In the fast-paced movements across the Indian stock markets, keeping track of the list of upcoming IPOs- Initial Public Offerings is essential for investors looking for fresh opportunities. This guide focuses on four significant IPOs—Nova Agritech, Epack Durable, Bharti Hexacom, and Bansal Wire Industries. From schedule changes to regulatory nods, each IPO has its own story, contributing to the ever-changing financial landscape.
Key Highlights of Upcoming IPOs
- Nova Agritech and Epack Durable IPOs adjusted their schedules due to the Ram Mandir holiday.
- Medi Assist reschedules listing to January 23 amid positive market sentiment.
- Bharti Hexacom IPO approved, featuring a 20% government stake sale
- Bansal Wire Industries files for a Rs 745 crore IPO for debt payment and expansion
- Financial insights: Nova Agri tech’s Rs 143.81 crore IPO, growth trajectory of Bansal Wire Industries
Shifting Dates: Nova Agritech and Epack Durable IPOs
In response to the Ram Mandir inaugural holiday on January 22, both Nova Agritech and Epack Durable IPOs have undergone schedule adjustments. The Epack Durable IPO, initially set to close on January 23, has extended its closure date to January 24, with share listings rescheduled for January 30.
Similarly, the Nova Agritech IPO’s subscription period has been pushed back by a day to January 23-25, leading to a new listing date of January 31. These modifications aim to ensure a smooth IPO process amidst unforeseen market holidays.
Medi Assist: Revised Listing to January 23
Healthcare third-party administrator Medi Assist Healthcare Services has rescheduled its listing to January 23. The final issue price, set at Rs 418 per share, garnered significant investor interest with an oversubscription of 16.25 times during January 15-17. Despite the alterations prompted by the Ram Mandir holiday, the IPO reflects a positive market sentiment.
Here are the key details of the three mainboard upcoming IPOs:
1. Nova Agritech IPO
Nova Agritech is set to launch its initial public offering (IPO) with a total issue size of Rs 143.81 crore.
Here are key details and considerations:
1. IPO Dates: The IPO subscription window is scheduled to open on January 23 and close on January 25, 2024.
2. Price Band: The price band for Nova Agritech’s IPO has been fixed at Rs 39-41 per share.
3. Offer Composition: Nova Agritech’s IPO comprises a fresh issue of 2.73 crore shares, valued at Rs 112 crore, and an offer-for-sale (OFS) of 77.58 lakh shares, amounting to Rs 31.81 crore. The promoters of the company are Suraksha Agri Retails (India), Malathi S, and Kiran Kumar Atukuri.
4. Institutional Investment: Ahead of the IPO, the company secured Rs 43.14 crore from institutional investors on January 19. AG Dynamic Funds emerged as the largest investor, acquiring nearly Rs 13 crore worth of equity shares.
5. Objectives of the Issue: The net proceeds from the fresh issue, totalling Rs 14.20 crore, will be allocated for investment in its subsidiary Nova Agri Sciences. Additionally, funds will support the establishment of a new formulation plant, capital expenditure, and the expansion of existing facilities.
6. Listing Date: The basis of allotment will be finalised by January 29, with shares credited to demat accounts by January 30.
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2. Bharti Hexacom IPO Approval and Government’s 20% Stake Sale
On January 20, the board of Bharti Airtel approved the IPO of its subsidiary, Bharti Hexacom. This is the upcoming government IPO in India that comprises an offer-for-sale (OFS) of 10 crore equity shares, constituting 20% of the company’s paid-up share capital.
Notably, the government, owning a 30% stake in Bharti Hexacom, plans to sell its shares through this IPO, strategically increasing public participation.
Bharti Hexacom IPO Approval by Airtel Board
The board of Bharti Airtel has given its approval for the initial public offering (IPO) of its subsidiary, Bharti Hexacom, according to a regulatory filing on January 20.
Ownership Structure of Bharti Hexacom
Bharti Airtel, a prominent telecom major in India, holds a 70 percent stake in Bharti Hexacom, while the remaining 30 percent is owned by the Government of India.
Details of the IPO
The IPO is set to consist of an offer-for-sale (OFS) of 10 crore equity shares with a face value of Rs 5 each. This represents “20 percent of the company’s paid-up share capital,” as outlined in the exchange filing. Importantly, the offering will not include a fresh issue of shares, as clarified by the company.
Government’s Stake Sale Through OFS
The IPO provides an avenue for the government to divest its stake in Bharti Hexacom. The 10 crore shares for sale are presently held by Telecommunications Consultants India Ltd, a central public undertaking.
Filing of Draft Red Herring Prospectus (DRHP)
In line with the IPO proposal, the company has submitted a draft red herring prospectus (DRHP) dated January 19, 2024, to the Securities and Exchange Board of India. This filing pertains to the offer by Telecommunications Consultant India Ltd.
Nature of the Offer and Proceeds
Given that the proposed offer is an OFS, Bharti Hexacom will not receive any proceeds from the IPO, as emphasised by the company.
3. Bansal Wire Industries Aims to Raise Rs 745 Crore Through Fresh IPO
Steel wire manufacturer Bansal Wire Industries has filed preliminary papers for an IPO with the aim to raise Rs 745 crore. The IPO is an entirely fresh issue of equity shares, with funds allocated for debt payment, working capital support, and general corporate purposes. The company’s expansion plans, including introducing speciality wires through a new plant in Dadri, contribute to the dynamism of this IPO.
Fresh Equity Shares in Maiden Public Issue
The Bansal Wires IPO is characterised by an exclusive issuance of new equity shares, with no component for the sale of existing shares. The Draft Red Herring Prospectus (DRHP), filed on January 18, outlines the company’s intention to utilise the funds for debt repayment, supporting working capital requirements, and general corporate purposes.
Business Operations and Expansion Plans
Engaged in the manufacturing and export of steel wires, Bansal Wire Industries operates in three key segments: high-carbon steel wire, mild steel wire (low-carbon steel wire), and stainless steel wire. The company also plans to venture into speciality wires through a new plant in Dadri, signalling its strategic move to grow and expand its market presence in the upcoming fiscal years.
Financial Performance Highlights
A glance at the financials reveals a positive growth for Bansal Wire Industries.
Total income experienced a Compound Annual Growth Rate (CAGR) of 28 percent, reaching Rs 2,422.56 crore in fiscal 2023 from Rs 1,480.41 crore in fiscal 2021. Meanwhile, the profit after tax (PAT) surged at a CAGR of 21.7 percent, reaching Rs 59.93 crore in fiscal 2023 from Rs 40.46 crore in fiscal 2021.
Conclusion
As we conclude this exploration of the list of upcoming IPOs, it’s evident that the world of investments is ever-dynamic. From rescheduled closures and listings to the approval of Bharti Hexacom’s IPO and Bansal Wire Industries’ fresh offering, the market remains agile and responsive. However, it is a must that you should research well before investing in any of the IPOs set to enter the Indian stock market.
Happy investing!
Source- moneycontrol.com, moneycontrol.com, moneycontrol, moneycontrol.com
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.