Domestic primary markets seem to be back in action since the beginning of the financial year 2022-2023 despite the prevailing volatile sentiment. April 2022 saw the initial public offer (IPO) listing of Hariom Pipe Industries, Veranda Learning Solutions and Uma Exports, along with the follow on public offer (FPO) of Ruchi Soya Industries.
Two more companies are set to launch their IPOs in the last week of April. The public offers of Campus Activewear and Rainbow Children’s Medicare are expected to raise Rs 2,995.73 crore from the investors collectively and will be the first IPOs to open in FY23.
It is important to note that the IPO frenzy which was evident in early FY22, seemed to have cooled off in the second half of the fiscal. This can be said as even though the BSE IPO index beat the Sensex in FY22; it, however, underperformed Sensex by 17% over the last six months. The major reason being the market uncertainty amid the global geopolitical and macroeconomic concerns.
Meanwhile, capital markets regulator Securities & Exchange Board of India (SEBI) proposed tightening of certain regulations related to the lock-in period of anchor investors, criteria for the offer for sale (OFS), and pricing of new loss-making companies.
Going ahead in the month of May, the IPO market will be in focus as the much-awaited Life Insurance Corporation of India (LIC) IPO is set to hit D-Street in the first week.
Here is a list of upcoming IPOs in May 2022:
|Name Of The Company||IPO Size (Approximate Value)||Dates (Tentative)|
|LIC||Rs 21,000 crore||May 2022|
|Venus Pipes & Tubes||Rs 175 -225 crore||May 2022|
|Ethos Limited||Rs 500-600 crore||May 2022|
|Hexagon Nutrition||Rs 600 crore||May 2022|
|Bharat FIH||Rs 5,000 crore||May 2022|
Let’s take a look at each of the IPOs that are likely to hit the Street soon
The government has reportedly cut the size of LIC IPO which is expected to be launched in the first week of May. According to media reports, the government is likely to sell 3.5% stake in the LIC IPO instead of 5% planned earlier and is seeking to raise about Rs 21,000 crore.
With this revised Rs 21,000-crore worth IPO, the government is targeting a valuation of Rs 6 lakh crore for LIC. The government wholly owns insurance giant LIC.
LIC listing is expected to happen in May and all the details about LIC IPO issue date, IPO price band, reservations, etc are expected to be announced in the last week of April, reports suggest.
In February 2022, LIC had filed draft papers with SEBI wherein it had said that the government will sell 5% stake or 31.6 crore shares in the state-run insurer. However, the market conditions have changed following the Russia-Ukraine war. The global funds are in a risk-off mode and the foreign portfolio investors (FPI) and foreign institutional investors (FII) are heavily dumping Indian equities, resulting in highly volatile markets. This has forced the Indian government to reduce the size of LIC IPO.
Venus Pipes & Tubes IPO
The IPO of Gujarat based Venus Pipes & Tubes is expected to hit the Street in May, as per market speculations. The company is a manufacturer and exporter of stainless steel tubular products such as steel pipes and tubes.
Venus Pipes and Tubes has received SEBI approval for the IPO and as per media reports. The company is likely to raise between Rs 175 -225 crore via the IPO. As per the draft red herring prospectus (DRHP), Venus Pipes and Tubes IPO comprises of sale of 50.74 lakh equity shares of the company.
The IPO proceeds are proposed to be utilised for financing capacity expansion and backward integration for manufacturing of hollow pipes, working capital requirements and general corporate purposes.
The company has one manufacturing plant in Kutch, Gujarat with an installed capacity of 10,800 MT per annum. Venus Pipes & Tubes has a global presence and exports its products to more than 18 countries including the UK Brazil, Israel and countries in the European Union, etc.
The company’s total revenue in FY21 increased to Rs 312.03 crore from Rs 179.32 crore in FY20, while its net profit in FY21 jumped to Rs 23.63 crore from Rs 4.13 crore in FY20.
