The IPO market is in full swing in the new financial year. As many as sixteen companies have floated their IPOs in Q1 of FY23, including the most talked-about LIC IPO.
IPOs are an excellent opportunity for investors to invest in high-potential companies during the initial phase of their growth when the shares are offered at the cheapest rate. A good IPO can add depth and stability to your portfolio while generating potentially higher returns.
If you want to invest in IPOs you would be interested in knowing which all companies will launch their public offers in the coming months. Well in July, a couple of IPOs will test the sentiments of the investors.
List of upcoming IPOs in July
|Company Name||IPO Size (approximate value)||Date (tentative)|
|Droom Technologies||Rs 3000 crore||July, 2022|
|Emcure Pharmaceuticals||Rs 4000-5000 crore||July, 2022|
|TVS Supply Chain Solutions||Rs 5000 crore||July, 2022|
|PharmEasy||Rs 6,250 crore||July, 2022|
|Bikaji Foods International||Rs 1,000 crore||July, 2022|
Droom Technology IPO
Droom Technology is a digital marketplace and data science company for buying and selling used vehicles. The company had filed the initial papers with the SEBI earlier this year to float a public offer of Rs 3000 crore. It will be a combination of fresh equities and offer for sale shares from existing shareholders.
The company plans to utilise the funds received from new share sales to promote inorganic and organic growth in the organisation and for general corporate purposes. The issue is likely to open in July 2022. However, the dates are not declared yet.
Emcure Pharmaceutical IPO
Emcure Pharmaceutical is the twelfth largest Indian pharma company based in Pune, Maharashtra. They are backed by global private equity firm Bain Capital.
Emcure had filed with the SEBI in December 2021 for an IPO close to Rs 4000-5000 crore in value. The issue will contain fresh equities worth Rs 1100 crores of which the company will utilise Rs 947 crore to repay borrowings.
TVS Supply Chain Solutions
TVS Supply Chain Solutions’ public offer has received approval from the regulator. The offer combines fresh issues worth Rs 2000 crore and an offer for the sale of 595 lakh equity shares.
The company has proposed in RHP that it will use a large part of the net proceeds in repaying and prepaying market borrowings.
JM Financial Ltd., Axis Capital Ltd., JP Morgan India Pvt. Ltd., BNP Paribas, Edelweiss Financial Services Ltd., and Equirus Capital Pvt. Ltd., are the major book running managers for the TVS SCS issue.
TVC SCS is an Indian integrated logistics and supply chain solution provider with a global footprint. They are currently present in twenty-five counties serving more than fifty-five Fortune 500 companies.
PharmEasy is an e-pharmacy or digital healthcare unicorn with an omnichannel presence, offering online medical consultation and door-step delivery of medicines and medical devices. The company filed for IPO in February 2022 but delayed its plans after considering the tepid market conditions.
PharmEasy has got approval for a Rs 6,250 crore (approximately) IPO. The company is primarily looking at the capital to help it repay and prepay some of its Rs 2,494.7 crore debt.
The IPO is likely to hit the market in July 2022, though final dates are not yet announced.
Bikaji Food International
Bikaji Foods International is an Indian savouries and snack company that has received a green signal from SEBI to launch an IPO. According to the prospectus, the public issue is a 100 percent offer for the sale of shareholders’ equities and the company will not receive any proceeds from the issue.
The offer consists of up to 2,9373,984 equity shares close to a value of Rs 1000 crore.
Market woes may continue for investors
The current market condition could be a worry for the companies and their IPOs. After two years of IPO euphoria in 2020 and 2021, the current market is choppy. The benchmark NIFTY had lost almost 9 percent YTD due to the heavy selloff of Indian shares by foreign investors. Foreign governments are aggressively raising the interest rates to control increasing inflation, which has impacted market performance. The ongoing condition has hurt the fundraising abilities of the primary market.
IPOs are sensitive to investors’ sentiment. More IPOs are likely to hit the market and become successful when the market sentiment is positive. However, you should evaluate IPOs with a long-term perspective in mind. It is an opportunity to invest at the early stage of a potentially high-growth company. We recommend that you research each offer before investing your hard-earned money.
Disclaimer: “This blog is exclusively for educational purposes and does not provide any advice/tips on Investment or recommend buying and selling any stock”