Pretty much like recent times, India’s IPO market next week is going to be busy. During the next week, IPO market will be functional only for four days since 15 August is a national holiday. In these four days, investors will have as many as 6 IPOs to subscribe to while also witnessing listing of three recently closed public offers.
With industries spanning from apparel producers and healthcare to recycling and engineering, investors will have plenty of options to choose from. Here’s an overview of the companies launching their IPOs and what you should know about them.
Table of Contents – IPO Market Next Week
1. Saraswati Saree – Sole Mainboard IPO Next Week
Kolhapur-based Saraswati Saree Depot kickstarts the IPO market next week with subscription starting on 12 August. The company is engaged in the wholesale trade of sarees and other women’s clothing such as Kurtis, Dress materials, Blouses, Lehengas, Bottoms, etc. On average, more than 90% of its total revenue comes from selling sarees. The company primarily sells its products in the southern and western regions of Maharashtra, Goa, Karnataka, and Tamil Nadu.
The IPO is priced in the range of INR 152 – 160 per share. With a total of 1,00,00,800 shares being offered worth around INR 152.01 – 160.01 crore, retail investors will stake claim to 35% shares.
Its net income increased from INR 12.31 crore in FY 2022 to INR 29.53 crore in FY 2024, while EPS also saw 2 times growth from INR 3.72 to INR 8.92 in the same period. Saraswati Saree IPO GMP is INR 30 per share, indicating a listing pop of nearly 19%.
2. Aesthetik Engineers IPO
Aesthetik Engineers deals in designing, engineering, fabricating, and installing facade systems. Its IPO is already open and is scheduled to close on 12 August 2024 while listing is expected on 16 August 2024. The offer involves a fresh issue of 45,64,000 shares shares, which are priced in the range of INR 55 – 58 per share with a lot size of 2,000 shares (INR 1,16,000). The IPO size is valued at INR 25.10 – 26.47 crore. The IPO has offered 35 percent allocation to Retail investors.
In the last 3 years, Aesthetik Engineers’s net income has increased to INR 5.03 crore in FY 2024 from a loss of INR 0.45 crore in FY 2022, this pivotal change in net income is perceived as good indication for company’s future.
3. Positron Energy – Strong Demand Expected
Positron Energy provides technical advisory services and management support to the oil and gas industry and has effectively built a gas aggregation business volume of 35 MMSCM. It has entered into a collaboration agreement with North American company ICOM for the installation of Dual Fuel LNG conversion systems in India.
The public offer starts on 12 August 2024, and its shares are likely to be listed on NSE Emerge platform by 20 August 2024. Priced in the range of INR 238 – 250 per share, the public offer involves a fresh issue of 20,48,400 shares, with IPO size pegged at INR 48.75 – 51.21 crore.
Positron Energy’s earnings grew 15 times from INR 1.04 per share in FY 2022 to INR 15.83 per share in FY 2024 indicating the company’s strong financial performance. Accordingly, it has the strongest grey premium of INR 135 per share, translating to nearly 54% of offer price.
4. Sunlite Recycling – Circular Economy Bonanza
Sunlite Recycling manufactures copper rods, wires, earthing wires, earthing strips, conductors, and wire bars by recycling copper scrap. The company currently sells its products in over 10 states and union territories, with a significant portion of revenue coming from Gujarat, Dadra & Nagar Haveli, and Maharashtra.
The IPO will remain open for subscription between 12 and 14 August 2024, involving a fresh issue of 28,80,000 shares, priced in the range of INR 100 – 105 per share. Retail Allocation is around 35% and the shares will list on 20 August 2024 on NSE Emerge platform.
Apart from a generally positive sentiment for circular economy businesses, Sunlite Recycling’s healthy premium in informal market is another big positive factor for prospective investors.
5. Broach Lifecare – Hospital IPO Next Week
Broach Lifecare operates boutique hospitals under the brand “Maple Hospitals” and provides dedicated round-the-clock services to patients with heart ailments. Its Bharuch Hospital features 25 ultra-luxury in-patient beds and diagnostic devices for various tests.
Its IPO is scheduled to open on 13 to 16 August 2024 and listing will be on 21 August 2024 on BSE SME. The public offer involves a fresh issue of 16,08,000 shares, priced in the range of INR 25 per share with a lot size of 6,000 shares (INR 1,50,000). The company’s EPS is INR 1.92, with EBITDA margin of 39.4%.
6. Solve Plastic Products
Solve Plastic Products manufactures PVC pipes under the brand name of “BALCO PIPES”. The company operates three well-equipped manufacturing facilities in Kerala and one in Tamil Nadu. As demand for PVC products is rising, it is planning to expand its capacity from 2,760 MT per annum to 4,860 MT per annum.
Solve Plastic IPO will remain open between 13 and 16 August 2024, and will be listing on 21 August, 2024 on NSE Emerge platform. The public offer involves a fresh issue of 13,02,000 shares, priced at INR 91 per share.
The company’s financial performance is robust as its EPS increased by 4 times to INR 4.36, and its EBITDA margins have risen nearly 3 times to 5.6% in the last 3 years.
IPO Market Next Week – 3 Listings Also Expected
In addition to the above mentioned public offerings, investors will be busy with allotment status and new listings. Among the mainboard IPOs, there will be fresh listings of Unicommerce eSolutions and FirstCry on Tuesday, 13 August and Aesthetik Engineers SME IPO is scheduled to list on 16 August 2024.
Quite clearly, this list of upcoming IPOs next week offers a range of investment opportunities across various sectors to prospective investors. Careful consideration of each company’s financial performance, market positioning, and growth potential will be key to making informed investment decisions.
