India’s red-hot primary market is gearing up for another month of heightened activity in February 2024. January also turned out a good month for the IPO market with 5 public offers (see all IPOs in 2024). Since all of these listings have been positive, investors have high hopes for upcoming IPOs in February 2024. Let’s take a closer look.
#1 Apeejay Surrendra Park Hotels – First Among Upcoming IPOs in February 2024
Apeejay Surrendra Park Hotels – which operates upmarket hotels under the brand name ‘THE PARK’ – is the first mainboard IPO to be launched in February. The company manages 27 hotels in luxury boutique, upscale, and upper-midscale categories in prominent cities.
This upcoming IPO in February plans to mobilize INR 920 crore by issuing fresh shares worth up to INR 600 crore in addition to a sale by existing investors amounting to as much as INR 920 crore. The majority of IPO proceeds will be used to bring down debt levels.
While the forthcoming IPO will be closely watched by investors, it is worth noting that only 10% of the shares are reserved for retail investors.
#2 Rashi Peripherals – INR 600 crore
Rashi Peripherals is among the most interesting upcoming IPOs in February 2024. The company filed its RHP today and has confirmed that Rashi Peripherals IPO will open for subscription on 7 February.
This national distributor of Information and Communication Technology (ICT) products operates through over 50 branches which also function as sales and service centers and 62 warehouses. Rashi Peripherals has business partnerships with prominent IT brands like ASUS, Dell, HP, and Lenovo.
Rashi Peripherals has raised INR 150 crore from institutional investors in the pre-IPO round in January. Madhuri Madhusudan Kela, wife of ace investor Madhusudan Kela, picked up a stake worth INR 50 crore in the pre-IPO round. The investor purchased 16.08 lakh shares at the price of INR 311 per share. Another investor in the pre-IPO round was Volrado Venture Partners Fund which invested INR 100 crore.
What makes it interesting?
Strong growth in top line and bottom line in recent years, improving margins and equity stake by Madhuri Madhusudan Kela.
#3 GPT Healthcare – INR 500 crore
Kolkata-based GPT Healthcare operates and manages mid-sized multispecialty hospitals under the ILS Hospitals brand. As per market sources, GPT Healthcare IPO is likely to mobilize anywhere between INR 450-500 crore, including a fresh issue of INR 400 crore. The company filed its DRHP in October 2023 in its second attempt to list itself on stock exchanges. Earlier, the company had filed paperwork with SEBI in October 2021.
Highlight
Private equity investor BanyanTree Growth Capital has 32.6% equity in the company and plans to fully exit as per the draft prospectus.
#4 Entero Healthcare – INR 1,000 crore
Entero Healthcare is amongst the top three healthcare products and medical device distributors in India. The company operates in a highly fragmented industry which had nearly 65,000 distributors, as of March 31, 2023. Entero is vying for a slice of this market at the nationwide stage and it has impressive numbers.
As of March 31, 2023, the company had 73 warehouses in 37 cities across 19 states and union territories, effectively establishing a distribution presence in over 495 districts. The company has supply relationships with more than 1,900 healthcare products manufacturers which gives it access to over 64,500 product SKUs.
The company filed its prospectus in September 2023 and received SEBI approval to float its IPO on 16 January 2024. Given its strong credentials, this upcoming IPO in February will be keenly watched by investors.
What makes Entero Healthcare IPO special?
Strong business growth, and marked improvement in margins.
#5 Platinum Industries – Surprise Entry Among IPOs in February
Platinum Industries is a specialty chemicals player with a specialization in PVC stabilizers, CPVC additives, and lubricants. It is the third largest player in the PVC stabilizer segment in India. PVC stabilizers enhance the thermal stability of PVC by allowing it to withstand heat and therefore important ingredient in the manufacturing process.
The upcoming IPO in February is planned as a pure fresh issue. The company plans to sell 15,903,000 shares and IPO proceeds are earmarked for investment in a new plant in Egypt, capital expenditure at Palghar facility, and working capital requirements.
Highlight
Despite operating in a mature industry, the company has posted strong revenue growth at a CAGR of 42% between FY 2018 and FY 2023. Similarly, profits have jumped at a compounded rate of 164% in these years.
As always, the grey market is likely to play a crucial role in deciding the fate of upcoming IPOs in February 2024. The positive sentiment in the run-up to the union budget is likely to continue and support forthcoming IPOs. In between, a healthy dose of SME IPOs such as Alpex Solar and KP Green Engineering will also keep investors busy.
This list of upcoming IPOs in February is not final and may see some additions and deletions depending on the performance of secondary markets.
