The next week starting from October 14 will create history for the Indian primary market as the much-awaited Hyundai Motor India's Rs 27,870-crore IPO is set to hit Dalal Street, along with two other public issues.
Till now, Life Insurance Corporation of India was the biggest-ever IPO in India, raising Rs 21,008 crore in 2022, followed by One 97 Communications' (Paytm) Rs 18,300-crore public issue in 2021, and Coal India's Rs 15,199 crore offer in 2010.Going ahead, the Indian IPO market is likely to be busy considering the expected growth in the economy following government initiatives. For growth capital, several companies are ready to approach the primary market for fund raising, experts said.
NTPC Green Energy, Swiggy, SK Finance, Afcons Infrastructure, NSDL, Acme Solar Holdings, Mobikwik, Waaree Energies, Enviro Infra Engineers, Suraksha Diagnostic, Zinka Logistics etc have already received approval from the capital markets regulator to launch IPOs.
The country's second largest car maker will open its mega $3.3 billion worth IPO on October 15, with a price band at Rs 1,865-1,960 per share. The Rs 8,315-crore anchor book (up to 60 percent of the qualified institutional investors' book) will be opened for a day on October 14, a day before the issue opening.
The IPO, which closes on October 17, is entirely an offer-for-sale of 14.2 crore equity shares by South Korean parent Hyunday Motor Company which is asking for Rs 1.59 lakh crore in market cap for its Indian subsidiary. It has reserved 7,78,400 equity shares for its employees who will receive these shares at a discount of Rs 186 per share to the final IPO price.
Hyundai Motor India IPO shares traded at around 5-7 percent premium over the upper price band, reducing significantly from 15-20 percent premium asking before the price band announcement, the market observers said. According to experts, the issue appears to be fully priced in and there is a concern of high inventory in the automobile industry.
The trading in its equity shares will commence on the bourses effective October 22.
Lakshya Powertech IPO
This will be the first IPO next week from the SME segment, opening for subscription on October 16 till October 18. The Ahmedabad-based engineering consultancy services provider targets to raise Rs 50 crore through its public issue comprising solely a fresh issue.
The price band for the book-built issue has been fixed at Rs 171-180 per share. Shares will debut on the NSE Emerge on October 23.
Freshara Agro Exports IPO
The Rs 75.4-crore public issue of Freshara Agro Exports, which processes and exports pickled vegetables, will open on October 17, with a price band at Rs 110-116 per share. It is also entirely a fresh issue by the company.
The second SME public issue of next week will close on October 21, while its shares will list on the NSE Emerge on October 24.
IPOs Closing Next Week
Pranik Logistics will close its Rs 22.5-crore maiden public issue on October 14. It was opened on October 10, with a price band at Rs 73-77 per share, while the shares will make debut on the NSE Emerge on October 17.
Listings Next Week
Mumbai-based Garuda Construction and Engineering will be the only company from the mainboard segment to list its equity shares on the BSE and NSE next week on October 15. The issue price has been fixed at Rs 95 per share for Rs 264-crore IPO.
From the SME segment, the trading in equity shares of Shiv Texchem will commence on the BSE SME effective October 15, and Pranik Logistics on the NSE Emerge on October 17.