Unstoppable Flow of IPOs: A Busy Week Ahead for Indian Investors
The Indian stock market is buzzing with activity as a new wave of Initial Public Offerings (IPOs) is set to hit Dalal Street. With the equity market maintaining healthy conditions and increasing inflows from both domestic and foreign institutional investors, the demand for new offerings remains strong, reported by Money Control. In the upcoming week starting September 2, 2024, investors will have the opportunity to participate in six new IPOs, including one from the mainboard segment and five from the SME (Small and Medium Enterprises) segment.
This article provides a comprehensive overview of the upcoming IPOs, the companies behind them, and what investors should expect in the days ahead.
1. Gala Precision Engineering IPO
The first IPO to watch this week is from Gala Precision Engineering, a Maharashtra-based manufacturer specializing in precision components. The company is set to launch its Rs 168-crore initial public offering on September 2, 2024. This IPO consists of a fresh issuance of equity shares worth Rs 135.34 crore and an offer-for-sale of 6.16 lakh shares valued at Rs 32.59 crore by existing shareholders, including promoters.
Key Details of Gala Precision Engineering IPO:
IPO Opening Date: September 2, 2024
IPO Closing Date: September 4, 2024
Price Band: Rs 503-529 per share
Fresh Issue: Rs 135.34 crore
Offer for Sale: 6.16 lakh shares worth Rs 32.59 crore
Total Issue Size: Rs 168 crore
The IPO is expected to attract significant investor interest given the company’s robust presence in the precision engineering sector and its growth potential in both domestic and international markets. Gala Precision Engineering plans to use the proceeds from the fresh issuance to fund its expansion projects, enhance manufacturing capabilities, and reduce its debt burden.
2. Jeyyam Global Foods IPO
Next in line is the IPO of Jeyyam Global Foods, an SME focused on food production and processing. This IPO is also set to open on September 2, 2024. The company aims to raise Rs 81.94 crore at the upper end of the price band, which ranges from Rs 59-61 per share. The IPO will be a combination of a fresh issue of 1.2 crore equity shares worth Rs 73.74 crore and an offer-for-sale of 13.43 lakh shares valued at Rs 8.19 crore.
Key Details of Jeyyam Global Foods IPO:
IPO Opening Date: September 2, 2024
IPO Closing Date: September 4, 2024
Price Band: Rs 59-61 per share
Fresh Issue: Rs 73.74 crore
Offer for Sale: 13.43 lakh shares worth Rs 8.19 crore
Total Issue Size: Rs 81.94 crore
Jeyyam Global Foods is positioning itself to capitalize on the growing demand for processed foods in India and abroad. The company plans to use the funds to expand its product line, enhance production capacity, and enter new markets.
3. Naturewings Holidays IPO
Naturewings Holidays, a Kolkata-based holiday package provider, will be the next SME to enter the market. The IPO will open for subscription from September 3 to September 5, 2024. Unlike some other IPOs, Naturewings Holidays will offer a fixed-price issue, aiming to raise Rs 7.03 crore by issuing 9.5 lakh equity shares at Rs 74 per share.
Key Details of Naturewings Holidays IPO:
IPO Opening Date: September 3, 2024
IPO Closing Date: September 5, 2024
Issue Type: Fixed Price
Price Per Share: Rs 74
Total Issue Size: Rs 7.03 crore
The funds raised will be used to enhance the company’s marketing efforts, develop new holiday packages, and expand its reach in the competitive travel and tourism market. The fixed price and small issue size make it an interesting option for retail investors looking for growth opportunities in niche sectors.
4. Mach Conferences and Events IPO
Following Naturewings Holidays, Mach Conferences and Events, a company specializing in conference management, exhibition management, and global event planning, will launch its Rs 125.3-crore IPO on September 4, 2024. The IPO will have a price band of Rs 214-225 per share and will consist of a fresh issue of 22.29 lakh equity shares worth Rs 50.15 crore and an offer-for-sale of shares worth Rs 75.13 crore by existing shareholders.
Key Details of Mach Conferences and Events IPO:
IPO Opening Date: September 4, 2024
IPO Closing Date: September 6, 2024
Price Band: Rs 214-225 per share
Fresh Issue: Rs 50.15 crore
Offer for Sale: Rs 75.13 crore
Total Issue Size: Rs 125.3 crore
Mach Conferences and Events intends to use the proceeds from the fresh issue to fund its expansion plans, develop new event management software, and enhance its service offerings in both domestic and international markets.
