3 IPOs to open next week
What's the story
The primary market is gearing up for a busy week, with three initial public offerings (IPOs) worth over ₹10,100 crore opening for subscription from July 14. The biggest of the lot is SBI Funds Management's IPO, which will raise ₹9,812.91 crore by offering 17.09 crore equity shares at a price band of ₹545-574 per share. The offer size has been trimmed from ₹11,692.9 crore after a pre-IPO round with 30 investors.
Offer specifics
SBI Funds Management's IPO an offer-for-sale
The IPO of SBI Funds Management, a joint venture between State Bank of India and French asset manager Amundi, is entirely an offer-for-sale. The two promoters will sell 9.95 crore equity shares (4.8851% stake) and 7.14 crore equity shares (3.5082% stake), respectively. Notably, SBI Funds Management won't get any money from the IPO as it is entirely an offer-for-sale with proceeds going to selling shareholders.
Upcoming offerings
Other 2 mainboard IPOs to open on same day
The second mainboard IPO, Gujarat-based textile company Alpine Texworld, will open on July 14. The company is raising ₹126.25 crore through an initial public offering of 1.2 crore equity shares at a price band of ₹100-105 per share. Bengaluru-based precision engineering firm Millworks Technologies will also launch its IPO on the same day as SBI Funds Management and Alpine Texworld's public issues.
Fund allocation
Millworks Technologies plans to raise ₹160.3 crore
Millworks Technologies plans to raise ₹160.3 crore through an initial share sale of 48.44 lakh equity shares at a price band of ₹315-331 per share. The Bengaluru-based company will use the net proceeds from the IPO for purchasing plant and machinery, meeting working capital needs, and general corporate purposes. Meanwhile, Laser Power & Infra's ₹742-crore IPO will close on July 13 after being fully subscribed.
Stock debut
SME IPOs closing on July 13
The SME IPOs of Devson Catalyst and Happy Steels will close on July 13. The IPO of Devson Catalyst, which makes catalysts, adsorbents, and ceramic balls for industrial processes, was subscribed 27.35 times in the first two days of bidding while automotive components maker Happy Steels was subscribed 2.95 times during the same period. All three companies, Laser Power & Infra, Devson Catalyst, and Happy Steels, will list on stock exchanges on July 16 with their shares commanding double-digit premiums.