Zetwerk, Tonbo among 6 IPOs to open this week, eye to raise Rs 10,300 cr ahead of Jio's mega issue

IPO activity is picking up on Dalal Street, with half a dozen new issues set to open this week ahead of the much-awaited IPO of Jio Platforms, which is expected to become India's largest-ever public offering, with a fundraising target of Rs 30,200 crore. The six IPOs scheduled for this week are collectively aiming to raise Rs 10,300 crore from investors, taking the total fundraising in October to Rs 40,500 crore so far.

Four issues will open for subscription on Thursday, October 15, and close on Monday, October 19, while one IPO each will open on Tuesday and Wednesday. The four IPOs opening on the same day are collectively looking to raise around Rs 8,900 crore from investors. Barring Zetwerk and Fusion CX IPOs, other four issues have a retail portion of 35 per cent.

India’s IPO pipeline remains healthy in October, with the proposed Jio Platforms IPO expected to be a key highlight. Several companies are tapping the primary market, reflecting continued interest in raising funds through public listings, said Trivesh D, COO of Tradejini. October could see healthy primary-market activity, but the quality of issuers and their pricing will matter more, he said.

"However, a strong IPO pipeline alone does not translate into strong investor demand. Market volatility and the performance of recently listed companies could influence subscription levels and listing-day returns," Trivesh D said. "Valuations, financial performance, growth outlook and the intended use of IPO proceeds will play an important role in determining investor interest."

The IPO of HD Fire Systems will open for subscription on Tuesday, October 13, and close on Thursday, October 15. The company is looking to raise Rs 712 crore through the IPO, which is entirely an offer for sale (OFS) of up to 2,62,84,500 equity shares. The price band has been fixed at Rs 258–271 per share, with a lot size of 55 equity shares. Last heard, it was commanding a grey market premium of Rs 80-85 apeice, suggesting 29-31 per cent listing gains.

Fusion CX, which is backed by prominent investors such as Ashish Kacholia and Mukul Agrawal, will launch its Rs 702 crore IPO on Wednesday, October 14. The price band has been fixed at Rs 275–289 per share, with a lot size of 51 equity shares. The issue comprises a fresh issue worth Rs 500 crore and an offer for sale of up to Rs 202 crore. Its GMP stood at Rs 14-15 per share, signaling at 4-5 per cent gains for the investors.

Bengaluru-based Zetwerk Manufacturing Business is the largest among the IPOs opening this week, with its issue set to open on October 14. The global manufacturing platform is seeking to raise Rs 5,012 crore through its IPO. The price band has been fixed at Rs 143–151 per share, with a lot size of 99 equity shares. Its GMP was seen at Rs 15 apiece, suggesting a 10 per cent gains for the investors.

Bonfiglioli Transmissions, the Indian subsidiary of Italy-based Bonfiglioli S.p.A., will also launch its public offering on Thursday. The company aims to raise Rs 2,534 crore through an offer for sale (OFS) by its parent entity. The price band has been fixed at Rs 558–586 per share, with a lot size of 25 equity shares. GMP for Bonfiglioli IPO was seen at Rs 150-155 per share, hinting at 25-26 per cent listing gains for the investors.

Tonbo Imaging India, a Bengaluru-based defence company, will also launch its IPO on Thursday, aiming to raise Rs 852 crore. The issue is entirely an OFS of up to 1,21,74,046 equity shares. The price band has been fixed at Rs 665–700 per share, with a lot size of 21 equity shares. It was commanding a GMP of Rs 340-350 per shares, suggesting up to 50 per cent gains for the investors.

Lastly, the IPO of Sahajanand Medical Technologies, which is also entirely an OFS of up to 1,38,22,116 equity shares, will open on Thursday. The price band has been fixed at Rs 327–344 per share, with a lot size of 43 equity shares. The Hyderabad-based medical devices maker is looking to raise Rs 475 crore from investors. The company was commanding a GMP of Rs 45-50 per shares, signaling 13-14 per cent listing pop for the investors.

An analysis by Kotak Institutional Equities said that performance across the primary and secondary markets over the past six months suggests strong investor enthusiasm for small- and mid-sized companies (SMIDs). "We hope that these companies can deliver on the high expectations embedded in their valuations and that the underlying narratives supporting investor enthusiasm for SMIDs come true."