Two upcoming IPOs in May: Nexus Select Trust, and Auro Impex & Chemicals; check details

So far in May, two initial public offerings (IPOs), Nexus Select Trust REIT and Auro Impex & Chemicals Ltd, have announced their issue dates.

Two notable IPOs that opened for subscription in April on the mainboard IPO front were overbooked: Avalon Technologies Ltd, and Mankind Pharma Ltd. A G Universal Ltd, Quicktouch Technologies Ltd, Pattech Fitwell Tube Components Ltd, Retina Paints Ltd, Innokaiz India Ltd, and De Neers Tools Ltd were a few small and medium-sized enterprises (SMEs) that opened for subscription in April. 

Companies can raise money and list at the BSE and NSE exchanges through a Mainboard IPO if they have a minimum post-issue paid-up capital of ₹10 crores. 

Companies can participate in the SME IPO with a minimum post-issue capital of ₹1 crore and a maximum of ₹25 crores. SME can raise money and list at the market using the BSE SME and NSE Emerge platform.

In India, there is a healthy pipeline for initial public offers (IPOs) in the second half of calendar year (CY) 2023 and beyond, according to the most recent report from multinational professional services partnership firm Ernst & Young (EY).

The research states that in terms of proceeds, the Divgi TorqTransfer Systems Pvt Ltd IPO, which raised $50 million, was the most successful IPO during Q1 CY2023.

Investors looking to make investment in the immediate future can check the details out of the two upcoming IPOs  -  Nexus Select Trust REIT and Auro Impex & Chemicals Ltd.

Mainboard IPO - Nexus Select Trust REIT

The IPO of Blackstone's Nexus Select Trust REIT Ltd will start accepting subscriptions on Tuesday, May 9 and end on Thursday, May 11. For the proposed IPO, the company has set the price range at ₹95 to ₹100 per equity share.

On Monday, May 8, the bidding for anchor investors will begin, and on Tuesday, May 16, the allocation's basis will be finalised. On Friday, May 19, the stock will begin trading on domestic exchanges.

The IPO consists of a fresh issue for ₹1,400 crore and an offer for sale (OFS) for up to ₹1,800 crore. The size had been suggested to raise ₹4,000 crore, however it has been reduced down. At the upper price range of 100, the IPO is worth ₹3,200 crore.

Investors may make bids for 150 units and multiples of that. Institutional investors will receive about 75% of the IPO.

In India, this is the first REIT retail asset offering. Three REITs are currently listed on stock exchanges, and all three are backed by office assets.

“Though this is the 4th REIT issue since March 2019, it is the first mover in the retail consumption space and has also opted for an investor-friendly gesture of low pricing and convenient minimum lot. Investors looking for steady returns coupled with appreciation on residual holdings year after year may park funds for medium to long-term rewards. Post listing, it may fetch the first mover fancy in the segment,” advises the contributing editor at Chittorgarh.com.

Also Read: Mint Explainer: Why Blackstone’s maiden retail REIT in India matters

SME IPO - Auro Impex & Chemicals Ltd

Auro Impex and Chemicals SME IPO will start accepting subscriptions on Thursday, May 11 and end on Monday, May 15. Initially, the firm had fixed Friday, May 5 to Tuesday, May 9, 2023 for taking subscription.

The basis for allocation will be completed on May 18 and the refund fund  process will start on May 19. Demat credits are expected to occur on Monday, May 22, and the stock is expected for listing on the NSE SME section on Tuesday, May 23.

At the upper end of the price range at ₹78, the 25.64 lakh shares being issued as part of the fresh issue are valued ₹20.00 crore. The 5.50 lakh shares that would be issued under the OFS will be valued at Rs4.29 crore at the upper end of the price range, or ₹78. The IPO would issue 31.14 lakh shares in total, which works out to a total issue amount of ₹24.29 crore at the maximum price band of ₹78 per share.

Auro Impex and Chemicals Ltd.'s stock has a face value of Rs. 10, and buyers can only submit bids in lots of 1,600 shares or less each. This requires a minimum investment in the IPO of Rs. 124,800 at the high end of the Rs. 76 per share price range. Additionally, that is the maximum bid a retail investor may place in the IPO. HNIs and NIIs can make a minimum bid of 2 lots of 3,200 shares, or ₹249,600, in value.

Also Read: Auro Impex & Chemicals SME IPO to open on 5th May: 10 things to know