Four companies to raise Rs 8,800 cr cumulatively in busy week for IPOs

Four companies looking to raise a cumulative Rs 8,800 crore will launch their initial public offerings (IPOs) next week, in what will be the busiest five days for maiden offering in three months. On Friday, Hyderabad-based Dodla Dairy and Krishna Institute of Medical Sciences (KIMS) announced their Rs 520-crore and Rs 2,144-crore IPOs, respectively, which will remain open between Wednesday and Friday. Earlier, Shyam Metalics and Energy, an integrated metal producing company, announced its Rs 909-crore offering and automotive components maker Sona BLW Precision Forgings announced its Rs 5,.....
Four companies looking to raise a cumulative Rs 8,800 crore will launch their initial public offerings (IPOs) next week, in what will be the busiest five days for maiden offering in three months. On Friday, Hyderabad-based Dodla Dairy and Krishna Institute of Medical Sciences (KIMS) announced their Rs 520-crore and Rs 2,144-crore IPOs, respectively, which will remain open between Wednesday and Friday. Earlier, Shyam Metalics and Energy, an integrated metal producing company, announced its Rs 909-crore offering and automotive components maker Sona BLW Precision Forgings announced its Rs 5,250-crore IPO. Shyam Metalics and Sona BLW’s IPO will remain open between Monday and Wednesday.

In March, IPOs of six companies were launched in a single week. Some of them include Kalyan Jewellers, Nazara Technologies and Suryoday Small Finance Bank. However, the combined amount raised by the five issues was only Rs 4,500 crore.

Last IPO to hit the market was by real estate major Macrotech Developers in early April. The uncertainty created by the lethal second wave of covid-19 had applied brakes on IPO plans for companies. However, the strong momentum in the secondary market since May has given companies and bankers the confidence to hit the market.

Investment bankers said the IPO pipeline is strong for the next 3-4 weeks.

Market players said the bunching up of the IPOs could weigh on the secondary market performance as it could dry out the liquidity.

“In the past, we have seen the secondary markets come under pressure during heightened activity in the primary market. Traders need to tread carefully. Also, high-networth individuals (HNIs) will find it difficult applying in all the IPOs as they are happening simultaneously,” said an analyst.

Dodla Dairy has fixed a price band of Rs 421 to Rs 428 per share. At the top-end, the company will be valued at Rs 2,546 crore. The integrated dairy company focused on the South Indian market is looking to raise Rs 50 crore in fresh capital and around Rs 470 crore will be secondary share sale.

The company is India’s leading dairy firmwith average milk procurement of 1.03 million litres per day as on March 31. The company sell fresh milk, ghee, butter, curd and paneer under the brand name Dodla Dairy, Dodla and KC+. It is primarily focused on five states –Andhra Pradesh (AP), Telangana, Karnataka, Tamil Nadu and Maharashtra.

Meanwhile, KIMS, one of the largest corporate healthcare groups in AP and Telangana, has fixed its price band in the range between Rs 815 and Rs 825 per share. At the top-end, the company will have a market cap of Rs 6,602 crore. KIMS is raising Rs 200 crore in fresh capital and over Rs 1,900 crore will be secondary share sale.

The company has a flagship hospital at Secunderabad, which is one of the largest private hospitals in India at a single location with a capacity of 1,000 beds.

At the end of FY21, its nine hospitals had recorded average revenue per operating bed of Rs 20,609, and bed occupancy rate of 78 per cent.

Even Shyam Metalics and Sona BLW’s IPO are a mix of fresh fund raise and secondary share sale.

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Company Issue size (Rs cr) IPO dates Sector
Shyam Metalics 909 June 14 to 16 Metals
Sona BLW 5250 June 14 to 16 Auto
Dodla Diary 520 June 16 to 18 Consumer
Krishna Institute of Medical Sciences 2,143.74 June 16 to 18 Healthcare
Total 8,822.74    
(Source: NSE, BSE)


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