A Comprehensive Overview of This Week’s IPO Activity: RR Kabel IPO to Kundan Edifice IPO
The primary market had an eventful previous month, featuring significant listings on both the main board and small- and medium-sized enterprise (SME) segments, which garnered substantial investor interest and engagement. As we transition into September, the upcoming week promises to be just as exhilarating, with a slew of new listings and Initial Public Offering (IPO) issues that are open for subscription, generating strong market buzz.
“2022 Witnessed a Decline in IPO Activity, but 2023 Anticipates a 30% Surge in Issuances,” Says Mahavir Lunawat, Managing Director of Pantomath Capital Advisors Pvt. Ltd.
In the landscape of Initial Public Offerings (IPOs), 2022 recorded a decline in activity. However, the outlook for 2023 is optimistic, with expectations of a significant 30% increase in IPO issuances. This projection comes on the heels of a robust pipeline, with over $9 billion in offerings approved by the capital markets regulator SEBI (Securities and Exchange Board of India), and an additional $6 billion filed with the capital markets watchdog. It is anticipated that a substantial portion of this, approximately $10 billion, will materialize in the coming fiscal year. As a result, the remaining fiscal year of 2023 appears promising for the primary markets.
Mahavir Lunawat, Managing Director at Pantomath Capital Advisors Pvt. Ltd., a reputable mid-market investment bank, offered these insights into the IPO landscape. The market’s resilience and the strong pipeline of upcoming offerings suggest that 2023 holds the potential for a resurgence in IPO activities, contributing to the dynamism of the primary markets. Investors and industry stakeholders are keenly watching this anticipated revival with great interest.
“Next Week’s IPOs Set to Raise Over ₹3,200 Crore: EMS Limited and RR Kabel Among Notable Entrants,” Highlights Mahavir Lunawat of Pantomath Capital Advisors Pvt. Ltd.
The upcoming week holds promising prospects in the IPO arena, with companies such as EMS Limited and RR Kabel gearing up to make their debut, collectively aiming to raise an impressive cumulative fund amount exceeding ₹3,200 crore. This influx of fresh capital into the market signifies a continued interest from both issuers and investors in the primary market, showcasing the vitality of IPOs as a fundraising avenue.
Moreover, it is worth noting that the IPO market is currently experiencing a significant surge in activity. As evidence of this fervor, Foreign Portfolio Investors (FPIs) have displayed their confidence in the Indian market by injecting over ₹21,000 crore into IPOs during the period from April to August 2023. This substantial foreign investment underscores the attractiveness and potential of Indian IPOs on a global scale.
During the period from September 2nd to September 9th in the primary market, a notable development occurred with the listing of Vishnu Prakash R. Punglia Limited. This mainboard IPO successfully raised a total of ₹309 crore, demonstrating robust investor interest. Impressively, the stock debuted with a premium of 67 percent, signaling strong demand for the company’s shares among investors. This listing serves as a testament to the company’s appeal and the buoyant state of the primary market during this period.
Among the ongoing IPO issues, the EMS IPO from the mainboard segment is scheduled to close on Tuesday, September 12th. Additionally, in the SME segment, three IPOs, namely Unihealth Consultancy IPO, Jiwanram Sheoduttrai Industries IPO, and Meson Valves India IPO, are set to conclude their subscription period on Monday, September 12th. Investors and stakeholders interested in these offerings should take note of these closing dates and make their investment decisions accordingly before the subscription periods come to an end.
Let’s take a look at some of the companies that are opening for subscription this week in the primary market, along with a few that are scheduled to be listed on the stock exchanges:
RR Kabel IPO: Key Details and Timeline
- Company: RR Kabel, a consumer electrical product manufacturer
- IPO Subscription Period: Opens on Wednesday, September 13, and closes on Friday, September 15, 2023
- Anchor Book Opening: Scheduled for September 12, 2023
- Offering Details:
- Fresh Issue: Equity shares worth ₹180 crore
- Offer for Sale (OFS): 1.72 crore equity shares worth ₹1,784 crore by the promoters and investors
- Price Band: ₹983 to ₹1,035 per share
- Fundraising Target: At the upper end of the price band, RR Kabel aims to raise ₹1,964 crore from the IPO.
