Dalal Street to witness 4 new IPOs this week

Image Source: The Economic Times

Dalal Street (the address of the Bombay Stock Exchange and several financial institutions) will witness 4 new IPOs this week. Starting today, RateGain Travel Technologies IPO will open for bidding and soon Shriram Properties, CE Info Systems (MapmyIndia) and Metro Brands will launch their issues to cumulatively raise more than Rs 3,500 crore. Last week Tega Industries and Anand Rathi Wealth had also launched their IPOs. These are the few companies that will join the club of the companies that have launched their IPO this year. 

IPOs or Initial Public Offer have been one of the best ways for investors to enter a new company early on. Moreover, it helps the companies to secure funding for various projects and for existing shareholders to exit the company, if they wish to. IPOs are also underwritten or guaranteed by one or more banks. It means that if an IPO is not fully subscribed, they will buy the difference from the company. 

Various factors influence people to apply for an IPO. Some of the factors are:

  1. The number of shares that are being sold by the company
  2. The potential growth of a company
  3. The financial growth in the last few years
  4. The business model of the company
  5. The assets and liabilities 
  6. The goals from the IPO
  7. The grey market premium (it is the estimated price at which the IPOs may list in the stock markets) 

Given below is the list of the IPOs that are going to hit Dalal Street this week:

  1. RateGain Travel Technologies:

It is one of the leading distribution technology companies globally and the largest Software as a Service (SaaS) provider in the travel and hospitality industry in India. The company has set a price band of Rs 405 to Rs 425. Investors can bid for a minimum of 35 shares and the multiples thereof. 

The IPO will begin on the 7th of December and investors can bid till the 9th of December. The company is expected to earn Rs 1335.74 crore in the upper band. The IPO includes a fresh issue of shares worth Rs 375 crore while, equity shares worth Rs 960.75 will be through an offer for sale (OFS). The existing promoters and shareholders will go through OFS.

The company has reserved a portion (worth Rs 5 crore) of the IPO for its employees. Moreover, the employees have been given a discount of Rs 40 per share. The company had opened the IPO a day before (i.e. on the 6th of December) for anchor investors (they offered a part of shares that is reserved for qualified institutional buyers).

Out of the 100% portion, 75% of the IPO is reserved for the QIBs (qualified institutional buyers), 15% is reserved for the HNIs (high net individuals) and 10% is reserved for the retail traders. 

Image Source: ANI News

2. Shriram Properties:

The subsidiary of Shriram Group is a leading player in residential real estate development companies in South India and primarily focuses on the mid-market and affordable housing segment. The company has set a price band of Rs 113 to Rs 118 per share. Investors can minimum bid for 125 shares and their multiples thereof. 

The IPO will begin on the 8th of December and will end on the 10th of December. The company is expected to earn Rs 600 crore at the upper price band of the IPO. The IPO has a fresh issue of equity shares worth Rs 250 crore while Rs 350 crore worth of equity shares will be offloaded through OFS. This route is being taken by existing shareholders and the promoters. 

The company has reserved a portion (worth Rs 3 crore) for its employees. Moreover, the employees will be given a discount of Rs 11 per share. The company may open the IPO a day before (i.e. on the 7th of December) for anchor investors (they offered a part of shares which is reserved for qualified institutional buyers). 

Out of the 100% portion, 75% of the IPO is reserved for the QIBs (qualified institutional buyers), 15% is reserved for the HNIs (high net individuals) and 10% is reserved for the retail traders. 

Image Source: Shriram Properties

3. CE Info Systems (MapMyIndia):

Founded in 1992, MapmyIndia is a leading provider of advanced digital maps, geospatial software, and location-based IoT technologies in India. The company has its headquarters in New Delhi while having regional offices in Mumbai and Bangalore. Additionally, the company has several offices across the country. The company has set a price band of Rs 1000 to Rs 1033 per share. Investors can bid for 14 shares and their multiples thereof.

 The IPO will begin on the 9th of December and will end on the 13th of December. The promoters and the existing shareholders are expected to earn Rs 1039.6 crore at the upper price band of the IPO. This is because the promoters and the existing shareholders will exit their stake through an offer for sale. 

The company will open the IPO a day before (i.e. on the 8th of December) for anchor investors (they offered a part of shares that is reserved for qualified institutional buyers). 

Out of the 100% portion, 50% of the IPO is reserved for the QIBs (qualified institutional buyers), 15% is reserved for the HNIs (high net individuals) and 35% is reserved for the retail traders. 

Image Source: IPO Watch

4. Metro Brands:

Ace investor and the big bull Rakesh Jhunjhunwala backed footwear player Metro Brands will also come up with its IPO. It is among the largest footwear speciality retailers which own brands such as Metro, Mochi, Walkway and Crocs. 

The IPO will begin on the 10th of December and will end on the 14th of December. The company is expected to earn Rs 1367.5 crore at the upper price band of the IPO. The IPO has a fresh issue of equity shares worth Rs 295 crore while 2.14 crore equity shares (around 10% stake) will be offloaded through OFS. This route is being taken by existing shareholders and the promoters. 

The company will utilize the earnings from the fresh issue to open new stores across the country. Moreover, the company will use the remaining amount for general corporate purposes. Out of the 100% portion, 50% of the IPO is reserved for the QIBs (qualified institutional buyers), 15% is reserved for the HNIs (high net individuals) and 35% is reserved for the retail traders.

Image Source: Indian Retailer

With these four IPOs, the companies are expected to earn more than Rs 3500 crore collectively to fulfil their various purposes. 

#disclaimer: News Hamster does not endorse any investing ideas or IPOs. Please do your own research before applying for the IPOs mentioned above. News Hamster is not liable for any losses incurred.

Parimal Saraf

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