Get ready for a week of IPO frenzy! Next week is shaping up to be one of the biggest IPO weeks of the year, with four major companies hitting the market. From Bajaj Housing Finance to P N Gadgil Jewellers, Kross, and Tolins Tyres, there’s a diverse range of offerings to consider.
With a combined issue size of a staggering ₹14,660 crore, next week’s IPO bonanza will surely attract much attention. But are you ready to dive into the details and figure out which IPOs align with your investment goals? Let’s break down the key points to help you make informed decisions.
Bajaj Housing Finance Limited
| Offer Price | ₹66 – ₹70 per share |
| Face Value | ₹10 per share |
| Opening Date | 9 September 2024 |
| Closing Date | 11 September 2024 |
| Total Issue Size (in Shares) | 937,142,858 |
| Total Issue Size (in ₹) | ₹6,560 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 214 Shares |
| Listing at | BSE, NSE |
The total issue size is ₹6,560 crore, with a fresh issue of ₹3,560 crore and an offer-for-sale (OFS) of ₹3,000 crore by Bajaj Finance, its promoter. The price band is set at ₹66 – ₹70 per share. Here’s the exciting bit – existing shareholders of Bajaj Finance or Bajaj Finserv can apply under a special quota with a reservation of up to ₹500 crore. This category allows bids for over 2,000 shares up to a value of ₹2 lakh, but only bids at or above the offer price will be considered.
Objectives of the IPO
The company intends to utilize the net proceeds from the IPO to:
- Augment Capital Base: Increase its capital base to support future business growth and expansion.
- Meet Future Business Requirements: Strengthen its financial position to meet the increasing demand for housing finance products and services.
- Onward Lending: Utilize the additional capital to provide more loans and support the housing finance sector.
Grey Market Premium
The Grey Market Premium (GMP), an unofficial indicator of investor interest, currently sits at ₹53 (as of September 6th, 2024). This suggests a potential listing price of ₹123 (capped price + today’s GMP), which translates to a possible gain of over 75% on your investment. However, remember, GMP is not a guaranteed indicator of actual listing price or future performance.
Company Overview
Established in 2008, Bajaj Housing Finance offers a range of housing finance solutions, including home loans, loans against property (LAP), rent concessions, and developer finance. As of March 31, 2024, they boasted over 308,000 active customers, with home loans accounting for over 80%. They have a well-established network of 215 branches across 20 states and three union territories.
Financial Strength
Between the financial years ending March 31, 2023, and March 31, 2024, the company’s revenue increased by 34%. This growth indicates a rising demand for its housing finance products and services.
Additionally, the company’s profit after tax (PAT) rose by 38% during the same period. This significant increase in profitability highlights the company’s efficiency in managing its operations and generating returns for its shareholders.
SWOT Analysis
| STRENGTHS | WEAKNESSES |
| Strong brand recognition as part of the Bajaj Group. Diversified product portfolio catering to various housing finance needs. Extensive network of branches for customer reach. Demonstrated track record of growth in revenue and profitability. | Relatively new entrant compared to established public sector banks. Reliant on wholesale borrowings, making it vulnerable to interest rate fluctuations. High competition in the housing finance sector. |
| OPPORTUNITIES | THREATS |
| Growing demand for homeownership in India. Government initiatives promoting affordable housing. Potential for expansion into new markets and product categories. | Rising interest rates impacting loan affordability. Economic slowdown potentially leading to increased delinquencies. Regulatory changes in the housing finance sector. |
Kross Limited
| Offer Price | ₹228 – ₹240 per share |
| Face Value | ₹5 per share |
| Opening Date | 9 September 2024 |
| Closing Date | 11 September 2024 |
| Total Issue Size (in Shares) | 20,833,334 |
| Total Issue Size (in ₹) | ₹500 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 62 Shares |
| Listing at | BSE, NSE |
Kross Limited, a leading manufacturer of trailer axles and suspensions, is set to launch its IPO on 9th September. The issue comprises a combination of fresh issues and offers for sale, with a total issue size of ₹500 crore. The price band is set at ₹228-240 per share, and the minimum lot size for retail investors is 62 shares.
The IPO is expected to be listed on the BSE and NSE on 16th September. The minimum amount of investment required by retail investors is ₹14,880. The minimum lot size investment for sNII is 14 lots (868 shares), amounting to ₹208,320; for bNII, it is 68 lots (4,216 shares), amounting to ₹1,011,840.
