5 IPOs to Hit the Market This Week as the Company Seeks to Raise More Than 3,700 INR Crore

So far, in 2021, 10 companies have raised more than 13,850 INR crore through IPOs.

Five businesses, such as Kalyan Jewellers India and ace investor Rakesh Jhunjhunwala-sponsored mobile game organisation Nazara Technologies, will release their initial public offerings to raise around 3,740 INR crore this week, one of the busiest for IPOs in an extended time.

Experts attribute the IPO rush to enough liquidity that has been fuelling a bull run withinside the market. Equity markets have acquired greater than 2.6 INR lakh crore of FII cash given that April 2020.

Specialty chemical producer Laxmi Organic Industries and Craftsman Automation, an automotive components manufacturer, maybe the first of all the blocks. Their issues of equity shares will open from March 15 to March 17, 2021.

Ravi Goenka and Yellow Stone Trust-promoted Laxmi Organic Industries are making plans to raise 600 INR crore thru the IPO, which contains a fresh issue of equity shares of 300 INR crore and a proposal for sale of 300 INR crore by the promoter.

Craftsman Automation is trying to mop up 823.70 INR crore thru the issues of equity shares that contain a fresh issue of equity shares of 150 INR crore, and the rest is a proposal for sale through promoters and traders.

Both organizations have already raised 180 INR crore and 247 INR crore from anchor traders on March 12, the closing working day beforehand of the opening of the issues of equity shares.

Kalyan Jewellers India’s 1,175 INR crore issue of equity shares open on March 16 and could close on March 18. The offer contains a fresh issue of equity shares of 800 INR crore and a proposal for the sale of 375 INR crore by promoters and traders. Its anchor book, if any, will open for an afternoon for bidding on March 15.

The next day, Jhunjhunwala-sponsored Nazara Technologies and Suryoday Small Finance Bank’s IPOs will open for bidding. Nazara Technologies is trying to increase 582.91 INR crore, even as Suryoday Small Finance Bank is withinside the market for 582.34 INR crore. The issues of equity shares close on March 19. Their anchor book, if any, will open for subscription for a single day on March 16.

Specialty chemicals organization Anupam Rasayan, whose 760 INR crore IPO opened for bidding on March 12, may be available for subscription until March 16.

The yr 2021, just like the previous year, has been a busy one for IPOs. Ten organizations have raised more than 13,850 INR crore, and every other 4,500 INR crore is predicted to be mopped up by six more companies for this week.

The IPO rush can be large because of the availability of low-price money, which has been boosting equity markets withinside the closing year, specialists feel.

Equity markets have obtained more than 2.6 INR lakh crore of FII cash since April 2020, which has ended in a 75 % return at the Nifty and greater than doubled returns for midcap and smallcapped indices.

“It is not the first time that low price source of cash is main to costly equity valuations. In the beyond bull markets too, liquidity tailwinds have constantly been a large catalyst to boost equity returns. All this liquidity is seen withinside the primary markets too,” Nirali Shah, Head of Equity Research at Samco Securities, said.

The ongoing enthusiasm in primary markets thru IPOs, observe on public offers and offers for sale, turned into in concord with the present-day bull market rally, she said. “Retail traders are the maximum exciting lot subscribing to those IPOs for list profits and almost 78 % of overall stock listings in FY21 have witnessed first-day profits, the very best in at least 3 years,” she added.

Precision engineering answers organisation MTAR Technologies will list its stocks on bourses on March 15, even as online travel company Easy Trip Planners, whose IPO turned into well-obtained, is predicted to start buying and selling on March 19.