After a quick break, India’s primary market is ready for action. As many as four firms have lined up initial public offerings in the coming week. Looking to raise a total of ₹9,132 crore from share sales.
These companies are steel producer Shyam Metalics and Energy Ltd, Blackstone-backed auto parts maker Sona BLW Precision Forgings. After a busy start in the first quarter of the calendar year, which saw 16 IPOs raise ₹14,994 crore, so the primary market went quiet.
Nevertheless, he cooling off of the primary market was the result of tough new guidelines for merchant bankers and other intercessor introduced by the Securities and Exchange Board of India (Sebi).
Sona BLW Precision Forgings and Shyam Metalics and Energy will open for subscription on 14 June and close on 16 June. It has fixed a price band of ₹285-292, and Shyam Metalics has fixed its price band at ₹303-306 a share.
So both KIMS and Dodla Dairy will open for subscription on June 16 and close on June 18. KIMS has fixed a price band of ₹815-825 a share and Dodla Dairy ₹421-428 per share, focusing to raise ₹2,143 crore and ₹530 crore, respectively.
Further, considering higher NFOs (new fund offers) launched in recent months by domestic mutual funds, they would be looking to site money towards upcoming IPOs, which equally offer a healthy growth outlook in the long run.
As well as, The bunching up of many IPOs in a single week is the outcome of a long pipeline of share sales with almost 40 companies filing their draft red herring prospectuses with Sebi since the start of the year. Many of these issuers have received Sebi’s go-ahead and will be looking at the right moment to launch their IPOs.