In the dynamic world of finance, the primary market or Initial Public Offering (IPO) market is currently making headlines. Companies are gearing up to launch their IPOs, and the momentum in this space is rising. This week alone, we have three companies opening up for subscription.
Even more intriguing is that approximately 71 companies plan to enter the IPO arena in the second half of fiscal year 2024. Let’s delve into the details of these upcoming IPOs and explore what’s driving this surge.
| Date | Company | Price Band | Lot Size |
| September 4 – 6 | Ratnaveer Precision Engineering | Rs 93 – 98 | 150 Shares |
| September 6 – 8 | Jupiter Life Line Hospitals Limited | Rs 695 – 735 | 20 Shares |
| September 8 – 12 | EMS Limited | Rs 200 – 211 | 70 shares |
IPO 1: Ratnaveer Precision Engineering – Shaping the Future in Stainless Steel
A Brief Introduction
Our journey into the world of IPOs begins with Ratnaveer Precision Engineering. This company specializes in manufacturing stainless steel products, primarily delivering a wide range of finished products, including sheets, washers, solar roofing hooks, pipes, and tubes.
IPO Details
| IPO Date | September 4 – 6 |
| Price Band | Rs 93 – 98 |
| Lot Size | 150 shares |
| Fresh Euity Issue | 1.38 crore shares (Rs 135.24Cr) |
| Offer for Sale (OFS) | 30.4 lakh shares (Rs 29.79 Cr) |
| Total Issue Size | 1.68 crore shares (Rs 165.03 Cr) |
| QIB | 50% |
| Retail | 35% |
| Non-Institutional | 15% |
IPO Dates
Ratnaveer Precision Engineering’s IPO is scheduled to open on September 4 and close on September 6, offering investors a limited window to get in on the action.
Components of the IPO
The IPO consists of two components: a fresh equity issue of 1.38 crore shares and an offer for sale (OFS) of 30.4 lakh shares. Notably, the promoter, Vijay Ramanlal Sanghavi, will sell 30.4 lakh shares through the OFS.
Pricing and Bidding
Investors looking to participate in this IPO can bid within a price band of Rs 93 to Rs 98 per share. The minimum bid quantity is 150 shares in one lot, with multiples available afterward.
Allocation
Regarding allocation, approximately 50% of the IPO offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors.
Objectives
The primary objectives behind Ratnaveer Precision Engineering’s IPO are to raise funds for working capital requirements and other general corporate purposes. Notably, for the fiscal year ending in March 2023, the company reported Revenue from operations totaling Rs 479.7 crore and a profit after tax amounting to Rs 25 crore. The gross margin was 11.83%, and the EBITDA margin stood at 9.8%.
| Metrics | FY23 | FY22 | FY21 |
| Revenue from operations (in mn) | 4797.48 | 4268.38 | 3596.63 |
| Gross Margin | 11.83% | 9.68% | 8.82% |
| EBIDTA Margin | 9.80% | 6.81% | 6.76% |
| Net Profit (in mn) | 250.44 | 94.76 | 54.59 |
| ROCE | 12.62% | 9.67% | 10.33% |
IPO 2: Jupiter Life Line Hospitals Limited – Pioneering Healthcare in the Western Region
A Glimpse into Jupiter Hospital
Our next contender in the IPO arena is Jupiter Life Line Hospitals Limited, which operates under the brand name Jupiter Hospital. This multi-specialty healthcare provider is known for its state-of-the-art technology, primarily serving the Western region of Mumbai.
IPO Details
| IPO Date | September 6 – 8 |
| Price Band | Rs 695 – 735 |
| Lot Size | 20 shares |
| Fresh Euity Issue | 73.7 lakh shares (542 crores) |
| Offer for Sale (OFS) | 44.5 lakh shares (327.08 crores) |
| Total Issue Size | 869.08 crore |
| QIB | 50% |
| Retail | 35% |
| Non-Institutional | 15% |
IPO Dates
Investors eyeing this opportunity should mark their calendars for September 6, when Jupiter Hospital’s IPO opens for subscription. The subscription period will last for two days.
