China continued to be the mainstay around which global markets revolved. The depreciation, poor factory output data, fall in commodity prices and global currency meltdown saw prices in equities, commodities and currencies take a beating. Even the Dow Jones was battered and lost about 350 points in a single day on Friday. The weekly loss was over a thousand points or 5.82%.
India fared in the same way and lost ground. The broad markets fell around 2.5% and the currency depreciated 1.26% to Rs 65.82. The action in our markets seems to be shifting to the primary markets where three weeks would open and close this week.
The first IPO is from Navkar Corporation Limited which is tapping the markets with a fresh issue of Rs 510 crs and an offer for sale of Rs 90 crs, totalling Rs 600 crs. The price band is Rs 147 to Rs 155 and the P.E is between 21.68 to 22.86 times based on March 2015 numbers. The issue opens on Monday 24th August and closes Wednesday 26th August.
The second issue opening on Tuesday 25th August and closing on Thursday 27th August is from shreePushkar Chemicals Limited which is a price band of Rs 61 to 65. The company is looking to raise Rs 65 crs and the P.E or price earnings ratio based on March 2015 numbers is 6.77 to 7.21. the interesting part of the company is that it is about achieving zero discharge or effluent even though it is in the chemical space. The company has been able to integrate forward and backward and utilise the by-products and waste for making new commercial products.
The third IPO is from Pennar Engineered Building Systems Limited which has a fresh issue of Rs 58 crs and an offer for sale of 55.16 lac shares in a price band of Rs 170 to Rs 178. The combined issue would raise Rs 156 crs at the top end of the band. The company is into pre-fabricated or steel buildings which are earthquake resistant and time consuming. The P.E multiple at which shares are being offered is 23.98 to 25.11 based on the March 2015 numbers.
Besides these three IPO’s there is an OFS from Indian Oil Corporation today for about Rs 9,300 crs. The government is selling 10% of the equity or 24.27 cr shares with a floor price of Rs 387. There is a reservation of 20% for retail investors and they are allowed to bid at cut off. A 5% discount is offered to retail investors. The floor price has been fixed at Rs 387 which is a discount of Rs 7.45 or 1.89% to Friday’s closing price of Rs 394.45 on the BSE.
The offerings don’t just end here. Two more companies have their roadshows on Monday and Tuesday and would be opening their issues towards the end of the week and beginning of next week. The total fund raising from all these five offerings would be less than one fifth of what IOC would raise from the OFS.
The pipeline of primary offerings continues to be strong and many more issues are expected in the next 20-30 days. Keep watching the markets for more action.
