Four IPOs worth ₹5,000 crore to open this week: All you need to know

• Archean Chemicals Industries, Five Star Business Finance, Kaynes Technology India and Inox Green Energy Services will launch their issues this week.
• These four companies collectively plan to raise ₹5,000 crore from the public this week. This comes on the back of last week’s four IPO launches.
• Lately, the secondary market has been under pressure tracking global markets after the US and other central banks hiked interest rates.

India’s IPO market is seeing a lot of action even as the secondary market comes under pressure following interest rate hikes from central banks in the US and elsewhere. Four companies have lined up to launch their initial public offering (IPOs) this week – Archean Chemicals Industries, Five Star Business Finance, Kaynes Technology India and Inox Green Energy Services.

These four companies collectively plan to raise about ₹5,000 crore from the public. Last week, between Oct 31-Nov 5, saw the launch of four IPOs – with two of them still ongoing.

Despite global risks impacting the domestic indices, some of the recent IPO debuts on the exchanges saw strong listing gains – Electronics Mart saw a 51% premium while Harsha Engineers witnessed a 36% premium.

Moreover, IPOs launched last week have also seen good subscriptions, including that of DCX Systems and Bikaji Foods International.

In 2022, the Indian benchmark indices have gained over 3% as domestic investors continue to infuse capital despite outflows by foreign institutional investors (FIIs) and macro concerns.

Archean Chemical Industries IPO to raise ₹1,462 crore
Specialty chemical company Archean Chemical Industries is set to open its ₹1,462 crore IPO, which includes a fresh issue of equity shares worth ₹805 crore and an offer for sale (OFS) of ₹657 crore.

The IPO will open on November 9 with a price band of ₹386-407 a share.

The company is a speciality marine chemical manufacturer in India, focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It claims to be the only manufacturer of ‘sulphate of potash’ from natural sea brine in India. ‘Sulphate of potash’ is a high-end, specialty fertiliser for chlorine-sensitive crops and also has medical uses.

Key geographies where the company exports its products include China, Japan, South Korea, Qatar, Belgium and the Netherlands. In FY22, it exported to 18 global customers across 13 countries.

The proceeds from the fresh issue of shares will be utilised towards redemption of non-convertible debentures, and for general corporate purposes.

Five Star Business Finance IPO to open on November 9
The IPO of Chennai-based non-banking financial corporation Five Star Business Finance is set to open on November 9 and close on November 11.

The price band of the IPO is set at ₹450-474 a share. Five Star Business Finance plans to raise ₹1,960 crore through a complete offer-for-sale by the company’s promoters and existing shareholders.

The company, which provides secured loans to micro-entrepreneurs and self-employed individuals, will not receive any funds raised from the IPO as all the shares are being sold by promoters.

Tamil Nadu, Karnataka, Andhra Pradesh and Telangana account for 85% of its overall portfolio.

The NBFC’s total income grew 19.5% from a year earlier to ₹1,254 crore in FY22, while its net profit grew 26.5% to ₹453 crore.

Kaynes Technology IPO to raise ₹857 crore
Mysore-based Kaynes Technology’s IPO worth ₹857 crore is all set to open on November 10 and close on November 14.

The IPO includes a fresh issue of shares worth ₹530 crore and an offer for sale by promoters and shareholders worth ₹327 crore.

Kaynes Technology is an internet-of-things (IoT) solutions-enabled integrated electronics manufacturing company.

The company’s business ranges from offering built-to-specification products, manufacturing printed circuit board assemblies (PCBA), to making smart metres, smart street lights and more. Kaynes Technology also offers product engineering and IoT solutions to industries as well as common users.

The company intends to use the proceeds of the issue for repaying some of its borrowings, funding capital expenditure requirements for expanding its manufacturing capacity, and for working capital needs.

Inox Green Energy Services to raise ₹740 crore
The IPO of wind power operation and maintenance service provider Inox Green Energy Services is set to open on November 11 and close on November 15.

The company plans to raise ₹740 crore through a fresh issue of shares worth ₹370 crore and offer for sale of up to ₹370 crore. The price band of the IPO is set at ₹61-65 a share.

The net proceeds from the fresh issue will be utilised towards repaying debts and for general corporate purposes.

The company is in the business of providing long-term operation and maintenance (O&M) services for wind farm projects, specifically the provision of O&M services for wind turbine generators (WTGs) and the common infrastructure facilities on the wind farm.

Inox Green Energy Services is a subsidiary of Inox Wind, which is listed on the exchanges.

The company provides O&M services to all customers who purchase WTGs from its parent company during the relevant warranty period as part of a one-stop shop/turnkey solution.

It is currently entirely dependent on its parent Inox Wind for business. It has said in its RHP that if the parent company were to choose another service provider for operation and maintenance services of their wind turbine generators, its business, financial condition and prospects may be adversely affected.

SEE ALSO: Inox Green Energy Services IPO set to open on Nov 11; price band at ₹61 to ₹65 a share
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