Around 35 companies have received approval for initial public offerings (IPOs), but only three IPOs — SBI Cards IPO, Rossari Biotech Ltd, and Mindspace Real Estate Investment Trust — have hit the market in 2020.
The COVID-19 pandemic and the instability factor surrounding it have discouraged a few companies from going ahead with IPO. However, other companies are still going ahead with their IPO at this volatile time. FPJ looks at some upcoming IPOs this year.
Here is the list of the IPOs and how much are they looking at raising:
Happiest Minds Technologies: The Bengaluru-based IT speciality company Happiest Minds Technologies is promoted by Ashok Soota, an IT marquee who has been associated with Wipro and Mindtree in the past. This company is looking at raising Rs 702 crore with this IPO as a book-building exercise. Meanwhile, the company has already raised a total of Rs 315.91 crore from 25 anchor investors. The Government of Singapore, Pacific Horizon Trust, Kuwait Investment Auth Fund, and nine mutual funds among many others have come on board as anchor investors.
The IPO will open for subscribers on September 7 and will close on September 9. The company has fixed the issue price band at Rs 165-166 per piece.
Route Mobile: This is the next IPO in the pipeline, which will launch its initial public offering on September 9. While the investment by anchor investors will be finalised on September 8, the issue will close on September 11. Omnichannel cloud communication service (CPaaS) provider, Route Mobile, is looking at raising around Rs 600 crore at an issue price band of Rs 345-350 per piece. The money raised would be utilised for the repayment or pre-payment, acquisition and other strategic initiatives.
The company has served more than 30,150 clients as of June 30, 2020. The company is involved in enterprises, mobile operator, and business process outsourcing for clients across Africa, Asia Pacific, Europe, the Middle East and North America.
Computer Age Management Services (CAMS): This is a mutual fund transfer agency to the Indian Asset Management Companies. Founded in 1988, CAMS is co-owned by NSE Investments Limited, HDFC Bank group, Warburg Pincus LLC and Acsys Investments Private Limited (the founding promoter).
In July, CAMS received market regulator Sebi's approval to raise an estimated Rs 1,500-1,600 crore through IPO. It is expected that the IPO will be out this calendar year.
Meanwhile, the National Stock Exchange of India (NSE) has decided to withdraw directorship in CAMS and divest 12.5 per cent of its stake from the company. The company is looking at exiting from the remaining stake — 24.5 per cent — on a later day.
Chemcon Speciality Chemicals: The company has filed draft papers with the SEBI for the IPO. Vadodara-based Chemcon Speciality Chemicals Ltd is expected to raise around Rs 350 crore via IPO route. The company is expected to launch its IPO in September this year. The proposed IPO comprises an issue of fresh shares worth Rs 175 crore and a sale of 2.15 million shares each by promoter Kamalkumar Rajendra Aggarwal and promoter group individual Naresh Vijaykumar Goyal.
The company specialises in the manufacture of Calcium bromide, Sodium bromide, and Zinc Bromide. It caters to oil and gas companies, API (Active Pharmaceutical Ingredient) manufacturers, and also contract manufacturing solutions.
Gland Pharma: Hyderabad-based Gland Pharma has filed its draft red herring prospectus with the regulator for an IPO. Chinese drug firm Fosun Pharma-backed Gland Pharma is expected to raise somewhere around Rs 2,000 crore. During the IPO, the fresh issue of shares would be worth up to Rs 1,250 crore.
The company was founded in 1978, later acquired by Fosun Pharma. The company has a global presence in about 60 countries in five continents. The company is involved in a wide range of injectables, including vials, ampoules, pre-filled syringes, lyophilised vials, dry powders, infusions, oncology and ophthalmic solutions. The company has established a portfolio of products across various therapeutic segments such as anti-diabetic, anti-infectives, anti-malaria, anti-neoplastic, blood-related, cardiac, and gastro-intestinal among others.
Kalyan Jewellers: Kerala-based Kalyan Jewellers filed for an initial public offering (IPO) to raise around Rs 1,700 crore. This will be the largest IPO in the gold sector.
The timing of the IPO comes at the time when gold prices in the country and around the world have seen a sharp rise, yet there is some level of volatility around this metal. The IPO comprises Rs 1,000 crore of fresh issue and Rs 750 crore offer for sale by promoter T S Kalyanaraman and Highdell Investment, a Warburg Pincus firm, according to DRHP.
Jewellers has 107 showrooms located across 21 states and union territories in India. It also has an international presence with 30 showrooms located in the Middle East.
