IPO Watch: 5 mainboard IPOs open next week, Tata Tech IPO, Flair IPO, IREDA IPO, among others; All you need to know
- Gandhar Oil Refinery India, Indian Renewable Energy Development Agency, Tata Technologies, Flair Writing Industries, and Fedbank Financial Services are among the IPOs set to hit the primary market next week.
IPO next week: Five mainboard initial public offers (IPOs) are going to hit the primary market next week, which makes it an extremely busy week for investors as the Diwali celebrations and market holidays draw to an end this week. Gandhar Oil Refinery India IPO, Fedbank Financial Services IPO, Indian Renewable Energy Development Agency IPO (IREDA IPO), Flair Writing Industries IPO, and the most awaited IPO of the year Tata Technologies IPO will open for subscription next week.
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has approved Fedbank Financial Services, Indian Renewable Energy Development Agency, EPACK Durable, and Suraj Estate Developers to raise capital through an IPO. According to a Monday (November 13) update with the regulator, these companies, which submitted preliminary IPO papers to SEBI between July and September, received the observation letters from the regulator between October 30 and November 10. According to SEBI, its observations imply that the IPO may be launched.
This year, the primary market saw a surge of activity overall as several IPOs hit the D-Street, keeping investors busy with continuous listings and subscriptions.
Analysts predict that the IPO market would be active following Diwali for two reasons: first, state elections are approaching. In five states, voting has begun. On December 3, the results will be tallied. Companies aim to finish their issues before then. Second, in April and May of 2024, general elections are scheduled. Companies look to complete their IPOs, obtain Securities and Exchange Board of India (SEBI) clearances, and initiate their offerings by the latest in February or March, even though this is still a few months away.
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Indian Renewable Energy Development Agency IPO
IREDA IPO price band has been fixed in the range of ₹30 to ₹32 per equity share of face value of ₹10. IREDA IPO opens for subscription on Tuesday, November 21, and closes on Thursday, November 23. The allocation to anchor investors for Indian Renewable Energy IPO is scheduled to take place on Monday, November 20.
The floor price is 3 times the face value of the equity shares and the cap price is 3.20 times the face value of the equity shares. The price/earnings ratio based on diluted EPS for fiscal 2023 at the floor price is 7.94 times and at the cap price is 8.47 times. IREDA IPO lot size is 460 equity shares and in multiples of 460 equity shares thereafter.
The IPO will comprise a fresh issue of up to 403.16 million shares and an offer for sale (OFS) of up to 268.78 million equity shares by the President of India, acting through the ministry of new and renewable energy. The offer includes a reservation for subscription by employees.
According to the RHP, the proceeds from the fresh issue will be used for augmenting its capital base to meet its future capital requirements and onward lending.
IRDEA IPO GMP today is +8. This indicated IRDEA share price today are trading at a premium of ₹8 in the grey market on Friday, according to investorgain.com.
Gandhar Oil Refinery India Ltd IPO
Gandhar Oil Refinery India IPO opens for subscription on Wednesday, November 22, and closes on Friday, November 24. The allocation to anchor investors for Gandhar Oil Refinery IPO is scheduled to take place on Tuesday, November 21, as per reports. Gandhar Oil IPO price band has been set in the range of ₹160 to ₹169 per equity share of face value of ₹2.
Gandhar Oil Refinery India Ltd IPO comprises a fresh issue of shares of up to ₹302 crore and an offer for sale (OFS) of up 11,756,910 equity shares of face value of ₹2 each by a promoter and others.
According to the Red Herring Prospectus (RHP), Promoter Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh would each sell 2,250,000 equity shares. Other selling shareholders are Green Desert Real Estate Brokers, who will offload 3,000,000 equity shares, and Denver Bldg Mat & Décor TR LLC would offer 1,000,000 equity shares.
As per RHP, the company will be using the net proceeds from the new issue to finance the subsequent objectives: investing in Texol through a loan to finance the repayment or prepayment of a loan facility obtained by Texol from the Bank of Baroda; capital expenditure by buying equipment and doing civil work necessary for expanding the capacity of automotive oil at our Silvassa Plant; financing the company's working capital needs; and general corporate purposes.
The registrar for the Gandhar Oil Refinery India IPO is Link Intime India Private Ltd, while the book running lead managers are Edelweiss Financial Services Ltd and ICICI Securities Limited.
Gandhar Oil Refinery IPO GMP today or grey market premium is +50. This indicates Gandhar Oil Refinery share price were trading at a premium of ₹50 in the grey market on Friday, according to investorgain.com.
Tata Technologies IPO
Tata Technologies IPO opens for subscription on Wednesday, November 22, and closes on Friday, November 24. Tata Technologies IPO price band has been fixed in the range of ₹475 to ₹500 per equity share of face value of ₹2.
