While 10 initial public offering (IPOs) have already hit the stock market this year and mobilised about Rs 4,700 crore so far, many others are in the pipeline, including IndiGo, Cafe Coffee Day, Matrimony.com, GVK Airport Developers, TeamLease Services, Matrix and many more. According to reports, about 30 companies are lined up with offers worth more than Rs. 16,000 crore to fund their business expansion.
The IPO market this year has raised funds much higher than the figure witnessed in the preceding two years. In comparison, a total of six IPOs had hit the market in 2014 and together garnered just Rs 1,261 crore while in 2013, three companies raked in Rs 1,284 crore through initial share sale plans.
Looking to tap upbeat investor sentiments, this week four firms - Pennar Engineered Building Systems, Shree Pushkar Chemicals & Fertilisers, Navkar Corporation and Prabhat Dairy - will hit the capital markets this week, to raise an estimated over Rs 1200 crore through IPOs.
While Pennar Engineered Building Systems is a leading custom designed building systems solutions provider, Shree Pushkar Chemicals & Fertilisers is a zero wastage company engaged in the business of manufacturing dye intermediates, acids, fertilizers and cattle feed supplements. Navkar Corporation is engaged in the business of Container freight stations (CFSs) and inland container depots, while Prabhat Dairy is an integrated milk and dairy products company.
Pennar Engineered Building's IPO plans to raise about Rs 58 crore and an offer for sale by private equity investor Zephyr Peacock and others. At the top end of the price band, the IPO size works out to Rs 156 crore. Shree Pushkar Chemicals and Fertilisers plans to raise Rs 70 crore by issuing fresh shares as well as an offer for sale of 20,26,589 shares. Logistics firm Navkar would mobilise up to Rs 510 crore by issuing fresh equity shares and rake in up to Rs 90 crore through sale of existing shares. Prabhat Dairy issue comprises of fresh issue of Rs 300 crore and an offer for sale of up to, 1,47,06,000 equity shares (comprising of up to 31,51,000 shares by Nirmal Family Trust (promoter), 65,80,000 equity shares by the India Agri Business Fund, 23,000 shares by the Real Trust, and 49,52,000 shares by Societe De Promotion Et De Participation Pour La Cooperation Economique.
The funds raised through the issues would be used for business expansion, repayment of loans and working capital requirements. The shares of all these companies are proposed to be listed on BSE and NSE.
Navkar Corporation IPO Opens Today
Logistics firm Navkar Corporation Ltd. a CFS operator in India with three CFSs, Ajivali CFS I and Ajivali CFS II at Ajivali and Somathane CFS at Somathane, which are strategically located in Panvel. The company has set the price band at Rs 147-155 per equity share for its initial public offering (IPO) of Rs 600 crore, which opens for subscription on August 24 and closes on August 26.
The face value is Rs. 10 per equity share, while the minimum bid lot is 95 equity shares and in multiples of 95 equity shares thereafter.
The Objects of the Issue are capacity enhancement of the Somathane container freight station (CFS), development of the non-notified areas of CFSs and establishment of a logistics park at Valsad in Gujarat.
Container freight stations (CFSs) and inland container depots (ICDs) are common user facilities with public authority status equipped with fixed installations. As of December 31, 2014, our CFSs had an aggregate installed handling capacity of 310,000 TEUs per annum on the basis of our then current infrastructure and operating equipment.
Pennar Engineered Building Systems IPO Opens Tomorrow
Building systems solutions provider Pennar Engineered Building Systems (PEBS), plans to raise Rs 156 crore through an initial public offer (IPO). The 100% book built IPO will open on August 25 and close on August 27. The company has fixed the price band at Rs 170 to Rs 178 a share.
PEBS is engaged in designing, manufacturing, supply and assembly of custom designed building systems and its products include pre-engineered buildings, solar module mounting structures, cold form buildings and structural steel products.
The Issue proceeds will be used for repayment/prepayment, in full or part, of certain working capital facilities availed by the company, financing the procurement of infrastructure (including software and hardware) for the expansion of design and engineering services of the company and for general corporate purposes.
PEBS is a subsidiary of Pennar Industries, the manufacturer of engineering products. The company commenced its business in January 2010 and as of June 30, 2015, has completed designing, manufacturing, supply and assembly of 83,967 MT covering sqm area of 18,58,552 pre-engineered buildings in various sectors including warehousing, retail and manufacturing; design, supply and erection of solar module mounting structures for generation of solar power; design, manufacturing, supply and erection of structural steel buildings and cold form buildings. In addition to providing design and engineering services for the projects which are designed, manufactured and supplied by us, the Company has also provided design and engineering services for projects being executed by others.
Shree Pushkar Chemicals & Fertilisers IPO Opens Tomorrow
Shree Pushkar Chemicals & Fertilisers Ltd (SPCFL) has fixed the price band at Rs 61-65 per equity share for its proposed initial public offer (IPO). The issue opens on August 25, 2015 and closes on August 27, 2015. The company plans to raise Rs 70 crore through this 100% book built IPO issue. The face value is Rs. 10 per equity share, while the minimum bid lot is 200 equity shares and in multiples of 200 equity shares thereafter.
The funds raised through fresh issue of equity shares is proposed to be utilized to enhance its existing capacities of H-acid and to enter into forward integration by manufacturing reactive dyes (enhanced capacity : 3,000 TPA).
SPCFL is engaged in the business of manufacturing dye intermediates, acids, fertilizers and cattle feed supplements. Headquartered in Mumbai, it has a state of the art manufacturing facility at Lote Parshuram, Maharashtra, and is a Government of India recognized Export House. The company has expanded its product range both by way of Backward and Forward Integration in dye intermediates
IFCI Venture Capital Fund, which infused growth capital to the extent of Rs 15 crore between 2009-2011, will bring down its stake from the present 11.30% through OFS. The company has emerged as one of the few manufacturers with ‘Zero Waste’ in India.
Dyestuffs are critical inputs to several industries such as textiles, paper & packaging, leather, foodstuffs, polymers, coating and printing ink. Amongst these, textiles, paper and leather industries together account for over 85 per cent of the total demand for dyestuffs.