The IPO season in India is gaining momentum again after a dry spell. So far, 19 successful IPOs have been rolled out, raising INR 29,000 Crores in 2021 altogether. Shyam Metalics and Energy Ltd, Blackstone-backed auto parts maker Sona BLW Precision Forgings, General Atlantic-backed hospital chain Krishna Institute of Medical Science (KIMS) and TPG Capital-backed Dodla Dairy are planning on launching their IPO this week.
The Securities and Exchange Board of India (SEBI) had set strict new requirements for merchant bankers and other intermediaries in the second quarter of 2021, resulting in a lethargic primary market (SEBI). However, market activity was expected to pick up in the second half of June due to the delay in implementing some of these provisions in a 2 June circular.
At the precipice of 2021, over 40 firms had submitted their draft red herring prospectus (DRHP) with SEBI. Still, the interruption created by the second wave of the pandemic resulted in a protracted pipeline of share sales. As a result, most issuers have received SEBI approval and are planning to launch their IPOs when the time is appropriate.
June 14, 2021, to June 16, 2021
A pricing band of Rs 285-292 has been set by Sona BLW Precision Forgings, a global automotive systems producer. The company intends to fund almost Rs 5,550 crore, with a portfolio worth Rs 300 crore and a Rs 5,250 crore offer for sale by Singapore VII Topco III Pte Ltd, a Blackstone affiliate. Bids can be placed for as few as 51 equity shares and in multiples of 51 shares after that.
On the other hand, Shyam Metalics and Energy has set a price range of 303-306 per share. They hope to generate roughly Rs. 909 crore through a fresh issue of Rs. 657 crore and a sale of Rs. 252 crore.
Established in 1991, Shyam Metailcs is a leading integrated metal producing company based in India, focusing on Long Steel Products and Ferro Alloys. The company has three manufacturing plants in Odisha: Sambalpur, Jamuria, and Mangalpur in West Bengal.
June 16, 2021, to June 18, 2021
The price band for Krishna Institute of Medical Sciences Ltd (KIMS) has been set at 815-825 per share. The total amount of the IPO is 2,144 crores, including a fresh issue of 200 crores and a promoter group offer for sale of 1,944 crores (2.35 crores shares).
General Atlantic Singapore KH Pte has offered 1,60,03,615 equity shares, Dr Bhaskara Rao Bollineni has offered 3,87,966 shares, Rajyasri Bollineni has offered 7,75,933 shares, Bolllineni Ramanaiah Memorial Hospital has offered 3,87,966 shares, and others have offered 60,05,058 shares.
Investors can apply for a minimum of 18 equity shares and in multiples of 18 thereafter.
Dodla Dairy‘s pricing range is Rs 421-428 per share, with a target of raising Rs 2,143 crore and Rs 530 crore, respectively. The IPO consists of a 50-crore new issuance and a 10.99-million-share offer for sale by the company’s existing shareholders and promoters. The offer for sale (OFS) on the issue’s top band was 470 crore.
Dodla Dairy is a south Indian integrated dairy firm that generates all of its revenue from the sale of milk and dairy-based value-added products (VAPs) in the branded consumer market for FY20. Its domestic operations span Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra, with brands including Dodla Dairy, Dodla, and KC+. In contrast, its international operations are based in Uganda and Kenya, with brands Dodla Dairy, Dairy Top, and Dodla+.