Upcoming IPOs: 5 mainboard issues to Rs 7,500 cr next week; three other to make D-st debut

Indian primary market continues to remain in red-hot form, with five new mainboard issues set to open in the next week, beginning August 10. These issues are cumulatively looking to raise nearly Rs 7,500 crore from investors, while two other IPOs will close on Tuesday, August 11, and shares of Ardee Industries will make their stock market debut on Wednesday, August 12.

Primary market activity is expected to remain robust next week, with mainboard IPOs of Molbio Diagnostics, Dhoot Transmission, Milky Mist Dairy Food, Shiprocket and Behari Lal Engineering scheduled to open for subscription, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

A few more issues may also be announced in the coming week. To recall, Dhoot Transmission and Molbio Diagnostics will open for subscription on Monday, while Milky Mist Dairy Food will open on Tuesday. The other two issues, Shiprocket and Behari Lal Engineering, will open for bidding on Wednesday.

Dhoot Transmission, Molbio Diagnostics lead IPO rush
Dhoot Transmission is the biggest among the five, raising a total of Rs 3,067 crore from investors. The company is offering its shares in the price band of Rs 829-871 apiece, with a lot size of 17 equity shares. On the other hand, the Rs 940-crore IPO of Molbio Diagnostics will offer its shares in the price band of Rs 768-807 apiece, with a lot size of 18 equity shares. Both stocks will be listed on Monday, August 17.

Milky Mist Dairy Food will offer its shares in the price band of Rs 133-140 apiece, with a lot size of 107 equity shares, to raise Rs 1,553 crore through the IPO. The stock will list on the exchanges on Tuesday, August 18.

On Wednesday, Shiprocket will launch its Rs 1,617-crore IPO with a price band of Rs 92-97 apiece and a lot size of 154 shares. Behari Lal Engineering will also open its Rs 302-crore IPO on the same day, with a price band of Rs 271-285 apiece and a lot size of 52 equity shares. Both counters will be listed on the exchanges on Wednesday, August 19.

India’s IPO market has expanded in both depth and scale. Going forward, investor focus is likely to remain on business quality, valuation, governance and growth visibility. Companies preparing to list may benefit from addressing these considerations early in the IPO process, said Karan Marwah, Partner and CFO Advisory Leader at Grant Thornton Bharat.

Technocraft Ventures, LEAP India IPOs to close
Besides the new issues, the ongoing IPOs of Technocraft Ventures and LEAP India will also close for subscription on Tuesday, August 11. Both stocks will debut on the exchanges on Thursday, August 13.

Ardee Industries will make its stock market debut on Wednesday, after selling its shares in the price band of Rs 50-53 apiece with a lot size of 281 shares. The issue was subscribed 139 times between August 5 and 7.

Technocraft Ventures is selling its shares in the range of Rs 200-212 apiece, with a lot size of 70 equity shares, to raise a total of Rs 252 crore from investors. The issue has been subscribed 2.59 times so far.

The other issue, LEAP India, is raising Rs 2,480 crore by selling its shares in the price band of Rs 151-159 apiece, with a lot size of 94 equity shares. The issue has been subscribed to only 26 per cent so far.

Experts flag valuation, business quality
Investor focus is increasingly shifting towards scale, profitability and governance, said Arun Poddar, CEO at Choice International. "Valuations at the top are largely justified; the froth sits in thin, mid-cap issues. Over 12 months, we would watch financial services, profitable consumer-tech and logistics," he said.