Three IPOs to hit primary mkt on Wednesday; aim to raise Rs 1,700 cr

The IPO lane is getting busy with three entities -- Rashi Peripherals, Jana Small Finance Bank and Capital Small Finance Bank-- set to float their maiden public issues on Wednesday to collectively mobilise around Rs 1,700 crore.

Additionally, Entero Healthcare Solutions will launch its Rs 1,600-crore initial share-sale on February 9. Further, the Rs 920-crore IPO of Apeejay Surrendra Park, which runs hotels under the "The Park" brand, is currently under subscription.

Last month, five firms tapped the primary market and garnered around Rs 3,266 crore.

Market experts maintain a strong bullish outlook on the IPO (initial public offering) market for 2024. Companies are expecting to benefit from an equity market which is flush with liquidity and has seen a sharp increase in new retail investors.

"We hold a strong bullish outlook on the IPO market in 2024. This optimism is buoyed by robust domestic and foreign investments, driven by superior growth prospects of the Indian markets. The inflows are expected to gain even more momentum once the uncertainties related to the elections are resolved," Neha Agarwal - MD & Head, Equity Capital Markets, JM Financial stated.

Information and communications technology products distributor Rashi Peripherals' IPO is completely a fresh issue of equity shares to the tune of Rs 600 crore with no offer-for-sale component.

The price band has been fixed at Rs 295-311 apiece for its maiden public issue.

Of the IPO proceeds, funds worth Rs 326 crore will be utilised for payment of debt and Rs 220 crore for funding working capital requirements and general corporate purposes.

Private equity majors TPG and Morgan Stanley-backed Jana Small Finance Bank's issue consists of primary share sale of Rs 462 crore at the upper end of the price band and the remaining Rs 108 crore as offer for sale. The price band has been set at Rs 393-414 apiece for its Rs 570-crore IPO.

The Bengaluru-headquartered bank will use the money from the fresh issue to augment its core capital to meet future capital requirements and improve its capital adequacy ratio.

The Rs 523-crore IPO of Capital Small Finance Bank is a combination of fresh issue of shares worth Rs 450 crore and an OFS of Rs 73 crore through which promoters and external investors will dilute 5 per cent of their pre-issue holdings.

The Jalandhar-based bank has fixed Rs 445-468 per share as the price band for the IPO.

It will utilise the proceeds from the fresh issue towards augmenting the tier-I capital base to meet its future capital requirements. As the bank continues to grow its loan portfolio and asset base, it expects to require additional capital.

The IPO of these three firms will conclude on February 9.

In 2023, 58 maiden public issues were floated to raise Rs 52,637 crore. This included Rs 3,200-crore-IPO of Nexus Select Trust REIT.

The fund mobilization in 2023 was lower than 40 companies raising Rs 59,302 crore in 2022. This was driven by a Rs 20,557-crore LIC issue, which constituted as much as 35 per cent of the total amount raised during the year.