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IPO rush to continue, 4 companies looking to raise over Rs 3,600 cr this week

IPO rush to continue, 4 companies looking to raise over Rs 3,600 cr this week

As part of the OFS, Vimla Windlass will offload 11.36 lakh equity shares, and investor Tano India Private Equity Fund II will sell 40,06,067 equity shares.

The price band for the initial share sale of Devyani International has been set at Rs 86-90 per equity share. The price band for the initial share sale of Devyani International has been set at Rs 86-90 per equity share.

The recent boom being witnessed in initial public offerings (IPOs) of companies looking to raise money from the primary market will continue this week as four companies are looking to raise over Rs 3,600 crore through this route.

The IPOs of Devyani International, Windlas Biotech, Exxaro Tiles and Krsnaa Diagnostics will open on August 4 (Wednesday) and close on August 6 (Friday). Let's take a look at the four companies and their offerings:

Devyani International

The price band for the initial share sale of the single largest operator of marquee quick-service restaurants (QSR), such as KFC, Costa Coffee, and Pizza Hut, has been set at Rs 86-90 per equity share.

The firm is looking at an issue size of around Rs 1,838 crore. It consists of a fresh issue of equity shares and an offer for sale (OFS). The fresh issue stands at Rs 440 crore, while the OFS is a lofty Rs 1,398 crore with existing shareholders selling around 15.53 crore equity shares.

The company plans to use the funds raised through the fresh issue for repayment or prepayment of all borrowings. The rest of the funds will go towards general corporate purposes.

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The firm operated 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee stores as on March 31, 2021 in India. It was the single largest quick-service restaurant (QSR) company in India to be listed on Swiggy and was among the largest QSR companies in India to be listed on Zomato in 2019 and 2020.

Windlas Biotech

The manufacturer of pharmaceutical formulations has fixed a price band of Rs 448-460 a share for its initial share sale. The IPO comprises fresh issuance of equity shares worth Rs 165 crore and and an OFS of up to 5,142,067 equity shares.

As part of the OFS, Vimla Windlass will offload 11.36 lakh equity shares, and investor Tano India Private Equity Fund II will sell 40,06,067 equity shares. At the upper end of the price band, the initial share sale will fetch Rs 401.53 crore.

The proceeds from the IPO will be utilised for purchasing of equipment required for capacity expansion of the facility at Dehradun Plant-IV and addition of injectables dosage capability at the facility at Dehradun Plant-II.

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It will also be used for funding incremental working capital requirements, repayment/ prepayment of certain of borrowings and general corporate purposes.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non institutional investors.

Exxaro Tiles

The price band for the IPO of the leading manufacturer of vitrified tiles has been fixed at Rs 118-120 per share.

The initial public offering of up to 1,342,4000 equity shares comprises a fresh issue of up to 1,11,86,000 equity shares and an OFS of up to 22,38,000 equity shares by Dixitkumar Patel.

At the upper end of the price band, the IPO will fetch Rs 161.08 crore.

Proceeds from the fresh issue would be utilised towards repaying/ prepaying of borrowings, fund its working capital requirements besides utilising it for general corporate purposes.

Promoted by Mukeshkumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel, Exxaro Tiles is primarily engaged in the business of manufacturing and marketing of vitrified tiles used majorly for flooring solutions catering to residential and commercial segments. It currently has an over 2,000 dealer network across 27 states.

Krsnaa Diagnostics

The diagnostics services provider has reportedly fixed a price band of Rs 933-954 per share. The IPO comprises of a fresh issue of  Rs 400 crore and an offer for sale of over 85 lakh shares.

At the upper end of the price band, the company will raise about Rs 1,213 crore. It intends to use the proceeds for establishing new diagnostics centres in Punjab, Karnataka, Himachal Pradesh and Maharashtra, repaying debt and for general coporate purposes.

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