Upcoming IPOs: 9 Public Issues Set to Raise ₹10,984.8 Cr – Key Insights Inside!

This week, the Indian IPO market is buzzing with excitement as nine IPOs are set to open, raising a combined ₹10,566 crores. Four are mainboard IPOs, while five are SME IPOs.

So far, two mainboard IPOs and one SME IPO have opened for subscription and are generating significant interest. Waaree Energies, for example, was subscribed 4.2 times on its second day of bidding. With so many IPOs in the pipeline, investors are closely watching to see which will be the biggest winners.

Ready to know more about these upcoming ipos? Let’s go

1. Waaree Energies Ltd. IPO Subscription Status

On the second day of bidding, Waaree Energies’ initial public offering (IPO) was subscribed to an impressive 4.2 times. Retail individual and non-institutional investors (NIIs) have shown strong interest in the issue, with subscription rates of 3.8 times and 10.40 times, respectively. The qualified institutional buyers (QIBs) segment is also seeing good traction. Source: Economic Times

2. Deepak Builders and Engineering IPO Subscription Status

Deepak Builders IPO received a subscription of 4.12 times on the first day of bidding. Retail investors showed the most interest, with a subscription rate of 6.12 times. Non-institutional investors subscribed 4.26 times, while qualified institutional buyers subscribed 52%. Source: Livemint

3. Godavari Biorefineries Ltd. IPO

Godavari Biorefineries Limited is offering a book-built issue of ₹544.75 crores. The IPO includes a fresh issue of ₹325.00 crores and an OFS(offer for sale) of ₹229.75 crores. The shares will be listed on both BSE and NSE, with the allotment expected on October 25th and the listing tentatively set for October 30th. The minimum lot size is 42 shares, requiring a minimum investment of ₹14,784 for retail investors. For HNIs, the minimum lot size investment is ₹206,976 for sNII and ₹1,005,312 for bNII.

Offer Price	₹334 – ₹352 per share
Face Value	₹10 per share
Opening Date	23 October 2024
Closing Date	25 October 2024
Total Issue Size (in Shares)	15,759,938
Total Issue Size (in ₹)	₹554.75 Cr
Issue Type	Book Built Issue IPO
Lot Size	42 Shares
Listing at	BSE, NSE

Objectives of Godavari Biorefineries Ltd IPO

Godavari Biorefineries plans to use the IPO proceeds for:

• Repayment or prepayment of outstanding borrowings
• General corporate purposes

GMP Godavari Biorefineries Ltd IPO

The current grey market premium (GMP) for Godavari Biorefineries is ₹0. This suggests that the company’s shares are not trading at a premium in the grey market and are expected to be listed flat at the IPO price.

Company Overview

Godavari Biorefineries Limited manufactures ethanol-based chemicals. It operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production. The company’s product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are used in food, beverages, pharmaceuticals, flavors and fragrances, power, fuel, personal care, and cosmetics. The company has three research and development facilities registered with the DSIR and serves customers in over twenty countries.

Financial Strength

Godavari Biorefineries has shown mixed financial performance, with revenue decreasing by 15.92% and profit after tax (PAT) dropping by 37.37% between FY23 and FY24.

SWOT Analysis of Godavari Biorefineries Ltd. 

STRENGTHS	WEAKNESSES
Integrated Biorefinery: The company’s integrated biorefinery allows for efficient production and utilization of byproducts. Diverse Product Portfolio: Godavari Biorefineries offers various ethanol-based chemicals that cater to multiple industries. Global Presence: The company is present in over 20 countries, indicating strong export markets.	Dependence on Raw Materials: The company’s operations may depend on the availability and cost of raw materials. Price Fluctuations: Fluctuations in the prices of ethanol and other chemicals can impact profitability. Competition: The market for ethanol-based chemicals is competitive, with other players offering similar products.
OPPORTUNITIES	THREATS
Growing Demand for Bio-Based Products: Increasing awareness of sustainability and the need for renewable products can drive demand. Product Diversification: Godavari Biorefineries can explore opportunities to expand its product range or enter new markets. Government Incentives: Government policies promoting renewable energy and biofuels can create favorable conditions for the company..	Economic Downturns: A slowdown in the global economy can impact demand for ethanol-based chemicals. Regulatory Changes: Changes in government regulations related to biofuels or environmental standards can affect operations. Technological Advancements: New technologies or alternative materials could impact the demand for ethanol-based products.

4. Afcons Infrastructure Ltd. IPO

Afcons Infrastructure Limited is offering a book-built issue of ₹5,430.00 crores. The IPO includes a fresh issue of ₹1,250.00 crores and an offer to sell ₹4,180.00 crores. The shares will be listed on both BSE and NSE, with the allotment expected on October 25th and the listing tentatively set for November 4th. The minimum lot size is 32 shares, requiring a minimum investment of ₹14,816 for retail investors. For HNIs, the minimum lot size investment is ₹207,424 for sNII and ₹1,007,488 for bNII.

