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Three IPOs to hit market next week, raise Rs 1,858 Cr

Sula Vineyards, Landmark Cars, and Abans Holdings will be launching their initial public offerings (IPOs) next week on the BSE and NSE to collectively raise Rs 1,858 crore.

The initial share sales of wine producer Sula Vineyards and Abans Holdings, the financial services arm of Abans Group, will open for public subscription on December 12, while that of automobile dealership chain Landmark Cars will begin on December 13, data with stock exchanges showed.

This comes after 10 companies, including Bikaji Foods and Inox Green Energy Services Ltd, floated their IPOs last month.

Ankit Yadav, Founder and Director of Market Maestroo, a wealth management firm based in the US, said the three IPOs are coming at a time of interest rate hikes. Generally, there is an opportunity for making wealth from IPOs in low-rate scenarios where borrowing is easy.

Last week, the RBI again increased the repo rate fifth time in a row in FY23 by 35 basis points to 6.25% after hiking 50 basis points to 5.90% in September 2022.

“So today in high rates, the businesses who are bringing IPOs need to be top notch in fundamental terms,” Ankit said.

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2021: A lookback

Sula Vineyards’ IPO will be entirely an offer for sale (OFS) aggregating to 26,900,532 equity shares by the promoter, investors, and other shareholders.

Those offloading shares through the OFS route are the promoter, founder, and CEO Rajeev Samant, and investors such as Cofintra, Haystack Investments Limited, Saama Capital III, Ltd, SWIP Holdings Limited, Verlinvest SA, and Verlinvest France SA.

The company has set a price band of Rs 340-Rs 357 a share for its IPO. At the upper end of the price band, the public issue is expected to fetch Rs 960.35 crore.

The initial share sale of Abans Holdings comprises fresh issuance of equity shares of up to 38 lakh and an offer-for-sale of up to 90 lakh equity shares by promoter Abhishek Bansal.

Proceeds from the fresh issue will be utilised towards investment in its NBFC subsidiary Abans Finance, for financing the augmentation of its capital base to meet future capital requirements, and for general corporate purposes.

The company, which has set a price band of Rs 256 to Rs 270 a share for its IPO, is expected to raise Rs 345.6 crore at the higher end of the price band.

The Rs 552-crore IPO of Landmark Cars consists of a fresh issue of equity shares aggregating to Rs 150 crore and an OFS of up to Rs 402 crore. Those selling shares through the OFS route are TPG Growth II SF PTE Ltd, Sanjay Karsandas Thakker HUF, Aastha Limited, and Garima Misra.

Proceeds from fresh issuance will be utilised for payment of debt and general corporate purposes. The price band has been fixed at Rs 481-506 per share.

In 2022, 33 companies have so far launched IPOs and mopped up over Rs 55,000 crore. Last year, 63 IPOs raised more than Rs 1.19 lakh crore. These included a sizable number of Indian tech startups such as Nykaa, Zomato, Freshworks, and others.

(Additional information has been added to this PTI copy for context.)

Edited by Teja Lele

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