Cash News
India’s IPO market is gearing up for a significant week, with 10 initial public offerings (IPOs) scheduled for launch. This includes two mainboard issues and eight from the SME segment, reflecting robust investor interest and market activity.
The mainboard offerings feature Manba Finance and KRN Heat Exchanger, aiming to collectively raise approximately ₹482 crore.
Manba Finance: Opening for subscription from September 23 to September 25, this IPO has a price band set at ₹114-120 per share. The entire issue, valued at ₹151 crore, will consist of fresh shares intended to bolster the company’s capital base for future growth. Based in Mumbai, Manba Finance provides financial solutions with a quick turnaround for loan approvals.
KRN Heat Exchanger: This IPO will be available from September 25 to September 27, with a price band between ₹209-220 per share. The offering includes 1.55 crore fresh equity shares. The company plans to utilize the proceeds to expand its manufacturing capacity at its wholly-owned subsidiary, KRN HVAC Products, in Neemrana, Rajasthan, along with funding general corporate purposes. KRN Heat Exchanger specializes in manufacturing fin and tube heat exchangers for the HVAC and refrigeration industry.
SME Segment
- In the SME sector, eight companies are preparing for their IPOs next week:
- Rappid Valves
- WOOL 3D India
- Unilex Colours
- TechEra
- Forge Auto
- Sahasra Electronics
- Divyadhan Recycling
- Thinking Hats
Sahasra Electronics aims to raise ₹186 crore and will open its offering on September 26, closing on September 30.
Two other IPOs, Divyadhan Recycling and Forge Auto International, will also open on September 26, while the IPOs for TechEra, Unilex, and Thinking Hats will kick off on September 25.
According to the Reserve Bank of India (RBI), September 2024 is poised to be the busiest month for IPOs in 14 years, encompassing both mainboard and SME listings. So far, over 28 companies have entered the market, with 54% of IPO shares selling within a week of listing. This surge in activity is partly due to heightened interest in SME offerings, which have seen significant oversubscriptions, even attracting domestic mutual funds.
Despite the excitement, concerns remain regarding promoters potentially capitalizing on inflated valuations, particularly within the SME segment. The RBI notes that while India led globally with 27% of IPOs in the first half of 2023-24, caution is warranted as the market evolves.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.