Primary Market: Three IPOs to hit primary market next week to raise Rs 1,858 cr

Sula Vineyards, Landmark Cars and Abans Holdings — are set to launch their initial public offerings (IPOs) next week to collectively raise Rs 1,858 crore. The initial share sales of wine producer Sula Vineyards and Abans Holdings, the financial services arm of Abans Group, will open for public subscription on December 12, while that of automobile dealership chain Landmark Cars will begin on December 13, data with stock exchanges showed.

This comes after 10 companies had floated their IPOs in the month of November.

In 2022 so far, as many as 33 companies have come out with their IPOs to mop up over Rs 55,000 crore. In 2021, 63 IPOs raised more than Rs 1.19 lakh crore, as per the data.

Ankit Yadav, Founder and Director of Market Maestroo, said all the three IPOs are coming at a time of interest rate hikes. Generally, there is an opportunity for making wealth from IPOs in low-rate scenarios where borrowing is easy.

“So today in high rates, the businesses who are bringing IPOs need to be top notch in fundamental terms,” he added.

Sula Vineyards’ IPO will be entirely an offer for sale (OFS) aggregating to 26,900,532 equity shares by the promoter, investors and other shareholders.

Those offloading shares through the OFS route are the promoter, founder and CEO Rajeev Samant, and investors such as Cofintra, Haystack Investments Limited, Saama Capital III, Ltd, SWIP Holdings Limited, Verlinvest SA and Verlinvest France SA.

The company has set a price band of Rs 340-357 a share for its IPO. At the upper end of the price band, the public issue is expected to fetch Rs 960.35 crore.

Sula Vineyards has been recognised as the market leader across wine variants, including red, white and sparkling wines. The company distributes wines under a bouquet of popular brands such as Sula (its flagship brand), RASA, Dindori, The Source, Satori, Madera & Dia.

The initial share sale of Abans Holdings comprises fresh issuance of equity shares of up to 38 lakh and an offer-for-sale of up to 90 lakh equity shares by promoter Abhishek Bansal.

Proceeds from the fresh issue will be utilised towards investment in its NBFC subsidiary Abans Finance, for financing the augmentation of its capital base to meet future capital requirements and for general corporate purposes.

The company, which has set a price band of Rs 256 to Rs 270 a share for its IPO, is expected to raise Rs 345.6 crore at the higher end of the price band. The issue would conclude on December 15.

The company operates as a diversified global financial services business, providing Non-Banking Financial Company (NBFC) services, global institutional trading in equities, commodities and foreign exchange, private client stockbroking, depository services and asset management services, among others, to corporates, institutional and high net worth individual clients.

It currently has active businesses across six countries –the UK, Singapore, UAE, China, Mauritius, and India.

The Rs 552-crore IPO of Landmark Cars consists of a fresh issue of equity shares aggregating to Rs 150 crore and an OFS of up to Rs 402 crore. Those selling shares through the OFS route are — TPG Growth II SF PTE Ltd, Sanjay Karsandas Thakker HUF, Aastha Limited and Garima Misra.

Proceeds from fresh issuance will be utilised for payment of debt and general corporate purposes.

The price band has been fixed at Rs 481-506 per share for the IPO.

TPG-backed Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault.

Shares of these companies will be listed on the BSE and NSE.