Three IPOs To Raise Total Rs 1,858 crore Next Week

Three companies aim to raise funds from the primary equity market in India next week. Through their initial public offerings, Sula Vineyards Ltd., Landmark Cars Ltd., and Abans Holdings Ltd. hope to raise a total of Rs 1,858 crore next week.

The initial share sales of wine producer Sula Vineyards and Abans Holdings, the financial services arm of Abans Group, will open for subscription on Dec. 12, while those of automobile dealership chain Landmark Cars will begin on Dec. 13, data with stock exchanges showed.

This comes after 10 companies floated their IPOs in the month of November.

So far in 2022, as many as 33 companies have raised Rs 55,000 crore through IPOs. That compares with 63 IPOs, which mopped upmore than Rs 1.19 lakh crore in 2021.

All three IPOs are coming at a time of interest rate hikes, said Ankit Yadav, founder and director of Market Maestroo. Generally, there is an opportunity for making wealth from IPOs in low-rate scenarios where borrowing is easy.

“So in high rates, the businesses who are bringing IPOs need to be top-notch in fundamental terms,” he said.

The IPO of Sula Vineyards will be entirely an offer-for-sale of up to 26,900,532 equity shares by the promoter, investors, and other existing shareholders.

Those offloading shares through the OFS route are the promoter, Founder and Chief Executive Officer Rajeev Samant, and investors such as Cofintra, Haystack Investments Ltd., Saama Capital III Ltd, SWIP Holdings Ltd., Verlinvest SA, and Verlinvest France SA.

The company, which has set a price band of Rs 340 to Rs 357 a share for its IPO, is expected to raise Rs 960.35 crore at the higher end of the price band.

The initial share sale of Abans Holdings comprises fresh issuance of equity shares of up to 38 lakh and an offer-for-sale of up to 90 lakh equity shares by promoter Abhishek Bansal.

Proceeds from the fresh issue will be utilised to invest in its NBFC subsidiary Abans Finance, finance the augmentation of its capital base to meet future capital requirements, and for general corporate purposes, according to the company’s prospectus.

The company, which has set a price band of Rs 256 to Rs 270 a share for its IPO, is expected to raise Rs 345.6 crore at the higher end of the price band. The issue would conclude on Dec. 15.

The Rs 552-crore IPO of Landmark Cars consists of a fresh issue of equity shares aggregating to Rs 150 crore and an OFS of up to Rs 402 crore. Those selling shares through the OFS route are TPG Growth II SF PTE Ltd., Sanjay Karsandas Thakker HUF, Aastha Ltd., and Garima Misra.

Proceeds from new issuance will be used to pay down debt and for general corporate purposes.

The price band has been fixed at Rs 481–506 per share for the IPO.

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