The primary market is set to simmer next week with three public issues worth more than Rs 1,800 crore ready to be rolled out, setting off the start of IPOs for December after 10 floats last month.
India’s largest wine maker and seller Sula Vineyards will launch its initial public offering on December 12 with a price band of Rs 340-357 per share.
The company plans to mop up more than Rs 960 crore by issuing more than 2.69 crore shares through the listing. It is entirely an offer-for-sale by promoter Rajeev Samant, and investors Cofintra SA, Verlinvest SA, Verlinvest France SA, Saama Capital III Ltd, SWIP Holdings, and Haystack Investments.
Investors Cofintra SA, Verlinvest SA, and Verlinvest France SA will exit the company by selling their entire shareholding. The offer will close on December 14.
The second IPO to hit the Dalal Street will be Abans Holdings, a part of Abans Group, will also open for subscription on December 12 and close on December 15.
Incorporated in 2009, the financial services company aims to raise Rs 345.60 crore through the issue of 1.28 crore shares. The IPO comprises fresh issue of Rs 102.6 crore and an offer-for-sale of Rs 243 crore by promoter Abhishek Bansal.
The price band for the offer is set at Rs 256-270 per share.
The fresh issue proceeds are largely going to be used for its NBFC subsidiary (Abans Finance) for augmentation of its capital base to meet future capital requirements.
Both the Sula Vineyards and Abans Holdings issues will open their anchor books for a day on December 9.
Premium automotive retailer Landmark Cars with 112 outlets across eight states will float its maiden public issue on December 13 and the closing date will be December 15. Its anchor book will be launched for a day on December 12.
Having dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, Renault and Ashok Leyland in India, the company plans to mobilise Rs 552 crore through the public offer of 1.09 crore shares.
The offer comprises fresh issuance of shares worth Rs 150 crore, and an offer-for-sale of Rs 402 crore by promoter and investors. Promoter Sanjay Karsandas Thakker and investors TPG Growth II SF, Aastha and Garima Misra and are the selling shareholders in OFS.
The company will use the issue proceeds for repaying debts, and general corporate purposes.
The price band for the offer has been fixed at Rs 481-506 per share.
December 12 will also see engineered systems manufacturer Uniparts India make its grand debut on the bourses. The company has raised more than Rs 835 crore through its public issue that comprised only an offer-for-sale.
Its shares traded at a premium of more than 10 percent in the grey market, analysts said.
In the SME category, drone solutions provider Droneacharya Aerial Innovations will also open its initial public offering on December 13, and the offer will close on December 15.
The price band for the offer is Rs 52-54 per share. The company will raise nearly Rs 34 crore by issuing 62.9 lakh shares through the IPO.
As 2022 comes to a draw, the Indian primary market looks brighter, with 33 companies mopping up more than Rs 60,000 crore so far. Experts believe the next year will see more robust fund raising through public issues.
“It is likely that there will be an even larger number of IPOs in 2023,” Vikas Gupta, CEO and Chief Investment Strategist at Omniscience Capital, said.
Of course, the investors, including the retail investors, are now savvier about new-age companies with weak business models and profitability and thus, only fundamentally well-performing companies will be welcomed by retail investors and not every company as happened earlier, he feels.