After a brief pause, the primary market will be back in full swing next week with two mainboard IPOs and four SME issues planning to raise about Rs 2,500 crore.
The two mainstream public offers — DOMS Industries and India Shelter Finance — will open for public subscription on December 13 and close on December 15.
The IPO of DOMS Industries comprises fresh equity of Rs 350 crore and an offer for sale (OFS) of Rs 850 crore. Under the OFS, promoters Fabbrica Italiana Lapis, Sanjay Mansukhal Rajani and Keta Mansukhal Rajani will offload shares.
About 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and 10% for retail investors.
The funds raised through the fresh issue are proposed to be utilized for the part funding of the cost of establishing a new manufacturing facility and for general corporate purposes.
DOMS IPO is creating a lot of buzz in the grey market with GMP crossing Rs 400 (currently Rs 480) as against the upper price band of Rs 790 per share.
The company designs, develops, manufactures, and sells a wide range of ‘stationery and art’ products, primarily under its flagship brand ‘Doms’, in the domestic market as well as in over 40 countries internationally.
Its core products such as pencils and mathematical instrument boxes enjoy high market shares — 29% and 30% by value in FY23, respectively. The company is the second-largest player in India’s branded ‘stationery and art’ products market, with a market share of 12% by value, as of FY23.
Meanwhile, India Shelter Finance’s offer includes a fresh equity issue of Rs 800 crore and an OFS of Rs 400 crore. The company has fixed a price band of Rs 469-473, where investors can bid for 30 shares in one lot.
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
India Shelter Finance is a retail-focused affordable housing finance company with an extensive distribution network and a scalable technology infrastructure. Between FY21 and FY23, it witnessed a two-year CAGR growth of 40.8% in terms of assets under management (AUM).
The company offers home loans up to Rs 50 lakhs to urban households for construction, extension, renovation and purchase of new homes.
Net proceeds from the fresh equity issue will go towards meeting future capital requirements and general corporate purposes.
SME IPOs
Presstonic Engineering, SJ Logistics, Shree OSFM E-Mobility and Siyaram Recycling Industries are launching their respective public issues in the SME segment next week.
The Rs 23 crore IPO of Presstonic Engineering will open on December 11 and close on December 13. The IPO is an entirely fresh equity issue of 32.36 lakh shares.
Logistics and supply chain solutions SJ Logistics is planning to launch its IPO on December 12. The Rs 48-crore issue, which includes a fresh issue of 38.4 lakh equity shares, closes on December 14.
The public offers of Shree OSFM E-Mobility and Siyaram Recycling Industries will open on December 14 and close on December 18. Shree OSFM E-Mobility has fixed the price band of Rs 65 for its Rs 24-crore IPO, which comprises a fresh issue of 37.8 lakh shares.
Siyaram Recycling Industries, on the other hand, is offering its shares at Rs 43-46 apiece, where it will raise Rs 23 crore.
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