The primary market continues to thrive post the election with as many as 9 public offers set to be launched next week. Among these, the IPOs of Allied Blenders and Vraj Iron and Steel will open in the mainboard segment.
In the SME segment, a total of seven issues will open for subscription next week.
Apart from the new IPOs, the Street will see 11 listings, including that of Stanley Lifestyles, DEE Development Engineers and Akme Fintrade.
The public offers of DEE Development Engineers and Akme Fintrade received a healthy response from investors with an overall subscription of 99 times and 55 times, respectively.
With a strong domestic economy, a thriving stock market, and increasing involvement from retail investors, analysts said India is poised for a massive surge in the IPO market.
“We are on the brink of sustained, long-term momentum in the IPO market, with this year potentially becoming the best ever for IPOs. So far, India’s solid macroeconomic environment and promising growth prospects create an ideal backdrop for this vibrant IPO market,” said Mahavir Lunawat, MD, Pantomath Capital.
Here’s what to expect from IPO market next week:
Allied Blenders and Distillers IPO
Allied Blenders and Distillers, the maker of Officer’s Choice whisky, fixed a price band of Rs 267-281 per share for its Rs 1,500-crore IPO, which opens for subscription on June 25. The initial share-sale will close on June 27.
The Mumbai-based company’s IPO comprises fresh equity issue worth Rs 1,000 crore and an offer-for-sale (OFS) of Rs 500 crore by promoters. As part of the OFS, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria will sell the shares.
Proceeds from the fresh issue worth Rs 720 crore will be used for the payment of debt. Besides, a portion will be used for general corporate purposes.
The total debt on the company’s books was around Rs 808 crore as of December 2023.
Allied Blenders and Distillers started its journey in 1988 with the launch of flagship brand Officer’s Choice whisky, which marked its entry into the mass premium whisky segment. It is engaged in the manufacturing, marketing and sale of alcoholic beverages in India and abroad. The product portfolio of the firm comprises several brands of IMFL across whisky, brandy, rum and vodka.
Broking firms have pegged the company’s market capitalisation to Rs 7,860 crore post-issue.
Vraj Iron and Steel
The initial public offering (IPO) of Vraj Iron and Steel will open for subscription on June 26 and close on June 28. The company has announced a price band at Rs 195-207 per equity share.
The company has proposed to utilise the net proceeds towards funding for its capital expenditure requirement towards the expansion of project at Bilaspur Plant estimated to be at Rs 164.50 crore and the balance amount towards general corporate purpose.
Vraj has already deployed a Rs 70 crore loan from HDFC Bank which is proposed to be repaid from net proceeds of the IPO. For the balance amount of Rs 94.5 crore, the company has already deployed Rs 32 crore from internal accruals and further wish to deploy Rs 3 crore from internal accruals.
Aryaman Financial Services Limited is the book running lead manager for the IPO.
SME IPOs
In the SME segment, seven IPOs are set to be launched next week. These are Visaman Global Sales, Mason Infratech, Slyvan Plyboard, Shivalic Power Control, Petro Carbon and Chemicals, Divine Power and Akiko Global Services.
On June 24, the issues of Visaman Global Sales, Mason Infratech, Slyvan Plyboard and Shivalic Power Control will open for subscription, while the rest will kick-off from June 25.
The Rs 113-crore IPO of Petro Carbon is the biggest of the lot, which is closely followed by Shivalic Power Control’s issue, which plans to raise around Rs 64 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
