IPO craze continues: Three firms to raise Rs 1,325 crore next week

The primary market will see a flurry of activity in March, with at least three companies including Gopal Snacks will float their initial public offerings (IPOs) in the upcoming week to raise Rs 1,325 crore collectively.

The other two companies which are set to launch their maiden public issues are — RK Swamy and JG Chemicals.

Additionally, Bengaluru-based luxury furniture brand Stanley Lifestyles and Krystal Integrated Services are expected to float their initial share-sales later this month, according to merchant bankers.

Market experts attributed the bustling IPO activity to various factors, including impressive post-listing returns from recent public offerings and the robust macroeconomic conditions.

So far this year, 16 companies launched their IPOs to mobilise Rs 13,000 crore, while Rs 224-crore initial share-sale of Mukka Proteins is slated to conclude on March 4.

This came after 58 maiden public issues initiated in 2023 to garner Rs 52,637 crore. This included the Rs 3,200-crore IPO of Nexus Select Trust REIT.

Market experts said that March is anticipated to usher in a wave of IPOs, offering a plethora of opportunities for exploration and investment.

Rajkot-based Gopal Snacks’ Rs 650-crore public issue is entirely an offer for sale (OFS). The issue, with a price band of Rs 381 to Rs 401 per share, will open for subscription during March 6-11.

The OFS comprises the sale of shares by Bipinbhai Vithalbhai Hadvani, Gopal Agriproducts Private Ltd and Harsh Sureshkumar Shah.

Founded in 1999, Gopal Snacks is a fast-moving consumer goods company, offering namkeen, western snacks, and other products across India and internationally. As of September 2023, the namkeen makers’ products were sold in 10 states and two Union Territories and has a network of 3 depots and 617 distributors.

The Rs 423.56-crore IPO of integrated marketing services firm RK Swamy will be open for public subscription during March 4-6. Shares will be available for bidding in the price range of Rs 270-288 apiece.

The company’s IPO comprises a fresh issue of shares aggregating up to Rs 173 crore and an OFS of up to 87 lakh equity shares by selling shareholders worth Rs 250.56 crore at the upper end of the price band.

Those offering shares in the OFS are Srinivasan K Swamy, Narasimhan Krishnaswamy, Evanston Pioneer Fund L.P, and Prem Marketing Ventures LLP.

Funds raised through the fresh issue would be used for setting up a digital video content production studio, establishing new customer experience centres and computer-aided telephonic interview centres as well as for general corporate purposes.

Also, funds would be utilised for investment in the IT infrastructure development of RK Swamy Ltd and its subsidiaries Hansa Research and Hansa Customer Equity.

Zinc oxide manufacturer JG Chemicals’ initial share-sale is a combination of fresh issue of equity shares worth up to Rs 165 crore and an OFS of 39 lakh equity shares aggregating to Rs 86.2 crore, at the upper end of the price band, by promoter group.

As part of the OFS, Vision Projects & Finvest Pvt Ltd, Suresh Kumar Jhunjhunwala (HUF), Anirudh Jhunjhunwala (HUF) and Jayanti Commercial Ltd will offload equity shares.

The company has fixed a price band of Rs 210 to Rs 221 apiece for its Rs 251.2-crore issue, which will open for public subscription on March 5 and conclude on March 7.

Proceeds from the fresh issue to the tune of Rs 91 crore will be utilised for investing in JG Chemicals’ material subsidiary BDJ Oxides and Rs 35 crore will be used for funding the long-term working capital requirements of the company. Besides, a portion will be used for general corporate purposes.