Ethos Ltd IPO
Ethos IPO is expected to hit the markets in May 2022, as per reports. Ethos IPO comprises of a fresh issue worth Rs 400 crore and offer for sale of up to 1,108,037 equity shares of Rs 10 each. The company has reserved 35% of the issue for retail investors, 50% for qualified institutional buyers (QIBs) and 15% for high net worth individuals (HNIs).
Ethos Ltd, the largest luxury and premium watch retailer in India, has a watch portfolio of 50 premium brands including Omega, Jaeger LeCoultre, IWC Schaffhausen, Panerai, Bvlgari, H. Moser & Cie, Rado, Oris SA, Corum, Longines, Baume & Mercier, Carl F. Bucherer, Tissot, Louis Moinet, Raymond Weil, and Balmain.
The company has 50 physical retail stores across 17 cities in India. The company says it has 7,000 different premium watches and 30,000 watches in stock at any given time. Ethos Ltd also delivers premium luxury watches through websites and social media platforms and operates on an omnichannel model.
Ethos Ltd proposes to use the IPO proceeds towards repayment or pre-payment of borrowings, funding working capital requirements, financing capital expenditure for establishing new stores and general corporate purposes.
Hexagon Nutrition IPO
Hexagon Nutrition has received SEBI nod to raise up to Rs 600 crore via IPO. The company’s public issue comprises a fresh issue of equity shares aggregating up to Rs 100 crore and an offer for sale (OFS) of up to 30,113,918 equity shares, according to the DRHP.
The OFS comprises sale of up to 77 lakh shares by Arun Purushottam Kelkar, up to 61.36 lakh shares by Subhash Purushottam Kelkar, up to 15 lakh shares by Anuradha Arun Kelkar, up to 25 lakh shares by Nutan Subhash Kelkar, up to 1.22 crore shares by Somerset Indus Healthcare Fund I Ltd and up to 73,668 shares by Mayur Sirdesai.
The Mumbai-based Hexagon Nutrition plans to use the fresh IPO proceeds for debt payments, funding incremental working capital requirements, supporting capital expenditure for expanding an existing facility, investing in the subsidiary, financing capital expenditure at the existing facility and general corporate purposes.
Hexagon Nutrition is a fully integrated company engaged in product development and marketing, including research and development and nutrition manufacturing.
Bharat FIH IPO
The IPO of Bharat FIH Ltd, a subsidiary of FIH Mobiles and a Foxconn Technology Group company, is expected to be launched in May 2022. The company had filed DRHP with markets regulator SEBI in December 2021 to raise over Rs 5,000 crore through an IPO.
According to the DRHP, Bharat FIH IPO will comprise a fresh issue of shares of up to Rs 2,502 crore and an offer for sale of shares up to Rs 2,502 crore by promoter group and Foxconn unit Wonderful Stars
The company will utilise the proceeds of the fresh issue for funding capital expenditure requirements, expansion of its existing campuses, investment in subsidiary and general corporate purposes.
Bharat FIH is the largest electronic manufacturing services (EMS) provider in India, with approximately 15% market revenue share in FY21.
How to apply for LIC IPO?
You can apply for the LIC IPO in these ways:
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more
- If you are an Existing TradeSmart demat account holder and wish to apply for LIC IPO. Click Here
- If you don’t have a TradeSmart Account? Sign up
How can you check the subscription status of IPOs in May 2022?
The subscription status of any live IPO can be checked on the websites of stock exchanges, BSE or NSE. You need to follow the below procedure to check your subscription status on the NSE website:
Step 1: Go to the Home Page of the NSE website and select ‘Market Data’. Click on ‘New Public Issue’ in the drag down menu
Step 2: Select the Company Name
Step 3: You can check the NSE bid details and the Consolidated bid details. The bid details of all the categories of investors are reflected.
Where can you check IPO allotment status?
There are two ways to check the allotment status of your IPO application online. The IPO allotment status can be checked through the website of BSE or that of the IPO registrar, such as KFintech, Link Intime, or Bigshare Services.
This article is for information purposes only and should not be considered as stock recommendation or advice to buy or sell shares of any company. Investing in the stock market can be risky. It is therefore advisable to research well or consult an investment advisor before investing in shares, derivatives or any other such financial instruments traded on the exchanges.