Three IPOs to open next week to raise Rs4,280 crore

In the last 2 weeks, the face of the IPO market appears to have drastically changed. After a virtual lull over rate hike fears and inflation concerns, IPOs are back with a bang. This time it is not just the SME IPOs but the mainboard IPOs that are in a state of frenzy. In the current 4 IPOs have opened viz. the IPOs of DCX Systems, Fusion Microfinance, Bikaji Foods International and Global Health (Medanta Hospitals). While DCX Systems and Fusion Microfinance have also closed their IPOs in this week, the IPOs of Bikaji Foods and Global Health (Medanta Hospitals) will only close on Monday next week.

Remember, the coming week is a truncated week with 08ths November being a holiday on account of Guru Nanak Jayanti. Despite the shortened week, there are 3 IPOs that will be opening in the coming week. There is the IPO of Five Star Business Finance Ltd and the IPO of Archean Chemical Industries that will open on 09th November. In addition, there is also the IPO of Kaynes Technology India Ltd that will open on the 10th of November.  While the IPOs of Five Star Business Finance and the IPO of Archean Chemical Industries will close on next Friday, the IPO of Kaynes Technology will only close in the week after that.
Here is a quick brief on the 3 IPOs opening next week with relevant details about the same.

    1. Five Star Business Finance Ltd

Five Star Business Finance is a non-deposit taking systemically important NBFC (NBFC-ND-SI) which provides secured business finance to micro-entrepreneurs and self-employed persons. It offers through a network of 311 branches across 8 Indian states and caters to around 150 plus districts across. It is predominantly south-India focussed. It employs over 4,300 workers and has provided finance to over 185,000 customers. Their current AUM stands at Rs3,000 crore. Its loan book exceeds Rs25,000 core as of FY22 close. Here are some fundamental details of the public issue of Five Star Business Finance. 

It is entirely an offer for sale, so there are no fresh funds coming into the company. The issue will be lead managed by ICICI Securities, Edelweiss Financial Services, Kotak Mahindra Capital and Nomura Financial Advisory. KFIN Technologies Limited will be the registrars to the issue.

    2. Archean Chemical Industries Ltd

Archean Chemical Industries Limited is India's largest exporter of bromine as well as of industrial salts. It is also India’s leading speciality marine chemical manufacturer. Additionally, it also exports sulphate of potash. It has a total of 24 domestic institutional customers and 18 international customer spread across 13 countries. Archean Chemical Industries has its production facility for the bromine, industrial salt, and sulphate of potash operations, located at Hajipir, Gujarat. The location is strategic considering its proximity to the Rann of Kutch brine fields. Here are some basic details of the issue.

The issue is a combination of fresh issue of Rs805 crore and an offer for sale of Rs657.31 crore. The fresh issue proceeds will be used for redemption of NCDs. The issue will be lead managed by IIFL Securities, ICICI Securities and JM Financial. The registrar to the issue will be Link Intime Private Limited.

    3. Kaynes Technology India Ltd

Kaynes Technology is a 15 year old company offering Internet of Things (IOT) solutions-enabled integrated electronics manufacturer. It offers conceptual design, process engineering, integrated manufacturing and life-cycle support for IOT solutions to sectors ranging from automobiles, aerospace, defence, railways etc. It offers its services directly to the original equipment manufacturers (OEMs). Its business verticals include Turnkey Solutions, product engineering, IOT solutions etc. It has a total of 8 manufacturing facilities across India. It has 229 clients across 21 countries. Here are some basic details of the issue.

The IPO comprises of a fresh issue of Rs.530 crore and an offer for sale of Rs.327.82 crore. The fresh issue proceeds will be utilized for funding capex and debt repayment. The issue will be lead managed by IIFL Securities and DAM Capital Advisors (formerly IDFC Securities). Link Intime India Private Limited will be the registrars to the issue.