Upcoming IPO of the week
Mar 3, 2024
The Indian stock market is abuzz with anticipation as several companies gear up for their initial public offerings (IPOs). These IPOs provide an opportunity for companies to raise capital, expand their operations, and enhance their market presence. For investors, it's a chance to participate in the growth story of promising enterprises.
Let's delve into the details of notable IPOs scheduled for this week: 26th February to 2nd March, 2024
Exicom Tele-Systems IPO
Company Overview:
Exicom Tele-Systems is an Indian power management solutions provider. Their solutions power the charging infrastructure for the growing EV ecosystem. The company operates in two key business verticals:
- EV Charging Solutions: Exicom is a market leader in EV chargers, with a 60% share in residential charging and a 25% share in public charging as of March 31, 2023. The company has installed over 35,000 EV chargers at 400 locations throughout India.
- Critical Power Infrastructure: Exicom provides critical power solutions for telecommunications and enterprise environments. It holds a 16% share in DC Power Systems and a 10% share in Li-ion Batteries for telecom applications.
The company's Li-ion Batteries provide back-up power during grid interruptions and intermittent renewable energy supply. They have deployments in India, South East Asia, and Africa, with 470,810 Li-ion Batteries deployed as of September 30, 2023, equivalent to a storage capacity of over 2.10 GWH.
Exicom aims to catalyze the sustainable energy transition by electrifying transportation and ensuring energy stability for digital communication infrastructure.
Financial Performance:
The company's revenue increased from ₹51,290 million in 2021 to ₹70,079 million in 2023. Although there was a dip in 2022, the overall trend is positive.
Net profit consistently improved, rising from ₹34.50 million in 2021 to ₹63.72 million in 2023.
The Return on Net Worth (RoNW) reached 13.38% in 2023, indicating efficient use of equity for generating profits.
Earnings Per Share (EPS): There's a significant increase in EPS from ₹1.38 in 2021 to ₹3.38 in 2023, suggesting higher profitability per share.
IPO Details:
Issue Details: The IPO opened for subscription on February 27, 2024, and it will close on February 29, 2024.
Listing & Allotment: The allotment for the Exicom Tele-Systems IPO is expected to be finalized on Friday, March 1, 2024. The tentative listing date on the BSE and NSE is Tuesday, March 5, 2024.
Issue Price band: The Exicom Tele-Systems IPO is priced between ₹135 to ₹142 per share. This range represents the price at which investors can subscribe to the company's shares during the initial public offering.
Fresh Share Issuance: The IPO comprises a fresh share issuance of ₹329 crore. This means that Exicom will issue new shares to raise capital for its expansion and growth plans.
Offer for Sale (OFS): There is an offer for sale(OFS) of ₹100 crore. In an OFS, existing shareholders (such as promoters or other investors) sell their shares to the public.
Grey Market Premium (GMP): Market observers note high bullishness in the grey market for Exicom Tele-Systems' IPO. Shares are currently trading at a premium of ₹129 in the grey market. This suggests strong demand and positive sentiment among investors.
2. Mukka Proteins Limited IPO:
Company Overview
Mukka Proteins Limited is a key player in the protein industry, specializing in manufacturing fish protein products. Their portfolio includes fish meal, fish oil, and fish soluble paste, essential ingredients for aqua feed, poultry feed, and pet food.
Mukka Proteins exports its products to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, and more. Their global presence speaks to their credibility and market acceptance. The company aims to empower individuals to lead healthier lives.
Financial Performance:
Between March 2021 and March 2023, Mukka Proteins witnessed a 27.25% increase in revenue and a 134.5% rise in profit after tax (PAT).
For the period ending September 30, 2023, Mukka Proteins reported a net profit of ₹32.98 crore, with a revenue of ₹612.88 crore. In the financial year 2022-23, they achieved a net profit of ₹47.53 crore with a revenue of ₹1,183.80 crore.
IPO Details:
Issue Details: The Mukka Proteins IPO opens for subscription on February 29, 2024, and the closing date is March 4, 2024.
Issue Size: The IPO is a book-built issue with a total size of ₹224 crores (entirely fresh issue of 8 crore shares).
Listing & Allotment: The IPO will list on both BSE and NSE, with the tentative listing date fixed as Thursday, March 7, 2024. The allotment is expected to be finalized on Tuesday, March 5, 2024.
Price Band: ₹26 to ₹28 per share. The minimum lot size for an application is 535 Shares. The minimum amount of investment required by retail investors is ₹14,980.
Grey Market Premium (GMP): Mukka Proteins IPO last GMP is ₹17, last updated Feb 28th 2024.
3. Platinum Industries Limited IPO
Company Overview
Platinum Industries Limited specializes in producing stabilizers. Platinum Industries manufactures a wide range of stabilizers used in electrical appliances. Their products cater to residential, commercial, and industrial segments. Their products are essential for voltage regulation and protection.
The company manufactures PVC stabilizers, CPVC additives and lubricants. The company has established a strong presence in the electrical equipment industry.
Financial Performance:
In FY23, Platinum Industries achieved a total income of ₹232 crore, marking a 23% YoY growth.
Net profit during the same period surged by 112% to ₹37.5 crore.
The company maintains impressive EBITDA margins of 23.27% and net profit margins of 16.24%.
Return on equity stands at an impressive 90.02%.
IPO Details:
Issue Details: The subscription window opened on February 27, 2024, and it will close on February 29, 2024.
IPO Size: The IPO is a book-built issue of ₹235.32 crores (fresh issue of 1.38 crore shares). The minimum lot size was 87 shares, with a retail investor minimum investment of ₹14,877.
IPO Price band: The price band for Platinum Industries IPO is set at ₹162 to ₹171 per share.
Listing & Allotment: Listing on BSE and NSE is tentatively set for Tuesday, March 5, 2024. The allotment date is expected to be finalized on Friday, March 1, 2024.
4. Bharat Highways InvIT IPO:
Company Overview
Bharat Highways InvIT is an infrastructure investment trust established to acquire, manage, and invest in a portfolio of infrastructure assets in India such as highways, roads, and other transportation-related projects. Their diversified portfolio ensures stability and potential for long-term growth.
Infrastructure assets generate consistent cash flows through toll collections, lease rentals, and other revenue streams. Bharat Highways InvIT aims to distribute a significant portion of its income to unit holders. The roads and highways sector significantly contributes to India's economy, with increased public investment. The Union Budget allocated about ₹2.7 trillion to the Ministry of Road Transport and Highways for FY 2023-24.
Financial Performance:
As of March 2021, Bharat Highways InvIT recorded a Profit After Tax (PAT) of ₹149.45 crores. By March 2022, the PAT decreased to ₹62.87 crores. However, by March 2023, the PAT rebounded significantly to ₹527.05 crores.
IPO Details:
Issue Details: The IPO was open for subscription from February 28, 2024, to March 1, 2024.
IPO Price Band: The price band for shares was ₹98 to ₹100 per share.
Issue Size: ₹2,500 crore (entirely fresh issue).
Listing & Allotment Date: listing would tentatively set for March 6, 2024.
Minimum Lot Size: 150 shares.
Retail Investors' Minimum Investment: ₹15,000.