In 2023, the Indian IPO market is experiencing a surge, as numerous companies seek to capitalize on the bullish trend prevailing in the market. So far this year, a total of 72 IPOs have made their debut in the primary market, with 28 being listed on the BSE main board, while the remaining 44 fall under the category of SME IPOs.
What’s noteworthy is that the majority of these IPOs have yielded substantial returns for investors. According to data from the BSE, out of the 72 IPOs, 62 are currently trading above their issue prices, reflecting the robust demand in the market.
Just last week, three prominent companies – Jupiter Life Line Hospitals, EMS Limited, and R R Kabel – successfully joined the list of main market participants, collectively raising an impressive sum of Rs 3,154 crore. As we approach the end of September, several other noteworthy companies, including JSW Infra, Arabian Petroleum, and Plaza Wires, are gearing up to take the IPO route.
JSW Infra, in particular, is set to launch its IPO for subscription on September 25, with the subscription window closing on September 27. This marks a significant event as it’s the first IPO from a JSW Group company in 13 years, following the listing of JSW Energy in 2010. The company plans to raise Rs 2,800 crore through a fresh equity issue and has established a price band of Rs 113-119 per share. Interested investors can bid for a minimum of 126 shares in one lot and in multiples thereafter.
Market analysts report a current Grey Market Premium (GMP) of Rs 15 for JSW Infrastructure in the unlisted market. The IPO has reserved approximately 75% of its offering for qualified institutional buyers, with 15% allotted for non-institutional investors and the remaining 10% for retail investors. The issue is being managed by a consortium of banks, including JM Financial, Axis Capital, Credit Suisse Securities, DAM Capital Advisors, HSBC Securities, ICICI Securities, Kotak Mahindra Capital, and SBI Capital, while KFin Technologies will serve as the registrar.
Notably, on September 22, JSW Infrastructure raised Rs 1,260 crore from 65 anchor investors, attracting the interest of esteemed global investors like the Government of Singapore, Monetary Authority of Singapore, Morgan Stanley, Fullerton, HSBC Trustee, and more. Domestic investors also joined in, with participation from prominent names such as LIC Mutual Fund, HDFC Mutual Fund, SBI Life Insurance Company, Tata Mutual Fund, and others.
Moving on, Delhi-based Plaza Wires is gearing up for its IPO, which will open for anchor investors on September 27 and conclude on October 4. Known for its wires, LT aluminum cables, and FMEG products under various brands, the company has set a price range of Rs 51-54 per share for its IPO, with plans to raise Rs 71.30 crore. As of December 2021, Plaza Wires reported revenue of Rs 126.69 crore against a net profit of Rs 5.74 crore, with net debt standing at Rs 40.65 crore.
In addition to Plaza Wires, Arabian Petroleum is another company in the spotlight, specializing in the manufacturing of a wide range of lubricants, specialty oils, and coolants used in various automotive and industrial applications. Their NSE SME IPO is set to open on September 25, closing on September 27, with plans to raise Rs 20.24 crores. The IPO price band for Arabian Petroleum has been set at Rs 70 per share, with a market lot size of 2,000 shares. The IPO allotment date is slated for October 3, and it might make its debut on the stock exchanges on October 6.
In conclusion, the Indian IPO market in 2023 continues to be a hotbed of activity, attracting both domestic and global investors. As these companies prepare to enter the public domain, investors are eagerly eyeing these opportunities, hoping to ride the wave of success. However, it’s crucial for investors to exercise caution and seek advice from financial experts before making investment decisions. This report serves as informational content and not as investment advice.