IPO: four cos should be made public next week; seeks to raise more than Rs 4,500 cr

The primary market is heading for a busy period, with four companies, including Global Health Ltd, which operates hospitals under the Medanta brand, and microfinance lender Fusion Micro Finance Ltd, lining up their IPOs next week. The other two companies with IPOs set to open are DCX Systems, a manufacturer of cables and wire harnesses, and Bikaji Foods International.

Together, these four companies are expected to fetch more than Rs 4,500 crore from IPOs, sources in the investment bank say.

Apart from these, Uniparts India and Five Star Business Finance are expected to publish their respective IPOs in November, they added.

The initial sale of DCX Systems shares will open for public subscription on October 31 and will close on November 2, while that of Fusion Micro Finance will be open from November 2 to 4.

The IPOs of Global Health and Bikaji Foods will open for subscription on November 3 and close on November 7.

In 2022 so far, up to 22 companies have launched their IPOs to raise over Rs 44,000 crore. In 2021, 63 IPOs raised more than Rs 1.19 lakh crore, according to exchange data.

“Secondary market volatility has led to a weak IPO market in 2022 and it is expected to remain subdued going forward,” said Vinod Nair, head of research at .

However, investor response to the proposed IPOs has been decent due to the opportunity to invest in new ventures at attractive prices. This was also against the backdrop of high liquidity available from HNIs and retail investors looking for a quote gain, he said.

In the majority of cases, IPOs were also attractive to institutional investors wishing to invest in new, high-quality companies bringing diversification to programs, he added.

DCX Systems IPO includes new issue of capital shares worth Rs 400 crore and offer for sale (OFS) of capital shares up to Rs 100 crore by promoters NCBG Holdings Inc and VNG Technology.

The Bengaluru-based company has already raised Rs 225 crore from anchor investors. It has set a price range of Rs 197-207 per share for its issuance.

The proceeds from the new issue will be used for the payment of debt, the financing of working capital requirements, the investment in its wholly owned subsidiary Raneal Advanced Systems to finance its capital expenditures and general corporate purposes. .

Merger Micro Finance is seeking to raise Rs 1,104 crore from its IPO, which includes a new issue of capital shares worth Rs 600 crore and an offer for sale of 13,695,466 capital shares by promoters and existing shareholders.

Those selling shares in the SFO are — Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund.

The net proceeds from the new issue will be used to increase the capital base of the microfinance business. The company has set a price range of Rs 350-368 per share.

The Global Health IPO consists of a new issue of capital shares totaling Rs 500 crore and an OFS of up to 5.08 crore capital shares by Anant Investments, a subsidiary of private equity giant Carlyle Group, and Sunil Sachdeva (jointly with Suman Sachdeva).

The IPO price range has been set at Rs 319-336 per share and at the upper end of the price range, the company is expected to earn Rs 2,206 crore from the issuance.

Proceeds from the new issue will be used to pay debt and general corporate purposes.

Bikaji is aiming to mop up around Rs 1,000 crore from his initial sale of shares, investment banking sources have said.

Some shareholders of the Rajasthan-based company along with its promoters – Shiv Ratan Agarwal and Deepak Agarwal – will unload around 2.94 crores of shares through the SFO route.

The shares of the four companies will be listed on the BSE and the NSE.

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