Initial public offer (IPO) market has picked up momentum after a gap of four months with Rossari Biotech shares making their bumper debut on BSE and NSE in July. In March, SBI Cards IPO saw a tepid response from investors amid market gloom caused by coronavirus crisis in the country. On the other hand, 2019 saw a huge number of companies taking the IPO route to raise capital. Top companies that hit the primary market with initial public offerings (IPOs) last year included IRCTC, CSB Bank, Ujjivan Small Finance Bank, Prince Pipes, IndiaMart, Neogen Chemicals, Rail Vikas Nigam, Sterling and Wilson Solar, and Affle India among others.
India Inc might not be able to replicate its IPO performance but there are still a slew of big ticket share sales which may lighten up the mood of investors this year.
Here's a look at the top IPOs scheduled to hit the market in second half of this year.
National Commodity and Derivatives Exchange Ltd (NCDEX) plans to launch the Rs 500-crore initial public offer (IPO). This includes a fresh offering of shares as well. Shareholders who have decided to offer their shares through OFS include NABARD, Punjab National Bank, Oman India Joint Venture Fund, Canara Bank and IFFCO.
The company received market watchdog's approval in April this year. The IPO comprises fresh issue aggregating up to Rs 100 crore and an offer for sale of up to 1.44 crore shares. As per the RHP, the company intends to utilise net proceeds towards contribution to the core settlement guarantee fund, net worth requirements of National Commodity Clearing Limited and general corporate purposes.
Equitas Small Finance Bank
Being one of the largest small finance bank (SFB) in India in terms of the number of banking outlets, the lender had earlier filed papers for its Rs 1,000 crore IPO in December last year and received its approval from SEBI by March 2020. The IPO of the Chennai-based lender was supposed to be launched on March 3. Although in the same month, the company announced that it would defer the launch of its initial public offering due to coronavirus-led weak market conditions. The issue consisted of a fresh issue of Rs 550 crore and offer for sale of 8 crore shares by parent firm Equitas Holdings. The bank is likely to consider a pre-IPO placement of up to Rs 300 crore
The initial public offer (IPO) of the Ahmedabad-based firm is expected to fetch Rs 550 crore. As per the company's draft papers, the IPO comprises fresh issuance of shares worth Rs 450 crore, and an offer for sale of up to 30 lakh equity stocks by existing shareholder Kanubhai M Patel Trust. The company plans to utilise the proceeds of the issue towards investment in projects, to meet working capital requirements and for other general corporate purposes.
Burger King India submitted its draft papers for IPO with SEBI in November 2019 and received approval from the market watchdog in January this year. Burger King's offer comprises fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale of up to 6 crore equity shares by QSR Asia, the promoter. Edelweiss, Kotak Mahindra Capital, JM Financial, and CLSA are the investment bankers managing the Burger King IPO. The IPO will comprise a secondary share sale worth Rs 600 crore by Everstone Capital and fresh fundraising worth Rs 400 crore. As per the company's RHP, net proceeds from the public issue will be used to fuel funding roll-out of new company-owned Burger King Restaurants and general corporate purposes.
Home First Finance
Home First Finance Company (HFFC) on November 29 filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its IPO and received the nod from SEBI in March 2020. The IPO consists of a fresh issue aggregating up to Rs 400 crore and an offer for sale of up to Rs 1,100 crore by the selling shareholders. DRHP said the company might consider a pre-IPO placement of up to Rs 160 crore. The company said it plans to utilise the net proceeds for augmenting its capital base to meet its future capital requirements arising out of the growth of its business and assets and to receive the benefits of listing of equity shares on stock exchanges.
Online travel company EaseMyTrip had in December 2019 filed draft papers with capital markets regulator Sebi to float its Rs 510-crore IPO. IPO also involves an offer-for-sale mechanism through which the company's founders Nishant Pitti and Rikant Pitti plan to sell shares to the tune of Rs 255 crore each. EaseMyTrip.com, Easy Trip Planners Private Ltd said that objective of the public issue was to achieve the benefits of listing equity shares on stock exchanges.
Computer Age Management Services
CAMS had filed draft papers with Sebi in January this year to raise Rs 1,000 crore through IPO. Headquartered in Chennai, the company is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group. These investors are expected to partially offload their stake via IPO. Claiming to be India's largest registrar and transfer agent (RTA) serving several mutual funds in India, the company provides services of the transaction, payment, settlement and reconciliation, dividend processing, record keeping, report generation, intermediary empanelment and brokerage computation and compliance.
National Stock Exchange- country's largest bourse is also expected to come up with its IPO this year. Company's listing plans have been stalled for almost three years due to a probe by SEBI against the bourse and its top officials. Besides the IPO, the company's existing shareholders plan to offload 20-25% stake to public through the offer for sale (OFS) route.
Securities and Exchange Board of India (Sebi) on June 23, 2020, gave its approval to the initial public offering (IPO) papers filed by UTI Asset Management Company (UTI AMC).