5. Namo eWaste Management IPO
Namo eWaste Management, a New Delhi-based company that provides collection, disposal, and recycling services for electronic waste, is set to launch its Rs 51.2-crore IPO on September 4, 2024. The IPO is a book-built issue with a price band of Rs 80-85 per share and will close on September 6, 2024. The company will issue only fresh equity shares in this offering.
Key Details of Namo eWaste Management IPO:
IPO Opening Date: September 4, 2024
IPO Closing Date: September 6, 2024
Price Band: Rs 80-85 per share
Fresh Issue: Rs 51.2 crore
Total Issue Size: Rs 51.2 crore
The proceeds from this IPO will be used to enhance the company’s infrastructure, increase recycling capacity, and expand its service offerings to cover more cities and regions across India. Given the increasing focus on environmental sustainability and proper waste management, this IPO is likely to attract environmentally conscious investors.
6. My Mudra Fincorp IPO
The final IPO from the SME segment this week comes from My Mudra Fincorp, a New Delhi-based company that specializes in the distribution and sales of financial products as a channel partner. The IPO will open on September 5, 2024, with a price band of Rs 104-110 per share. The company aims to raise Rs 33.26 crore at the upper price band.
Key Details of My Mudra Fincorp IPO:
IPO Opening Date: September 5, 2024
IPO Closing Date: September 7, 2024
Price Band: Rs 104-110 per share
Total Issue Size: Rs 33.26 crore
The funds will be utilized to strengthen the company’s distribution network, invest in new technologies, and expand its product offerings. As financial services continue to grow rapidly in India, My Mudra Fincorp is well-positioned to benefit from the increasing demand for diversified financial products.
Additional IPOs and Listings This Week
In addition to these six IPOs, a few other listings and ongoing IPOs are worth noting:
Travels & Rentals will close its public issue on September 2, 2024, and Boss Packaging Solutions will wrap up its IPO on September 3, 2024. Meanwhile, the bidding for Baazar Style Retail’s IPO will continue until September 3, 2024.
Premier Energies, a manufacturer of solar cells and panels, will be the first to debut on the BSE and NSE this week on September 3, 2024. Participants will receive shares in their demat accounts by September 2, 2024, with the final issue price fixed at Rs 450 per share.
Ecos India Mobility and Hospitality, a chauffeur-driven car rental service provider, will finalize the basis of allotment of IPO shares by September 2, 2024, with shares listed on the bourses on September 4, 2024.
Baazar Style Retail shares will also begin trading on the bourses this week, effective September 6, 2024.
Grey Market Premiums and Market Expectations
The grey market, an unofficial market where IPO shares are traded before they are officially listed, provides insights into investor sentiment and potential premiums.
Premier Energies shares traded at double their issue price of Rs 450 per share.
Ecos India Mobility shares were available at around a 45% premium over the upper price band.
Baazar Style Retail shares attracted a 25-30% premium in the grey market.
Upcoming SME Listings
From the SME segment, several companies will be listed on the NSE Emerge and BSE SME platforms in the coming days:
Indian Phosphate, Vdeal System, and Jay Bee Laminations will debut on the NSE Emerge on September 3, 2024.
Paramatrix Technologies and Aeron Composite shares will commence trading on the NSE Emerge effective September 4, 2024.
Travels & Rentals will make its debut on the BSE SME on September 5, 2024, followed by Boss Packaging Solutions on the NSE Emerge on September 6, 2024.
What Investors Should Consider
As the IPO market heats up, investors should carefully evaluate each offering to identify the best opportunities. Here are some factors to consider:
Company Fundamentals: Analyze the financial health, growth potential, and competitive positioning of the company.
Industry Outlook: Consider the industry dynamics, growth trends, and potential challenges.
IPO Pricing: Evaluate whether the IPO is priced fairly relative to the company’s fundamentals and market conditions.
Management Team: Assess the experience and track record of the company’s management team.
Use of Proceeds: Understand how the company plans to use the funds raised through the IPO and whether it aligns with its growth strategy.
The upcoming week promises to be exciting for Indian investors, with multiple IPOs offering diverse investment opportunities across different sectors. From precision engineering and food production to holiday packages, conference management, e-waste recycling, and financial services, there is something for every investor.
As always, it is crucial to conduct thorough research and consider the risks before making any investment decisions. With a strategic approach, investors can potentially capitalize on the opportunities presented by these new IPOs and the vibrant primary market activity.
