This week, the spotlight is on the stock market, buzzing with excitement over four companies gearing up to launch their initial public offerings (IPOs). These companies aim to raise around Rs 2,600 crore collectively. From hotels to finance firms, this surge in IPO activity reflects a dynamic shift in the primary market.
Key Highlights of IPOs Opening This Week
- Apeejay Park Hotels IPO Debut: Kolkata-based Park Hotels initiates its IPO on February 5, offering shares priced between Rs 147-155 each.
- Rashi Peripherals IPO: Mumbai’s ICT distributor, Rashi Peripherals, launches its IPO from February 7 to 9, with shares priced at Rs 295-311 each.
- Jana Small Finance Bank IPO: Bengaluru’s Jana Bank commences its IPO on February 7, offering shares at Rs 393-414 each, aiming to raise Rs 570 crore.
- Capital Small Finance Bank IPO: Punjab’s Capital Small Finance Bank introduces its IPO from February 7 to 9, with shares priced at Rs 445-468 each.
- Adhar Housing and Northern Arc Capital Refile IPO Papers, sparking anticipation.
These upcoming IPOs mark significant moves in the financial market, offering investors opportunities to diversify their portfolios.
With various sectors represented, including hospitality, technology distribution, and banking, these offerings reflect market sentiments and economic growth prospects.
Apeejay Surrendra Park Hotels IPO
Kolkata-based Park Hotels is all set to debut its maiden public offering next week, starting on February 5, with shares priced between Rs 147-155 each.
- IPO Opens: February 5
- IPO Closes: February 7
- Price Range: Rs 147-155 per share
The IPO, valued at Rs 920 crore and closing on February 7, includes fresh shares worth Rs 600 crore by the company and an offer-for-sale (OFS) of Rs 320 crore by three selling shareholders, including Apeejay and RECP IV Park Hotel.
Anchor investors have already shown keen interest, with investments totaling Rs 409.5 crore, including contributions from Carnelian Capital, Troo Capital, Julius Baer India, and others. Park Hotels plans to utilize Rs 550 crore of the net fresh issue proceeds for debt repayment.
Rashi Peripherals IPO
Mumbai-based ICT products distributor Rashi Peripherals plans to raise Rs 600 crore through its IPO from February 7 to 9, offering fresh shares only, with no OFS. The price band is set at Rs 295-311 per share.
- IPO Opens: February 7
- IPO Closes: February 9
- Price Range: Rs 295-311 per share
The company intends to allocate Rs 326 crore for debt repayment, and Rs 220 crore for working capital needs from the net fresh issue proceeds.
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Jana Small Finance Bank IPO
Bengaluru-based Jana Small Finance Bank will launch its Rs 570-crore IPO on February 7, closing on February 9, with shares priced between Rs 393-414 each. The IPO includes a fresh issue of shares worth Rs 462 crore and an OFS of 26,08,629 equity shares by six investors.
- IPO Opens: February 7
- IPO Closes: February 9
- Price Range: Rs 393-414 per share
The bank plans to bolster its Tier-1 capital base with the net fresh issue proceeds to meet future capital requirements.
Capital Small Finance Bank IPO
Punjab-based Capital Small Finance Bank will also debut its IPO from February 7 to 9, with shares priced at Rs 445-468 each. The bank aims to raise Rs 523.07 crore through a mix of fresh issue shares and an OFS.
- IPO Opens: February 7
- IPO Closes: February 9
- Price Range: Rs 445-468 per share
The bank will use the fresh issue proceeds to enhance its Tier – I capital base for future capital needs.
All three IPOs will have their anchor book opened on February 6, a day before the public issue commences.
Upcoming IPOs: Resubmission of IPO Papers by Aadhar Housing Finance and Northern Arc Capital
Here are the details of the two more companies that have filed their IPO papers for the fresh issues:
Aadhar Housing Finance IPO
Aadhar Housing Finance, backed by Blackstone, has resubmitted its draft documents for an initial public offering (IPO) to the Securities and Exchange Board of India (SEBI). The aim is to raise up to Rs 5,000 crore this year.
- Re-submission Date: January 30
- Proposed IPO Amount: Up to Rs 5,000 crore
The proposed Aadhar Housing Finance IPO will consist of fresh shares valued at up to Rs 1,000 crore and an offer-for-sale component worth up to Rs 4,000 crore, with Blackstone reducing its ownership stake through the share sale.
Objectives of Aadhar Housing Finance IPO
The primary objectives of the fresh shares issuance are to meet future capital requirements for lending activities and for general corporate purposes.
Leading financial institutions such as ICICI Securities, Nomura, Citi, SBI Capital, and Kotak Mahindra Capital are assisting Aadhar Housing Finance with its listing plan.
Previously, Aadhar Housing Finance had submitted IPO papers in January 2021 and received approval from the regulator in May 2022.
However, as the approval validity expires after a year, companies interested in pursuing the IPO route again must refile their documents.
Northern Arc Capital IPO
Northern Arc Capital has once again submitted its IPO papers, this time with an increased fresh issue size of Rs 500 crore.
- Re-submission Date: Not specified
- Increased Fresh Issue Size: Rs 500 crore
The IPO includes the issuance of new shares worth Rs 500 crore, along with the sale of 2.1 crore equity shares by multiple investors in the offer-for-sale (OFS), including LeapFrog Financial Inclusion India, Accion Africa-Asia Investment Company, and others.
Additionally, the company, a professionally managed non-banking finance firm based in Chennai, may explore raising up to Rs 100 crore before submitting the red herring prospectus to the ROC, known as a pre-IPO placement.
Previously, Northern Arc Capital had filed its IPO papers in July 2021 and obtained approval from the capital markets regulator in September 2021.
However, it couldn’t debut on Dalal Street within the one-year period following SEBI’s approval.
IPO Listing This Week
On February 6, BLS E-Services, a provider of business correspondence services, will hit the stock market.
It’s the only company from the mainboard segment debuting.
The offer was highly popular and oversubscribed 162.47 times.
Each share will be priced at Rs 135, with the total offer valued at Rs 311 crore.
Conclusion
With these IPOs opening this week, investors can analyse their potential and consider participating in them. The IPOs not only represent individual company growth but also contribute to the broader economy through capital infusion and primary market expansion.
Stay tuned for further market updates.
Source- 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.