According to Tata Motor's exchange filing, Tata Technologies Ltd's filed its Red herring prospectus (RHP) on Monday, November 13, with the registrar of companies, Maharashtra, Pune.
"This IPO is an Offer For Sale (“Offer") of up to 60,850,278 equity shares for cash (“Equity Shares"), comprising of an offer for (a) up to 46,275,000 Equity Shares by the Company; (b) up to 9,716,853 Equity Shares by Alpha TC Holdings Pte. Ltd.; and (c) up to 4,858,425 Equity Shares by Tata Capital Growth Fund I, each representing up to 11.41%, 2.40%, and 1.20%, respectively of the paid-up Equity Share Capital of Tata Technologies Limited," the company informed in an exchange filing on November 13.
A draft red herring prospectus (DRHP) for an IPO was filed by Tata Technologies Limited, a division of Tata Motors Limited, to the Securities and Exchange Board of India on March 9, 2023.
Financial firms like JM Financials, Citi, and BoFA Securities have been chosen by the company to assist with the IPO process.
The company's listed industry peers are KPIT Technologies Ltd (with P/E of 83.10), L&T Technology Services Ltd (with P/E of 40.92), and L&T Technology Services Ltd (with P/E of 70.67).
Tata Technologies IPO GMP today is ₹340, according to market observers. It is ₹90 higher from yesterday morning GMP of the book build issue.
Fedbank Financial Services Ltd IPO
Fedbank Financial Services Ltd IPO opens for subscription on Wednesday, November 22, and closes on Friday, November 24. The allocation to anchor investors for Fedbank IPO is scheduled to take place on Tuesday, November 21, as per reports. Fedbank Financial Services IPO price band has been fixed in the range of ₹133 to ₹140 per equity share of face value of ₹10.
Federal Bank arm Fedfina IPO comprises of fresh issue of equity shares up to the value of ₹750 crore and an offer-for-sale (OFS) of up to 70,323,408 equity shares by the promoters selling shareholders and promoter group make up the offer, which has a face value of ₹10 per equity share.
The Federal Bank, the promoter shareholder, may sell up to 16,497,973 equity shares, and True North Fund VI LLP, the other shareholder, may sell up to 53,825,435 equity shares, of the offer for sale up to 70,323,408 equity shares.
ICICI Securities Ltd, BNP Paribas, Equirus Capital Private Ltd, and JM Financial Ltd are the Book Running Lead Managers (BRLM) to the issue, and Link Intime India Private Ltd is the registrar to the offer.
Federal Bank arm FedFina filed DRHP for an IPO last year.
The company's listed industry peers are Aptus Value Housing (with P/E of 27.04), IIFL Finance(with P/E of 14.52), Five Star Business Finance (with P/E of 31.73), Manappuram Finance Limited (with P/E of 7.28), and Muthoot Finance Limited (with P/E of 14.29).
Fedbank Financial Services IPO GMP today or grey market premium is ₹0, which means shares are trading at their issue price of ₹140 with no premium or discount in the grey market according to investorgain.com
Flair Writing Industries Limited IPO
Flair Writing Industries Limited IPO price band has been set in the range of ₹288 to ₹304 per equity share of face value of ₹5. Flair Writing IPO date of subscription is scheduled for Wednesday, November 22, and will close on Friday, November 24. The allocation to anchor investors for Flair Writing Industries Limited IPO is scheduled to take place on Tuesday, November 21.
Flair IPO lot size is 49 equity shares and in multiples of 49 equity shares thereafter.
Flair Writing IPO comprises a fresh issue of shares of up to ₹292 crore and an offer for sale (OFS) of equity shares with face value of ₹2 each by a promoter and others aggregating up to ₹301 crore. Flair Writing IPO size is ₹593 crore.
The following uses of the net proceeds of the new issue include establishing the New Valsad Unit, a new writing instrument manufacturing facility in Gujarat's District Valsad; funding working capital needs for the company and its subsidiaries, Flair Writing Equipments Private Limited (FWEPL); financing capital expenditures for the company and its subsidiaries, FWEPL and Flair Cyrosil Industries Private Limited (FCIPL); funding the repayment or prepayment, in full or in part, of certain borrowings taken out by the company and its subsidiaries, FWEPL and FCIPL; and serving general corporate purposes.
The Flair Writing IPO's book running lead managers are Nuvama Wealth Management Limited and Axis Capital Limited, and the issue's registrar is Link Intime India Private Ltd.
Flair Writing Industries Limited IPO GMP or grey market premium is ₹0, which means shares are trading at their issue price of ₹304 with no premium or discount in the grey market according to investorgain.com
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