3 New IPOs and 11 Listings to Hit the Indian Share Market Next Week
The Indian primary market is gearing up for an action-packed week as three companies – Emcure Pharmaceuticals, Bansal Wire Industries, and Ambey Laboratories – are set to launch their initial public offerings (IPOs). Additionally, 11 companies that recently concluded their public issues will make their stock market debuts. With the Nifty and Sensex scaling new peaks, riding on strong domestic inflows and renewed foreign interest, the IPO market is witnessing a flurry of activity.
Also Read-How to Invest in IPO Online: IPO में निवेश कैसे करें: सरल गाइड और स्टेप्स
Emcure Pharmaceuticals IPO.
Emcure Pharmaceuticals Limited, one of India’s leading pharmaceutical companies, is launching its ₹1,952 crore IPO on July 3, 2024. The issue will remain open for subscription till July 5, 2024. The price band for the IPO has been fixed at ₹960 to ₹1,008 per equity share.
The IPO consists of a fresh issue of equity shares aggregating up to ₹800 crore and an offer for sale (OFS) of up to 11,428,839 equity shares by promoter and investor selling shareholders. The OFS comprises up to 3,000,000 shares by Satish Mehta, up to 3,000,000 shares by Sunil Mehta, up to 2,000,000 shares by Namita Thapar, up to 2,000,000 shares by Samit Mehta, up to 1,000,000 shares by Pushpa Mehta, up to 200,000 shares by Bhavana Mehta, up to 200,000 shares by Kamini Mehta, up to 14,084 shares by Arun Khanna, up to 9,389 shares by Berjis Desai, and up to 5,366 shares by Sonali Mehta.
Emcure Pharmaceuticals intends to utilize the net proceeds from the fresh issue towards repayment/prepayment of borrowings and general corporate purposes. As of March 31, 2024, the company had total borrowings of ₹2,091.9 crore.
Emcure is engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. The company has a strong presence in India and a growing footprint in international markets. For FY24, Emcure reported a revenue of ₹6,658.25 crore, up 11.2% YoY, while profit after tax decreased to ₹527.57 crore from ₹561.8 crore in FY23.
The IPO has been assigned a ‘Subscribe’ rating by several brokerages, citing the company’s strong product portfolio, extensive manufacturing and R&D capabilities, and robust growth prospects in domestic and global markets.
Bansal Wire Industries IPO.
Bansal Wire Industries Limited, a leading manufacturer of stainless steel wires and wire products, is set to open its ₹745 crore IPO for subscription on July 3, 2024. The issue will close on July 5, 2024. The company has fixed a price band of ₹243 to ₹256 per equity share for the IPO.
The public issue is a complete fresh issue of equity shares and will not include an OFS component. Bansal Wire plans to use the net proceeds to repay/prepay certain borrowings, fund capital expenditure requirements for capacity expansion, and meet general corporate expenses.
Established in 1988, Bansal Wire is the largest stainless steel wire manufacturer in India with an installed capacity of 1,800 tonnes per month. The company’s products find applications across various industries such as automotive, construction, oil & gas, pharmaceuticals, and engineering. For FY24, Bansal Wire reported revenue of ₹2,470.89 crore, up 1.99% YoY, and profit after tax of ₹78.80 crore, a significant increase from ₹59.93 crore in FY23.
The IPO has received a positive response from analysts, who have highlighted the company’s leading market position, diversified product portfolio, strong client relationships, and healthy financial performance.
Ambey Laboratories IPO.
Ambey Laboratories Limited, an agrochemical company specializing in crop protection products, is launching its ₹45 crore IPO on July 4, 2024. The issue will remain open till July 8, 2024. The company has set a price band of ₹65 to ₹68 per equity share for the IPO.
The issue comprises a fresh issue of 62.5 lakh equity shares aggregating to ₹42.55 crore and an OFS of 3.12 lakh equity shares worth ₹2.12 crore. The net proceeds from the fresh issue will be used to meet working capital requirements and general corporate purposes.