Objectives of the IPO
The company plans to utilize the net proceeds from the IPO for the following purposes:
- Capital Expenditure: Funding the purchase of machinery and equipment for manufacturing operations.
- Debt Repayment: Repaying or prepaying outstanding borrowings.
- Working Capital: Funding day-to-day operations and ensuring sufficient liquidity.
- General Corporate Purposes: Supporting other general business activities.
GMP
The Grey Market Premium (GMP) for Kross Limited IPO has not yet been established.
Company Overview:
Kross Limited has operated since 1991 and is a leading supplier of trailer axles and suspensions for medium and heavy-duty commercial vehicles and agricultural equipment. The company has a strong product portfolio, including axle shafts, companion flanges, anti-roll bars, etc. Kross Limited has five manufacturing facilities in Jamshedpur, Jharkhand, which are equipped with modern machinery and technology.
Financial Performance:
Kross Limited has demonstrated robust financial performance, with revenue increasing by 27% and profit after tax (PAT) rising by 45% between 2023 and 2024. This growth indicates the company’s ability to capitalize on market opportunities and improve its operational efficiency.
SWOT Analysis
| STRENGTHS | WEAKNESSES |
| Strong market position as a leading manufacturer of trailer axles and suspensions. Diverse product portfolio catering to various segments of the commercial vehicle industry. Well-established manufacturing facilities with modern equipment. Proven track record of financial growth and profitability. | Dependence on a few key customers in the commercial vehicle industry. Potential competition from other players in the market. Exposure to fluctuations in raw material prices. |
| OPPORTUNITIES | THREATS |
| Growing demand for commercial vehicles in India. Government initiatives supporting infrastructure development. Potential for expansion into new markets and product segments. | Economic slowdown or recession impacting the demand for commercial vehicles. Changes in government policies or regulations affecting the industry. Increased competition from domestic and international players. |
Tolins Tyres Limited
| Offer Price | ₹215 – ₹226 per share |
| Face Value | ₹5 per share |
| Opening Date | 9 September 2024 |
| Closing Date | 11 September 2024 |
| Total Issue Size (in Shares) | 10,176,992 |
| Total Issue Size (in ₹) | ₹230 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 66 Shares |
| Listing at | BSE, NSE |
Tolins Tyres Limited, a leading tyre manufacturing company, is set to launch its IPO on [date]. The issue comprises a combination of fresh issue and offer for sale, with a total issue size of ₹500 crore. The price band is set at ₹215-226 per share, and the minimum lot size for retail investors is 66 shares.
The IPO is expected to list on the BSE and NSE on 16th September. The minimum lot size investment for sNII is 14 lots (924 shares), amounting to ₹208,824; for bNII, it is 68 lots (4,488 shares), amounting to ₹1,014,288.
Objectives of the IPO:
The company plans to utilize the net proceeds from the IPO for the following purposes:
- Debt Repayment: Repaying or prepaying outstanding loans.
- Working Capital: Funding day-to-day operations and ensuring sufficient liquidity.
- Investment in Subsidiary: Investing in Tolin Rubbers Private Limited to support its operations and financial needs.
- General Corporate Purposes: Supporting other general business activities.
Grey Market Premium
The Grey Market Premium (GMP) for the Tolins Tyres IPO was ₹25. This indicates that investors are willing to pay ₹25 more than the upper price band of ₹226 per share in the grey market. Considering the GMP, the estimated listing price for the IPO is ₹251 (₹226 + ₹25). This suggests a potential gain of 11.06% per share if the stock lists at the estimated price.
Company Overview:
Established in 2003, Tolins Tyres Limited is a well-established player in the tyre manufacturing industry. The company offers many tires, including two-wheelers, three-wheelers, light commercial vehicles, and agricultural tires. Tolins Tyres also manufactures tread rubber and other tyre accessories.
Key Strengths:
- Diverse Product Portfolio: The company offers many tyres to cater to various customer needs.
- Manufacturing Expertise: Tolins Tyres has strong manufacturing capabilities and operates modern facilities.
- Global Presence: The company exports its products to over 40 countries, demonstrating its international reach.
- Quality Certifications: Tolins Tyres has obtained ISO 9001:2015 and IATF 16949:2016 certifications, indicating its commitment to quality standards.
