The primary market is gearing up for a flurry of activity, with ten prominent companies preparing to go public between December and January. The surge in IPOs is attributed to the sustained bull run and a surplus of liquidity in the market. Upcoming IPOs in the next two weeks alone could witness a significant influx of public issues, aiming to raise an estimated Rs 10,000-12,000 crore.
Details of 10 Upcoming IPOs
- Doms Industries Ltd (Rs 1,200 crore):
- IPO Bidding Dates: December 13 to 15
- Fresh Issues: Rs 350 crore
- Offer-for-sale: Rs 850 crore
- India Shelter Finance Corporation (Rs 1,500 crore):
- IPO Date: December 13
- IPO Size: Rs 1,200 crore
- Inox India (Rs 1,000 crore):
- IPO Date: December (exact date not specified)
- IPO Size: Rs 1,000 crore
- Muthoot Microfin (Rs 1,350 crore):
- IPO Date: December (exact date not specified)
- IPO Size: Rs 1,350 crore
- Suraj Estates (around Rs 400 crore):
- IPO Date: December 18
- IPO Size: Rs 400 crore
- Motison Jewellers:
- IPO Date: Not specified
- Mukka Proteins (around Rs 200-300 crore):
- IPO Date: Not specified
- IPO Size: Around Rs 200-300 crore
- Happy Forgings:
- IPO Date: Not specified
- RBZ Jewellers (Rs 100-125 crore):
- IPO Date: Not specified
- IPO Size: Rs 100-125 crore
- Allied Blenders and Distillers:
- IPO Date: Not specified (expected in January)
Overview of Upcoming IPOs
Doms Industries Ltd IPO
Doms Industries Ltd is a manufacturer of writing instruments and stationery products. The company plans to raise Rs 1,200 crore through an IPO, which is expected to be launched in December 2023. The IPO will comprise a fresh issue of Rs 600 crore and an offer for sale of Rs 600 crore by the existing shareholders.
Indian Shelter Finance IPO
India Shelter Finance Corporation is a non-banking finance company that provides affordable housing loans to low and middle-income customers. The company has filed its draft red herring prospectus (DRHP) with SEBI for an IPO of Rs 1,500 crore, which is likely to hit the market in January 2024. The IPO will consist of a fresh issue of Rs 800 crore and an offer for sale of Rs 700 crore by the promoter and other shareholders.
India Shelter Finance Corporation IPO
India Shelter is a non-banking finance company that provides affordable housing loans to low and middle-income customers. The company has filed its draft red herring prospectus (DRHP) with SEBI for an IPO of Rs 1,500 crore, which is likely to hit the market in January 2024. The IPO will consist of a fresh issue of Rs 800 crore and an offer for sale of Rs 700 crore by the promoter and other shareholders. The company aims to use the net proceeds to augment its capital base, meet future capital requirements, and general corporate purposes.
Inox India IPO
It is a leading manufacturer of cryogenic storage and transportation equipment. The company has received SEBI’s approval for an IPO of Rs 1,000 crore, which is expected to be launched in February 2024. The IPO will comprise a fresh issue of Rs 700 crore and an offer for sale of Rs 300 crore by the promoter and other selling shareholders.
Muthoot Microfin IPO
Muthoot Microfin is a microfinance institution that provides loans to women customers for income generation purposes. The company has received SEBI’s final observation letter for an IPO of Rs 1,350 crore.
Suraj Estate Developers IPO
Suraj Estate Developers is a real estate construction company that focuses on best-in-class collaborations and client assurance. The company has filed its DRHP with SEBI for an IPO of around Rs 400 crore.
Motisons Jewellers IPO
Motisons Jewellers is a jewellery retailer that offers a wide range of gold, diamond, and silver jewellery products. The company has filed its DRHP with SEBI for an IPO of Rs 300 crore.
Investor Allocation
- Qualified Institutional Buyers (QIB): Up to 50% of the Net Issue
- Retail Investors: At least 35% of the Net Issue
- Non-Institutional Investors (NII/HNI): At least 15% of the Net Issue
Promoter Holdings: The company’s promoters include Mr. Sandeep Chhabra, Mr. Sanjay Chhabra, Ms. Namita Chhabra, Ms. Kajal Chhabra, Moti Lal Sandeep Chhabra HUF, Sandeep Chhabra HUF, and Sanjay Chhabra HUF.
Mukka Proteins IPO
Established in March 2003, Mukka Proteins Limited specializes in the production of fish protein products. The company manufactures and supplies fish meal, fish oil, and fish soluble paste, crucial components in the production of aqua feed (for fish and shrimp), poultry feed (for broiler and layer), and pet food (dog and cat food). The company has filed its DRHP with SEBI for an IPO of around Rs 200-300 crore.
Happy Forging IPO
Happy Forging is a manufacturer of heavy forged and high-precision machined components. The company has filed its DRHP with SEBI for an IPO of Rs 500 crore, which is expected to be launched in July 2024. The IPO will comprise a fresh issue of Rs 500 crore and an offer for sale of 0.81 crore shares by the promoter and other shareholders.
RBZ Jewellers IPO
RBZ Jewellers is a manufacturer of antique gold jewellery products. The company has filed its DRHP with SEBI for an IPO of Rs 100-125 crore, which is expected to be launched in August 2024. The IPO will be entirely a fresh issue of shares. The company plans to use the net proceeds to expand its manufacturing capacity.
These IPOs are strategically timed in the lead-up to the Union Budget, taking advantage of the ongoing bull market and favourable liquidity conditions.
Surge in IPO Activity
Market experts attribute this surge in IPO activity to the upbeat sentiment in the secondary market following state election results, ample liquidity, and increased participation from retail investors. The optimism is further fueled by positive global market trends, the return of foreign institutional investments (FIIs), and promoters’ eagerness to capitalize on the market’s positive mood for optimal valuations.
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Factors Directing the Bullish Market
With India’s growth story gaining favour among foreign investors and the recent electoral success of the BJP instilling confidence in policy and political stability, experts anticipate sustained market strength. The buoyant market sentiment is underscored by record highs in benchmark indices and sectors like Nifty Bank.
As the primary market continues to ride the bullish wave, analysts caution investors to assess each IPO objectively, considering factors such as valuation and the intended use of net proceeds. The strong listing gains from recent IPOs have bolstered investor confidence, but a prudent approach remains crucial in navigating the dynamic market landscape.
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.