Offer Price	₹440 – ₹463 per share
Face Value	₹10 per share
Opening Date	25 October 2024
Closing Date	29 October 2024
Total Issue Size (in Shares)	117,278,618
Total Issue Size (in ₹)	₹5,430 Cr
Issue Type	Book Built Issue IPO
Lot Size	32 Shares
Listing at	BSE, NSE

Objectives of the Afcons Infrastructure Ltd IPO

Afcons Infrastructure plans to use the IPO proceeds for:

• Funding capital expenditure for the purchase of construction equipment
• Funding long-term working capital requirements
• Prepayment or scheduled repayment of outstanding borrowings

GMP Afcons Infrastructure Ltd IPO

The current grey market premium (GMP) for Afcons Infrastructure is ₹70. This suggests that the company’s shares are trading at a premium of ₹70 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹533, which is 15.12% higher than the IPO price.

Company Overview

Afcons Infrastructure Limited is an infrastructure engineering and construction company that offers services in marine and industrial projects, surface transport projects, urban infrastructure projects, hydro and underground projects, and oil and gas projects. The company has a presence in Asia, Africa, and the Middle East and has completed 76 projects across 15 countries. As of September 30, 2023, the company has 67 active projects across 13 countries, totaling an order book of ₹348.88 billion.

Financial Strength

Afcons Infrastructure has shown steady financial growth, with revenue increasing by 6% and profit after tax (PAT) rising by 9% between FY23 and FY24.

SWOT Analysis of Afcons Infrastructure

STRENGTHS	WEAKNESSES
Diverse Service Offerings: Afcons Infrastructure provides various construction services that cater to various infrastructure projects. Global Presence: The company operates in multiple countries, indicating a strong market presence. Order Book: Afcons has a substantial order book, indicating a pipeline of future projects. Experienced Team: The company likely has a team with extensive experience in the construction industry.	Competition: The construction industry is highly competitive, with numerous players operating Dependence on Government Projects: The company’s revenue may depend on government contracts and infrastructure projects. Fluctuations in Material Costs: Changes in the cost of construction materials can impact profitability.
OPPORTUNITIES	THREATS
Infrastructure Development: Government initiatives for infrastructure development can create opportunities for construction companies. Urbanization and Industrialization: The growing urbanization and industrialization in India and other countries can drive demand for infrastructure projects. Expansion into New Markets: Afcons Infrastructure can explore opportunities to expand its operations to new regions or diversify into other sectors.	Slowdown in Economy: A sluggish economy can significantly reduce the need for construction services. Regulatory Changes: Changes in government regulations or policies can affect the construction industry. Geopolitical Risks: Global political instability or conflicts can disrupt projects or increase costs.

5. Premium Plast IPO Subscription Status:

Premium Plast IPO was oversubscribed by 3.70 times on its first day. Retail individual investors were particularly enthusiastic, subscribing 7.14 times. Non-institutional investors subscribed 0.88 times, and qualified institutional buyers subscribed 1.00 times. Source: IPO Watch

6. Danish Power Ltd IPO

Danish Power Limited is offering a book-built issue of ₹527.60 crores, the biggest SME IPO this year. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 300 shares, requiring a minimum investment of ₹114,000 for retail investors and ₹228,000 for HNIs.

Offer Price	₹360 – ₹380 per share
Face Value	₹10 per share
Opening Date	22 October 2024
Closing Date	24 October 2024
Total Issue Size (in Shares)	5,208,000
Total Issue Size (in ₹)	₹197.90 Cr
Issue Type	Book Built Issue IPO
Lot Size	300 Shares
Listing at	NSE, SME

Objectives of Danish Power Ltd

Danish Power plans to use the IPO proceeds for:

• Funding capital expenditure for expanding the manufacturing facility
• Funding working capital requirements
• Repayment of outstanding borrowings
• General corporate purposes

GMP of Danish Power Ltd

The current grey market premium (GMP) for Danish Power is ₹265. This suggests that the company’s shares are trading at a premium of ₹265 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹645, which is 69.74% higher than the IPO price.

Company Overview

Danish Power Limited manufactures various types of transformers, including inverter duty transformers for use in renewable power projects. It also produces oil and dry-type power and distribution transformers, control relay panels, and substation automation services. The company operates two manufacturing plants in Jaipur and is certified with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.

Financial Strength

Danish Power has shown steady financial growth, with revenue increasing to ₹335 crore and profit after tax (PAT) rising to ₹38.07 crore in FY24.

