September looks like a good month for IPOs

Key Highlights: 

• Four companies to launch IPO worth Rs 2,000 crore next month
• So far, 17 companies have raised over Rs 10,000 crore from IPO
• A total seven insurance companies have already planned for IPO this year

Four companies from sectors like online marriage services, electronics, infrastructure and real estate are set to introduce their initial public offerings (IPO) worth Rs 2,000 crore in September.

These companies are BharatMatrimony.com, Bharat Road Network Ltd (BRNL), Dixon Technologies (India) Ltd and Capacit’e Infraprojects Ltd.

Since the start of 2017, a total of 10 companies have entered the primary market via IPO route raising over Rs 10,000 crore so far. 

Vish Dhingra, executive director, EY Global, in a report said, "With positive macroeconomic factors, continuing regulatory and tax reforms and a robust investor and business sentiment, 2017 promises to be a healthy IPO year."

Five state-owned and two private life and general insurance firm have already announced their motive to enter the IPO market this year. 

September IPOs

BharatMatrimony.com:

The company filed for draft red herring prospectus (DRHP) with the Securities Exchange and Board of India (Sebi) in the month of May 2017, plans to raise about Rs 500 crore from its initial offering.

The offer for sale shares comprises of 14.6 lakh shares of Bessemer India Capital Holdings, 1.55 lakh equity shares of Mayfield and 16.83 lakh equity shares of CMDB II, apart from 3.84 lakh shares of Murugavel Janakiraman, the promoter of the company and 82,834 shares by Indrani Jankiraman.

By end of FY17, the company has reported total revenue of Rs 292.93 crore, higher in comparison with Rs 255.43 crore in the corresponding period of the previous year. While its net profit stood at Rs 43.7 crore versus loss of Rs 75 crore in FY16.

BRNL:

BRNL is expected to open its IPO on September 06, 2017 and will be available for subscription till September 08, 2017.

The promoters of the company are - Srei Infrastructure Finance Limited ("SREI") and Make in India Fund.

The company plans to sell about 29,300,000 equity shares at a face value of Rs 10 each aggregating up to Rs 700 crore.

In FY17, BRNL had total assets worth Rs 1,232.39 crore versus Rs 836.6 crore in FY16. Total revenue of the company was at Rs 14.93 crore as against Rs 4.25 crore in FY16.

Dixon Technologies:

This company has received market regulator Sebi's approval to raise between Rs 600 – Rs 650 crore from its issue last month.

It's public issue comprises fresh issue of shares worth Rs 60 crore and an offer for sale of up to 3,753,739 equity scrips by the existing shareholders.

Companies like IDFC Bank, IIFL Holdings, Motilal Oswal Investment Advisors and Yes Securities are acting as the book running lead managers to the issue.

Capacit’e Infraprojects:

This real estate service provider filed for DRHP with Sebi in the month of April 2017, and in June received the necessary approval for launching an IPO. Equity shares will have face value of Rs 10 each.

BLRM for this issue are companies like Axis Capital, IIFL Holdings and Vivro Financial Services. The company had an order book of over Rs. 4,000 crore as on January 31, 2017, comprising 51 ongoing projects.

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