IPO craze continues; 2 public issues to open next week for subscription

The current month will continue to be a busy one for the primary market, as two companies --Tarsons Products and Go Fashion (India) Ltd -- are set to float their IPOs next week to collectively raise Rs 2,038 crore.

The three-day IPO of life sciences firm Tarsons Products will open on November 15 and conclude on November 17, while that of Go Fashion, which owns women's wear brand Go Colors, will open for public subscription during November 17-22.

This comes after eight firms have successfully concluded their initial public offerings (IPOs) in November so far.

These eight firms are -- One 97 Communication, owner of Paytm; FSN E-Commerce Ventures, which runs online marketplace Nykaa, Policybazaar's parent entity PB Fintech, Fino Payments Bank, Latent View Analytics, Sapphire Foods India, SJS Enterprises and Sigachi Industries.

So far in 2021, as many as 49 companies have floated their IPOs to raise Rs 1.01 lakh crore, according to an analysis of data with exchanges.

Apart from these, PowerGrid InvIT, the infrastructure investment trust (InvIT) sponsored by the Power Grid Corporation of India, mopped-up Rs 7,735 crore through its IPO and Brookfield India Real Estate Trust raised Rs 3,800 crore via its initial share sale.

Also read: Paytm share allocation likely on November 16 at Rs 2,150 apiece

The fundraising so far this year is way higher than Rs 26,611crore collected by 15 companies through initial share-sales in the entire 2020.

Such impressive fundraising through IPOs was last seen in 2017 when firms mobilised Rs 67,147 crore through 36 initial share sales.

Individually, Tarsons Products and Go Fashion are looking to raise Rs 1,024 crore and Rs 1,014 crore, respectively, through their public listing of shares.

Tarsons Products' initial share sale comprises fresh issuance of equity shares worth Rs 150 crore an offer for sale of 1.32 crore equity shares by promoters and an investor.

As a part of the OFS, promoters -- Sanjive Sehgal will offload up to 3.9 lakh equity shares, and Rohan Sehgal will sell up to 3.1 lakh equity shares -- and investor Clear Vision Investment Holdings Pte Ltd will divest up to 1.25 crore equity shares.

The IPO price band has been set at Rs 635-662 a share, and at the upper end of the price band, the public issue is expected to fetch Rs 1,024 crore.

Proceeds from the fresh issue will be utilised towards paying debt, funding a part of the capital expenditure for the new manufacturing facility at Panchla in West Bengal, and general corporate purposes.

On Friday, Tarsons Products raised Rs 306 crore from anchor investors.

Go Fashion's IPO comprises a fresh issue of equity shares aggregating up to Rs 125 crore and an offer for sale of up to 12,878,389 equity shares by the promoter and existing shareholders.

Under the OFS, PKS Family Trust and VKS Family Trust are going to offload 7.45 lakh equity shares each, Sequoia Capital India Investments will sell up to 74.98 lakh shares, India Advantage Fund S4 I will divest up to 33.11 lakh shares and Dynamic India Fund S4 US I will sell up to 5.76 lakh shares.

Currently, PKS Family and VKS Family Trust hold 28.74 per cent stake each in the company, Sequoia Capital holds 28.73 per cent stake, India Advantage Fund has a 12.69 per cent stake, and Dynamic India Fund owns a 1.1 per cent stake in the firm.

The company has fixed a price band of Rs 655-690 apiece for the issue, and at the upper end of the price band, the IPO is expected to garner Rs 1,013.6 crore.

Proceeds from the fresh issue will be used to fund the rollout of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.

The equity shares of both companies will be listed on BSE and NSE.

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