After hitting record lows in early 2020 due to the coronavirus pandemic, Indian stock markets have rebounded strongly on the back of optimistic investor sentiment in 2021. With USD 4.9 Billion inflows in the first two months of 2021 alone, India has also been given a vote of confidence by foreign investors. Little wonder that investors are keenly eyeing a host of IPOs that are slated to hit the markets in March 2021.
Upcoming IPOs in March
An IPO or Initial Public Offering is a market event through which a listed company offers a fixed proportion of its equity to the public and institutional investors for the purpose of raising fresh capital. Latest IPOs are closely watched by investors and stock market analysts alike for picking out value stocks. If you too are someone who keeps close tabs on upcoming IPOs, read on to find out which companies are hitting the markets with fresh IPOs in March 2021.
Kalyan Jewellers is a major Indian jewelry retailer with a strong presence in India and the Middle-East. The company was founded in 1993 in Thrissur, Kerala, and is part of the Kalyan Group that also has interests in textiles and real estate. The upcoming IPO will be held from March 15th to 18th,2021 with a total offering size of INR 1175 crore. Of this, INR 800 crore will be a fresh offering and INR 375 crore will be a sale by two existing shareholders – the promoter and founder TS Kalyanaraman, and Highdell investment. The price band has been fixed at INR 86-87 per share with a minimum lot size of 172 shares.
Suryoday Small Finance Bank
Suryoday Small Finance Bank was incorporated in 2008 as an NBFC before starting small finance banking (SFB) operations in 2017. The bank caters mostly to the under-banked segment in semi-urban areas. The upcoming IPO of Suryoday Small Finance Bank will open on March 17th, 2021, and close on March 19th, 2021. The bank aims to raise a total of INR 581 crore through the upcoming IPO. The price band for the shares is INR 303-305 with a lot size of 49 shares. Retail investors can apply for a maximum of 13 lots.
The nearly three decades old Laxmi Organics manufactures acetyl intermediaries and specialty intermediaries from its plants in Raigad, Maharashtra. With its upcoming IPO in March, the company plans to raise INR 600 crores. The IPO opens on March 15th, 2021 with a price band of INR 129-130 per share and a lot size of 115 shares. One-third of the issue is reserved for retail investors, another 50% for institutional investors while the rest is for non-institutional buyers.
Founded in 1986 in Coimbatore, Tamil Nadu, Craftsman Automation is a precision engineering firm catering to the needs of the automobile industry. Today the company operates 12 plants located all across the country and in strategic proximity to major automobile hubs. With its upcoming IPO in March, the company is aiming to raise INR 824 crore. Of this INR 150 crore is a fresh issue while the remaining is an offer for sale by existing investors. The issue is being offered in a price band of INR 1488-1490 with a lot size of 10 shares. The upper limit for retail investors has been capped at 13 lots. The IPO opens on March 15th, 2021, and closes on March 17th, 2021. 35 percent of the issue is reserved is for retail investors, 50 percent for institutional buyers while the remaining 35 percent is for non-institutional investors.
Nazara Technologies is an online sports gaming platform with a presence in India, Africa, and North America. Some of the well-known online games offered by the company include World Cricket Championships, Chota-Bheem, and Motu-Patlu, through which it has brought to the gaming platform popular Indian comic and cultural figures. The company owns a majority stake in the popular sports content portal, Sportskeeda. With its upcoming IPO, the company aims to raise INR 582 crore. The shares are being offered with a price band of INR 1100-1101 and a lot size of 13 shares. The issue runs from March 17th to March 19th, 2021.
With these latest IPOs in the week between March 15th to March 19th, 2021, five Indian companies seek to raise a total of INR 3764 crore. As the Indian economy is expected to recover faster from the effects of covid-19 than was previously thought, the upcoming IPOs are being keenly watched by analysts. Investors are however advised to do thorough research before investing their hard-earned money in the stock markets as an investment in IPOs comes with the same set of risks associated with other equity-based financial instruments.