Two IPOs confirmed for coming week and third possibly joining the fray

In the last few weeks, the face of the IPO market appears to have drastically changed to the extent that November has become the month of record number of IPO listings for 2022. Even over the last 10 years, November 2022 will go down as one of the best 4 months in terms of the number of listings. This is especially gratifying as it comes after a virtual lull over rate hike fears and inflation concerns. IPOs are back with a bang and the good news is that, this time around, it is not just the SME IPOs but the mainboard IPOs too are in a state of frenzy. In the current week 3 IPOs have opened and also closed viz. the IPOs of Landmark Cars, Sula Vineyards and Abans Holdings.

Remember, the coming week is the last big trading week before most companies, and especially the FPIs, will go on Christmas and New Year vacation. There are 2 IPOs confirmed to open in the coming week and one more may join the fray. However, these are the mainboard IPOs and the SME IPOs are a separate ball game. There is the IPO of KFIN Technologies Ltd that will open on 19th December and closes on 21st December. The other confirmed IPO will be that of Elin Electronics that will open on 20th December and close for subscription on 22nd December. There is also the IPO of Radiant Cash Management Services that is possibly slated for next week, but the dates are yet to be announced.

Here is a quick brief on the 2 confirmed IPOs opening next week with relevant details about the same.

1. KFIN Technologies Ltd

KFIN Technologies Ltd (formerly Karvy Computershare Ltd) is a technology-driven financial services platform specializing in offering top of the line registrar and investor services to equity shareholders and to mutual fund unitholders. KFIN caters to asset managers and corporate issuers across asset classes in India as well as in select Asian economies like Malaysia, the Philippines and Hong Kong. KFIN is India's largest investor solutions provider to Indian mutual funds, based on number of AMC clients serviced. Apart from equity and MF registry services, KFIN also caters to alternative investment funds (AIFs), wealth managers and is a record-keeper to the National Pension System (NPS) in India. The product offerings of KFIN Technologies can be broadly bracketed under Investor solutions, Issuer solutions and global shareholder services. General Atlantic is the largest shareholder promoter of KFIN Technologies while Kotak Mahindra also has a 10% stake in KFIN.

It is entirely an offer for sale, so there are no fresh funds coming into the company. The issue size had been cut from a proposed Rs. 2,600 crore to Rs. 1,500 crore considering the market conditions. The issue will be lead managed by ICICI Securities, Kotak Mahindra Capital, JP Morgan, IIFL Securities and Jefferies India. Bigshare Services Private Limited will be the registrars to the issue.

2. Elin Electronics Ltd

Elin Electronics Limited is a 53 year old company and is a leading electronics manufacturing services (EMS) provider. It offers end-to-end product solutions for major brands of electrical and kitchen appliances in India. It offers the whole gamut from manufacturing to managing to testing and marketing of products. Elin caters to the original equipment manufacturer (OEM) market and also the original design manufacturer (ODM) markets, as part of its existing business model. Its impressive product portfolio includes, inter alia, LED lighting, fans and switches, modular switches and sockets, dry and steam irons, toasters, hand blenders, mixer grinders, hair dryers. It also makes fractional horsepower motors used in mixer grinder, hand blender, wet grinders etc.

Elin Electronics operates out of 3 manufacturing facilities located in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh) and Verna (Goa). Its core USP includes a centralized R&D centre focusing on R&D of all aspects of OEM and ODM models. This includes concept sketching, design refinement, generating optional features and also testing.

The issue is a combination of fresh issue of Rs. 175 crore and an offer for sale of Rs. 300 crore. The fresh issue proceeds will be used for repayment of loans and for funding capex. The issue will be lead managed by Axis Capital and JM Financial. The registrar to the issue will be KFIN Technologies Limited.

SME IPOs slated for the coming week

Apart from the mainboard IPOs slated for the coming week, there are also some key SME IPOs for next week.

1. Homesfy Realty Ltd IPO opens on 21st December and closes for subscription on 23rd December. It is a Proptech company and is an NSE SME IPO.
    

2. Moxsh Overseas Educon Ltd IPO opens on 21st December and closes for subscription on 23rd December. It is a learning solutions company and is an NSE SME IPO.
    

3. RBM Infracon Ltd IPO opens on 23rd December and closes for subscription on 27th December. It is an engineering company and is an NSE SME IPO.