In the CY 2024, things got busy in India’s primary market with as many as 31 listings in the year (here is a list of IPOs in 2024). Out of these, we had 22 positive listings while 9 IPOs debuted with losses. Nevertheless, average listing day gains in these 31 IPOs stood at 26.39%. Given the positive gains in these IPOs despite jittery market conditions, investors have ample reasons to look forward to upcoming IPOs in June 2024. Here is a list of IPOs expected in June 2024.
#1 Kronox Lab Sciences – Among the Most Anticipated Upcoming IPOs in June 2024
Kronox Lab Sciences is among the first in line upcoming IPOs in June 2024. The Kronox Lab Sciences IPO is scheduled for 3 to 5 June 2024, with a price range of INR 129 to 136 per share. The IPO is purely an Offer for Sale of 95,70,000 shares, valuing the offering between INR 123.45 – 130.15 crores. The minimum bid size is 110 shares, priced at INR 14,960, and retail investors are allotted 35% of the shares. The IPO will be listed on both BSE and NSE.
Kronox Lab Sciences manufactures High Purity Speciality Fine Chemicals for a variety of industries. These chemicals are used as reactants in APIs, excipients in pharmaceuticals, reagents in research, ingredients in nutraceuticals, biotech, agrochemicals, personal care, and animal health products, as well as refining agents in metal refineries.
The IPO offers investors a stake in a company with a portfolio of over 185 products in various stages of development and a new manufacturing plant in Dahej, Gujarat. Kronox Lab Sciences provides exposure to the growing specialty chemicals sector.
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#2 Allied Blenders & Distillers
Allied Blenders & Distillers, the country’s largest Indian-owned producer in the Indian-made foreign liquor (IMFL) segment, is set to go for a massive IPO. With an 8.2% market share, the company enjoys strong market leadership and has a widespread distribution network across India. The popularity that Officer’s Choice Whisky and Sterling Reserve Whisky come from the house of Allied Blenders Vintners attests to its market presence.
The proceeds from the IPO are primarily intended to be used for repayment of outstanding borrowings which underlines the company’s strategic financial vision in terms of deleveraging and growth. The strong brand support, dedicated & vast sales network as well as global presence of Allied Blenders & Distillers also position it uniquely for investors looking to invest in India’s growing alcoholic beverage market.
The Chhabria family has had the experience in the liquor business for decades and this will work in their favor. According to the draft papers, Allied Blenders & Distillers is looking to raise INR 1,500 crore through a mix of fresh shares and OFS. The upcoming IPO is worth noting because 35% of shares are reserved for retail investors.
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#3 Sanstar
Next in line of upcoming IPOs is Sanstar. The company’s portfolio of offerings include plant-based specialty products and ingredient solutions. Its products improve the taste, texture, appearance, and nutritional value of foods. Sanstar is strategically poised for growth with an installed capacity of 1,100 tonnes per day across its two manufacturing facilities located in Maharashtra and Gujarat.
This indicates the company’s financial readiness and mentality for expansion, also using IPO proceedings to enlarge the Dhule facility and strengthen its balance sheet by repaying debt and meeting general corporate requirements. Sanstar offers an attractive opportunity for investment with an expected IPO size of INR 425-500 crore and a pre-IPO placement likely to be in the regime of up to 48 lakh equity shares.
#4 Shiva Pharmachem – Leading Name Among the Upcoming IPO in June 2024
Shiva Pharmachem’s upcoming IPO presents a lucrative opportunity for investors. Collectively boasting over 20 years in chemical manufacturing, the company has grown to be a dominant player in the specialty chemicals sector not just domestically but around the world catering to Fortune 500 companies. During FY23, Shiva Pharmachem’s total revenue increased by 6% to INR 1,079 crore and its net profit jumped by a whopping 40% to INR116.65 crores.
With a history of strong financial performance and a leading market position, this company remains an attractive investment opportunity for investors looking to gain exposure to the specialty chemicals sector.
The company filed its prospectus in August 2023 and received SEBI approval to float its IPO on 16 November 2023. Given its strong credentials, this upcoming IPO in June will be keenly watched by investors.
#5 CJ Darcl Logistics – Another IPO in June 2024
CJ Darcl Logistics IPO has been doing the rounds a lot as one of the largest and most attractive Indian logistics companies. Dominant in the full truckload category, the company offers a broad portfolio of transportation services. Positioned well for growth given 36 years of industry experience and presence in more than 5,249 locations.
The proceeds of the IPO will be utilized towards debt repayment, capital expenditure, and general corporate purposes. With the company’s focus on technology-driven service enhancements and market intelligence, it looks like a good value investment in this transforming logistics backdrop.
Financial Performance — CJ Darcl Logistics has done well for itself with revenues more than tripling over three years. The same trend is seen in profitability, which was up from INR 31.75 crore in FY 2021 to INR 67.70 crore in FY 2023.
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#6 Asirvad Micro Finance
Asirvad Micro Finance IPO is set to attract significant interest. Established in 2008, the company expanded its branch presence to over 1,684 with active borrower customers spread across 22 states and 4 Union Territories, serving 3.25 million active borrowers. The company said that it is looking to enhance its capital base for the prospective business expansion through this IPO.
Asirvad’s established presence and extensive reach in the microfinance sector, along with its growth potential, make it an attractive investment option.
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#7 Kross Limited
Another interesting name among forthcoming IPOs in June includes Kross Limited. Kross, a manufacturer of commercial vehicle and farm equipment parts, is likely to launch an IPO comprising a fresh issue of INR 250 crore and an offer for sale of INR 250 crore. With over 30 years of experience and a diversified product portfolio, Kross is positioned for significant growth. The funds raised will support the company’s expansion plans and provide an exit opportunity for existing shareholders. Kross Ltd’s strong industry position and financial performance are key factors likely to attract investor interest.
IPOs in June 2024 will also take cues from the grey market and thankfully, this indicator is in positive territory despite the pre-election result jitters.
Grey market is likely to be one of the determining factors for upcoming IPOs in June 2024. The positive sentiment is expected to sustain itself following the election results and clarity on policy continuation. This is crucial for many other IPOs in the pipeline. Meanwhile, some names may fall off the list of upcoming IPOs in June and new ones might be added based on how secondary markets perform.
