4 IPOs to to garner Rs14,628 cr
Objectives of fund raising include debt repayment, capex, general corporate purposes and divesting stakes by existing shareholders
image for illustrative purpose
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 (equities) at Sanctum Wealth Management, said: "As many as 40 IPOs are lined up for the rest of the year looking to raise Rs70,000 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.
