This year’s stock market debutants’ journey started on a bumpy note. This was due to geopolitical factors that soured investor sentiment. Sky-high inflation, the war between Ukraine and Russia and the sale of FII weighed heavily on the IPO market. However, as market sentiment has reversed, IPOs (initial public offerings) are now gaining momentum. Here are three IPOs in line for those looking to invest.
Tamilnad Mercantile Bank IPO
Tamilnad Mercantile Bank has set a price range of Rs 500-525 per share for its initial public offering. Earlier, the company said the IPO will open for subscription on September 5 and close on September 7.
The IPO is a new issue of 1.58 crore shares. At the higher end of the price range, the company will fetch approximately Rs 831.60 crore from the issuance. Axis Capital, Motilal Oswal, SBI Capital Markets are the leading managers of the matter.
Anchor book bids begin on September 2. Shares will be allocated to successful investors’ dematerialized accounts on September 14 and shares will make their market debut on September 15.
One of the oldest private sector banks in the country, Tamilnad Mercantile Bank provides a range of banking and financial services mainly to micro, small and medium-sized enterprises, agricultural and retail clients.
Oravel continues to go public
Oravel Stays, also known as OYO Rooms, submitted its prospectus in October 2021. The prospectus was approved in January 2022.
According to the prospectus, the company plans to issue new capital of ₹70 billion. The other Rs 14.3 billion will be obtained through the sale of shares by investors. The IPO is expected to start sometime in 2022. The money generated will be used to repay debt and finance its growth initiatives.
OYO is a leading new-age technology platform. It strengthens the fragmented global hospitality ecosystem. The company’s focus is on short-stay accommodation.
It has the largest footprint in hotel windows in India and abroad. It has a low asset business model as the company does not own the storefront listed on its platform. As part of the expansion, it has added 1,250 businesses since March 2022. It recently started focusing on the brands categories in the mid-range and premium segment.
Digit Insurance IPO
The general insurer, backed by Canadian billionaire Prem Watsa, has submitted draft documents for an IPO. According to the documents, the company aims to raise Rs 1,250 crore from a new share issue and through a sale offer of 109.4 million 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 offers auto, health, travel, fire and other small travel insurance. Auto insurance accounts for more than half of the startup’s gross written premiums. The startup was the first unicorn of 2021, a year in which 44 companies were valued at $1 billion or more.
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