India's oldest mutual fund UTI AMC plans to sell up to 8.25% stake via initial public offer (IPO) route this year as it looks to divest the stake held by its five shareholders.
The Rs 3,500 crore IPO is likely to be priced at Rs 850-900 per share as per bankers. Kotak Mahindra Capital, Axis Capital, Citigroup, DSP Merrill Lynch, ICICI Securities, JM Financial and SBI Capital are bankers to the offer. The public issue consists of an offer for sale by shareholders including State Bank of India, Bank of Baroda, LIC, Punjab National Bank and T Rowe Price. First three shareholders will sell 10,459,949 shares each, while the other two will offload 3,803,617 shares each. UTI AMC's four domestic shareholders LIC, State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) own 18.5 per cent stake each and also have their own AMCs.
Lodha Developers planned to launch its Rs 5,500-crore IPO in July 2018 but later shelved the plan due to unfavourable market conditions. The Mumbai-based developer planned to raise Rs 3,300 crore from the IPO for outstanding debt servicing, which stood nearly at Rs 18,000 crore as of January 31, 2018. Kotak Mahindra Capital, CLSA India, JM Financial and Morgan Stanley India are lead bankers to the IPO. The real estate developer is yet to take a call on the timing of the issue.
Bajaj Energy received Sebi's go-ahead in last September to raise an estimated Rs 5,450 crore through an initial share-sale offer. Bajaj Energy's initial public offer (IPO) comprises fresh issue of shares aggregating up to Rs 5,150 crore and an offer for sale up to Rs 300 crore by Bajaj Power Ventures, that currently owns 100% stake. As per company's RHP, it intends to utilise the proceeds from the IPO to purchase 6,99,36,900 equity shares of Lalitpur Power Generation Company from Bajaj Power Ventures and Bajaj Hindustan Sugar for Rs 4,972 crore, and the remaining amount will be utilised for general expenses.
The initial public offer (IPO) of the casual dining restaurant chain Barbeque Nation Hospitality comprises fresh issue of shares worth Rs 275 crore and an offer for sale (OFS) of up to 98,22,947 equity shares. Through the IPO, the company's promoter, CX Partners plans to sell partial stake in the casual dining chain. Ace investor Rakesh Jhunjhunwala's investment firm Alchemy Capital holds 2.05% stake in the company. IIFL Securities Limited, Axis Capital Limited, Ambit Capital Private Limited, and SBI Capital Markets Limited are the book running lead managers to the issue. The restaurant chain also might consider a pre-IPO placement of up to Rs 150 crore. The company will utilise the proceeds of the issue to repay an outstanding borrowing of Rs 205 crore in part or full and for general corporate purposes.
Integrated Renewable Energy Development Agency ( IREDA) received the final nod for an IPO from SEBI in September last year. The 100% govt-owned entity is eyeing for a stake sale of around Rs 700 to Rs 750 crore. The IPO is likely to be launched in September this year.
Cabinet Committee on Economic Affairs had approved the listing of IREDA in June 2017. Under the listing proposal, IREDA will issue fresh 13.90 crore shares, increasing the paid-up share capital of the company from Rs 784 crore to Rs 923 crore. At present, the company has 78.46 crore equity shares. IREDA is registered as a non-banking financial company with RBI.
The listing of LIC is expected to be the country's largest-ever in terms of market capitalisation along with Reliance Industries, TCS and HDFC Bank. LIC IPO is likely to be held in the second half of this fiscal.
Modi government in Budget 2020 had proposed to sell a part of its holding in LIC through an initial public offering (IPO), in a move to fetch a valuation of around Rs 8-10 lakh crore.
The brokerage firm earlier had filed its draft papers with the regulator on September 5, 2018, and received SEBI's approval in July 2019. The IPO, that includes a fresh issue of shares and an offer for sale, comprises equity shares of the face value of Rs 10 each of the company aggregating up to Rs 600 crore.
After approaching SEBI in June last year, the company received its IPO approval from the market regulator in September 2019.
Its IPO consists of a fresh issue of up to Rs 200 crore and an offer for sale of up to 66.70 lakh shares. The OFS comprises up to 11.60 lakh shares by the promoter and up to 55.09 lakh shares by other shareholders, as per the Draft Red Herring Prospectus (DRHP).
Energy Efficiency Services (EESL) is planning its initial public offering at Rs 5,000 crore. The state-run firm is a joint venture (JV) set up by four companies - NTPC, Rural Electrification Corp, Power Finance Corp (PFC), and Power Grid Corp. of India. As per media reports, the company plans to utilise the proceeds from the listing to lease electric vehicles (EVs) and install smart metres to measure power consumption, the report said. The company has been valued at around Rs 5,000 crore by financial services company Investec. As per Saurabh Kumar, managing director of EESL, the firm is expected to post a profit of around Rs 200 crore on revenue of Rs 4,000 crore this year.
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