The primary market has been on a roll recently despite the weakness in the secondary markets amid global and domestic headwinds. So far in May, seven companies have raised over Rs 29,000 crore from their initial public offerings (IPO), the largest being the state-run Life Insurance Corporation of India (LIC), which raised a little over Rs 21,000 crore.
Indian markets saw only 16 IPOs during January 2022 – March 2022 period as compared to 23 IPOs in the corresponding period of last year. This resulted in a 60% decline in proceeds raised through IPOs. However, there is a strong pipeline of IPOs going ahead. More than 20 companies have filed offer documents from January-March 2022 with the capital markets regulator Securities & Exchange Board of India (SEBI).
The month of June is also expected to see some hot deals in the primary markets. Here’s a list of companies that are expected to go public in June 2022
Here is a list of upcoming IPOs in June 2022:
|Name Of The Company||IPO Size (Approximate Value)||Dates (Tentative)|
|Hexagon Nutrition||Rs 600 crore||June 2022|
|Bharat FIH||Rs 5,000 crore||June 2022|
|MobiKwik||Rs 1,900 crore||June 2022|
|FabIndia IPO||Rs 998 crore||June 2022|
|Aadhar Housing Finance||Rs 7,300 crore||June 2022|
Let’s take a look at each of the IPOs that are likely to hit the Street soon
Hexagon Nutrition IPO
Hexagon Nutrition is expected to launch its Rs 600-crore IPO next month in June. The company has received SEBI nod for the public issue. Hexagon Nutrition IPO 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 draft red herring prospectus (DRHP).
The OFS comprises a 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 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
Bharat FIH Ltd, a subsidiary of FIH Mobiles and a Foxconn Technology Group company, may go public in June 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 plans to utilise the proceeds of the fresh issue for funding capital expenditure requirements, expansion of its existing campuses, investment in a subsidiary and general corporate purpose.
Bharat FIH is the largest electronic manufacturing services (EMS) provider in India, with approximately 15% market revenue share in FY21.
The public issue of Fintech company MobiKwik is expected to be around Rs 1,900 crore comprising fresh issue of shares up to Rs 1,500 crore and an offer for sale worth Rs 400 crore by the promoters and existing shareholders. The company is targeting a valuation of approximately $1 billion with the upcoming IPO.
MobiKwik is an Indian digital payment company that provides a mobile phone-based payment system and digital wallet. The company offers the ‘Buy Now Pay Later’ (BNPL) option easing regular mobile payments for customers.
The company has also launched Zaakpay, its subsidiary payment gateway and MobiKwik Zip, a flagship BNPL solution to ease the process of accepting and paying money digitally. This platform allows the usage of services like peer-to-peer payments through UPI and MobiKwik Wallet.
Ethnic wear brand FabIndia is looking to raise around Rs 4,000 crore through IPO, as per media reports. The company has received SEBI nod for the IPO that comprises a fresh issue of over Rs 500 crore, and an OFS of 2.5 crore equity shares by promoters and investors.
Bimla Nanda Bissell, William Nanda Bissell, Monsoon Latane Bissell, Madhukar Khera and JLBPartners Holding Inc will take part in the OFS. Premji Invest, headed by marquee investor Azim Premji will also sell stake in the company.
Aadhar Housing Finance IPO
Aadhar Housing Finance plans to raise Rs 7,300 crore through its IPO which comprises a fresh issue of shares worth Rs 1,500 crore and OFS up to Rs 5,800 crore by the promoter BCP TOPCO VII PTE. Ltd, a Blackstone Group company. BCP Topco holds 98.72% stake in Aadhar Housing Finance.
Aadhar Housing Finance is a retail-focused affordable housing finance company serving economically weaker and lower-to-middle income customers. The company has a comprehensive product portfolio, which includes loans for the purchase and construction of the residential property, home improvement loans, home extension loans, and loans for the purchase and construction of commercial property.
Companies that have received SEBI nod for IPOs
|4||Suraj Estate Developers|
|5||Aadhar Housing Finance|
|6||TVS Supply Chain Solutions|
|8||Bikaji Foods International|
|9||Kids Clinic India|
|11||Syrma SGS Technology|
|12||Asianet Satellite Communications|
|14||Capillary Technologies India|
|15||Harsha Engineers International|
|16||Imagine Marketing Ltd|
|20||ESAF Small Finance Bank|
|23||Capital Small Finance Bank|
|24||CMR Green Technologies|
|25||Wellness Forever Medicare|
|27||JK Files & Engineering|
|30||Maini Precision Products|
|31||Sresta Natural Bioproducts|
|32||Dharmaj Crop Guard|
How can you check the subscription status of the IPOs in June 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.
How to Apply For IPO Through UPI?
Step 1: Login to your online account with the broker. Select the IPO name from the current IPO list.
Step 2: Enter the lot size you want to bid for and the bid price.
Step 3: Type your UPI ID and hit the submit button.
Step 4: Approve the transaction on your UPI app.
You will receive the mandate notification in the UPI app. Accept the mandate and the application money will remain blocked until the IPO allotment date. You will receive an SMS from the exchange confirming your application.
What are the different types of investors in an IPO?
There are different categories of IPO investors. A reserved quota or percentage of shares is fixed for each category. These include Retail Individual Investors (RII), Non-institutional bidders (NII), Qualified Institutional Bidders (QIB), Foreign Institutional Investors (FII) and Anchor Investors.