Last updated on August 23, 2022
It is raining stock market listings in August. After a massively successful IPO of Syngene International, retail investors have warmed up to the primary market and companies seeking to raise public funds plan to cash on the trend. As many as four companies plan to tap the primary market and raise funds through initial public offerings (IPO) this month. While the IPO of Power Mech Projects will open for subscription later this week on 7 August; Dilip Buildcon, Prabhat Dairy and Navkar Corporation will soon bring their public issues. These companies will collectively raise a total of INR1,820 crore. A common thread in most of these IPOs will be partial or complete exit of private equity investors.
Power Mech Projects plans to raise as much as INR273.2 crore through the IPO which will remain open for subscription till 11 August. To know more about the issue and if it is worth investing, read our analysis here.
Biggest among the new ones will be the IPO of Dilip Buildcon which plans to raise INR650 crore through a fresh issue of equity shares. In addition, existing investors plan to sell 1.49 crore shares in the offer. The issue will be managed by Axis Capital, Deutsche Equities India and PNB Investment Services. Important among the selling shareholders will be private equity investor BanyanTree Growth Capital LLC which owns 11.42 million shares amounting to 9.75% equity stake in Dilip Buildcon. BanyanTree plans to offload its entire shareholding in the company while promoters Dilip Suryavanshi and Devendra Jain also plan to sell 2.28 million and 1.23 million shares respectively.
Read Also: Dilip Buildcon gets SEBI nod for IPO
Raigad-based logistics firm Navkar Corporation will be another big IPO which will mobilise INR600 crore through a combination of fresh equity and offer for sale. Offloading shares worth INR90 crore will be Sidhhartha Corporation. Axis Capital Limited, Edelweiss Financial Services Limited, and SBI Capital Markets Limited are the book running lead managers of the issue.
A relatively small IPO will be floated by Navi Mumbai-based Prabhat Dairy which has received SEBI clearance in June. The integrated milk and dairy products company will raise INR300 crore through fresh issue of equity shares while existing investors also plan to sell 1.47 crore shares. Rabobank invested in Prabhat Dairy through IABF private equity fund in 2012 to acquire a 22.7% stake while Proparco – French development agency Agence Française de Développement – picked up 14.2% stake in the following year. Both the investors will be partly offloading their shareholding through the offering.
We plan to take an in-depth look at these IPOs (just like we did for Syngene International and Power Mech Projects) as more details are released. Please follow us on Facebook and Twitter to remain updated or simply subscribe to receive our newsletter below.