Sikkim News Update

Update On IPO: Three Offers Totaling Rs. 1,700 Crore Will Enter Primary Market On February 7

<p><strong>Update on IPO:</strong> With three companies—Rashi Peripherals, Jana Small Finance Bank, and Capital Small Finance Bank—set to float their first initial public offerings (IPOs) on Wednesday in an attempt to raise a combined total of almost Rs 1,700 crore, the main market is seeing an uptick in activity. Furthermore, on February 9, Entero Healthcare Solutions will begin its Rs 1,600-crore initial public offering.</p>
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<p>A subscription is now underway for Apeejay Surrendra Park’s Rs 920-crore initial public offering (IPO). The company operates hotels under the “The Park” name.</p>
<p>Five companies entered the main market last month and made around Rs 3,266 crore. Experts in the sector continue to have a very positive prognosis for the initial public offering (IPO) market in 2024. Businesses anticipate advantages from a highly liquid equities market that has witnessed a notable surge in the number of new retail investors.</p>
<p>“We hold a strong bullish outlook on the IPO market in 2024,” said Neha Agarwal, MD and head of equities capital markets at JM Financial. This confidence is supported by strong international and local investment, which is fueled by the Indian markets’ better development potential. Once the election-related concerns are cleared, the inflows are anticipated to pick up even more steam.</p>
<p>Distributor of ICT goods Rashi Peripherals’ initial public offering (IPO) of Rs 600 crore is a fully new equity share issuance without any offer-for-sale element.</p>
<p>The pricing range for its first public offering has been set at Rs 295–311 per unit. Of the IPO proceeds, Rs 220 crore would be used for general corporate purposes and working capital needs, while Rs 326 crore will be used for debt repayment.</p>
<p>The issuance of Jana Small Finance Bank, backed by private equity heavyweights TPG and Morgan Stanley, comprises of a primary share sale of Rs 462 crore at the top end of the price range and an offer for sale of the balance Rs 108 crore. For its IPO of Rs 570 crore, the price range has been established at Rs 393–414 per share. The funds from the new offer would be used by the bank with its headquarters in Bengaluru to increase its core capital in order to satisfy upcoming capital requirements and raise its capital adequacy ratio.</p>
<p>The Rs 450 crore new shares and the Rs 73 crore OFS, which allows founders and outside investors to sell 5% of their pre-issue holdings, make up the Rs 523 crore IPO of Capital Small Finance Bank. The price range for the IPO has been set by the Jalandhar-based bank at Rs 445–468 per share.</p>
<p>In order to fulfill its future capital needs, it will use the proceeds from the new issuance to strengthen the tier-I capital base. The bank anticipates needing more capital as it grows both its asset base and lending portfolio. These three companies’ initial public offerings will end on February 9.</p>
<p>To generate Rs 52,637 crore, 58 inaugural public offerings were issued in 2023. Among them was the Rs 3,200-crore Nexus Select Trust REIT IPO. In comparison to the 40 enterprises that raised Rs 59,302 crore in 2022, the capital mobilization in 2023 was lower. This was mostly due to a Rs 20,557-crore LIC offering, which made up up to 35% of the total funds generated for the year.</p>