Four IPOs to hit markets next week; aims to garner Rs 14,628 crore

The buzz in the IPO market continues with four companies launching their initial share sales this week to raise over Rs 14,628 crore collectively.

This comes after four companies -- Devyani International, Krsnaa Diagnostics, Windlas Biotech and Exxaro Tiles-- launched their initial share-sales last week to mobilize Rs 3,614 crore.

So far in the current fiscal, 16 companies have raised Rs 30,666 crore through IPOs against Rs 31,277 crore by 30 firms in the entire 2020-21.

Going forward, market analysts expect the IPO environment to remain buzzing during the entire 2021-22.

Hemang Kapasi, Head of Equities at Sanctum Wealth Management, said that as many as 40 IPOs are lined up for the rest of the year looking to raise Rs 70,000 crore.

Nuvoco Vistas Corporation, part of the Nirma Group, and online auto classified platform CarTrade Tech will launch their initial share-sales on Monday, while that of Aptus Value Housing Finance and Chemplast Sanmar will be open for public subscription on Tuesday, information with exchanges showed.

The companies are raising funds to retire their debt, funding capital expenditure requirement and for general corporate purposes. Besides, existing shareholders are divesting their stakes in the IPOs.

Cement manufacturer Nuvoco Vistas' initial public offering (IPO) comprises fresh issue of shares worth Rs 1,500 crore and an offer for sale of Rs 3,500 crore by promoter Niyogi Enterprise.

The public issue, with a price band of Rs 560-570 a share will open for public subscription on August 9 and conclude on August 11.

Proceeds of the fresh issue will be used for the repayment of certain loans availed the company and general corporate purpose.

Nuvoco Vistas is a cement manufacturer with a consolidated capacity of 22.32 MMTPA. It has 11 cement plants comprising five integrated units, five grinding units and one blending unit.

It operates cement manufacturing units in Chhattisgarh, Jharkhand, West Bengal, Rajasthan and Haryana.

CarTrade Tech's initial share-sale will be entirely an offer for sale (OFS) of 18,532,216 equity shares.

Among the investors participating in the OFS are-- CMDB II (22.64 lakh equity shares), Highdell Investment Ltd (84.09 lakh shares), Macritchie Investments Pte Ltd (50.76 lakh shares), Springfield Venture International (17.65 lakh shares).

Currently, CMDB II holds 11.93 per cent stake in CarTrade, Highdell Investment owns 34.44 per cent stake, MacRitche Investment has 26.48 per cent shareholding and Springfield Venture International holds 7.09 per cent stake in the company.

The company has fixed a price band of Rs 1,585-1,618 a share for the IPO, which will be open for public subscription during August 9-11.

At the upper end of the price band, the IPO is expected to mobilise Rs 2,998.51 crore.

Founded in 2009, CarTrade is backed by marquee investors -- Warburg Pincus, Temasek, JP Morgan and March Capital.

The CarTrade platform allows customers to buy and sell used cars as well as new cars.

The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands -- CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.

Aptus Value Housing Finance' IPO consists of fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale of up to 64,590,695 equity shares by pomoter and existing shareholders.

The issue, with a price band of Rs 346-353 a share, will open on August 10 and close on August 12.

At the upper end of the price band, the IPO is expected to fetch Rs 2,780 crore. The net proceeds from the fresh issue will be utilized towards augmenting the company's tier-1 capital requirements.

Aptus Value Housing Finance has a strong capital sponsorship by marquee investors like Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India.

The Rs-3,850-crore IPO of Chemplast Sanmar comprises fresh issue of equity shares worth Rs 1,300 crore and an offer for sale of Rs 2,550 crore.

The offer for sale comprises the sale of Rs 2,463.44 crore by Sanmar Holdings Ltd and Rs 86.56 crore by Sanmar Engineering Services Ltd.

The company would utilise an aggregate amount of Rs 1,238.25 crore from the net proceeds towards early redemption of the non-convertible debentures (NCDs) issued by it. In addition, funds will also be used for general corporate purpose.

The price band has fixed a price band of Rs 530-541 a share for the three-day IPO, which will open for public subscription on August 10.

Chennai-based Chemplast Sanmar is a leading specialty chemicals manufacturer with focus on specialty paste PVC (polyvinyl chloride) resin and custom manufacturing of starting materials and intermediates for pharmaceutical, agro-chemical and fine chemicals sectors.

The equity shares of these four companies will be listed on the BSE and NSE.