The journey of this year’s stock market debutants started on a bumpy note. This was due to geopolitical factors that soured investor sentiment. Sky-high inflation, the Ukraine-Russia war, and FII selling weighed heavily on the IPO market. However, as market sentiment has reversed, IPOs (initial public offerings) are now gaining traction. Here are three IPOs next in line for those looking to invest.
Tamilnad Mercantile Bank IPO
Tamilnad Mercantile Bank has set a price band of Rs 500-525 a share for its initial public offering. Earlier, the firm said its IPO will open for subscription on September 5 and close on September 7.
The IPO is a fresh issue of 1.58 crore shares. On the upper end of the price band, the firm will raise around Rs 831.60 crore from the issue. Axis Capital, Motilal Oswal, SBI Capital Markets are the lead managers to the issue.
The anchor book bidding will start on September 2. Shares will be allotted to dematerialised accounts of successful investors on September 14 and stock will make its market debut on September 15.
One of the oldest private sector banks in the country, Tamilnad Mercantile Bank offers a range of banking and financial services primarily to micro, small and medium enterprises, agricultural and retail customers.
Oravel Stays IPO
Oravel Stays, also known as OYO Rooms, filed its prospectus in October 2021. The prospectus got approval in January 2022.
According to the prospectus, the company plans to issue fresh capital of ₹ 70 bn. The other Rs 14.3 bn will be through stake sales by investors. The IPO is expected to launch sometime in 2022. The cash generated will be used for the repayment of debt and funding of its growth initiatives.
OYO is a leading new-age technology platform. It empowers the fragmented global hospitality ecosystem. The company’s focus is on short-stay accommodation.
It has the largest footprint in hotel storefronts in India and overseas. It has an asset-light business model, as the company does not own the storefront listed on its platform. As a part of the expansion, it has added 1,250 corporates since March 2022. It is recently focusing on the mid and premium segment brand categories.
Digit Insurance IPO
The general insurer, backed by Canadian billionaire Prem Watsa, has filed draft documents for an IPO. According to the documents, the company is looking to raise Rs 1,250 crore from a fresh issue of shares and through an offer for sale of 109.4 million equity shares for an undisclosed amount.
The total size of the IPO is likely to be around Rs 5,000 crore, according to a source quoted by Moneycontrol. Digit provides motor, health, travel, fire and other small-ticket insurance. Motor insurance makes up more than half of the startup’s gross written premiums. The startup was the first unicorn of 2021, a year that saw 44 companies being valued at $1 billion or more.
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