IPO action: NSE among 11 issues worth Rs 24,600 crore opening next week

As per the latest business developments, The bullish sentiment in the primary market has remained undampened by the softness in the secondary market, with nearly Rs 24,600 crore worth of 11 IPOs set to open for public subscription in the holiday-shortened week beginning September 15.

That stated, the equity market declined more than 2 percent last week and has corrected nearly 6 percent from its August high, as bears tightened their grip amid expectations of prolonged Middle East tensions, elevated crude prices and rising US bond yields.

The total fundraising through the 11 initial public offerings (IPOs) is estimated at Rs 24,574.28 crore. Of this, five mainboard IPOs account for Rs 24,328.02 crore, while six issues in the SME segment are anticipated to mobilize Rs 246.26 crore.

The much-awaited National Stock Exchange of India's (NSE) Rs 22,561.6-crore maiden public offering will open for subscription on September 17, with a price range of Rs 1,700-1,785 per share, and close on September 21. The anchor book will open on September 16. Source-based notes indicate that Life Insurance Corporation of India (LIC) is anticipated to be the biggest investor in the anchor book, while Abu Dhabi Investment Authority, GIC, Fidelity, SBI Life and HDFC Life are additionally likely to participate.

The IPO is entirely an offer for sale (OFS) by 10 existing shareholders, including State Bank of India, Canara Pension Plan Investment Board, Aranda Investments, MS Strategic, New India Assurance Firm and SBI Capital Markets. As a result, the offering proceeds, excluding offer-related expenses, will be received by the selling shareholders, and the NSE will not receive any proceeds from the offer.

The primary objective of the IPO is to facilitate the NSE's stock-exchange debut on the BSE, along with carrying out the proposed offer for sale.

Automobile parts maker Hero Motors, promoted by O P Munjal Holdings, will be the next-largest mainboard IPO, with an offering size of Rs 1,000 crore. The IPO will open on September 16 and close on September 18, with a price range of Rs 79-84 per share. The public offering comprises a fresh offering of shares worth Rs 600 crore and an OFS of Rs 400 crore by the promoters.

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SS Retail, a multi-brand retail chain selling mobile phones, accessories and other electronic products, and steel pipes and tubes maker Jindal Supreme (India) will additionally open their public issues on September 16. This will be followed by the IPO of textile products manufacturer Sonaselection India on September 17.

SS Retail aims to mobilize Rs 500 crore through its maiden public offering at the upper end of the price range of Rs 403-424 per share. The offering comprises a fresh offering of Rs 360 crore and an OFS of Rs 140 crore by existing shareholders.

Jindal Supreme (India) is looking to mobilise Rs 124.88 crore by issuing 1.34 crore equity shares at the upper end of the price range of Rs 88-93 per share. The IPO comprises a fresh offering of 1.07 crore equity shares and an OFS of 26.86 lakh shares by a promoter entity.

The 1.43-crore-share IPO of Sonaselection India will raise Rs 141.57 crore and comprises an entirely fresh offering. The price range has been set at Rs 94-99 per share.

Vama Wovenfab, Quanto Agroworld and Shakti Polytarp will be the first SME issues to hit Dalal Street the week ahead. All three IPOs will open on September 15 and close on September 17.

Vama Wovenfab, a manufacturer of PP and HDPE woven sack bags and fabric-based packaging products, is raising Rs 49.54 crore through its IPO at the upper end of the price range of Rs 324-341 per share.

Quanto Agroworld, which operates as a specialty ingredient manufacturer focused on lemongrass-based botanical formats and essential oils, intends to mobilise Rs 31.02 crore through its public offering at a set price of Rs 67 per share.

The 45.64-lakh-share IPO of Shakti Polytarp, a manufacturer of tarpaulins, will raise Rs 26.93 crore.

Kheria Autocomp and SpectraA Technology Solutions will open their maiden public issues on September 17 and close them on September 21. In the meantime, the IPO of Axiom Gas Engineering will open on September 18 and close on September 22, with a price range of Rs 50-53 per share.

Kheria Autocomp, which manufactures plastic components primarily for the automotive sector, intends to mobilize Rs 46.44 crore at the upper end of the price range of Rs 96-101 per share.

The 36.03-lakh-share IPO of engineering and technology solutions provider SpectraA Technology Solutions will raise Rs 42.5 crore at the upper end of the price range of Rs 112-118 per share.

Axiom Gas Engineering, which provides auto LPG, CNG and LNG solutions to retail and industrial sectors, aims to mobilise Rs 49.81 crore through its initial share sale.

In the mainboard segment, Kerala-based real estate developer Veegaland Developers will close its maiden public offering on September 15, while the IPO of plastic products maker Manika Plastech will stay open until September 16.

In the SME segment, the public issues of Raksan Transformers, Maharaja & Speedex India, Om Galaxy and Panchatv Bharat will close for subscription on September 15. The IPOs of Injecto Polymers and Century Business Media will stay open until September 16.

The stock-exchange debut schedule is additionally anticipated to be busy the week ahead, with 19 new firms set to begin trading on the bourses, including 11 from the mainboard segment.

Pranav Constructions will be the first mainboard firm to list, on September 15, followed by Kanohar Electricals, Prasol Chemicals and Glass Wall Systems (India) on September 16.

The maximum number of listings is scheduled for September 17. Rentomojo, Asset Reconstruction Firm India, Karamtara Engineering, LCC Projects, Manipal Payment & Identity Solutions and Steamhouse India are scheduled to begin trading on the bourses that day.

Veegaland Developers is anticipated to make its market debut on September 18.

In the SME segment, Apana Logistics will be the first to begin trading, on September 15, followed by Infrax Renewable, Amtech Esters and Vinod Texworld on September 17.

On the final trading day of the week, September 18, four firms — Maharaja & Speedex India, Raksan Transformers, Panchatv Bharat, and Om Galaxy are likely to be available for trading on the SME platforms.