- Listing Exchange: BSE (Bombay Stock Exchange) and NSE (National Stock Exchange)
- Tentative Listing Date: September 26, 2023
The RR Kabel IPO is a significant mainboard IPO offering, comprising a combination of fresh equity issuance and an offer for sale by promoters and investors. The price band for the IPO has been set between ₹983 and ₹1,035 per share, with the company targeting a substantial fundraising amount of ₹1,964 crore at the upper end of the price range. The tentative listing date for RR Kabel shares on the stock exchanges is scheduled for September 26, 2023.
Investors and market participants are eagerly awaiting the opening of the subscription period to assess the investor response to this offering and its subsequent performance in the stock market.
Samhi Hotels IPO: Key Details and Timeline
- Company: Samhi Hotels, backed by Goldman Sachs
- IPO Subscription Period: Opens on Thursday, September 14, and closes on Monday, September 18, 2023
- Anchor Investor Bidding: Opens on September 13, 2023
- Offering Details:
- Fresh Issue: Equity shares worth ₹1,200 crore
- Offer for Sale (OFS): 1.35 crore equity shares by existing shareholders
- Utilization of Proceeds: ₹750 crore from the fresh issue will be utilized for debt payment and general corporate purposes.
- Listing Exchange: BSE (Bombay Stock Exchange) and NSE (National Stock Exchange)
- Tentative Listing Date: September 27, 2023
Samhi Hotels, with Goldman Sachs as a prominent backer, is set to launch its IPO. The offering includes a fresh issue of equity shares and an offer for sale by existing shareholders. The company plans to use a significant portion of the net proceeds from the fresh issue for debt reduction and general corporate needs. The IPO subscription window will be open from September 14 to September 18, with anchor investor bidding starting on September 13. The shares of Samhi Hotels are expected to get listed on the stock exchanges (BSE and NSE) on September 27, 2023.
This IPO is anticipated to garner attention from investors and market observers, and its performance post-listing will be closely monitored.
Zaggle Prepaid Ocean Services IPO: Key Details and Timeline
- Company: Zaggle Prepaid Ocean Services, a Software-as-a-Service (SaaS) fintech firm
- IPO Subscription Period: Opens on Thursday, September 14, and closes on Monday, September 18, 2023
- Basis of Allotment: To be done on September 22, 2023
- Offering Details:
- Fresh Issue: Shares worth ₹392 crore
- Offer for Sale (OFS): 1,04,49,816 equity shares by eight selling shareholders, including promoters Raj P Narayanam and Avinash Ramesh Godkhindi
- Likely Fundraising Amount: Approximately ₹563 crore
- Listing Exchange: BSE (Bombay Stock Exchange) and NSE (National Stock Exchange)
- Tentative Listing Date: September 27, 2023
The upcoming IPO of Zaggle Prepaid Ocean Services, a SaaS fintech company, is poised to open for subscription on September 14, 2023. The offering includes a fresh issue of shares and an offer for sale by several selling shareholders, including the promoters. The IPO aims to raise around ₹563 crore, with the funds allocated for various corporate purposes. The subscription period will conclude on September 18, and the basis of allotment is scheduled for September 22. Zaggle Prepaid Ocean Services’ shares are set to be listed on both BSE and NSE with a tentative listing date of September 27, 2023.
Market participants and investors are expected to closely track this IPO’s performance as it enters the primary market.
Chavda Infra IPO: Key Details and Timeline
- Company: Chavda Infra Limited
- IPO Subscription Period: Opens on Tuesday, September 12, and closes on Thursday, September 14, 2023
- Price Band: ₹60 to ₹65 per equity share of face value ₹10 each
- Offering Details:
- Fresh Issue: 6,656,000 equity shares worth ₹43.26 crore
- No Offer for Sale (OFS) component
- IPO Size: ₹43.26 crore
- Listing Exchange: NSE SME (National Stock Exchange – Small and Medium Enterprises)
- Tentative Listing Date: September 25, 2023
Chavda Infra Limited, a company engaged in construction and related services within the residential, commercial, and institutional sectors in Gujarat, is all set to launch its IPO. The IPO subscription period is from September 12 to September 14, 2023. The offering comprises a fresh issue of 6,656,000 equity shares with no offer for sale (OFS) component. The price band for the IPO is set at ₹60 to ₹65 per equity share with a total IPO size of ₹43.26 crore.