SWOT Analysis of Danish Power Ltd. 

STRENGTHS	WEAKNESSES
Product Diversity: Danish Power offers a range of transformers and electrical equipment catering to various industries. Manufacturing Capabilities: The company has two manufacturing plants and is certified with ISO standards, ensuring quality and efficiency. Strong Customer Base: Danish Power has a client base that includes reputable companies in the renewable energy and power sectors.	Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its growth potential. Competition: The transformers and electrical equipment market is competitive, with numerous players offering similar products. Dependence on Renewable Energy: The company’s revenue may depend on the growth and development of the renewable energy sector.
OPPORTUNITIES	THREATS
Growing Demand for Renewable Energy: The increasing focus on renewable energy can drive demand for transformers and electrical equipment. Product Innovation: Danish Power can explore opportunities to develop new or innovative products to stay competitive. Expansion into New Markets: The company can expand its operations to new regions or diversify into other segments of the electrical equipment market.	Recession Risks: A downturn in economic activity may lower the demand for electrical equipment. Fluctuations in Raw Material Prices: Changes in the cost of raw materials used in transformer manufacturing can affect profitability. Technological Advancements: New technologies or alternative energy sources could impact the demand for traditional transformers.

7. United Heat Transfer Ltd. IPO

United Heat Transfer Limited offers a book-built issue of ₹118.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 2000 shares, requiring a minimum investment of ₹118,000 for retail investors and ₹236,000 for HNIs.

Offer Price	₹56 – ₹59 per share
Face Value	₹10 per share
Opening Date	22 October 2024
Closing Date	24 October 2024
Total Issue Size (in Shares)	5,084,000
Total Issue Size (in ₹)	₹30 Cr
Issue Type	Book Built Issue IPO
Lot Size	2000 Shares
Listing at	NSE, SME

Objectives of United Heat Transfer Ltd.

United Heat Transfer plans to use the IPO proceeds for:

• Repayment of debt
• Funding working capital requirements
• General corporate purposes

GMP of United Heat Transfer Ltd.

The current grey market premium (GMP) for United Heat Transfer is ₹10. This suggests that the company’s shares are trading at a premium of ₹10 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹69, which is 16.95% higher than the IPO price.

Company Overview

United Heat Transfer Limited manufactures heat exchangers, pressure vessels, and process flow skids. Their products are used in various industries, including petrol and diesel engines, maritime vessels, mining trucks, and heavy machinery. The company operates two manufacturing units in Nashik and has approximately 105 employees.

Financial Strength

United Heat Transfer has shown mixed financial performance, with revenue decreasing by 9% and profit after tax (PAT) rising by 195% between FY23 and FY24.

SWOT Analysis of United Heat Transfer Ltd. 

STRENGTHS	WEAKNESSES
Product Range: United Heat Transfer offers a diverse range of products that cater to various industries. Manufacturing Capabilities: The company has modern manufacturing facilities and a skilled workforce. Customer Base: United Heat Transfer likely has a customer base of reputable industry companies.	Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its growth potential. Dependence on Specific Industries: Reliance on industries such as petrol and diesel engines can make the company vulnerable to fluctuations in those sectors. Competition: The heat exchangers and process equipment market is competitive, with numerous players offering similar products.
OPPORTUNITIES	THREATS
Growing Industrialization: The increasing industrialization in India and other emerging markets can drive demand for the company’s products. Technological Advancements: New technologies or advancements in heat transfer applications can create growth opportunities. Product Diversification: United Heat Transfer can explore opportunities to expand its product range or enter new markets.	Impact of Economic Slumps: Economic slowdowns can lead to a drop in industrial machinery purchases. Rising Material Costs: Increases in the cost of raw materials used in manufacturing can affect profitability. Regulatory Changes: Changes in government regulations or industry standards can impact the company’s operations.

8. OBSC Perfection Ltd. IPO

OBSC Perfection Limited is offering a book-built issue of ₹120.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 1200 shares, requiring a minimum investment of ₹120,000 for retail investors and ₹240,000 for HNIs.

Offer Price	₹95 – ₹100 per share
Face Value	₹10 per share
Opening Date	22 October 2024
Closing Date	24 October 2024
Total Issue Size (in Shares)	6,602,400
Total Issue Size (in ₹)	₹66.02 Cr
Issue Type	Book Built Issue IPO
Lot Size	1200 Shares
Listing at	NSE, SME

Objectives of OBSC Perfection Ltd.

OBSC Perfection plans to use the IPO proceeds for:

• Funding capital expenditure for expanding manufacturing facilities
• Funding working capital requirements
• General corporate purposes

GMP of OBSC Perfection Ltd.

