Six IPOs to watch out for in April

The year 2021 has seen a flurry of initial public offerings (IPOs). In the fiscal year 2021, Indian firms have raised over Rs 31,000 crore through IPOs on the back of a bull run in the equity markets in India and liquidity in the global markets. This is the highest amount raised in the last three years through IPOs in the country.

The month of March saw nine companies getting listed on the BSE and NSE. These nine companies raised Rs 6255 crore, with stocks like Nazara Technologies and MTAR Technologies listed at premiums of 79 per cent and 85 per cent, respectively. The March quarter saw 17 companies closing their IPOs and raising Rs 18,800 crore, the highest since the same quarter in 2018.

According to stock exchange data, 30 companies have raised Rs 31, 277 crore via IPOs in 2020-21, when compared to Rs 20,352 crore in the year before.

In the first quarter of the fiscal year 2022, ie, between April and June, it is expected that nearly 10 to 15 IPOs could come the way of investors. Six of these initial public offerings are expected for the month of April.

Here is a list of the upcoming April IPOs:

Macrotech Developers:

The company, earlier known as Lodha Developers, its IPO is set to open on April 7 and close on April 9. The IPO’s issue price is set at Rs 483 to Rs 486 per share. The company expects to raise Rs 2.500 crore via this IPO. Shares of this IPO are expected to be allotted on April 16 and the stock is expected to debut in the market on April 22. The lot size of this IPO is 30 shares.

KIMS Hospitals:

Krishna Institute of Medical Sciences Ltd (KIMS Hospitals) is a healthcare group based in Telangana and Andhra Pradesh. The company expects to raise Rs 700 crore via its IPO slated for April. As per the draft red herring prospectus (DRHP) that it has filed, the company’s offer for sale is up to 21,340,931 equity shares from existing shareholders and promoters. KIMS Hospitals consists of Rs 200 crore fresh issue of shares.

Aadhar Housing Finance:

Aadhar Housing Finance Ltd has filed draft papers for a Rs 7,300 crore IPO. The company is an affordable housing finance firm that offers many loan products including those for home improvement, residential properties and commercial properties. The offer for sale is Rs 5,800 crore worth of equity shares. The company will issue fresh shares worth Rs 1,500 crore.

Dodla Dairy:

This dairy firm has a registered office in Hyderabad and operations across Andhra Pradesh, Karnataka, Telangana, Maharashtra and Tamil Nadu. It plans to raise Rs 800 crore via its IPO. The share sale will include a fresh issue of up to Rs 50 crore and an offer for sale of nearly 10.09 million shares by an investor and its promoters.

Seven Islands Shipping:

This Mumbai-based seaborne logistics firm plans to raise Rs 600 crore via its share sale. It hopes to issue fresh shares worth Rs 400 crore and an offer for sale of up to Rs 200 crore.

Sona BLW Precision Forgings (Sona Comstar):

The fabricated metal products producer plans to raise Rs 6,000 crore in the sale of shares, including a fund-raiser via fresh issue worth Rs 300 crore and an offer for sale worth Rs 5,700 crore.

Upcoming IPOs

While these are the six April IPOs, the other initial public offerings expected in the April to June quarter include Rolex Rings (Rs 130 to 150 crore), Paras Defence and Space Technologies (Rs 250 to 300 crore), Utkarsh Small Finance Bank (Rs 1,350 crore), India Pesticides (Rs 800 crore), Seaborne Logistics (Rs 600 crore), Arohan Financial Services (Rs 1750 to 1800 crore), Exxaro Tiles (Rs 160 to 200 crore), Monte Carlo (Rs 550-600 crore) and GoAir (Rs 2,500 crore).  The overall funds to be raised through these IPOs in the April to June quarter of the fiscal year 2022 will be worth Rs 26,000 crore.

The July 2021-March 2022 period is expected to see big upcoming IPOs such as insurance company Life Insurance Corporation (LIC) with an IPO sized in Rs 70,000 to Rs 80,000 crore range, Bajaj Energy looking to raise an IPO size of Rs 5450 crore, Apeejay Surrendra Park Hotels with an approximate IPO size of Rs 1,000 crore and SAMHI Hotels in the Rs 1,800 to Rs 2,000 crore range. Online lifestyle and fashion retailer Nykaa is also expected to take the IPO route post-July 2021.

Conclusion

The month of March was the best quarter for fundraising via the IPO route since 2018. As many as 17 companies lapped up Rs 18,803 crore during the quarter. The April to June quarter is expected to see 15 upcoming IPOs, out of which there are six April IPOs. Other big IPOs that the rest of the year expects include GoAir, Arohan Financial Services, Utkarsh Small Finance Bank, LIC, Bajaj Energy and Nykaa, among others.