The dust has barely settled from last week’s exciting IPO frenzy with Emcure Pharma and Bansal Wire Industries, but the primary market isn’t taking a breather! Three new IPOs are ready to take center stage this week, offering investors fresh investment opportunities.
We have two companies launching today in the small and medium enterprise (SME) segment and a heavyweight player from the mainboard gearing up for a July 19th debut. Let’s get into the key details of these IPOs.
Kataria Industries Ltd.
IPO Details
Offer Price | ₹91 – ₹96 per share |
Face Value | ₹10 per share |
Opening Date | 16 July 2024 |
Closing Date | 19 July 2024 |
Total Issue Size (in Shares) | 2,595,200 |
Total Issue Size (in ₹) | ₹19.46 Cr |
Issue Type | Book Built Issue IPO |
Lot Size | 1600 Shares |
Listing at | NSE SME |
The company is issuing 56,85,000 new shares with a price range of ₹91 – ₹96 per share. Retail investors can apply for a minimum of 1 lot, which consists of 1,200 shares and amounts to ₹1,15,200 (at the issue price of ₹96 per share). This is also the maximum amount retail investors can invest in the IPO.
HNI (High-Net-Worth Individuals) and NII (Non-Institutional Investors) can apply for a minimum of 2 lots (2,400 shares) for a minimum investment of ₹2,30,400. Unlike retail investors, QIBs (Qualified Institutional Buyers) and HNI/NII investors can apply for more than the minimum amount. The allotment of shares is expected to be finalized by July 22nd, with a tentative listing date of July 24th on the NSE SME platform.
Objectives of the IPO:
- Capital Expenditure: Funds will be used to upgrade and expand manufacturing facilities.
- Debt Repayment: The company aims to use some of the proceeds to pay off existing debt.
- General Corporate Purposes: This category typically covers operational expenses.
Grey Market Premium (GMP):
The current GMP for Kataria Industries sits at ₹50 per share. Remember, GMP is an unofficial estimate, not a guarantee, of the potential premium the stock might trade at after listing compared to its issue price. Don’t base your investment decisions solely on GMP.
Company Overview:
Established in 2004, Kataria Industries manufactures construction materials like LRPC strands, steel wires, and related products. Their products cater to various infrastructure projects like highways, bridges, and high-rise buildings. They have two production facilities in Madhya Pradesh and have expanded their manufacturing capacity significantly in recent years. Additionally, they’ve diversified their revenue streams by acquiring commercial buildings and a wind farm for captive power generation. They also export to several countries, including Dubai and Brazil.
Financials:
Kataria Industries’ revenue has shown healthy growth over the past three years, nearly doubling between FY21 and FY23. Their net profit margins have also improved significantly, reaching 11.69% in the latest financial year.
SWOT Analysis of Kataria Industries Ltd.
STRENGTHS | WEAKNESSES |
---|---|
Strong revenue growth and improving profitability Established presence in the construction sector Diversification of revenue streams through commercial buildings and captive power generation Export presence in several countries | Relatively short track record compared to some competitors Reliant on the performance of the construction industry May face competition from established players |
OPPORTUNITIES | THREATS |
Growing infrastructure development in India Increasing demand for sustainable construction practices (Kataria Industries’ products are pre-stressed concrete, which can be more durable and efficient) Potential for further export growth | Fluctuations in raw material prices Rising interest rates could impact construction spending Changes in government regulations affecting the construction sector |
Macobs Technologies Ltd.
IPO Details
Offer Price | ₹71 – ₹75 per share |
Face Value | ₹10 per share |
Opening Date | 16 July 2024 |
Closing Date | 19 July 2024 |
Total Issue Size (in Shares) | 5,685,000 |
Total Issue Size (in ₹) | ₹54.58 Cr |
Issue Type | Book Built Issue IPO |
Lot Size | 1200 Shares |
Listing at | NSE SME |
Macobs Technologies Ltd’s IPO consists entirely of new shares being issued by the company (fresh issue). This means the company will raise fresh capital, but it will dilute existing shareholder ownership (both in terms of earnings per share and voting rights). No existing shares are being offered for sale by promoters or investors (OFS).
The total IPO size of ₹19.46 crore is based on issuing 25,95,200 new shares at the maximum price band of ₹75 per share. Additionally, like most SME IPOs, a portion of the shares (1,31,200) will be reserved for market makers to ensure some trading activity after listing.
Objectives:
- Customer Acquisition: The company aims to use the IPO funds for marketing and brand awareness efforts to acquire new customers.
