Tech-based logistics startup Delhivery, retail wealth management player Prudent Corporate Advisory Services and steel pipes maker Venus Pipes & Tubes will launch their initial public offering (IPO) in the coming week.
Not only will there be three issuances next week, but the initial stake in the Life Insurance Corporation of India (LIC) insurer will also go off for subscription on Monday. The biggest IPO in the Indian market is raising around Rs 20,557 crore.
Varun Sridhar, CEO, Paytm Money said that the retail share of the three IPOs together is around Rs 750 crore. “Given the attractiveness of LIC’s IPOs, it will be interesting to see the participation of retail investors in these IPOs,” he added.
Delhivery’s retail share is only 10 per cent as 75 per cent of the shares are reserved for institutional bidders (QIBs). Prudent Corporate Advisory and Venus Pipes & Tubes will offer 35 per cent of the issue to retail bidders, 50 per cent to QIBs.
Giving more details about the upcoming IPO, Vijay Singhania, Chairman, TradeSmart said that despite seeing selling pressure in the secondary market in line with global markets, the primary markets in India have seen a rally.
Interestingly, highlighting the smaller size of the other two IPOs, the Delhi issue alone will raise around 90 per cent of the above funds.
Delhi’s Rs 5,235-crore IPO will be open for subscription between May 11-13 in the fixed price band of Rs 462-487 per share. Investors can bid for a minimum of 30 equity shares and then in multiples thereof.
The company has reduced its offer size to Rs 5,235 crore from the earlier planned Rs 7,460 crore. It will issue fresh equity shares worth Rs 4,000 crore, and existing shareholders and promoters will sell shares worth Rs 1,235 crore.
Gurugram based Delhivery is the largest fully integrated logistics services company in India by revenue. It has created a nationwide network in every state, serving 88.3 percent of the 17,045 pin codes or 19,300 pin codes in India.
Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India and Citigroup Global Markets are managing the share sale, while Link Intime is the registrar of the issue.
Singhania of Tradesmart said, “There are going to be some important IPOs in the coming days, but the one that will be in the news will be logistics services company Delhi especially since it is making loss.”
“This issue will test the market appetite for loss-making companies, especially after the poor performance of other startups,” he said.
“Successful subscription of Delhivery will be a morale booster for the markets as a whole.”
The IPO of Prudent Corporate Advisory Services will be open for subscription between May 10-12 and the company will sell its shares in the range of Rs 595.630. The issue of Rs 538.6 crore is an offer for sale (OFS) of 8,549,340 shares.
The company has allotted a total of Rs 6.5 crore shares to its eligible employees, who will get a discount of Rs 59 per equity share during the bidding process. The issue lot size is 23 equity shares.
Prudent is one of the leading independent retail wealth management services groups (excluding banks) in India and one of the top mutual fund distributors in terms of average assets under management and commission received.
ICICI Securities, Axis Capital and Equirus Capital are the book running lead managers of the issue, while Link Intime has been appointed as the registrar of the issue.
The youngest of the three, Venus Pipes & Tubes raised around Rs 165.4 crore through its initial public offering, in which 50.74 lakh new equity shares were issued and sold in the range of Rs 310-325 between May 11-13 .
The company has nearly six years of experience in manufacturing stainless-steel tubular products in two broad categories – seamless tube and pipe, and welded tube and pipe.
SMC Capitals is the sole book-running lead manager to the issue, while Kfin Technologies is the registrar. The equity shares of the company are proposed to be listed on BSE and NSE.
Deepak Shenoy, Founder and CEO, Smallcase Manager, CapitalMind said that a lot of IPO capital will mainly go to LIC’s IPO, and people will wait for its response to subscribe to other IPOs.
“It is better to rush into new companies after getting listed and wait for them to show good results in subsequent quarters with limited amount of capital,” he advised.