IPO Extravaganza’s Diverse Offerings Next Week, To Raise Rs 4,000 Cr
As the year concludes with a flourish in the primary market, a cluster of diverse companies is set to captivate investors with their initial public offerings (IPOs). The upcoming week will witness a spectrum of opportunities, ranging from Mumbai-based real estate with Suraj Estate Developers to the glittering appeal of Motisons Jewellers. Notable players like RBZ Jewellers, Credo Brands Marketing, and Azad Engineering are also stepping into the IPO arena, offering fresh perspectives and potential for growth. Additionally, SMEs, including Sahara Maritime, Electro Force, Shanti Spintex, and Trident Techlabs, are also in line. Here are all the details of these offerings, showcasing the breadth and depth of investment possibilities in this bustling IPO calendar.
It is raining IPOs next week, with as many as 11 companies set to launch their initial public offerings (IPOs), marking a dynamic conclusion to the robust primary market activity for the year.
Among these, seven IPOs are scheduled for the mainboard segment, collectively aiming to raise approximately Rs 3,910 crore, while four SME issues are anticipated to garner Rs 135 crore.
The heightened interest in IPOs can be attributed to a growing emphasis on profitability and the reasonable pricing of deals, particularly when compared to the elevated valuation multiples observed in listed peers.
According to analysts, the trend of robust capital raising is expected to continue into the next year, with more than 65 IPO documents filed with the Securities and Exchange Board of India (SEBI).
Out of these, 25 have already received regulatory approval from SEBI, as highlighted by Mahavir Lunawat, Managing Director of Pantomath Capital Advisors.
Among the mainboard IPOs scheduled for next week are Muthoot Microfin, Motisons Jewellers, Suraj Estate Developers, Happy Forgings, RBZ Jewellers, Credo Brands, and Azad Engineering.
Simultaneously, the SME segment will witness public offerings from Sahara Maritime, Electro Force, Shanti Spintex, and Trident Techlabs.
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Herein, we provide specific details –
1. Muthoot Microfin
The IPO is set to open for public subscription from December 18 to December 20, with the company aiming to raise Rs 960 crore.
The IPO comprises a fresh issue of Rs 760 crore and an offer-for-sale (OFS) of Rs 200 crore, with a price band of Rs 277-291 per equity share and a face value of Rs 10 per share.
In the six months ending September 2023, Muthoot Microfin reported a 72% year-on-year increase in revenue to Rs 1042 crore, with profits surging multifold to Rs 205 crore.
The book-running lead managers for the issue include ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets.
2. Suraj Estate Developers
Mumbai-based real estate company Suraj Estate Developers is also set to open its IPO on December 18 and close on December 20.
The IPO, exclusively a fresh issue with no offer for sale, is priced in the range of Rs 340-360.
Suraj Estate Developers recorded a profit of Rs 32.06 crore in FY23, marking a 20.98% increase from the previous year, while revenue for the same period rose by 12% to Rs 306 crore.
ITI Capital and Anand Rathi Advisors are serving as the book-running lead managers for the issue.
3. Motisons Jewellers
Motisons Jewellers is generating significant market interest ahead of its IPO, scheduled to open for subscription on December 18 and close on December 20.
The public offer consists entirely of a fresh equity issue of 2.71 crore shares. Trading in the grey market indicates a substantial premium of Rs 100 over the issue price of Rs 55.
For the three months ending June, the company reported revenue of Rs 86.7 crore and a profit of Rs 5.47 crore. In FY23, revenue from operations increased by 16% YoY to Rs 366 crore, and profit surged by 51% to Rs 22.19 crore.
Holani Consultants is the sole book-running lead manager, and Link Intime India is the registrar for the issue.
4. Happy Forgings
Happy Forgings’ IPO comprises a fresh equity issue of Rs 400 crore and an offer for sale (OFS) of 71.59 lakh shares, aiming to raise Rs 1,009 crore.
The issue, priced between Rs 808-850, opens on December 19 and closes on December 21.
In the six months ending September 2023, the company reported revenues of Rs 600 crore, with a profit of Rs 116 crore. For FY23, revenues increased by 39% to Rs 1,196 crore, and profit saw a 47% jump to Rs 209 crore.
JM Financial, Axis Capital, Motilal Oswal Investment Advisors, and Equirus Capital are the appointed book-running lead managers for the issue.
5. RBZ Jewellers
RBZ Jewellers has set the price range for its public offering at Rs 95-100, with a target of raising Rs 100 crore at the upper end.
The IPO is exclusively a fresh issue of 1 crore shares and will be open for subscription from December 19 to December 21.
Over the past three fiscal years leading up to 2023, the company has demonstrated a compound annual growth rate (CAGR) of 64.05% in revenue from operations. Additionally, the profit after tax has shown a robust CAGR of 51.36% from FY21 to FY23.
Arihant Capital Markets is the sole book-running lead manager, and Bigshare Services will serve as the registrar to the offer.
6. Credo Brands Marketing
Credo Brands Marketing is gearing up for its debut IPO on December 19, featuring a price band of Rs 266-280. The company aims to raise Rs 550 crore at the upper end of this range.
In FY23, revenue from operations surged by 46% YoY to Rs 498 crore, with a corresponding increase in profit to Rs 8.5 crore.
DAM Capital Advisors, ICICI Securities, and Keynote Financial Services are the appointed book-running lead managers for the issue.
7. Azad Engineering
Azad Engineering is set to launch its IPO on December 20, with a price band fixed at Rs 499-524. The public offer, closing on December 22, comprises a fresh equity of Rs 240 crore and an offer for sale (OFS) of Rs 500 crore.
The OFS involves the offloading of shares by promoter Rakesh Chopdar, Investor Pirstor Piramal Structured Fund, and DMI Finance.
In the financial year 2023, the company reported a 31% YoY increase in revenue from operations to Rs 261 crore, while net profit for the same period declined by 71% to Rs 8.4 crore.
Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi are the designated book-running lead managers for the issue.
SME IPOs
The SME IPO of Sahara Maritime is scheduled to open on December 18, aiming to raise Rs 7 crore through the offer, which comprises entirely fresh equity of 8.49 lakh shares offered at Rs 81 apiece.
Additionally, the public offers of Electro Force and Shanti Spintex will be launched on December 19, with Electro raising Rs 80 crore and Shanti targeting about Rs 31.25 crore.
The SME issue of Trident Techlabs, amounting to Rs 16 crore, is set to kick off on December 21.
The Last Bit, As the IPO curtain rises on a diverse array of companies, spanning real estate, jewelry, engineering, and SME sectors, investors find themselves at the threshold of a compelling opportunity spectrum.
The robust interest in these offerings stresses the market’s appetite for well-priced deals and a focus on profitability.
With companies like Suraj Estate Developers, Motisons Jewellers, RBZ Jewellers, Credo Brands Marketing, and Azad Engineering making their market debut, and SMEs such as Sahara Maritime, Electro Force, Shanti Spintex, and Trident Techlabs adding to the picture, the upcoming week promises an exciting finale to the year.
As investors weigh these offerings against their financial prospects and growth potential, the IPO sector remains vibrant, reflecting the dynamism of the primary market as we head into the new year.
