Upcoming IPO: The wait of the investors who put their money in the primary market of the stock market is about to end now. The IPO market was completely silent for the past two weeks due to the Diwali holidays. The market is going to be vibrant again in the new trading week starting after the sixth. This week three companies are entering the market with their public issues. Through these three IPOs, the companies raised a total of Rs. 10,000 crores is gearing up to be raised. The special thing is that out of these three issues, two are from the mainboard segment while one is an SME IPO.
Among the public issues to hit the market next week, the biggest name is Coal India’s subsidiary Mahanadi Coalfields. Apart from this, the agricultural chemical and seed manufacturing company Crystal Crop Protection is also bringing its issue. A third company providing material handling equipment is Vatrana Rentals. All these three companies belong to different sectors, due to which investors will get good options to invest money.
Mahanadi Coalfields Rs. 9500 crore largest issue
Next week’s biggest attraction is going to be the Mahanadi Coalfields IPO. The issue of this subsidiary company of Coal India will open for subscription on November 19. Investors can bid on it till November 23. The company through this IPO raised about Rs. 9,500 crore is expected to be raised.
It is very important for investors to know that this IPO will be entirely based on Offer for Sale (OFS). Under this promoter company Coal India will sell its 66.18 crore equity shares. This share is 10 percent of the total paid-up equity capital of Mahanadi Coalfields. Since the entire issue is OFS, after deducting the issue cost from the IPO proceeds, all the money will go directly into Coal India’s account. That means Mahanadi Coalfields will not get any money from this IPO.
The Crystal Crop Protection IPO will open on November 18
The Crystal Crop Protection IPO will open first at the beginning of the week. The company’s issue, backed by the International Finance Corporation (IFC), will open for subscription on November 18. This New Delhi headquartered company provides seeds along with crop protection related solutions to farmers. For its IPO, the company raised Rs. 259 to Rs. 272 price band has been fixed.
According to the upper price band, the company is valued at around Rs. 4,438.1 crores. The company raised from this issue a total of Rs. 455.7 crores is sought to be raised. In which Rs. 355 crore worth of new shares will be issued. Apart from this, the company’s promoter Ankur Aggarwal will sell his 37.02 lakh equity shares through an Offer for Sale (OFS). The total value of these shares is 100.7 crore rupees.
The company has till August 2026 a total of Rs. 962.6 crore of loans were outstanding. Out of the proceeds from the IPO, Rs. 270 crore will be used to repay this loan. The rest of the money will be used to meet general corporate needs.
Vatra’s rentals in the SME segment at Rs. 120 crore will be collected
Apart from Mainboard, the IPO of Vatra Rentals in the SME segment will also open on November 19. This Delhi-based company deals in providing material handling equipment. The company for its issue is Rs. 232 to Rs. 245 price band has been fixed. According to the upper price band, the company is looking to raise Rs 120 crore from the market through this IPO.
The entire issue will be of fresh shares, in which a total of 49.02 lakh equity shares will be issued. The company will spend Rs 98.12 crore from the proceeds from this IPO on purchasing material handling equipment, aerial work platforms and batteries. Apart from this, the remaining amount will be used for general corporate needs and expenses related to the issue.
