IPO: Busy IPO week ahead: 3 issues worth Rs 2,387 crore to hit primary market

NEW DELHI: Three initial public offers (IPOs) will hit the primary market next week in order to raise a total of Rs 2,387 crore. The first IPO is by a fertilizer company Paradeep Phosphates, which will open on Tuesday, May 17. The IPO by luxury watch retail player Ethos will open on Wednesday, May 18. And the IPO by eMudhra, India’s largest licensed certifying authority, will open on Friday, May 20.

In the case of Rs 1,502 crore Paradeep Phosphates, the company has already raised Rs 450 crore from anchor investors, including Goldman Sachs,

Arbitrage, Kuber India Fund, Copthall Mauritius Investment and Societe Generale.

The issue comprises fresh issuance of equity shares worth Rs 1,004 crore and an offer for sale (OFS) component of 11.85 crore equity shares. As part of the OFS,

Maroc Phosphates will offload 60,18,493 equity shares and the Government of India will sell up to 11,24,89,000 equity shares. The government will be offloading its entire 19.55 per cent stake in the company.



The price band of the issue is set at Rs 39-42 per share.

In the case of Ethos, the price band for the Rs 472-crore IPO has been fixed at Rs 836-878. This public offer consists of a fresh issue of equity shares aggregating to Rs 375 crore and an offer-for-sale (OFS) of up to 1,108,037 equity shares.

Ethos has 50 physical retail stores in 17 cities in India in a multi-store format, and offers an omni-channel experience to its customers through its website and social media platforms.

As a part of the OFS, shareholders including Yashovardhan Saboo, KDDL, Mahen Distribution, Ventures LLP, Anuradha Saboo, Jai Vardhan Saboo, VBL Innovations, Anil Khanna and Nagarajan Subramanian, among others, will sell shares.

Half of the issue size of Ethos IPO is reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 17 equity shares and in multiples thereafter.

The company’s revenue from operations stood at Rs 386.57 crore for fiscal 2021, while its net profit was Rs 5.78 crore in the same period.

Meanwhile, the Rs 412.79-crore IPO of digital signature certificates provider eMudhra will open for the public on May 20 and conclude on May 24. The bidding for anchor investors will open on May 19.

The company has cut the size of the fresh issue from Rs 200 crore to Rs 161 crore. This follows the Bengaluru-based company allocating 16,03,617 shares for Rs 39 crore under a pre-IPO placement. Besides, there will be an offer for sale of 98.35 lakh shares by promoters and existing shareholders.

As part of the OFS, promoters Venkatraman Srinivasan and Taarav Pte Ltd will offload 32.89 lakh equity and 45.16 lakh equity shares, respectively.

In addition, Kaushik Srinivasan will divest 5.1 lakh equity shares, Lakshmi Kaushik 5.04 lakh equity shares, and Arvind Srinivasan, 8.81 lakh equity shares and Aishwarya Arvind 1.33 lakh equity shares.

Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data centres proposed to be set up in India and overseas locations. The amount will also be used to develop products, investment in eMudhra INC and for general corporate purposes.

The company is engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations functioning in various industries.

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The Economic Times