Next week, the Indian market will witness a flurry of activity with three mainboard IPOs, eight SME IPOs and a number of allotments and listings. Investors keenly observe these offerings, which present diverse opportunities across sectors. Here’s an overview of the 11 companies launching their IPOs and what you should know about them.
Table of Contents
1. Akums Drugs – First in India’s IPO Market Next Week
Akums Drugs and Pharmaceuticals will be the first public offer in India’s IPO market next week. The IPO is priced between INR 646 – 679 per share, with an issue size of approximately INR 1,799.55 – 1,856.74 crore. The IPO opens for subscription on Tuesday, July 30, 2024 and closes on August 1, 2024.
Akums Drugs – among the largest Pharma Contract Development and Manufacturing Organisations (CDMOs) in India – presents an attractive opportunity to investors. With a strong market presence, Akums holds a 9.3% market share by value in the Indian domestic CDMO market and 8.8% by volume in the total Indian Pharmaceutical Market for FY 2023. The company’s substantial 29.4% market share by value in the domestic CDMO market underscores its industry dominance.
Akums also operates in API and Branded Generics segments with a significant opportunity at hand to boost revenues and margins.
2. Ceigall India – Infra EPC Player With High Return Ratio
India’s IPO market next week also features Ceigall India – a Ludhiana-based infra player – which plans to launch its public offer on August 1, 2024. The company plans to raise INR 684.25 crore by issuing fresh shares while existing shareholders plan to offload 1,41,74,840 shares.
The company will finalize price band and other details at a later stage but its strong operational and financial performance has already caught attention of investors. The company is among the fastest-growing EPC players in India and boasts of return ratios in excess of 30%.
3. Ola Electric – EV Player to Raise INR 6,150 crore (Tentative)
Ola Electric’s much-anticipated IPO is poised to capture substantial investor interest. As India’s largest electric scooter manufacturer, Ola aims to raise a whopping INR 6,150 crore with a valuation of around USD 5 billion. Although the company is yet to file its RHP, the IPO is likely to open for subscription from August 2 to August 6, 2024.
The company is a major beneficiary of India’s EV boom and its rich valuations will be keenly watched by fellow automakers. Among several of Ola’s growth plans are its expansion into battery-powered cars and establishment of an EV hub in southern India.
The IPO proceeds will enhance manufacturing capabilities, including boosting production capacity at its battery cell factory. With nearly 49% market share in the electric two-wheeler segment, Ola’s IPO represents a significant opportunity for investors eyeing the burgeoning EV sector.
4. Sathlokhar Synergys E&C Global – EPC Player IPO Size of INR 92.93 crore
Between July 30 and August 1, 2024, Sathlokhar Synergys IPO aims to raise approximately INR 88.29 – 92.93 crore. Priced between INR 133 – 140 per share, the fresh issue of 66,38,000 shares will directly benefit the company, enhancing its financial position and growth prospects.
Sathlokhar Synergys boasts a diversified project portfolio across sectors like industrial, warehousing, commercial, institutional, pharmaceutical, solar, hospitals, and hospitality in four Indian states, mitigating risks and showcasing capabilities. Financially, the company has exhibited impressive growth, with revenue and net profits surging 183.77% and 380.51% respectively between FY 2023 and FY 2024. With FY 2024 revenue at INR 247.32 crore and a net profit of INR 26.21 crore, Sathlokhar Synergys stands out as a strong investment proposition.
5. Bulk Corp International
Set to open on July 30, 2024, Bulk Corp International IPO is drawing attention due to the growth potential in logistics sector. As global supply chains evolve, this manufacturer of FIBC bags is well-positioned to benefit from increasing logistics and supply chain solution demands. The IPO’s favorable grey market premium indicates strong investor sentiment.
Bulk Corp’s financial health, operational efficiency, and strategic expansion plans will be key factors for investors. The presence of institutional investors and a structured offering enhance the IPO’s appeal, presenting a promising opportunity in a growing market segment.
