Three IPOs to open next week to raise Rs. 1,858 crore

In the last few weeks, the face of the IPO market appears to have significantly improved. After a virtual lull over rate hike fears and inflation concerns, IPOs are back in a big way. In the first half of the month of November 2022, we saw a slew of IPOs including Five Star Business Finance, Archean Chemical Industries, Kaynes Technology, Inox Green Energy Services and Keystone Realtors (Rustomjee). The second half of November was relatively quiet with just two IPOs viz. Dharmaj Crop Guard and Uniparts India opening. The first week of December was relatively quiet, but in the coming week, we are expected to see a slew of IPOs hitting the market.

The coming week will be heavy on data with the US Fed meet, US inflation, India wholesale & Retail inflation, India IIP and trade numbers expected to be put out. Amidst this data overload, there are 3 IPOs that will be opening in the coming week and all of them would also close for subscription during the coming week itself. There is the IPO of Abans Holdings Ltd and the IPO of Sula Vineyards Ltd that will open on 12th December. While Sula Vineyards will close on 14th December, Abans will close on 15th December. The third IPO of the week is that of Landmark Cars that will open for subscription on 13th December and close for subscription on 15th December.

Here is a quick brief on the 3 IPOs opening next week with relevant details about the same.

1. Abans Holdings Ltd

Abans Holdings Ltd is a 13-year old company that is engaged in financial services, gold refining, jewellery, commodities trading, agricultural trading and warehousing. It is actually the financial services arm of the Abans Group. It provides the entire gamut of financial and capital market related services which includes lending, institutional trading, equity and commodity trade facilitation, investment advisory and high end wealth management for corporates and for HNI clients. Abans Holdings is registered with the RBI as a Non-Deposit taking NBFC. It also has membership of the BSE, NSE, MSEI, MCX and NCDEX. It operates through and extensive network of 17 subsidiaries. The IPO will be a mix of fresh issue and offer for sale with the fresh issue portion being used to buffer the capital base of its subsidiaries to facilitate the expansion of the asset book..

The Rs. 345.60 crore IPO comprises of a fresh issue of Rs. 102.60 crore and an offer for sale component of Rs. 243 crore. The issue will be lead managed by Aryaman Financial Services Ltd. Bigshare Services Private Limited will be the registrars to the issue.

2. Sula Vineyards Ltd

Sula Vineyards has built an iconic brand for itself in the last 19 years of its existence. It is India’s largest wine producer and seller catering to the increasing wine consumption in the Indian market. Sula Vineyards also distributes wines under umbrella brands like RASA, Dindori, Satori, Madera and Dia. Sula is the category creator for their wine franchise. Sula not only produces and sells wines but also imports wines. In addition it is also promoting wine tourism in India, which has a big market and this includes vineyard resorts and tasting rooms. Sula produces a total of 56 different labels of wine at six of its production centres located across the states of Maharashtra and Karnataka. It has also set up a massive distribution business with more than 13,000 retail touchpoints, with actual points of sale in excess of 23,000. This excludes their institutional business.

The entire IPO size of Rs. 960.35 crore is in the form of an offer for sale by existing promoters and early investors. The issue will be lead managed by Kotak Mahindra Capital, CLSA India and IIFL Securities. The registrar to the issue will be KFIN Technologies (formerly Karvy Computershare Ltd).

3. Landmark Cars Ltd

Landmark cars is a 24 year old company engaged in the premium automotive retail business in India. It has dealerships for premium brands like Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. Landmark Cars also caters to the commercial vehicle retail business of Ashok Leyland in India. Its service gamut includes sales of new vehicles, after-sales service and repairs, sales of pre-owned passenger vehicles and as well as facilitation of third-party finance and insurance products. Landmark Cars currently has 112 outlets across 8 Indian states with 61 sales showrooms and 51 after-sales service outlets.

The Rs. 552 crore IPO of Landmark cars comprises of a fresh issue of Rs. 150 crore and an offer for sale of Rs. 402 crore. The fresh issue proceeds will be utilized for debt repayment. The issue will be lead managed by Axis Capital and ICICI Securities Ltd. Link Intime India Private Limited will be the registrars to the issue.

The three issues above will raise a total sum of Rs. 1,858 crore between them next week.