The IPO market is heated up. It has been raining IPOs in July with Zomato, Glenmark Life Sciences, Tatva Chintan and Rolex Rings Limited having an impressive opening on the bourses. In the first week of August, KFC, Pizza Hut and Costa Coffee operator Devyani international will launch IPOs next week followed by Krsnaa Diagnostics, Windlas Biotech, and Exxaro Tiles.
Here are the details
1) DEVYANI INTERNATIONAL
IPO opens: The three-day initial public offering (IPO) will open for subscription on August 4, and conclude on August 6,
It is the largest franchisee of Pizza Hut, KFC and Costa Coffee in India.
Price band: Rs 86-90 a share for its Rs 1,838-crore initial share-sale.
On offer: The IPO consists of fresh issue of equity shares worth Rs 440 crore and an offer-for-sale of up to 155,333,330 equity shares by promoter and existing shareholder.
Under the offer-for-sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will offload 6,53,33,330 shares and promoter RJ Corp will sell 9 crore shares.
The offer includes a reservation of up to 5.50 lakh equity shares for the company's employees.
Also, 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.
Investors can bid for minimum 165 equity shares and in multiples of 165 equity shares thereafter.
At the upper end of the price band, the IPO is expected to fetch Rs 1,838 crore.
Proceeds from the fresh issue will be used to retire debt and general corporate purposes.
Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major Pepsico, and has interests in the Indian retail F&B sector.
The company is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee besides its own brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.
It currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 2021 in India.
Devyani International is led by Ravi Kant Jaipuria, promoter of RJ Corp and Virag Joshi, President and CEO, who have been key strategists of the expansion efforts by the company.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors are the book running lead managers to the issue.
2) KRSNAA DIAGNOSTICS
The IPO opens on August 4 and will close on August 6
The IPO comprises fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of up to 94,16,377 shares by its existing shareholders, according to the draft red herring prospectus (DRHP).
The OFS comprises sale of 1.6 million shares by PHI Capital Trust-PHI Capital Growth Fund-I, up to 3.34 million shares by Kitara PIIN 1104, up to 3.56 million shares by Somerset Indus Healthcare Fund I Ltd and up to 21,380 shares by Lotus Management Solutions.
Those offering shares in the OFS are Phi Capital, Kitara, Somerset Indus Healthcare Fund I Ltd and Lotus Management Solutions.
The company, in consultation with its merchant bankers, may consider to raise Rs 200 crore in the pre-IPO placement.
Proceeds from the fresh issue will be used for financing the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh, and Maharashtra; repayment of loans availed by the company and general corporate purposes.
Krsnaa Diagnostics provides a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centres pan-India.
The company focuses on the public private partnership (PPP) diagnostics segment, and has the largest presence in the diagnostic PPP segment.
As of December 2020, the company operated 1,801 diagnostic centres offering both radiology and pathology services in 13 states across the country.
Rajendra Mutha is the promoter of the company. He holds a 29.53 percent stake in the company, while selling shareholders - Phi Capital, Somerset, and Kitara held 23.42 percent, 16.38 percent and 16.38 percent stake, respectively.
JM Financial Ltd, DAM Capital Advisors Ltd, Enquires Capital Pvt, and IIFL Securities have been appointed as merchant bankers to advise the company on the IPO.
3) WINDLAS BIOTECH
The three-day initial public offer (IPO) will open on August 4 and conclude on August 6
It has fixed a price band of Rs 448-460 a share for its initial share-sale. At the upper end of the price band, the initial share-sale will fetch Rs 401.53 crore.
The IPO comprises fresh issuance of equity shares worth Rs 165 crore and and an offer for sale of up to 5,142,067 equity shares.
As a part of the OFS, Vimla Windlass will offload 11.36 lakh equity shares, and investor Tano India Private Equity Fund II will sell 40,06,067 equity shares.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non institutional investors.
Windlas Biotech is a manufacturer of pharmaceutical formulations
The proceeds from the IPO will be utilised for purchasing of equipment required for capacity expansion of the facility at Dehradun Plant -IV and addition of injectables dosage capability at the facility at Dehradun Plant-II.
It will also be used for funding incremental working capital requirements, repayment/ prepayment of certain of borrowings and general corporate purposes.
Book running lead managers to the issue are SBI Capital Markets Ltd, DAM Capital ad IIFL Securities.
4) EXXARO TILES
The offer will open for subscription on August 4 and will close on August 6
Price band has been fixed at Rs 118-120 per share for its initial public offering with face value of Rs 10 per share.
The company will launch public issue of 1,34,24,000 equity shares next week comprising a fresh issue of 1,11,86,000 equity shares, and an offer for sale (OFS) of 22,38,000 equity shares by selling shareholder Dixitkumar Patel. The total offer size comes to Rs 161.08 crore. The offer includes a reservation of up to 2,68,500 equity shares for company's employees.
Exxaro Tiles will utilise the net proceeds from fresh issue for repaying debt (Rs 50 crore), and working capital requirements (Rs 45 crore).
Exxaro Tiles is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions. Its business operations are broadly divided into two product categories - double charge vitrified tiles, and glazed vitrified tiles.
It supplies products mainly in 6 sizes, and has more than 1,000 of designs in product basket, which are marketed under the rand 'Exxaro'.
Mukeshkumar Patel, Kirankumar Patel, Dineshbhai Patel, and Rameshbhai Patel - hold 55.19 percent equity stake in the company.
Pantomath Capital Advisors is the book running lead managers to the issue.