It’s raining money in the primary market and the trend is likely to continue as shown by the grey market premium (GMP) of upcoming IPOs which are going to hit the market on August 4. Four initial public offers (IPO) including Exxaro Tiles, Windlas Biotech, Devyani International and Krsnaa Diagnostics are schedule to open on Wednesday.
Below are key things you should know about upcoming IPOs:
Windlas Biotech is trading at a premium of Rs 140 per share in the grey market. The company has fixed a price band of Rs 448-460 a share for its initial share-sale. The IPO comprises fresh issuance of equity shares worth Rs 165 crore and an offer for sale of up to 5,142,067 equity shares. At the upper end of the price band, the initial share sale will fetch Rs 401.53 crore. The proceeds from the IPO will be utilised for purchasing of equipment required for capacity expansion of the facility at Dehradun Plant -IV and addition of injectables dosage capability at the facility at Dehradun Plant-II.
Abhay Doshi, Founder, Unlisted Arena said that Devyani International is available at a premium of Rs 58 in the unlisted market. The largest franchisee of Pizza Hut, KFC and Costa Coffee in India has fixed a price band of Rs 86-90 a share for its Rs 1,838-crore initial share-sale. The IPO consists of a fresh issue of equity shares worth Rs 440 crore and an offer-for-sale of up to 155,333,330 equity shares by the promoter and existing shareholder. Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will offload 6,53,33,330 shares and promoter RJ Corp will sell 9 crore shares. The offer includes a reservation of up to 5.50 lakh equity shares for the company’s employees. As much as 75% of the issue size has been reserved for QIBs, 15% for non-institutional buyers and the remaining 10% for retail investors. Retail investors can bid for minimum 165 equity shares and in multiples of 165 equity shares thereafter.
The company has fixed a price band of Rs 933-Rs 954 per equity share. Krsnaa Diagnostics is available at a premium of Rs 410 in the grey market. The company provides a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centres pan-India. The IPO comprises fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of up to 94,16,377 shares by its existing shareholders. Proceeds from the fresh issue will be used for financing the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh, and Maharashtra; repayment of loans availed by the company and general corporate purposes.
The leading manufacturer of vitrified tiles has fixed a price band of Rs 118-120 a share for its initial share-sale. Shares of the company are available at a premium of Rs 15 per share, according to Doshi. The initial public offering of up to 1,342,4000 equity shares comprises a fresh issue of up to 1,11,86,000 equity shares and an offer-for-sale of up to 22,38,000 equity shares by Dixitkumar Patel. At the upper end of the price band, the IPO will fetch Rs 161.08 crore.
Auto components maker Rolex Rings initial public offer was subscribed 130.44 times on the last day of subscription on July 30. The Rs 731-crore public offer received bids for 74,16,00,096 shares against 56,85,556 shares on offer. The company had fixed a price band of Rs 880-900 a share. According to market watchers, shares of Rolex Rings are available at a premium of Rs 515 in the grey market, up 57% against the upper price band of Rs 900. Shares of Rolex Rings are likely to list on August 10 and share allotment status will be available on August 5 on the registrar and exchanges websites.
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