Garuda Construction, Shiv Texchem: Only two new IPOs this week, 6 companies set for listing. Full details
The outlook for the primary market remains strong. According to reports, 26 companies are awaiting SEBI approval to raise Rs 72,000 crore, while another 55 companies are in line to raise approximately Rs 89,000 crore.
- Oct 6, 2024,
- Updated Oct 6, 2024 8:54 AM IST
The IPO market takes breather this week after a flurry of activity. Following a significant correction in the equity market since October, the upcoming week will see only two companies launching IPOs, signaling a more cautious approach from investors.
Garuda Construction IPO
Garuda Construction and Engineering’s public offering opens for subscription on October 8. The IPO will raise Rs 173 crore through fresh equity and Rs 90 crore via an offer for sale (OFS). The price range is set between Rs 92 and Rs 95 per share, with a lot size of 157 shares.
Retail investors will be allocated 35% of the issue, while qualified institutional buyers will take 50%, leaving 15% for non-institutional investors. The company plans to use Rs 100 crore from the proceeds to fund its working capital needs and for general corporate purposes, including potential acquisitions.
Garuda specializes in end-to-end civil construction services across residential, commercial, and industrial projects. The company also provides additional services for infrastructure and hospitality sectors.
Shiv Texchem IPO
Shiv Texchem, a key player in the chemicals market, will launch its Rs 101 crore SME IPO on October 8. The offering consists entirely of fresh equity, with a price range of Rs 158 to Rs 166 per share. Investors can bid in lots of 800 shares.
Shiv Texchem imports and distributes secondary and tertiary chemicals, which are crucial for various industries. The company hopes to capitalize on increasing demand for its products as industrial growth continues in India.
"The bearish sentiment continued as investors are monitoring the escalating conflict in the Middle East and have adopted a sell-on-recovery strategy," said Vinod Nair, Head of Research at Geojit Financial Services. "The pessimism on the market is expected to continue in the near term amidst rising crude prices and fund flows to cheaper markets like China."
Experts, however, remain optimistic about the medium- to long-term prospects for IPOs. "We foresee bumper appetite for IPOs will continue," noted Divam Sharma, founder of Green Portfolio, citing a strong investor interest that has seen some issues being oversubscribed by 100 times.
In addition to the IPOs, six companies from the SME segment will debut next week. These include HVAX Technologies and Saj Hotels, which will list on the NSE Emerge platform on October 7. Subam Papers and Paramount Dye Tec will follow on October 8, while NeoPolitan Pizza and Foods and Khyati Global Ventures will list on October 9 and October 11, respectively.
The outlook for the primary market remains strong. According to reports, 26 companies are awaiting SEBI approval to raise Rs 72,000 crore, while another 55 companies are in line to raise approximately Rs 89,000 crore.
As Vipul Bhowar, Senior Director of Listed Investments at Waterfield Advisors, says, "It is important to note that not all SMEs are the same. This market includes both promising companies with strong growth potential and others that may pose risks to investors due to questionable practices or financial instability."
The IPO market takes breather this week after a flurry of activity. Following a significant correction in the equity market since October, the upcoming week will see only two companies launching IPOs, signaling a more cautious approach from investors.
Garuda Construction IPO
Garuda Construction and Engineering’s public offering opens for subscription on October 8. The IPO will raise Rs 173 crore through fresh equity and Rs 90 crore via an offer for sale (OFS). The price range is set between Rs 92 and Rs 95 per share, with a lot size of 157 shares.
Retail investors will be allocated 35% of the issue, while qualified institutional buyers will take 50%, leaving 15% for non-institutional investors. The company plans to use Rs 100 crore from the proceeds to fund its working capital needs and for general corporate purposes, including potential acquisitions.
Garuda specializes in end-to-end civil construction services across residential, commercial, and industrial projects. The company also provides additional services for infrastructure and hospitality sectors.
Shiv Texchem IPO
Shiv Texchem, a key player in the chemicals market, will launch its Rs 101 crore SME IPO on October 8. The offering consists entirely of fresh equity, with a price range of Rs 158 to Rs 166 per share. Investors can bid in lots of 800 shares.
Shiv Texchem imports and distributes secondary and tertiary chemicals, which are crucial for various industries. The company hopes to capitalize on increasing demand for its products as industrial growth continues in India.
"The bearish sentiment continued as investors are monitoring the escalating conflict in the Middle East and have adopted a sell-on-recovery strategy," said Vinod Nair, Head of Research at Geojit Financial Services. "The pessimism on the market is expected to continue in the near term amidst rising crude prices and fund flows to cheaper markets like China."
Experts, however, remain optimistic about the medium- to long-term prospects for IPOs. "We foresee bumper appetite for IPOs will continue," noted Divam Sharma, founder of Green Portfolio, citing a strong investor interest that has seen some issues being oversubscribed by 100 times.
In addition to the IPOs, six companies from the SME segment will debut next week. These include HVAX Technologies and Saj Hotels, which will list on the NSE Emerge platform on October 7. Subam Papers and Paramount Dye Tec will follow on October 8, while NeoPolitan Pizza and Foods and Khyati Global Ventures will list on October 9 and October 11, respectively.
The outlook for the primary market remains strong. According to reports, 26 companies are awaiting SEBI approval to raise Rs 72,000 crore, while another 55 companies are in line to raise approximately Rs 89,000 crore.
As Vipul Bhowar, Senior Director of Listed Investments at Waterfield Advisors, says, "It is important to note that not all SMEs are the same. This market includes both promising companies with strong growth potential and others that may pose risks to investors due to questionable practices or financial instability."