New Delhi: This week, Dalal Street will witness the listing of four different companies as they prepare to launch their initial public offering (IPO).
The upcoming public list includes companies such as Rakesh Jhunjhunwala-backed footwear company Metro Brands, distribution technology company RateGain, real estate firm Shriram Properties and digital map maker MapmyIndia. These four companies plan to raise over Rs 4,100 crore through IPOs. According to market analysts, the option will be spoiled for investors as these companies may get enough traction during the listing.
RateGain Travel, one of the largest software services companies in the hospitality and travel industry in India, will open subscriptions for its shares on Tuesday (December 7) as South India-based real estate developer Shriram Group’s Shriram Properties will launch an IPO on December 8. A day later, CE Info Systems, which is popular for its brand MapmyIndia, will launch its IPO on December 9, and is yet to reveal its price band and lot size.
The Jhunjhunwala-promoted footwear specialty retailer Metro Brands, backed by Rakesh Jhunjhunwala, will open for subscription on December 10, just a week after another firm hit the primary market. However, Star Health and Allied Insurance did not receive a good response from investors and was subscribed only 79 per cent.
RateGain Travel Technologies
RateGain’s IPO will open on Tuesday (December 7) and close on December 9. The size of the IPO is Rs 1,336 crore. Rate Gain has fixed a price band of Rs 405-425 per share. The lot size is placed at 35 shares. That is, according to the upper price band, investors will have to invest at least Rs 17,875. New shares worth Rs 375 crore will be issued under this IPO. At the same time, about 2.26 crore equity shares will be sold under the offer for sale (OFS). 75 per cent of the issue is reserved for qualified institutional investors (QIBs), 15 per cent for non-institutional investors (NIIs) and 10 per cent for retail investors. The proceeds of the IPO will be used by the company for debt repayment, inorganic development and general corporate purposes.
Shriram Properties
The IPO of South Indian real estate firm Shriram Properties is opening on Wednesday (December 8). It will be open for investment till December 10. The issue size is Rs 600 crore and the price band has been fixed at Rs 113-118 per share. The issue lot size is 125 shares. According to the upper price of the price band, investors will have to invest at least Rs 14,750. The issue will open for anchor investors on Tuesday. In FY2011, the company reported a loss of Rs 68.17 crore as against a loss of Rs 86.39 crore a year ago. During the same period, its revenue from operations declined to Rs 431.5 crore from Rs 571.96 crore.
Metro Brand
The IPO of footwear retail firm Metro Brands will be open from December 10 to December 14. Rakesh Jhunjhunwala, who holds a stake in this firm, plans to raise Rs 1,000 crore through this issue. New equity shares worth Rs 295 crore will be issued, while existing promoters and other shareholders of the company will sell 2.14 crore equity shares under the offer for sale (OFS). After this sale of shares, the promoters’ stake in the company will come down by about 10 per cent to 75 per cent. Metro Brands sells footwear products for all occasions including casual and formal events.
mapmyindia
The IPO of digital map maker MapMyIndia will open on December 9 and close on December 13. The company plans to raise Rs 1,200 crore through listing. MapmyIndia has fixed a price band of Rs 1,000-1,033 per share. Mapmyindia’s IPO will be purely an Offer for Sale (OFS) and lot size is capped at 14 shares. Investors have to invest a minimum of Rs 14,462 and the maximum amount that can be invested is Rs 1,88,006.
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