Up to 11 businesses, seven of which are in the primary market, will make their public debuts next week as the hottest primary market of the year comes to an explosive close.
Four of the SME offers are anticipated to raise Rs 135 crore, while the seven mainboard IPOs would raise a total of around Rs 3,910 crore.
According to analysts, the increasing interest in initial public offerings (IPOs) stems from a greater emphasis on profitability and fair deal pricing, at least when compared to listed competitors’ higher valuation multiples.
“Markets could expect a strong capital raising activity in the upcoming year as well. Twenty-five of the more than 65 IPO documents that have been submitted to Sebi have already been approved by the regulator,” stated Mahavir Lunawat, MD of Pantomath Capital Advisors.
Muthoot Microfin, Motisons Jewellers, Suraj Estate Developers, Happy Forgings, RBZ Jewellers, Credo Brands, and Azad Engineering are the mainboard IPOs that are scheduled to commence for business the following week.
On the other hand, Sahara Maritime, Electro Force, Shanti Spintex, and Trident Techlabs will make their public offerings in the SME sector.
Here are all the specifics for next week’s IPOs.
1. Motisons Jewellers
The market is talking a lot about Motisons Jewellers, one of the IPOs that will begin next week. In the grey market, the company’s shares are trading at a huge premium of Rs 100 compared to the issue price of Rs 55.
Subscriptions for the IPO begin on December 18 and end on December 20. 2.71 crore shares of new stock are being issued in the public offer.
The company recorded sales of Rs 86.7 crore and profit of Rs 5.47 crore for the three months ending in June. Its operational income increased by 16% to Rs 366 crore in FY23, while profit increased by 51% to Rs 22.19 crore.
The issue’s line book-running lead manager is Holani Consultants, and the registrar is Link Intime India.
2. Suraj Estate Developers
In its first public offering (IPO), Mumbai-based realtor Suraj Estate Developers is pricing its shares between Rs 340 and Rs 360. The IPO commences on December 18 and ends on December 20.
The entire IPO is a new issuance with a maximum value of Rs 400 crore. The offer for sale portion is absent.
Suraj Estate Developers saw a 20.98% increase in earnings to Rs 32.06 crore in FY23 from Rs 26.50 crore the year before. FY23 saw a 12% increase in revenue, reaching Rs 306 crore.
Anand Rathi Advisors and ITI Capital are the issue’s book-running lead managers.
3. Muthoot Microfin
The public subscription period for Muthoot Microfin’s IPO will begin on December 18 and end on December 20. The company intends to use the public offering to raise Rs 960 crore.
An offer-for-sale (OFS) of Rs 200 crore and a fresh issue of Rs 760 crore make up the IPO. With a face value of Rs. 10, each equity share, the company has set a price range of Rs. 277–291.
The company’s revenue climbed by 72% year over year to Rs 1042 crore in the six months that ended in September 2023, while its profit more than quadrupled to Rs 205 crore.
The issue’s book-running lead managers are SBI Capital Markets, Axis Capital, JM Financial, and ICICI Securities.
4. RBZ Jewellers
With a public offer priced between Rs 95 and Rs 100, RBZ Jewellers hopes to raise a maximum of Rs 100 crore. Subscriptions for the issue will be accepted starting on December 19 and ending on December 21.
The one crore shares being offered in the IPO are entirely new.
The company experienced a compound annual growth rate (CAGR) of 64.05% in its revenue from operations over the last three fiscal years ending in 2023. From FY21 to FY23, the company’s earnings after tax increased at a compound annual growth rate of 51.36%.
Bigshare Services is the offer registrar, while Arihant Capital Markets is the only book-running lead manager.
5. Azad Engineering
On December 20, Azad Engineering will begin its first public offering (IPO). For the public promotion, which ends on December 22, the business has set a price range of Rs 499–524.
The issuance consists of a Rs 500 crore offer for sale (OFS) and new equity worth Rs 240 crore. Shares will be offloaded by investor Piramal Structured Fund, DMI Finance, and promoter Rakesh Chopdar under the OFS.
The company’s operating income increased 31% to Rs 261 crore in the fiscal year 2023, but its net profit decreased 71% to Rs 8.4 crore at that same time.
Anand Rathi, SBI Capital Markets, ICICI Securities, and Axis Capital are the issue’s book running lead managers.
6. Happy Forgings
The Happy Forgings IPO consists of an offer for sale (OFS) of 71.59 lakh shares and a new equity issue of Rs 400 crore. The company intends to use the public offering to raise Rs 1,009 crore.
The public can bid on the offer, which has a price range of Rs 808–850, starting on December 19 and running through December 21.
The company recorded revenues of Rs 600 crore and profit of Rs 116 crore for the half year that ended in September 2023. Revenues increased 39% to Rs 1,196 crore in FY23, while profit increased 47% to Rs 209 crore.
The issue’s book-running lead managers are JM Financial, Axis Capital, Motilal Oswal Investment Advisors, and Equirus Capital.
7. Credo Brands
On December 19, Credo Brands Marketing is scheduled to begin its first public offering (IPO). The public offer has a set price range of Rs 266-280, with an upper limit of Rs 550 crore that the firm intends to raise.
Operations revenue reached Rs 498 crore in FY23, up 46% from the previous year, and profit rose to Rs 8.5 crore.
The issue’s book-running lead managers are Keynote Financial Services, ICICI Securities, and DAM Capital Advisors.
8. SME IPO
On December 18, Sahara Maritime’s SME IPO will begin. With this offer, the company hopes to raise Rs 7 crore, or 8.49 lakh new shares of stock. Sahara is charging Rs 81 per share for its shares.
In the meantime, on December 19, Electro Force and Shanti Spintex will open for business. Through the offer, Electro is seeking Rs 80 crore, and Shanti will receive roughly Rs 31.25 crore. On December 21, Trident Techlabs’ Rs 16 crore SME issuance would begin.
