The coming weeks will remain occupied for the initial public offerings investors as the IPO with five companies, including Tata Technologies and Indian Renewable Energy Development Agency Ltd, will be tapping the primary market next week as they aspire to raise over Rs 7,300 crore collectively.
Besides these, the other three companies whose maiden public issues are ready to open are including Fedbank Financial Services, Flair Writing Industries, and Gandhar Oil Refinery India.
Upcoming IPO’s In November
For the unawares, an IPO is the process by which a private company sells shares of its stock to the public for the first time.
This process helps in raising capital from public investors and become a publicly traded company.
Interestingly, these five companies all together are expected to fetch more than Rs 7,300 crore through the IPOs, as per the data from the stock exchanges.
If you are wondering about this opportunity, V Prashant Rao, director & head-ECM, investment banking at Anand Rathi Advisors, attributed several factors to the hectic IPO activity next week, including strong post-listing returns (average 30 per cent) for recent public issues and robust macros.
According to Rao, “There have been several draft papers filings which indicate companies are gearing up to launch their IPOs in the coming quarters. Many of them, including the ones that have received Sebi clearance, are planning to launch before the general elections and hence you are seeing a flurry of IPOs getting launched.”
The Indian IPO market witnessed 31 initial share sales collecting Rs 26,300 crore during the first half of FY24 overall.
This shows a decline of 26 percent from the Rs 35,456 crore mobilized by 14 IPOs for the same time period in 2022-23.
Although, Rao claims that the second half of this financial year (FY24) will witness good quality companies that have been priced reasonably to launch their IPOs.
Upcoming IPO Schedules
The IPO sale of state-owned Indian Renewable Energy Development Agency (IREDA) will open for public subscription during November 21-23.
And the sale of the remaining four companies’ IPO will commence on November 22 and conclude on November 24.
Tata Technologies & Other Upcoming IPO Highlights
In case of Tata Technologies’ IPO, it is entirely an Offer for Sale (OFS) of 6.08 crore equity shares.
Tata Motors will offload an 11.4 percent stake, private equity firm Alpha TC Holdings will sell a 2.4 per cent stake, and Tata Capital Growth Fund I will do away with 1.2 percent of shareholding under this OFS.
Notably, this is going to be the first company from the Tata Group to float an initial share sale in nearly two decades.
When it comes to the pricing, TATA has set a price band of Rs 475-500 per share for its Rs 3,042 crore IPO.
Next comes IREDA, the company is looking to collect Rs 2,150 crore through its IPO, and has set a price price band of Rs 30-32 per share.
It plans to issue up to 40.31 crore fresh shares to mobilize around Rs 1,290 crore at the upper end of the price band. Besides, currently
The Government of India, being the sole shareholder, will offer up to 26.88 crore shares in an OFS to collect Rs 860 crore.
Next IPO is offered by the Federal Bank’s arm Fedbank Financial Services’ in a Rs 1,092 crore issue which consists of a fresh issue of equity shares to the tune of Rs 600 crore and an OFS of 3.51 crore shares worth Rs 492 crore.
Its price band has been fixed at Rs 133-140 per share for the maiden public issue of the retail-focused non-banking finance company (NBFC).
Moving ahead, the Rs 593 crore IPO of pen maker Flair Writing Industries comprises a fresh issue of equity shares aggregating up to Rs 292 crore and an OFS of equity shares worth up to Rs 301 crore by promoters and promoter group entities.
The price band for this company is announced at Rs 288-304 a share for its issue.
Lastly, the IPO of Gandhar Oil Refinery is a combination of a fresh issue of 1.79 crore shares aggregating to Rs 302 crore and an OFS of 1.18 crore shares worth Rs 198.69 crore and its price band is set at Rs 160-169 per share.