Chavda Infra IPO falls under the SME IPO category, and its shares are scheduled to be listed on the NSE SME platform with a tentative listing date of September 25, 2023. As with all IPOs, investors and market participants will closely monitor its performance in the primary and secondary markets.
Kundan Edifice IPO: Key Details and Timeline
- Company: Kundan Edifice Limited
- IPO Subscription Period: Opens on Tuesday, September 12, and closes on Friday, September 15, 2023
- Price Per Share: ₹91 per equity share
- Offering Details:
- Fundraising Amount: ₹25.22 crore
- IPO Size: 27.72 lakh equity shares, constituting 26.99% of the post-issue paid-up equity
- Listing Exchange: NSE SME (National Stock Exchange – Small and Medium Enterprises)
- Tentative Listing Date: September 26, 2023
Kundan Edifice Limited, primarily involved in the manufacturing, assembly, and sale of light-emitting diode (LED) strip lights, is gearing up for its IPO launch. The IPO subscription window is set to open on September 12 and will conclude on September 15, 2023. Kundan Edifice plans to raise ₹25.22 crore through this offering, which consists of 27.72 lakh equity shares, representing 26.99% of the post-issue paid-up equity.
As Kundan Edifice’s IPO falls under the SME IPO category, its shares are expected to get listed on the NSE SME platform with a tentative listing date of September 26, 2023. Investors and market participants will closely watch the developments surrounding this IPO and its performance in the secondary market.
Cellecor Gadgets IPO: Key Details and Timeline
- Company: Cellecor Gadgets Limited
- IPO Subscription Period: Opens on Friday, September 15, 2023
- Price Band: ₹87 to ₹92 per equity share
- Offering Details:
- Fundraising Amount: ₹50.77 crore
- IPO Size: To be specified in the prospectus
- Listing Exchange: NSE SME (National Stock Exchange – Small and Medium Enterprises)
- Tentative Listing Date: September 28, 2023
Cellecor Gadgets Limited, a company engaged in the procurement, branding, and distribution of various electronic products, including televisions, mobile phones, smart wearables, mobile accessories, smartwatches, and neckbands, is gearing up for its IPO launch. The IPO subscription period is set to commence on September 15, 2023.
Cellecor Gadgets has announced a price band for the book build issue, with shares priced between ₹87 and ₹92 per equity share. The company aims to raise ₹50.77 crore from its initial offer, as stated in its draft red herring prospectus (DRHP). Since it falls under the SME IPO category, the shares of Cellecor Gadgets are expected to be listed on the NSE SME platform with a tentative listing date of September 28, 2023.
Market participants and investors will closely follow this IPO’s progress and its subsequent performance in the secondary market.
New Listings on Stock Exchanges:
- Rishabh Instruments:
- IPO Segment: Mainboard
- Listing Date: September 11
- Ratnaveer Precision Engineering:
- IPO Segment: Mainboard
- Listing Date: September 11
- Saroja Pharma Industries:
- IPO Segment: SME (Small and Medium Enterprises)
- Listing Date: September 13
- Refunds Initiated: September 11
- Shares Credited to Demat Accounts: September 12
- Basilic Fly Studio:
- IPO Segment: SME (Small and Medium Enterprises)
- Listing Date: September 13
- Refunds Initiated: September 11
- Shares Credited to Demat Accounts: September 12
- Pramara Promotions:
- IPO Segment: SME (Small and Medium Enterprises)
- Listing Date: September 13
- Refunds Initiated: September 11
- Shares Credited to Demat Accounts: September 12
These are the upcoming listings on stock exchanges, including mainboard and SME segment IPOs. Investors and market participants will be watching these listings to gauge the performance of these newly-listed companies in the stock market.