The current grey market premium (GMP) for OBSC Perfection is ₹0. This suggests that the company’s shares are not trading at a premium in the grey market and are expected to be listed flat at the IPO price.

Company Overview

OBSC Perfection Limited is a precision metal components manufacturer offering various products for various industries. The company operates four manufacturing facilities, three in Pune and one in Chennai. Their products are used in the automotive, defense, marine, and telecom infrastructure sectors.

Financial Strength

OBSC Perfection has shown strong financial growth, with revenue increasing by 20% and profit after tax (PAT) rising by 167% between FY23 and FY24.

SWOT Analysis of OBSC Perfection Ltd. 

STRENGTHS	WEAKNESSES
Diverse Product Range: OBSC Perfection offers a wide range of precision metal components, catering to various industries. Manufacturing Expertise: The company has manufacturing facilities equipped with modern machinery and technology. Customer Base: OBSC Perfection has a customer base that includes leading manufacturers in the automotive, defense, marine, and telecom sectors.	Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its potential for growth. Dependence on Automotive Industry: Reliance on the automotive sector can make the company vulnerable to fluctuations in that industry. Competition: The market for precision metal components is competitive, with numerous players offering similar products.
OPPORTUNITIES	THREATS
Growing Automotive Industry: The growing automotive industry in India can drive demand for precision metal components. Diversification into New Sectors: OBSC Perfection can explore opportunities to expand into new sectors or industries. Product Innovation: The company can develop new or innovative products to differentiate itself from competitors.	Market Slowdown: A weaker economy can directly impact the demand for industrial components. Rising Material Costs: Increases in the cost of raw materials can affect profitability. Technological Advancements: New technologies or manufacturing processes could impact the demand for traditional metal components.

9. Usha Financial Services IPO

Usha Financial Services Limited is offering a book-built issue of ₹168.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 800 shares, requiring a minimum investment of ₹134,400 for retail investors and ₹268,800 for HNIs.

Offer Price	₹160 – ₹168 per share
Face Value	₹10 per share
Opening Date	24 October 2024
Closing Date	28 October 2024
Total Issue Size (in Shares)	5,860,000
Total Issue Size (in ₹)	₹98.45 Cr
Issue Type	Book Built Issue IPO
Lot Size	800 Shares
Listing at	NSE, SME

Objectives of Usha Financial Services IPO

Usha Financial Services plans to use the IPO proceeds for:

• Augmenting the capital base of the company
• General corporate purposes

GMP Usha Financial Services IPO

The current grey market premium (GMP) for Usha Financial Services is ₹45. This suggests that the company’s shares are trading at a premium of ₹45 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹213, which is 26.79% higher than the IPO price.

Company Overview

Usha Financial Services Limited is a non-banking finance company that provides lending solutions to other NBFCs, corporates, MSMEs, and individuals, focusing on women entrepreneurs. They also offer electric vehicle financing. The company has an AUM of ₹30,695.76 lakhs and a net worth of ₹10,602.63 lakhs.

Financial Strength

Usha Financial Services has shown steady financial growth, with revenue increasing by 38% and profit after tax (PAT) rising by 32% between FY23 and FY24.

SWOT Analysis of Usha Financial Services  

STRENGTHS	WEAKNESSES
Diverse Product Offerings: Usha Financial Services offers a range of financial products, catering to various customer segments. Focus on Women Entrepreneurs: The company’s focus on lending to women entrepreneurs can differentiate it from competitors. Financial Performance: Usha Financial Services has demonstrated strong financial growth in recent years.	Dependence on the NBFC Sector: The company’s revenue may be dependent on the performance of other NBFCs. Competition: The NBFC sector is competitive, with numerous players offering similar financial services. Regulatory Risks: Changes in government regulations or policies related to the NBFC sector can impact the company’s operations.
OPPORTUNITIES	THREATS
Growing Demand for Financial Services: The increasing demand for financial services, especially in rural and underserved areas, can create growth opportunities. Digitalization: Leveraging technology and digital platforms can enhance customer experience and efficiency. Expansion into New Markets: Usha Financial Services can explore opportunities to expand its operations to new regions or diversify into other financial products.	Economic Deceleration: A slowing economy can curb the demand for financial services. Interest Rate Fluctuations: Changes in interest rates can affect the company’s borrowing costs and profitability. Credit Risk: The company faces the risk of loan defaults or non-payment from borrowers.

Conclusion:

With nine IPOs in the market this week, investors have a variety of options. The strong subscription for Waaree Energies and Deepak Builders suggests significant investor interest.

However, it’s important to conduct thorough research and consider your risk tolerance before making any investment decisions. The performance of these IPOs in the secondary market will provide valuable insights into the current investor sentiment and the overall health of the Indian IPO market.

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