Three firms set to drive primary mkt with Rs 6,400 cr IPO blitz this week

The primary market is gearing up for significant activity this week, with three companies -- Blackstone-backed Aadhar Housing Finance, healthcare tech firm Indegene and travel distribution firm TBO Tek -- poised to float IPOs aiming to collectively raise nearly Rs 6,400 crore.

Before that, JNK India garnered Rs 650 crore through its initial share-sale last month.

Since 2004, there hasn't been a single IPO launch during May in the last four general election cycles. Typically, the April to June period during these years has been slow for the primary markets due to election uncertainty, said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors.

However, this trend has changed now with the launch of three mainboard initial public offerings (IPOs) next week.

Samir Bahl, CEO of Anand Rathi Advisors told PTI that the new trend is a positive sign indicating the maturing of the Indian capital markets and confidence in India's long-term growth story irrespective of political developments.

The three-day IPO of Indegene will open for subscription on May 6, while that of Aadhar Housing Finance and TBO Tek will be launched on May 8.

Out of the total IPO size of Rs 6,393 crore, the OFS (Offer-for-Sale) component accounted for a significant Rs 4,233 crore.

Pranjal Srivastava, Partner Investment Banking at Centrum Capital, said that the primary market momentum continues due to overall positive economic sentiments, bull run in secondary markets and strong flows.

The Rs 3,000-crore IPO of Aadhar Housing Finance is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an OFS of Rs 2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc.

Currently, BCP Topco holds a 98.72 per cent stake in Aadhar Housing Finance and ICICI Bank owns a 1.18 per cent stake.

The company has set a price band of Rs 300 to Rs 315 a share for its IPO.

It plans to utilise Rs 750 crore of the fresh issue proceeds to meet future capital requirements towards onward lending and a portion will also be used for general corporate purposes.

Further, healthcare tech firm Indegene has set the price band at Rs 430 to Rs 452 per share for its Rs 1,842-crore initial share-sale.

The IPO comprises a fresh issue of equity shares worth up to Rs 760 crore and an OFS of up to 2.34 crore equity shares aggregating to Rs 1,082 crore by selling shareholders. This takes the total IPO size to Rs 1,842 crore.

The OFS would see sale of shares by existing investors CA Dawn Investments, a Carlyle group entity, Vida Trustees in its capacity as partner of Group Life Spring, Brighton Park Capital's entities BPC Genesis Fund I SPV Ltd, and BPC Genesis Fund I-A SPV Ltd, and individual investors Manish Gupta, Rajesh Bhaskaran Nair, and Anita Nair.

At present, Nadathur Fareast Pte Ltd is the biggest shareholder in Indegene with a 23.64 per cent stake. CA Dawn Investments has a 20.42 per cent stake, and Brighton Park Capital owns a 12 per cent stake in the company.

Funds raised through the fresh issue would be used to pay debt, funding capital expenditure requirements, payment of deferred consideration for one of its past acquisitions, funding inorganic growth and general corporate purposes.

TBO Tek's maiden public issue is a mix of a fresh issue of equity shares aggregating up to Rs 400 crore and an OFS of up to 1.25 crore equity shares worth Rs 1,151 crore by promoters and investors.

Those selling shares in the OFS are promoters -- Gaurav Bhatnagar, Manish Dhingra and LAP Travel -- and investors-- TBO Korea and Augusta TBO.

The company has set a price band of Rs 875 to Rs 920 per share for its IPO. At the upper end of the price band, the IPO size is pegged at Rs 1,551 crore.

Proceeds from the fresh issue will be used for the growth and strengthening of the platform by adding new buyers and suppliers, and unidentified inorganic acquisitions, besides, a portion will be used for general corporate purposes.