shareholders. The fresh issue proceeds will be used to retire debt and fund the expansion of facilities at Ghaziabad (Uttar Pradesh) and Verna (Goa).
Half of the offer size is reserved for QIBs, 15% for HNIs and the balance 35% for retail investors. Investors can bid for a minimum of 60 shares and in multiples of 60 shares thereafter. The electronics manufacturing services company is expected to finalise share allotment on 27 December, and the allotted shares are expected to be credited to investors’ demat accounts by 29 December. The tentative date of Elin Electronics IPO listing is 30 December 2022.
Read More: Money sent to wrong UPI ID? Here’s a guide on how to claim it back
Share market debuts next week
Apart from new IPOs, there will be three listings next week as with Sula Vineyards being the first to debut on 22 December. India’s largest winemaker closed its public issue on December 14 with just 2.33 times subscription. Shares of financial service firm Abans Holdings and premium automobile retailer Landmark Cars will also debut on stock exchanges next week on 23 December. The former was subscribed 1.1 times and the latter garnered 3.06 times subscription. In the grey market, Sula Vineyards as well as Landmark Cars shares traded at a moderate discount, hinting at a tepid debut.
As many as 100 matured and large-scale Indian startups, that are either profitable or on the path towards profitability, may hit the Indian markets in the next five years, according to a Redseer report. While about 20 of the 100 have already made their public market debut, the remaining 80 have the potential to go for an IPO. The prediction comes despite a lacklustre performance by startups such as Paytm, Zomato, Nykaa, Cartrade, among others — all of which listed on the exchanges over the past year or so.
The shares of these new-age tech companies are down 40-70% from their initial listing price. “While the markets have been challenged, which has impacted the valuation of the tech companies a bit more than others, the potential is out there, especially for tech,” the Redseer report said. Of the 100 startups, 19 have made it to the stock exchanges. Nine startups have submitted their draft red herring prospectus (DRHP), 10 have commissioned or completed their DRHP drafts and about 62 of them may be open to the idea of an IPO, the Redseer report found.
