Repco Home, Bothra Metals IPOs to hit markets this week

The IPOs seek to raise around Rs 300 cr

Amid the uptrend in equities, IPOs of Repco Home and Bothra Metals will hit the stock market this week and experts said a host of others could come soon if the investor sentiment remains intact.

Chennai-headquartered Repco Home Finance, a subsidiary of government-owned Repco Bank, will hit the capital market with a Rs 270 crore initial public offer (IPO) between March 13-15.

The price band of the public issue of 1.57 crore equity shares has been fixed between Rs 165 and Rs 172 a share.

The company will mop up Rs 259 crore at the lower-end and Rs 270 crore at the upper-end of the price band. The proceeds are expected to be used for business development in housing finance industry.

Bothra Metals & Alloys also plans to raise Rs 12.21 crore through an IPO and plans to list on BSE SME Exchange platform. Its issue will open on March 12 and close on March 14.

The company said net proceeds of the issue will be utilised to meet working capital requirements.

"Once the market sentiment improves one can see IPO rush in the market. When markets are bullish, even smaller public offers with not so great fundamentals generally sails through. If market rally continues companies seeking to list their shares may increase in future," Ashika Stock Brokers Head (Research) Paras Bothra said.

The two issues will hit the capital market this week, seeking to raise around Rs 300 crore amid a strong stock market where the BSE benchmark Sensex has gained 764.71 points or 4% so far this month.

Experts said that when markets are strong, companies tap the primary market route amid optimism that their issues will comfortably sail through.

Recently, BSCPL Infrastructure has filed draft offer documents with market regulator SEBI for a Rs 650 crore public issue. Besides, coal washeries operator ACB India is also planning to raise up to Rs 1,100 crore through an IPO and offer for sale (OFS) routes in the third week of this month.

More than a dozen companies, including Just Dial and Videocon D2H, have already filed their draft IPO offer documents with market regulator Sebi and would look to sell shares some time in 2013.

In calendar year 2012, about Rs 6,693 crore was raised through about 37 IPOs. About 12 companies hit the small and medium enterprises (SME) platforms of BSE and NSE to raise a total of Rs 92 crore through their IPOs in 2012.