These 11 IPOs will hit Indian market next week
What's the story
India's primary market is gearing up for a busy week with 11 initial public offerings (IPOs) hitting the street. The total fundraising from these issues is pegged at a whopping ₹24,574 crore. The National Stock Exchange (NSE) and Hero Motors will be the major players in next week's action, accounting for over ₹23,500 crore of the total amount to be raised.
Market impact
Major issues led by NSE and Hero Motors
NSE's IPO, the biggest of the week, is worth ₹22,562 crore. Hero Motors follows with an issue size of ₹1,000 crore.
The two issues are expected to dominate investor interest during this period.
The gray market is already showing early interest in these large offers, with NSE commanding a premium of around 12% and Hero Motors trading at a GMP of about 11%.
Subscription details
A look at NSE's IPO
NSE's long-awaited IPO will open for subscription on September 17 and close on September 21.
The price band has been fixed at ₹1,700-1,785 per share.
The issue is entirely an offer for sale of 12.64 crore shares, meaning the exchange won't get any fresh capital from the IPO as existing shareholders will sell shares to public investors.
Anticipation
Anticipation builds around the exchange's IPO
NSE's IPO has been highly anticipated as it is the country's largest market infrastructure institution and dominates equity derivatives trading.
The exchange's business is linked to transaction charges, listing income, market data, clearing-related services, among other revenue streams.
However, some shareholders have trimmed their offer size by about 15%, reducing the proposed issue size.
Company overview
Hero Motors's IPO to see partial exit from existing shareholders
Hero Motors will open its ₹1,000 crore IPO on September 16 and close on September 18.
The price band has been fixed at ₹79-84 per share.
The issue comprises a fresh issue of ₹600 crore and an offer for sale of ₹400 crore.
Part of the fresh issue proceeds will be used for debt repayment, while existing shareholders will get a partial exit through the OFS component.
Additional listings
Other issues set to hit the market next week
Apart from NSE and Hero Motors, Jindal Supreme India will launch a ₹125 crore IPO on September 16.
SS Retail will also open its issue on the same day with an offer size of ₹500 crore.
Sonaselection India is set to open its ₹142 crore mainboard IPO on September 17.
In the SME segment, Axiom Gas Engineering, Kheria Autocomp, SpectraA Technology Solutions, Quanto Agroworld, Shakti Polytarp and Vama Wovenfab are also launching their issues next week.