Four IPOs to hit markets next week; to raise over Rs 3,000 crore cumulatively

Four companies including Windlas Biotech, Devyani International, Krsnaa Diagnostics and Exxaro Tiles are headed to the market with their initial share-sale offers next week to raise a little over Rs 3,000 crore cumulatively. The companies are expecting to benefit from an equity market, which is flood with liquidity and a sharp rise in the number of new retail investors.

Of late, as many as six firms including Zomato, Rolex Rings and Tatva Chintan Pharma raised more than Rs 14,500 crore through public issues in July, taking the total to over Rs 53,000 crore so far in 2021.

The three-day IPOs of Windlas Biotech, Devyani International, Krsnaa Diagnostics and Exxaro Tiles will open for public subscription on August 4 and conclude on August 6.

Below are key things you should know about upcoming IPOs:

Windlas Biotech

Windlas Biotech, manufacturer of pharmaceutical formulations, has fixed a price band of Rs 448-460 a share for its initial share-sale. The IPO comprises fresh issuance of equity shares worth Rs 165 crore and and an offer for sale of up to 5,142,067 equity shares. At the upper end of the price band, the initial share-sale will fetch Rs 401.53 crore. The proceeds from the IPO will be utilised for purchasing of equipment required for capacity expansion of the facility at Dehradun Plant -IV and addition of injectables dosage capability at the facility at Dehradun Plant-II.

Devyani International

The largest franchisee of Pizza Hut, KFC and Costa Coffee in India has fixed a price band of Rs 86-90 a share for its Rs 1,838-crore initial share-sale. The IPO consists of fresh issue of equity shares worth Rs 440 crore and an offer-for-sale of up to 155,333,330 equity shares by promoter and existing shareholder. Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will offload 6,53,33,330 shares and promoter RJ Corp will sell 9 crore shares. The offer includes a reservation of up to 5.50 lakh equity shares for the company’s employees. As much as 75% of the issue size has been reserved for QIBs, 15% for non-institutional buyers and the remaining 10% for retail investors. Retail investors can bid for minimum 165 equity shares and in multiples of 165 equity shares thereafter.

Krsnaa Diagnostics

The company provides a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centres pan-India. The IPO comprises fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of up to 94,16,377 shares by its existing shareholders. Proceeds from the fresh issue will be used for financing the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh, and Maharashtra; repayment of loans availed by the company and general corporate purposes.

Exxaro Tiles

The leading manufacturer of vitrified tiles has fixed a price band of Rs 118-120 a share for its initial share-sale. The initial public offering of up to 1,342,4000 equity shares comprises a fresh issue of up to 1,11,86,000 equity shares and an offer-for-sale of up to 22,38,000 equity shares by Dixitkumar Patel. At the upper end of the price band, the IPO will fetch Rs 161.08 crore.