Incorporated in 1985, Ambey Laboratories manufactures a wide range of agrochemical products, including insecticides, herbicides, fungicides, and plant growth regulators. The company has a strong presence in the domestic market and exports its products to over 25 countries. In FY24, Ambey Labs reported revenue of ₹120.5 crore and profit after tax of ₹12.3 crore.
While the issue size is relatively small, the IPO has garnered interest from investors looking to gain exposure to the growing agrochemicals sector.
11 Listings Next Week.
Apart from the three forthcoming IPOs, as many as 11 companies are set to make their stock market debuts next week. These include:
- Allied Blenders and Distillers (₹1,500 crore IPO)
- Vraj Iron and Steel (₹171 crore IPO)
- Shivalic Power Control (₹64.32 crore IPO)
- Sylvan Plyboard India (₹28.05 crore IPO)
- Mason Infratech (₹30.46 crore IPO)
- Visaman Global Sales (₹16.05 crore IPO)
- Medicamen Organics (₹10.54 crore IPO)
- The Money Fair (₹9.13 crore IPO)
- Diensten Tech (₹6.30 crore IPO)
- Nephro Care India (₹49.99 crore IPO)
- Petro Carbon and Chemicals (₹113.16 crore IPO)
These companies represent diverse sectors such as consumer goods, infrastructure, power, chemicals, and healthcare, offering investors ample choice to participate in the current IPO boom.
Summary.
The upcoming week promises to be an exciting one for the Indian primary market, with three new IPOs and 11 listings on the cards. The strong investor appetite for new offerings, backed by ample liquidity and a bullish secondary market, bodes well for the success of these issues.
However, investors must exercise caution and conduct thorough research before participating in any IPO. Factors such as the company’s fundamentals, growth prospects, competitive landscape, and valuations should be carefully evaluated. Consulting with financial advisors and reading the prospectus can help investors make informed decisions.
As the Indian economy continues its recovery path and corporate earnings improve, the IPO market is expected to maintain its momentum in the coming months. With several high-profile issues in the pipeline, investors will be closely tracking the primary market for potential wealth creation opportunities.
FAQs
- What is an IPO?
An Initial Public Offering (IPO) is the process by which a private company offers shares to the public for the first time. It allows the company to raise capital from a broad pool of investors. - How can I apply for an IPO?
To apply for an IPO, you need to have a demat and trading account. You can apply for an IPO online through your broker’s website or mobile app during the issue period. Alternatively, you can visit your bank’s website and apply using the ASBA (Application Supported by Blocked Amount) facility. - What is the minimum investment required for an IPO?
The minimum investment varies for each IPO and depends on the lot size. Usually, you need to bid for a minimum of one lot of shares. The lot size and price band are mentioned in the company’s prospectus. - What are the risks involved in investing in IPOs?
Investing in IPOs carries certain risks, such as:- Limited information about the company’s past performance
- High valuations and expensive pricing
- Lack of liquidity in the stock post-listing
- Market volatility and sentiment affecting listing gains
Investors should carefully assess their risk appetite and investment objectives before participating in an IPO.
- What factors should I consider before investing in an IPO?
Some key factors to evaluate before investing in an IPO include:- The company’s business model, competitive advantages, and growth prospects
- Financial performance and key ratios (revenue growth, profitability, debt levels, etc.)
- Management quality and corporate governance standards
- Valuations in comparison to listed peers
- Objects of the issue and utilization of IPO proceeds
Conducting thorough research and reading the prospectus can help you make an informed decision.
In summary, the Indian IPO market is witnessing strong activity, with three new issues and 11 listings lined up for the coming week. Emcure Pharmaceuticals, Bansal Wire Industries, and Ambey Laboratories are set to launch their IPOs, while companies from various sectors will make their stock market debuts. Investors should carefully evaluate the opportunities, considering factors such as the company’s fundamentals, valuations, and risk-return profile before participating. As the market sentiment remains buoyant, the IPO pipeline is expected to remain robust in the near term, providing investors with ample opportunities to participate in the growth story of these companies.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investing in IPOs involves risks, and investors should conduct their own research and consult with financial advisors before making any investment decisions. The author and the website do not bear any responsibility for any losses incurred due to investments made based on the information provided in this article.
C.K. Gupta
Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.
