What’s trending in the Indian Stock Market? Did you hear about the companies that recently received approval from SEBI to launch their IPOs? SRM Contractors, a leading construction and development firm, is gearing up to launch its IPO on March 26th. Interarch Building Products and Bharti Hexacom are also making waves with their IPO plans, offering fresh investment opportunities in the market. Let’s look into the key details of these upcoming IPOs.
SRM Contractors IPO
SRM Contractors, a construction and development company, is set to launch its IPO worth Rs 130.20 crore on March 26.
The IPO, comprising solely of a fresh issue of 62 lakh equity shares, will have no offer-for-sale component.
Here are the SRM Contractors IPO Details:
- SRM Contractors’ IPO opens on March 26, and the price band is set at Rs 200-210 per share.
- Its IPO consists of a fresh issue of 62 lakh equity shares with no offer-for-sale component.
- The closing date for the IPO is March 28, while the anchor book will be open on March 22.
SRM Contractors IPO Details
Here is everything from the allocation to utilisation of proceeds:
- Allocation of IPO shares:
- 50% of the IPO size is for Qualified Institutional Buyers (QIBs).
- 15% for Non-Institutional Investors.
- 35% for Retail Investors.
- Minimum Bid and Investment:
- Investors must bid for a minimum of 70 equity shares.
- Retail investors must invest a minimum of Rs 14,700 (for 70 shares).
- The maximum investment for retail investors is Rs 1,91,100 (for 910 shares) at the upper price band.
- Utilization of SRM Contractors IPO Proceeds:
- Rs 31.5 crore for purchasing equipment.
- Rs 46 crore for working capital.
- Rs 10 crore for debt repayment.
- Rs 12 crore for project-specific joint ventures.
- The remaining amount is for general corporate purposes.
Financial Performance
SRM Contractors reported a net profit of Rs 18.75 crore in FY23. This is up from Rs 17.57 crore, with revenue increasing from Rs 263.3 crore in FY22 to Rs 300.3 crore. In the nine-month period of the current financial year, net profit stood at Rs 21.07 crore on revenue of Rs 234.55 crore.
Interarch Building Products Files IPO Papers with SEBI
Interarch Building Products files IPO papers with SEBI for a fresh issue size of Rs 200 crore. Its IPO involves issuing fresh shares worth up to Rs 200 crore.
Interarch Building Products specializes in turnkey pre-engineered steel construction solutions. It offers design, engineering, manufacturing, and project management services for pre-engineered steel buildings (PEB).
Offer for sale includes shares by Arvind Nanda, Gautam Suri, Ishaan Suri, Shobhna Suri, and OIH Mauritius.
The company may also regard a pre-IPO placement of equity shares amounting to Rs 40 crore, which would reduce the fresh issue size if completed.
Use of Interarch Building Products IPO Proceeds
- The company will allocate proceeds from the fresh issue towards various purposes, including:
- Financing capital expenditure
- Upgrading manufacturing facilities
- Investing in information technology assets
- Funding working capital requirements
Financial Overview
In the fiscal year 2023, revenue from operations increased by 34.6 per cent to Rs 1,123.93 crore. As of September 30, 2023, the order book stood at Rs 1,036.27 crore.
Bharti Hexacom, a Unit of Bharti Airtel, Gains SEBI Approval for IPO.
Bharti Hexacom, a subsidiary of Bharti Airtel, has received approval from the Securities and Exchange Board of India (SEBI) for its IPO. It offers consumer mobile services, fixed-line telephone, and broadband services under the Airtel brand in Rajasthan and the North East region.
Bharti Hexacom IPO details reveal an offer-for-sale (OFS) of 10 crore equity shares by the public shareholder, Telecommunications Consultants India, without any fresh issue component.
The proceeds from the Bharti Hexacom IPO, excluding expenses, will go to the selling shareholder.
The draft red herring prospectus (DRHP) filed by Bharti Hexacom reveals that Bharti Airtel holds a 70 percent stake (35 crore equity shares).
However, Telecommunications Consultants India holds the remaining 30 per cent (equivalent to 15 crore equity shares).
SEBI issued its observation letter on March 11. This signifys that the company can launch its IPO within the next one-year period.
Financial Overview
In FY23, it reported a net profit of Rs 549.2 crore, marking a 67.2 percent decline from the previous year, which was supported by exceptional gains. Revenue from operations increased by 21.7 percent to Rs 6,579 crore.
During the six-month period ending September FY24, net profit decreased by 64.6 percent year-on-year to Rs 69.1 crore.
However, revenue grew by 8 percent to Rs 3,420.2 crore during the same period.
Conclusion
As we anticipate the launch of SRM Contractors’ IPO and witness the progress of Interarch Building Products and Bharti Hexacom, it’s evident that India’s investment arena is evolving. These upcoming IPOs present opportunities for investors to diversify their investment portfolios.
Source- moneycontrol.com, moneycontrol.com, 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.