IPO Update: Shyam Metalics, Sona Comstar, Navoday Enterprises IPOs open date, price, expectations

Four companies will launch their initial share-sales next week to raise Rs 9,123 crore collectively, indicating that the IPO (Initial Public Offering) market is getting back on track after a halt of two months. The last IPO was that of Macrotech Developers (erstwhile Lodha Developers), which opened in April.

The companies which will launch their IPOs in the month of June are Shyam Metalics, Sona Comstar, Navoday Enterprises, India Pesticides, Dodla Dairy, KIMS Hospitals, and Arohan Financial.

While, Shyam Metalics, and Sona Comstar will unveil their public offerings on Monday, Krishna Institute of Medical Sciences and Dodla Dairy will launch their IPOs on June 16, information with exchanges showed. Navoday is also likely to open for public subscription on June 14.

Also Read: Adani Group initiates talks to spin off airport biz, launch IPO

In addition, Clean Science & Technology expects to hit the primary markets in the first week of July 2021 with IPO size of Rs 1,500 crore, while India Pesticides is likely to come out with its public issue this month or July, Yash Gupta, Equity Research Associate at Angel Broking, said.

"The equity markets are flushed with liquidity and retail participation is at an all-time high. It is difficult to imagine a better time frame for small and mid cap companies to raise public money. So, it is quite natural for companies to tap the IPO market," Naveen Kulkarni, Chief Investment Officer, Axis Securities, told PTI.

The companies are raising funds to retire their debt, funding capital expenditure requirement and for general corporate purposes.

Auto component maker Sona Comstar's Rs 5,550-crore IPO comprises fresh issue of shares amounting to Rs 300 crore and an offer-for-sale (OFS) aggregating up to Rs 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.

The issue, with a price band of Rs 285-291 a share, will open on June 14 and close on June 16.

The Rs 909-crore IPO of Shyam Metalics and Energy Ltd, leading integrated metal producing company, consists of fresh issuance of equity shares worth up to Rs 657 crore and an OFS to the tune of Rs 252 crore by existing shareholders.

The price band has been fixed at Rs 303-306 per share for the IPO, which will open for public subscription during June 14-16.

Also Read: Shyam Metalics IPO opens June 14: Should you subscribe to the issue?

Krishna Institute of Medical Sciences' IPO comprises fresh issue of shares aggregating up to Rs 200 crore and an OFS of up to 2,35,60,538 equity shares from promoters and existing shareholders.

Those offering shares in the OFS include General Atlantic Singapore KH Pte Ltd, Dr Bhaskara Rao Bollineni, Rajyasri Bollineni and Bollineni Ramanaiah Memorial Hospitals.

The company has set a price band of Rs 815-825 a share for its three-day initial share-sale, which will conclude on June 18.

At the upper end of the price band, the IPO is expected to fetch Rs 2,144 crore.

The IPO of Dodla Dairy comprises fresh issuance of shares worth up to Rs 50 crore besides an OFS of up to 1,09,85,444 equity shares by TPG Dodla Dairy Holdings Pte Ltd, Dodla Sunil Reddy, Dodla Deepa Reddy and Dodla Family Trust.

The leading dairy company in South India has fixed a price a band of Rs 421-428 a share for its initial share-sale, which will open for public subscription on June 16 and conclude on June 18.

At the upper end of the issue price, the IPO is expected to garner Rs 520 crore.

Also Read: Paytm to lend Rs 743 crore to two Vijay Shekhar Sharma companies ahead of IPO

Shares of these companies will be listed on BSE and NSE.

According to Angel Broking's Gupta, this will be a very good opportunity for the retail investors to make money due to listing gains in a very short time of period.

So far this year, 17 firms have come out with IPOs to raise Rs 17,503 crore.

Apart from this, companies including Utkarsh Small Finance Bank, Glenmark Life Sciences, Rolex Rings and Seven Islands Shipping have received Sebi's go-ahead to float the IPO.

Moreover, around 26 companies are awaiting Sebi's approval to launch the initial share-sale, data with Sebi showed.

Sandeep Bhardwaj, CEO, Retail at IIFL Securities said that the great IPO story of FY21 will continue well into FY22. There is enough liquidity in the system and robust investor appetite for primary issues. "Also the pandemic has reset businesses across industries and many rising sectors will look to tap the markets," he added.

(With inputs from PTI.)