Upcoming IPOs in India: After a successful run over the month of November, the intersectional week between that and December is set to see the opening of as many as two initial public offerings or IPOs. Tega Industries and Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company are set to float their maiden offers during the upcoming week, between November 30 and December 3. The three-day maiden initial public offer (IPO) of insurance firm Star Health is set to open on November 30 and close on December 2, while that of Tega Industries will begin on December 1 and conclude on December 3 after the bidding process.
This comes following the successful conclusion of as many as 10 companies this month so far. The 10 companies include — One 97 Communication, which runs digital payments firm Paytm; FSN E-Commerce Ventures, owner of online beauty platform Nykaa, Policybazaar’s parent company PB Fintech, Fino Payments Bank, Latent View Analytics, Sapphire Foods India, SJS Enterprises, Sigachi Industries, Go Fashion and Tarsons Products. In 2021 so far, as many as 51 companies have floated their initial public offerings to raise over Rs 1 lakh crore.
The fundraising this year is way higher than that of 2020 when 15 companies floated their public offers to raise Rs 26,611 crore collectively over the entire year.
Next week, Star Health is looking to raise Rs 7,249 crore through its public listing of shares, while Tega Industries seeks to mop up Rs 619.22 crore though the IPO.
Rakesh Jhunjhunwala-backed Star Health has fixed a price band of Rs 870-900 for the offer, it said on Wednesday. The IPO consists fresh issue of Rs 2,000 crore and an offer for sale of 5.83 crore shares, as per reports.
The company through the OFS part will look to raise an offer size of Rs 5,249 crore during the three-day bidding process. The shareholders like promoters Safecrop Investments India LLP, KONARK Trust & MMPL Trust are set to offload their shares during the offer for sale of the public offer.
Star Health IPO aims to utilise the net proceeds to augment the company’s capital base and maintain insolvency level of the company.
At the grey market on Saturday, Star Health IPO was fetching a premium of Rs 40, which was 4 per cent up over the upper band of the issue price of Rs 900. The Star Health IPO GMP fell drastically over two days.
As far as Tega Industries IPO is concerned, the leading producer of polymer-based mill liners has fixed a price band of Rs 443-453 for the offer. Tega Industries IPO will open on December 1 and close on December 3, thereby being a three day process for investors. The entire issue will be an Offer For Sale, and there will be no fresh issue. A total of 1,36,69,478 equity shares will be sold during the offer by selling shareholders as well as existing promoters.
Since the offer does not have any fresh issue, the entire proceeds from the IPO will go to to the selling shareholders. Thus, the company will not receive any money from the issue.
Promoters Madan Mohan Mohanka and Manish Mohanka, and investor Wagner will reportedly sell off part of their shares through the Tega Industreis IPO. According to reports, Madan Mohan Mohanka will offload up to 33.14 lakh equity shares and Manish Mohanka will sell 6.63 lakh equity shares. As of now, the promoter and promoter group at the company hold 85.17 per cent stake there. Post issue, the promoter group will hold only 79.17 per cent share of the company. On the other hand, Wagner owns 14.54 per cent shareholding at the company. It will offload 96.92 lakh equity shares through the offer for sale of the IPO.
The equity shares of both the companies will be listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) later in December.