Two IPOs set to raise nearly ₹2,000 crore this week

• KFin Technologies and Elin Electronics will launch their issues this week.
• The two initial public offerings (IPOs) are expected to collectively raise nearly ₹2,000 crore.
• So far this year, ₹55,101 crore has been raised through 32 IPOs (as of December 6 — still it’s lesser than the ₹1.18 lakh crore raised through 64 IPOs in 2021.

Indian primary markets are buzzing with initial public offerings (IPOs) while secondary markets across the world are turning volatile over fears of recession.

Last week, three IPOs opened their issues for investor subscription and raised over ₹1,800 crore. All three IPOs were fully subscribed. They received decent demand from investors -- winemaker Sula Vineyards was subscribed by 2.33 times on the last day, financial services company Abans Holdings by 1.1 times and automobile dealer Landmark Cars by 3.06 times.

At the same time, the IPO of DroneAcharya Aerial Innovations received an overwhelming investor interest, and was subscribed 262 times on its last day. The Pune-based drone startup’s IPO received strong demand from HNIs as well as retail investors, who subscribed for it 388 times and 330 times respectively.

This week, two (IPOs) are expected to collectively raise nearly ₹2,000 crore.

KFin Technologies, a leading technology-driven financial services platform and electronics manufacturing services company Elin Electronics will open their issues for public subscription this week.

So far this year, ₹55,101 crore has been raised through 32 IPOs (as of December 6). But it's still much less than the ₹1.18 lakh crore raised through 64 IPOs in 2021, shows data from Prime Database.

KFin Technologies IPO to raise ₹1,500 crore
KFin Technologies, a leading technology-driven financial services platform, will open its initial public offering (IPO) this week on December 19 and close on December 21. The price band of the IPO is set at ₹347- 366 per share.

The company plans to raise ₹1,500 crore through a complete offer for sale by one of the promoters General Atlantic Singapore Fund — who will receive all the proceeds. The company will not receive any funds from the IPO.

The shares of the company are currently commanding a grey market premium, or GMP, of just ₹5 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

KFin Technologies provides transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong. It provides services and solutions to asset managers and corporate issuers across asset classes in India, along with several other investor solutions.

The company is the largest investor solutions provider to Indian mutual funds. It provides services to 24 out of 41 AMCs in India, representing 59% of market share.

General Atlantic Singapore Fund Pte owns a 72.51% stake in the company followed by Kotak Mahindra Bank with 9.86% stake while Compar Estates and Agencies holds a 10.86% stake in KFin Technologies. However, Kotak and Compar are not selling their shares in the upcoming IPO.

Elin Electronics IPO to open on December 20
Electronics manufacturing services company Elin Electronics will open its initial public offering (IPO) this week on December 20 and close on December 22. The price band of the IPO is set at ₹234-247 per share.

The company plans to raise ₹475 crore. Of this, ₹175 crore worth shares will be raised via a fresh issue, and ₹300 crore via an offer for sale by promoters and shareholders.

The proceeds from the fresh issue will be used to repay debt, fund capital expenditure for upgradation and expanding existing plants.

The shares of the company are currently commanding a grey market premium, or GMP, of ₹30 per share.

The company is a manufacturer of end-to-end product solutions for major brands of lighting, fans, and small kitchen appliances in India. It is also one of the largest fractional horsepower motor manufacturers in India.

Also, it manufactures and assembles a wide array of products and provides end-to-end product solutions.


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