Tech-based logistics startup Delhivery, retail wealth management player Prudent Corporate Advisory Services and steel pipes manufacturer Venus Pipes & Tubes will launch their initial public offerings (IPOs) in the upcoming week.
Not only three issues will kick off in the next week, but the initial stake of insurance behemoth Life Insurance Corporation of India (LIC) will also close for subscription on Monday. The largest IPO in the Indian market is raising almost Rs 20,557 crore.
Varun Sridhar, CEO, Paytm Money said that the retail portion of all three IPOs cumulatively is around Rs 750 crore. “Considering the charm over LIC’s IPO, it will be interesting to see the extent of retail investor participation in these IPOs,” he added.
Delhivery has a retail portion of only 10 per cent as 75 per cent of shares are reserved for institutional bidders (QIBs). Prudent Corporate Advisory and Venus Pipes & Tubes will offer 35 per cent of the issue to the retail bidders, with 50 per cent share for QIBs.
Adding more on the upcoming IPOs, Vijay Singhania, Chairman, TradeSmart, said that despite the secondary market witnessing selling pressure in line with global markets, primary markets in India have picked up.
Interestingly, the issue of Delhivery alone will raise about 90 per cent of the aforesaid funds, highlighting the small size of the other two IPOs.
Delhivery’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 the multiples thereof.
The company has cut its offer size to Rs 5,235 crore from Rs 7,460 crore planned earlier. It will issue fresh equity shares worth Rs 4,000 crores, and existing shareholders and promoters will offload shares worth Rs 1,235 crore.
Gurugram-based Delhivery is the largest fully integrated logistics services player in India by revenue. It has built a nationwide network in every state, servicing 17,045 PIN codes or 88.3 per cent of the 19,300 PIN codes in India.
Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities India, and Citigroup Global Markets are managing the share sale, whereas Link Intime is the registrar of the issue.
“Few important IPOs are lined up in the coming days, but the one which will be in the limelight will be the logistics service company Delhivery, especially since it continues to be in losses,” said Singhania from Tradesmart.
“The issue will test the market appetite for loss-making companies, especially after the poor post-performance of other startups,” he added
“Successful subscription of Delhivery will be a morale booster of the markets overall.”
Prudent Corporate Advisory Services’ IPO will be open for subscription between May 10-12 and the company will sell its shares in the range of Rs 595.630 apiece. The Rs 538.6 crore issue is entirely an offer for sale (OFS) of 8,549,340 shares.
The company has allocated shares aggregating to Rs 6.5 crore for its eligible employees, who will get a discount of Rs 59 per equity share during the bidding process. The lot size for the issue is 23 equity shares.
Prudent is one of the leading independent retail wealth management services groups (excluding banks) in India and among the top mutual fund distributors in terms of average assets under management and commissions received.
ICICI Securities, Axis Capital and Equirus Capital are the books running lead managers to the issue, whereas Link Intime has been appointed as the registrar to the issue.
The smallest among the three, Venus Pipes & Tubes raised about Rs 165.4 crore through its initial public offering by issuing 50.74 lakh fresh equity shares and selling them in the range of Rs 310-325 between May 11-13.
The company has about six years of experience in manufacturing stainless-steel tubular products in two broad categories – seamless tubes & pipes, and welded tubes & pipes.
SMC Capitals is the sole book-running lead manager to the issue, whereas Kfin Technologies is the registrar. The company’s equity shares are proposed to be listed on BSE and NSE.
Deepak Shenoy, Smallcase Manager, Founder and CEO, Capitalmind, said that a lot of IPO capital would go primarily to LIC’s IPO, and people will wait for its reaction to subscribe to other IPOs.
“It is better to participate in the new companies after listing and with a limited amount of capital waiting for them to show good results in subsequent quarters before adding more,” he advised.