- Debt Repayment: A portion of the proceeds will go towards paying off existing debt.
- Working Capital: The IPO will also help Macobs Technologies meet its day-to-day operational expenses.
- General Corporate Purposes: This category typically covers unforeseen expenses.
- IPO Expenses: The company will use some funds to cover the costs associated with the IPO itself.
Grey Market Premium (GMP):
The current GMP for Macobs Technologies sits at ₹11 per share. Remember, GMP is an unofficial estimate, not a guarantee, of the potential premium the stock might trade at after listing compared to its issue price. Don’t base your investment decisions solely on GMP.
Company Overview:
Founded in 2019, Macobs Technologies focuses on male grooming products. They operate exclusively online through their website, menhood.in, and don’t have any physical stores. Their product range includes niche items like specialized trimmers and hygiene products specifically designed for men’s needs.
Financials:
Macobs Technologies’ revenue has grown significantly over the past three years, with FY24 revenue more than tripling compared to FY22. However, it’s important to note that the initial revenue base was small. Net profit margins have also been healthy but slightly decreased in the last year.
SWOT Analysis of Macobs Technologies Ltd.
STRENGTHS | WEAKNESSES |
---|---|
Strong revenue growth Established online presence in a niche market Potential for further market expansion | Short track record compared to some competitors Reliant solely on online sales channel Limited brand awareness |
OPPORTUNITIES | THREATS |
Growing demand for online shopping and personal care products Increasing focus on men’s grooming segment | Competition from established players entering the online space Dependence on e-commerce platforms and their policies Changes in consumer preferences |
Sanstar Limited
IPO Details
Offer Price | ₹90 – ₹95 per share |
Face Value | ₹2 per share |
Opening Date | 19 July 2024 |
Closing Date | 23 July 2024 |
Total Issue Size (in Shares) | 53,700,000 |
Total Issue Size (in ₹) | ₹510.15 Cr |
Issue Type | Book Built Issue IPO |
Lot Size | 150 Shares |
Listing at | BSE, NSE |
The IPO includes a fresh issue of ₹397.10 crore to raise new capital and an offer for sale (OFS) of ₹113.05 crore by existing promoters. The price band for the IPO is set between ₹90 and ₹95 per share. With a minimum investment of ₹14,250 for the minimum lot of 150 shares, the IPO allocates 50% of the shares to qualified institutional buyers (QIBs), 15% to non-institutional investors (NII), and the remaining 35% to retail investors.
Objectives:
- Expand Dhule Facility: The company plans to use part of the proceeds to upgrade and expand its manufacturing capabilities.
- Debt Repayment: A portion of the funds will be used to pay off existing debt.
- General Corporate Purposes: This category typically covers operational expenses.
Grey Market Premium (GMP):
The current GMP for Sanstar Ltd. sits at ₹50 per share. Remember, GMP is an unofficial estimate, not a guarantee, of the potential premium the stock might trade at after listing compared to its issue price. Don’t base your investment decisions solely on GMP.
Company Overview:
Established in 1982, Sanstar Ltd. focuses on plant-based specialty products and ingredients for various industries in India. They offer a range of products like dried glucose solids, liquid glucose, and starches derived from maize. These products enhance food items’ flavor, texture, and nutritional value. Sanstar also caters to industrial and pet food applications. It operates two production plants in India, with a presence across 22 states and exports to 49 countries.
Financials:
Sanstar’s revenue has grown significantly over the past three years, with a compound annual growth rate (CAGR) of over 45% between FY2022 and FY2024. Their profit after tax has also seen impressive growth, increasing at a CAGR of over 104% during the same period.
SWOT Analysis of Sanstar Ltd.
STRENGTHS | WEAKNESSES |
---|---|
Strong revenue and profit growth Diversified product portfolio across food, pet food, and industrial applications Established presence in India and a growing export footprint | Reliant on raw material prices, which can fluctuate Relatively high dependence on the food processing industry’s performance |
OPPORTUNITIES | THREATS |
Growing demand for plant-based products and functional ingredients Increasing focus on health and wellness, which could benefit their product offerings Potential for further expansion in international markets | Competition from established players in the food ingredients industry Changes in government regulations affecting the food processing sector |
Conclusion
These upcoming IPOs offer a mix of companies from the SME and mainboard segments. While the details above provide a starting point, conducting in-depth research on each company’s financials, objectives, and market position is crucial before making investment decisions.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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IPO | Current IPO | Upcoming IPO | Listed IPO
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.