After a brief lull in the first quarter of 2022, things got busy in India’s primary market with as many as 12 listings in April and May (here is a list of IPOs in 2022). Out of these, we had 7 positive listings while 5 IPOs debuted with losses. Nevertheless, average listing day gains in these 12 IPOs stood at 10%. Given the positive gains in these IPOs despite jittery market conditions, investors are ample reasons to look forward to upcoming IPOs in June 2022. Here is a list of IPOs expected in June 2022.

Upcoming IPOs in June 2022

IPO Company	IPO Size (INR)	Offer Type	Tentative Date
JK Files & Engineering	800 crore	OFS	June 2022
Hexagon Nutrition	600 crore	Fresh+OFS	June 2022
Waaree Energies	1,500 crore	Fresh+OFS	June 2022
Aadhar Housing Finance	7,300 crore	Fresh+OFS	June 2022
Radiant Cash Management Services	160 crore	Fresh+OFS	June 2022

#1 JK Files & Engineering

The company, a subsidiary of Raymond Limited, is involved into making hand tools, power tool accessories and power tool machines. The company also produces auto components and engineering products such as ring gears, flexplates and water pump bearings.

This upcoming IPO in June 2022 will be entirely a sale of shares by its promoter Raymond.

According to the draft prospectus, the company’s revenues declined in each of the three years leading to FY2021, although things were slightly better in the earnings department.

Why should it be on your radar?

• RONW: 24.8%
• Net debt to equity ratio: 0.09
• Declining leverage
• Aggressive expansion of distribution network

Be careful with this

• Mature products leading to limited scope for growth

#2 Hexagon Nutrition

Hexagon Nutrition is a fully-integrated player focused on fortification of foods, therapeutic nutrition, clinical nutrition and alleviation of malnutrition. After starting in 1993 as a micro-nutrient formulations player, the company has moved up the value chain to develop its brands PENTASURE, OBESIGO and PEDIAGOLD.

Currently, its product portfolio is centered around Branded nutrition products (B2C segment), Premix formulations (B2B2C segment) and Ready to use foods (RUFs) and Micro Nutrient Powder (MNPs) (ESG segment).

The forthcoming public offer is likely to be around INR600 crore in size including a fresh share issuance of INR100 crore. These funds are scheduled to be used for debt reduction, funding of working capital requirement, and fulfilling capital expenditure requirements at Nashik (Maharashtra) and Thoothukudi (Tamil Nadu) facilities.

Why should it be on your radar?

• Market leader in customised premix formulations in India
• Long standing relationships with marquee clients
• Recurring revenues and repeat orders in the B2C segment
• Debt to equity ratio: 0.15
• Declining leverage

Be careful with this

• Stagnant revenues
• Strong competition from Nestle India, Zydus Wellness, Dabur, Britannia

#3 Waaree Energies

Another upcoming IPOs in June 2022 is of Waaree Energies which is India’s largest manufacturer of solar PV modules. The company has manufacturing capacity of 2 GW at its plants in Surat and Umbergaon in Gujarat and plans to expand its capacity further to 4 GW in the coming years.

The company aims to raise as much as INR1,500 crore through a mix of fresh issue and an Offer For Sale (OFS) by existing investors. Majority of INR1,350 crore through fresh issue is earmarked for setting up 2 GW per annum solar cell manufacturing facility and 1 GW per annum solar PV module manufacturing facility at Chikhli, Gujarat.

Given the government’s focus on renewable energy and on reducing the import bill of fossil fuels, solar is a sunrise sector and has strong growth structure for coming several years. Among the upcoming IPOs in June 2022, this could be a portfolio stock for long term.

What makes Waaree Energies IPO interesting?

• Leading player in a market with strong tailwinds
• Deep penetration into the rooftop segment through our pan-India franchisee network
• Marquee customer base including ReNew Power, ACME, Hero Solar, Mahindra Susten, Essel Infra, AMP Energy, Sukhbir Agro Energy, Solarworld Energy, Rays Power Infra
• RONW: 14.3%
• Strong revenue growth

#4 Aadhar Housing Finance – Biggest among the upcoming IPOs in June 2022

At INR7,300 crore, Aadhar Housing Finance is likely to be the biggest among the upcoming IPOs in June 2022. The company is promoted by private equity major Blackstone and a majority portion (INR5,800 crore) of the IPO will reserved for the OFS. The remaining INR1,500 crore is proposed to be used towards augmenting its capital base to meet future capital requirements.

Housing finance sector is a structurally positive story and companies from this sector have regularly tapped primary markets, latest being Aptus Value Housing Finance. The company is the largest affordable housing finance player in India in terms of AUM and is nearly 1.5 times larger than the second largest player.

What makes Aadhar Housing Finance IPO interesting?

• Strong and consistent revenue and earnings growth
• Long runway of growth in coming years
• Declining leverage
• Gross retail NPA under 1%

#5 Radiant Cash Management  

Chennai-based cash management company is also among the upcoming IPOs in June 2022. Backed by private equity firm Ascent Capital, the company’s maiden public offer is likely to be around INR160 crore including a sale by existing investors amounting to INR100 crore. Included among sellers are company promoter Col. David Devasahayam and Ascent Capital.

According to the draft papers, the company clocked revenue of INR224.1 crore in FY2021 when its operations were deeply impacted by Covid-19 pandemic. In the year, the company earned a profit of INR32.5 crore. Even though its top-line in the last three years has remained rangebound (FY2022 figures are awaited), the company managed to post a healthy increase in profits during the timeframe.  

Radiant Cash IPO will add one more cash management player on the bourses following successful listings of CMS Infosystems, AGS Transact and SIS Limited. Out of these, CMS Infosystems is a pure cash management player and has posted strong operating results in the recent quarters.

Why should it be on your radar?

• RONW: 25.5%
• Net debt to equity ratio: 0.11
• Declining leverage

As one can imagine, this list of upcoming IPOs in June 2022 is only indicative and could see a few removals and additions. More companies could join if the global markets rally as our domestic markets have shed quite some weight.