Despite the COVID-19 challenges in the financial year 2020-21, there was an increase of over 142 per cent in the fund raised by various institutions in the country through public issues and rights issues. In FY 2019-20, various institutions raised Rs 21,382.35 crore through public issues, whereas in FY 2020-21, the fund raised via public issues was at Rs 46,029.71 crore.
During FY 2020-21, Rs 46,029.71 crore was raised through public issues. A public issue includes initial public offering (IPO) and Follow-On Public Offer (FPO). Through 55 IPOs, an amount of Rs 31,029.71 crore was raised in FY 2020-21.
Most IPOs despite the pandemic were overscribed. Here is the list of upcoming IPOs that filed for draft red herring prospectus (DRHP) in May.
Windlas Biotech: The company has filed preliminary papers with markets regulator Sebi for an initial public offer on May 17, 2021. The company is into domestic pharmaceutical formulations contract development and manufacturing business. The company will also consider a pre-IPO (Initial Public Offer) placement of up to Rs 50 crore. The proposed offer includes fresh issue of Rs 165 crore and an offer for sale of up to 51.42 lakh equity shares. The latter will comprise "up to 11.36 lakh equity shares by the individual selling shareholder and up to 40.06 lakh equity shares by the investor selling shareholder", as per the document.
Supriya Lifescience: This manufacturer has filed preliminary papers with capital markets regulator Sebi to raise Rs 1,200 crore via an IPO. The IPO comprises fresh issue of equity shares worth Rs 200 crore and an offer for sale of up to Rs 1,000 crore by its promoter Satish Waman Wagh. The proceeds from the fresh issue will be used for funding capital expenditure requirements, repay debt and general corporate purpose. Supriya Lifescience is one of the key Indian manufacturers and suppliers of active pharmaceutical ingredients (APIs). As of March, 2021, the company had product offerings of 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic.
Devyani International: It is the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, has filed preliminary papers with capital markets watchdog Sebi to raise Rs 1,400 crore through the capital market. The IPO consists of fresh issue of equity shares worth Rs 400 crore and an offer of sale of up to 12.53 crore equity shares by promoter and existing shareholder. Under the offer for sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will sell 6.53 shares and promoter RJ Corp will offer 6 crore shares, it added.
Aptus Value Housing Finance: The non-banking finance company has filed preliminary papers with capital markets regulator on May 17, 2021 to raise up to Rs 3,000 crore via an IPO. The IPO comprises fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale of up to 6.45 crore equity shares by promoter and existing shareholders. The net proceeds from the fresh issue will be utilised towards augmenting the company's capital base and to meet future growth requirements. The IPO is expected to raise Rs 2,600-Rs 3,000 crore.
CarTrade Tech: Online auto classified platform filed its preliminary papers with capital markets regulator on May 17, 2021. The initial public offer (IPO) will be entirely an offer for sale (OFS) of 1.23 crore equity shares. Among the investors participating in the OFS are CMDB II (16.07 lakh equity share), Highdell Investment Ltd (53.79 lakh share), Macritchie Investments Pte Ltd (35.68 lakh share), Springfield Venture International (11.24 lakh share) and Bina Vinod Sanghi (1.83 lakh share). Currently, CMDB II holds 11.93 per cent stake in CarTrade, Highdell Investment owns 34.44 per cent stake, MacRitche Investment has 26.48 per cent shareholding and Springfield Venture International holds 7.09 per cent stake in the company.
Krsnaa Diagnostics: Its IPO comprises fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of up to 94.16 lakh shares by its existing shareholders. Those offering shares in the OFS are Phi Capital, Kitara, Somerset Indus Healthcare Fund I Ltd and Lotus Management Solutions. The company may raise Rs 200 crore in the pre-IPO placement. Proceeds from the fresh issue will be used for financing the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh, and Maharashtra; repayment of loans availed by the company and general corporate purposes. As of December 2020, the company operated 1,801 diagnostic centres offering both radiology and pathology services in 13 states across the country.
Penna Cement: It has filed preliminary papers on May 14, 2021 with capital markets regulator Sebi to raise Rs 1,550 crore. The IPO comprises fresh issue of equity shares worth Rs 1,300 crore and an offer for sale of up to Rs 250 crore by the promoter. The proceeds from the fresh issue will be used to pay debts of Rs 550 crore. Besides, Rs 105 crore will be utilised for funding capital expenditure requirements for its KP Line II Project and Rs 80 crore towards upgrading its raw grinding and cement mill in Talaricheruvu. In addition, the company will use Rs 130 crore and Rs 110 crore towards setting up a waste heat recovery plant in Tandur and Talaricheruvu respectively. Hyderabad-based Penna Cement has a strong brand recall in southern and western states of the country. It operates out of four integrated manufacturing facilities and two grinding units across Andhra Pradesh, Telangana and Maharashtra with an aggregate capacity of 10 MMTPA as of March, 2021.
Go Airlines: The carrier, which has rebranded itself as 'Go First', has filed preliminary papers for an initial share sale worth Rs 3,600 crore on May 14, 2021. The proceeds will be mainly used to repay dues. It also has plans to raise up to Rs 1,500 crore by way of a pre-IPO placement. Once the shares get listed, Go Airlines (India) Ltd will be the third operational scheduled carrier after SpiceJet and IndiGo to trade on Indian bourses. Go Airlines is looking at raising up to Rs 3,600 crore through issuance of fresh equity shares.
Medi Assist Healthcare Services: The company has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (Sebi) to float an initial share-sale. The initial public offer (IPO) is entirely an offer of sale of up to 2.80 crore equity shares of Medi Assist by promoters and existing shareholders. Those selling shares in the offer for sale include Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer India Capital Holdings II Ltd, Bessemer Health Capital LLC and Investcorp Private Equity Fund I. Bengaluru-based Medi Assist is a healthtech and insurtech company focused on administering health benefits across employers, retail members and public health schemes.
Fincare Small Finance Bank: Digital lender has filed preliminary papers with capital market regulator Sebi to raise Rs 1,330 crore. The IPO comprises fresh issue of equity share of the bank worth Rs 330 crore and an offer for sale aggregating up to Rs 1,000 crore by promoter Fincare Business Services Limited. This offer includes a reservation for subscription by employees. The bank would utilise net proceeds from the fresh issue towards augmenting its Tier-1 capital base to meet future capital requirements. Further, a small portion of the proceeds will be used towards meeting the expenses in relation to the offer. Under RBI guidelines, the small finance bank (SFB) is required to list its equity shares on the stock exchanges within a period of three years from reaching a net worth of Rs 500 crore.
Nuvoco Vistas Corporation: The company is part of the Nirma Group and it is looking to raise Rs 5,000 crore via capital market. The IPO comprises fresh issue of shares worth Rs 1,500 crore and an offer for sale of Rs 3,500 crore by promoter Niyogi Enterprise. Proceeds of the fresh issue will be utilised for repayment of certain loans availed by the company as well as for general corporate purpose. Nuvoco Vistas is a cement manufacturer with a consolidated capacity of 22.32 million metric tonne per annum (MMTPA). It has 11 cement plants comprising five integrated units, five grinding units and one blending unit.
Chemplast Sanmar Ltd: The company has filed preliminary papers on May 3 with capital markets regulator Sebi to raise Rs 3,500 crore. The IPO comprises a fresh issue of equity shares worth Rs 1,500 crore and an offer for sale of Rs 2,000 crore. The offer for sale comprises the sale of Rs 1,850 crore by Sanmar Holdings Ltd and Rs 150 crore by Sanmar Engineering Services Ltd.