6. Rajputana Industries
Opening on July 30, 2024, Rajputana Industries IPO aims to raise approximately INR 22.63 – 23.88 crore by offering 62,85,000 equity shares at INR 36 – 38 per share. This pricing, coupled with a P/E ratio of 11.38, suggests potential undervaluation and growth prospects post-listing.
With 35% of shares reserved for retail investors and significant institutional interest, Rajputana Industries’ IPO is expected to be well-received. Rajputana Industries is a subsidiary of Shera Energy which listed last year and rewarded IPO investors handsomly. The planned listing on August 6, 2024 provides a timely opportunity for investors to capitalize on potential price appreciation.
7. Ashapura Logistics
Ashapura Logistics IPO, priced between INR 136 – 144 per share, presents an attractive opportunity in the logistics sector. With over 20 years of operational experience and a diverse portfolio including cargo handling, freight forwarding, and warehousing, Ashapura’s robust asset-based model ensures consistent service delivery.
Led by industry expert Sujith Chandrasekhar Kurup, the company’s strong market position and growth potential make this IPO noteworthy. The public offering opens on July 30 and closes on August 1, 2024, and the positive grey market sentiment augurs well for the company.
8. Kizi Apparels
Kizi Apparels IPO is attracting attention in the booming textile and apparel sector. Established in March 2023, the Jaipur-based company is positioned to benefit from the projected growth in the Indian e-commerce industry, expected to reach USD 111.40 billion by 2025. The IPO aims to raise approximately INR 5.58 crore at INR 21 per share. The IPO will be open for subscription from July 30 to August 1, 2024.
The funds will be used to repay unsecured loans and enhance working capital, strengthening Kizi Apparels’ financial position and operational capabilities.
9. Utssav CZ Gold Jewels
Utssav CZ Gold Jewels IPO, set to open on July 31, 2024, aims to raise approximately INR 65.71 – 69.50 crore. Priced between INR 104 – 110 per share, the IPO will be listed on the NSE EMERGE. The company’s focus on affordable CZ (cubic zirconia) jewelry caters to a broad customer base. IPO proceeds will be used for retail network expansion and manufacturing capabilities.
With a retail quota of 35%, a QIB quota of 50%, and an NII quota of 15%, the minimum investment for retail investors is set at INR 1,32,000 for a lot of 1,200 shares. Investors should scrutinize the company’s financial performance and industry outlook. Despite the volatile grey market premium, the growth potential in the jewelry market makes this IPO worth considering.
10. Dhariwalcorp
Opening on August 1, 2024, Dhariwalcorp IPO aims to raise funds for warehouse construction and working capital requirements. With a clear focus on industrial chemicals, the company is positioned for future revenue growth.
The favorable grey market premium and robust interest in the SME segment underscore the IPO’s potential. This combination of strategic growth plans and strong investor sentiment makes Dhariwalcorp a noteworthy investment opportunity.
11. Picturepost Studios
Mumbai-based Picturepost Studios is also among the upcoming IPOs next week. The IPO will be open for subscription from August 2 to August 6, 2024. This IPO offers an intriguing investment opportunity in the media and entertainment sector. With net profits rising exponentially from INR 3 lakh in 2021-22 to INR 15.66 crore in 2023-24, Picturepost Studios is poised for growth. The regulatory framework and focus on an evolving sector make this IPO attractive for investors seeking exposure to emerging market trends.
IPO Market Next Week – Conclusion
Quite clearly, this list of upcoming IPOs next week offers a wide range of investment opportunities across various sectors to prospective investors. Investors should carefully evaluate each offering based on market potential, financial performance, and strategic growth plans to make informed decisions.
In addition to the above-mentioned upcoming IPOs, there will be several SEBI approvals, listings, and allotment status updates of the recently concluded offers. Investors keen on these IPOs should stay informed about the latest updates including live subscription by checking IPO Central regularly and subscribing to our notifications.
