The Indian primary market is set to witness an unprecedented level of activity in the coming week, with a staggering ten initial public offerings (IPOs) scheduled to launch. This surge in IPO activity comes on the heels of the recently announced Union Budget, which has injected a much-needed dose of optimism and clarity into the market. Among the most anticipated IPOs is that of Ola Electric Mobility, a high-profile offering that is expected to garner significant investor interest.
Ola Electric Mobility: The Star of the Show
The upcoming IPO of Ola Electric Mobility, backed by tech giant Softbank, is undoubtedly the headline grabber of the week. The electric vehicle (EV) manufacturer plans to raise a substantial Rs 5,500 crore through a fresh issue of equity shares, along with an offer-for-sale (OFS) of existing shares worth Rs 8.49 crore. While the final price band is yet to be announced, market estimates place the company’s valuation at around $4.4 billion.
Ola Electric, founded in 2017, has rapidly gained traction in the burgeoning Indian EV market. The company intends to utilize the IPO proceeds for expanding its cell manufacturing plant, reducing debt, fueling research and development initiatives, and supporting other growth-oriented endeavors.
A Diverse Lineup of IPOs
Beyond the high-profile Ola Electric IPO, the coming week offers a diverse range of investment opportunities across various sectors.
- Infrastructure: Ceigall India, a player in infrastructure construction, is set to launch its IPO, aiming to raise Rs 617.7 crore.
- Pharmaceuticals: Akums Drugs and Pharmaceuticals will be looking to raise Rs 1,857 crore through its IPO.
- Engineering and Construction: Sathlokhar Synergys E&C Global, offering engineering, procurement, and construction (EPC) services, will test investor appetite with its Rs 93 crore IPO.
- Manufacturing: Bulkcorp International, a manufacturer of food-grade flexible bulk containers, and Rajputana Industries, producing non-ferrous metal products, will also be tapping the primary market.
- Logistics: Ashapura Logistics is another entrant, aiming to raise Rs 52.66 crore.
- Apparel: Kizi Apparels, a Jaipur-based women’s apparel company, will offer its shares to the public at a fixed price of Rs 21 per share.
- Jewelry: Utssav Cz Gold Jewels, a Mumbai-based gold jewelry manufacturer, will launch its Rs 69.5 crore IPO.
- Chemicals: Dhariwalcorp, engaged in trading waxes, industrial chemicals, and petroleum jelly, will be the first SME IPO of August.
A Busy Week for the Secondary Market as Well
The upcoming week will not only be eventful for the primary market but also for the secondary market. A total of ten listings are scheduled on the SME platforms of the BSE and NSE. These include companies from various sectors, providing investors with additional investment options.
The flurry of IPO activity is likely to create a buzz in the market, attracting both retail and institutional investors. However, experts advise investors to conduct thorough due diligence before investing in any IPO. Understanding the company’s business model, financials, and growth prospects is crucial. Additionally, considering the overall market conditions and valuations is essential to make informed investment decisions.
The coming week promises to be a pivotal period for the Indian primary market. The success or failure of these IPOs will have a significant impact on investor sentiment and the overall market outlook.
The primary market is undoubtedly in the spotlight, and the coming week will be a crucial test of investor appetite for new issues.