Financial Strength
| Tolins Tyres Limited Financial Information (Restated Consolidated in ₹Cr. ) | |
| Period Ended | 31 Mar 2024 |
| Assets | 221.6 |
| Revenue | 228.69 |
| Profit After Tax | 26.01 |
| Net Worth | 100.53 |
| Reserves and Surplus | 85.07 |
| Total Borrowing | 78.77 |
SWOT Analysis
| STRENGTHS | WEAKNESSES |
| Offers a wide range of tyres, catering to various segments of the market. Strong manufacturing capabilities and infrastructure. Exports products to over 40 countries, demonstrating international reach. Holds ISO 9001:2015 and IATF 16949:2016 certifications, ensuring quality standards. | Dependence on a few key customers for a significant portion of revenue. Exposure to fluctuations in raw material prices, such as rubber and carbon black. Competition from established players in the tyre manufacturing industry. |
| OPPORTUNITIES | THREATS |
| Growing demand for tyres in India and emerging markets. Government initiatives supporting infrastructure development and transportation. Potential for product diversification and expansion into new market segments. | Economic slowdown or recession impacting the demand for tyres. Changes in government policies or regulations affecting the tyre industry. Increased competition from domestic and international players. |
P N Gadgil Jewellers Limited
| Offer Price | ₹456 – ₹480 per share |
| Face Value | ₹10 per share |
| Opening Date | 10 September 2024 |
| Closing Date | 12 September 2024 |
| Total Issue Size (in Shares) | 22,916,667 |
| Total Issue Size (in ₹) | ₹1,100 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 31 Shares |
| Listing at | BSE, NSE |
P N Gadgil Jewellers, a renowned jewelry brand, is set to launch its IPO on 10th September. The issue comprises a combination of fresh issues and offers for sale, with a total issue size of ₹1,370 crore. The price band is set at ₹456-480 per share, and the minimum lot size for retail investors is 31 shares. The IPO will list on the BSE and NSE on 17th September.
Objectives of the IPO:
The company plans to utilize the net proceeds from the IPO for the following purposes:
- Store Expansion: Funding the establishment of 12 new stores in Maharashtra.
- Debt Repayment: Repaying or prepaying outstanding borrowings.
- General Corporate Purposes: Supporting other business activities.
Grey Market Premium
Based on the current Grey Market Premium (GMP) of ₹165, the estimated listing price for the P N Gadgil Jewellers IPO is ₹645. This suggests a potential gain of 34.38% per share compared to the upper price band ₹480. However, it’s important to remember that GMP is an unofficial indicator, and the actual listing price may vary.
Company Overview:
P N Gadgil Jewellers was founded in 2013 and offers a wide range of gold, silver, platinum, and diamond jewelry. The company has a strong brand presence with 33 stores across India and the US. They offer a variety of jewelry collections for different occasions and also provide custom-made jewelry services.
Financial Performance:
P N Gadgil Jewellers has demonstrated impressive financial growth, with revenue increasing by 34% and profit after tax (PAT) rising by 65% between 2023 and 2024. This indicates the company’s ability to capitalize on market opportunities and improve profitability.
SWOT Analysis
| STRENGTHS | WEAKNESSES |
| Strong brand recognition and reputation in the jewelry industry.Diverse product range catering to various customer preferences. A growing network of stores across India and the US. Experienced management team with expertise in the jewelry sector. | Dependence on the Indian jewelry market, which can be influenced by economic factors and consumer sentiment. Competition from other established jewelry brands. Potential fluctuations in gold and other precious metal prices. |
| OPPORTUNITIES | THREATS |
| A growing demand for luxury goods and jewelry in India. Expansion into new markets and product categories. Opportunities for online sales and e-commerce. | Economic slowdown or recession impacting consumer spending on luxury goods. Changes in government regulations or policies affecting the jewelry industry. Increased competition from online retailers and international brands. |
Conclusion
Next week’s IPO bonanza offers diverse investment opportunities, catering to different risk appetites and investment horizons. While the market is buzzing with excitement, it’s crucial to conduct thorough research and consider the specific details of each IPO before making an investment decision.
Remember, past performance does not indicate future results, and investing in IPOs involves inherent risks. It’s always advisable to consult with a financial advisor to make informed investment choices.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
