5 IPOs opening for subscription, Should you Apply?

Mainboard to See Four Offerings, SME Segment Sees One

The Indian primary market is set for a busy week starting February 5th, fueled by the positive momentum in the equity markets. The mainboard segment will be the center of attention with four IPOs, compared to just one from the SME segment. These five offerings are expected to raise a combined total of approximately Rs 2,700 crore, pushing the year-to-date figure for IPOs past Rs 6,500 crore, with the SME segment contributing Rs 632 crore.

Apeejay Surrendra Park Hotels IPO

Kolkata-based Park Hotels will kick off the IPO action on February 5th with its maiden public offering. The issue is priced at Rs 147-155 per share and aims to raise Rs 920 crore. It comprises a fresh issue of Rs 600 crore and an offer-for-sale (OFS) of Rs 320 crore by existing shareholders, including promoter Apeejay and investor RECP IV Park Hotel. The company has already secured Rs 409.5 crore from anchor investors, including Carnelian Capital, Troo Capital, and HDFC Life Insurance Company. Proceeds from the fresh issue will primarily be used for debt repayment.

Apeejay Surrendra Park Hotels IPO Key Details :

  • Industry: Hotels
  • Issue Size: Rs 920 crore
  • Price Band: Rs 147-155 per share
  • Key Use of Proceeds: Debt repayment

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Rashi Peripherals IPO

Mumbai-based ICT products distributor Rashi Peripherals is planning to raise Rs 600 crore through its IPO during February 7-9. The offer solely consists of a fresh issue and is priced at Rs 295-311 per share. The company intends to utilize the proceeds for debt repayment and working capital requirements.

Rashi Peripherals IPO Key Details :

  • Industry: ICT products distribution
  • Issue Size: Rs 600 crore
  • Price Band: Rs 295-311 per share
  • Key Use of Proceeds: Debt repayment, working capital

Jana Small Finance Bank IPO

Following suit, Bengaluru-based Jana Small Finance Bank will open its Rs 570-crore IPO on February 7th, closing on February 9th. The price band is set at Rs 393-414 per share. The offer includes a fresh issue of Rs 462 crore and an OFS of Rs 108 crore by six investors. The bank will primarily use the net proceeds to strengthen its Tier-1 capital base.

Jana Small Finance Bank IPO Key Details :

  • Industry: Small finance banking
  • Issue Size: Rs 570 crore
  • Price Band: Rs 393-414 per share
  • Key Use of Proceeds: Tier-1 capital augmentation

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Capital Small Finance Bank IPO

Capital Small Finance Bank from Punjab is also launching its IPO next week, aiming to raise Rs 523.07 crore. The offer, open from February 7-9, is priced at Rs 445-468 per share and comprises a fresh issue of Rs 450 crore and an OFS of Rs 73.07 crore by existing investors. Similar to Jana SFB, the fresh issue proceeds will be used for Tier-1 capital augmentation.

Capital Small Finance Bank IPO Key Details :

  • Industry: Small finance banking
  • Issue Size: Rs 523.07 crore
  • Price Band: Rs 445-468 per share
  • Key Use of Proceeds: Tier-1 capital augmentation

All three banks – Capital SFB, Jana SFB, and Rashi Peripherals – will open their anchor books for a day on February 6th.

  • SME (Small and Medium Enterprise): This refers to small and medium-sized businesses, typically defined by specific criteria like employee size and revenue. In India, SME IPOs cater to smaller companies seeking to raise capital through public offerings.
  • OFS (Offer for Sale): This is a component of an IPO where existing shareholders (promoters or investors) offer their shares for sale to the public. This allows them to exit their investment and raise additional capital.

Alpex Solar IPO

Solar panels manufacturer Alpex Solar will be the sole IPO from the SME segment, opening on February 8th and closing on February 12th. The company aims to raise Rs 74.52 crore through its maiden public issue, priced at Rs 109-115 per share. The IPO funds will be directed towards expanding its manufacturing facility, setting up a new unit, and meeting working capital needs.

Alpex Solar IPO Key Details :

  • Industry: Solar panel manufacturing
  • Issue Size: Rs 74.52 crore
  • Price Band: Rs 109-115 per share
  • Key Use of Proceeds: Manufacturing facility expansion, new unit setup, working capital

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Italian Edibles Concludes Fixed-Price IPO

Meanwhile, Indore-based confectionery maker Italian Edibles is closing its Rs 27-crore fixed-price IPO on February 7th.

Active Listing Week Ahead

Business correspondence services provider BLS E-Services will be the lone mainboard debutant on February 6th, following its heavily subscribed IPO. The issue price for the Rs 311-crore offer has been fixed at Rs 135 per share.

The SME segment will witness five listings. Mayank Cattle Food and Harshdeep Hortico will debut on the BSE SME on February 5th, while Megatherm Induction will list its shares on the NSE Emerge on the same day. Baweja Studios and Gabriel Pet Straps will follow suit on February 6th and 7th, respectively, on the NSE Emerge and BSE SME platforms.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making any investment decisions.

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