Components of the IPO
This IPO comprises fresh equity of 73.7 lakh shares, amounting to 542 crores, along with an offer for sale where the promoter will offload 44.5 lakh shares, totaling 327 crores.
Pricing and Bidding
The price band for Jupiter Hospital’s IPO ranges from Rs 695 to Rs 735 per share. With the higher price band, investors can start bidding for one lot, which will fetch them 20 shares.
Objectives
The primary objectives for this IPO are the repayment/prepayment of borrowings and general corporate purposes.
| Metrics | FY23 | FY22 | FY21 |
| Revenue from operations (in mn) | 8925.43 | 7331.23 | 4861.64 |
| EBIDTA Margin | 23.45% | 21.35% | 14.54% |
| Net Profit (in mn) | 729.05 | 511.28 | -22.97 |
| ROCE | 20.94% | 16.08% | 6.07% |
| Average occupancy rate (%) | 62.61% | 53.96% | 45.25% |
| Average Revenue per occupied bed | 50,990 | 48,711 | 43,946 |
Financially, in FY23, the company reported Revenue from operations totaling Rs 892.5 crore and a profit of 72.9 crore. The EBITDA margin stood at an impressive 23.45%.
IPO 3: EMS Limited – Nurturing the Environment with Water and Wastewater Services
Introduction to EMS Limited
Our final player in the IPO game is EMS Limited, previously known as EMS Infracon. This company provides water and wastewater collection, treatment, and disposal services.
IPO Details
| IPO Date | September 8 – 12 |
| Price Band | Rs 200 – 211 |
| Lot Size | 70 shares |
| Fresh Euity Issue | 146.24 crores |
| Offer for Sale (OFS) | 175 crores |
| Total Issue Size | 321.24 crores |
| QIB | 50% |
| Retail | 35% |
| Non-Institutional | 15% |
IPO Dates
EMS Limited’s IPO is set to open later this week, on September 8, and will run until the 12th.
Components of the IPO
The IPO will comprise a fresh equity issue of 146.24 crores and an offer for sale by the promoter group of 175 crore rupees.
Pricing and Bidding
Investors interested in this IPO can bid within a price band of Rs 200 to 211 per share. The minimum bid quantity is 70 shares in one lot, with multiples available afterward.
Objectives
Like the other IPOs, EMS Limited aims to raise funds for working capital requirements and general corporate purposes. Financially, for the fiscal year ending in March 2023, the company reported Revenue from operations totaling Rs 538.16 crore and a profit after tax amounting to Rs 108 crore. Notably, the EBITDA margin stood at a robust 27.69%.
| Metrics | FY23 | FY22 | FY21 |
| Revenue from operations (in lakhs) | 53,816.17 | 35,985.08 | 33,070.39 |
| EBIDTA Margin | 27.69% | 31.27% | 29.91% |
| Net Profit (in lakhs) | 10,861.63 | 7,904.62 | 7,195.37 |
| ROCE | 28.26% | 29.50% | 33.65% |
Key Takeaways
In conclusion, the primary market is abuzz with activity in the year’s second half, with several new public offerings. This week alone, we’ve explored three IPOs set to open for subscription, and they are just the tip of the iceberg. The positive investor sentiment, driven by strong secondary market performance, fuels this IPO wave. With a promising pipeline for the rest of the year, it’s clear that the IPO market is in full swing.
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IPO | Current IPO | Upcoming IPO | Listed IPO
FAQs
1. What are the risks associated with investing in IPOs?
Investing in IPOs carries certain risks, such as market volatility, limited historical data, and the possibility of not receiving the desired allocation of shares.
2. Are there any eligibility criteria for retail investors in these IPOs?
Yes, typically, IPOs allocate a portion of shares specifically for retail investors. However, specific eligibility criteria may vary from one IPO to another.
3. Should I consult a financial advisor before investing in IPOs?
It's advisable to consult a financial advisor or conduct thorough research before investing in IPOs to make informed decisions based on your financial goals and risk tolerance.
4. How can I invest in these IPOs?
To invest in these IPOs, you can approach your stockbroker or use online trading platforms that offer IPO bidding services.
Read more: How Long-term investing helps create life-changing wealth – TOI.
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.