8 Upcoming IPOs to Watch Out for This Week

2024 witnessed a record-breaking capital raise through initial public offerings (IPOs), and 2025 is expected to be even more dynamic.

India has solidified its position as a major IPO hub, attracting both domestic and international companies.

The momentum in the capital market over the next two years is projected to be three times what it achieved in the past five years.

With 851 IPOs launched in the last five years, estimates suggest that over 1,000 new listings could take place in the next two years.

The IPO frenzy is set to intensify in 2025, with several high-profile listings in the pipeline.

This week investors are set to see more action in the primary market this week.

Here are 8 IPOs to watch this week.

• Mainboard IPOs

#1 Hexaware Technologies

First on the list is Hexaware Technologies.

The company operates across six key sectors, including financial services, healthcare, insurance, manufacturing, consumer, Hi-Tech, and professional services, establishing a strong foothold in the IT industry.

The upcoming IPO will be an offer-for-sale (OFS) valued at Rs 87.5 bn by CA Magnum Holdings, a subsidiary of US-based investment firm Carlyle Group Inc.

This is a downward revision from the earlier proposed Rs 99.5 bn. Currently, CA Magnum holds a 95.03% stake in Hexaware.

This offering will be the largest IT services IPO in India, surpassing TCS's Rs 47.1 bn listing in 2004.

Hexaware was delisted from the stock exchanges in September 2020 after its promoters accepted a buyout offer at Rs 475 per share.

Since then, the company has maintained steady financial growth, reporting a 12.8% increase in profit to Rs 9.9 bn and revenue rising to Rs 103.8 bn in FY24.

With the company now set for its highly anticipated IPO, market participants are closely watching how investors will respond to its return.

As Hexaware prepares for its grand IPO, all eyes are on how the market will respond to this highly anticipated listing.

Here are the key details of the IPO.

Issue period: 12 February 2025 to 14 February 2025

Type of Issue: Book built issue of 123.6 million (m) shares

Face value: Re 1 per equity share

Price band: Rs 674-708 per share

Lot size: 21 shares

Application limit: Maximum thirteen lots for retail investors. Retail investors can make an application for a minimum of Rs 14,868 for one lot (273 shares).

Tentative IPO allotment date: 17 February 2025

Tentative listing date: 19 February 2025

#2 Quality Power IPO

Next on the list is Quality Power IPO.

Quality Power Electrical Equipments Limited specializes in energy transition equipment and power technologies, providing high-voltage electrical solutions for grid connectivity.

The company caters to power generation, transmission, distribution, and automation sectors with a wide range of products, including reactors, transformers, converters, and grid interconnection solutions.

With over two decades of experience, it serves both domestic and international markets.

The Quality Power IPO is a book-built issue consisting of a fresh issue of 5.3 million (m) equity shares, raising Rs 2,250 m, along with an offer-for-sale (OFS) of 14.9 m shares worth Rs 6,337 m.

The company intends to utilize Rs 1,170 m from the proceeds for acquiring Mehru Electrical and Mechanical Engineers Pvt Ltd, while Rs 272.1 m will be allocated to capital expenditure for plant and machinery. The remaining funds will be directed toward strategic acquisitions and general corporate purposes.

Pantomath Capital Advisors Pvt Ltd is managing the IPO as the book-running lead manager, with Link Intime India Private Ltd serving as the registrar.

As of 11 February 2025, the grey market premium (GMP) for Quality Power IPO stands at Rs 452 per share, reflecting a 6.35% premium over the issue price of Rs 425 per share.

Here are the key details of the IPO.

Issue period: 14 February 2025 to 18 February 2025

Type of Issue: Book built issue of 20 m shares

Face value: Rs 10 per equity share

Price band: Rs 401-425 per share

Lot size: 26 shares

Application limit: Retail investors can apply for a minimum of one lot at Rs 11,050, with a maximum limit of 18 lots.

Tentative IPO allotment date: 19 February 2025

Tentative listing date: 21 February 2025

#3 Ajax Engineering

Next on the list is Ajax Engineering.

The company is a prominent manufacturer of concrete equipment in India, offering a wide range of solutions across the concrete application value chain.

It holds a dominant position in the SLCM market in India, with a market share of 75% in 2024. 12% of the concrete produced in India in FY24 was processed through its SLCMs.

With four state-of-the-art manufacturing facilities in Karnataka, including one of the world's largest SLCM facilities by area, Ajax Engineering is well-equipped to meet increasing demand.

The IPO consists entirely of an offer-for-sale (OFS) of 20.1 m shares by its promoters and an investor stakeholder, amounting to Rs 12.7 bn at the highest price point.

As part of the OFS, Kedaara Capital plans to sell 743.7 m shares. As this public offering is entirely an OFS, Ajax Engineering will not receive any funds from the IPO.

At the upper end of the price range, the company's market capitalisation is estimated to be Rs 72 bn. The book running lead managers for the issue include ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets.

The issue is set to close tomorrow.

Here are the key details of the IPO.

Issue period: 10 February 2025 to 12 February 2025

Type of Issue: Book built issue of 20.1 shares

Face value: Re 1 per equity share

Price band: Rs 599-629 per share

Lot size: 23 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 188,071

Tentative IPO allotment date: 13 February 2025

Tentative listing date: 17 February 2025

• SME IPOs

#1 PS Raj Steels IPO

First SME IPO on the list is PS Raj Steels IPO.

PS Raj Steels Ltd (PSSR) is a leading manufacturer and supplier of stainless steel pipes and tubes in India, offering a diverse range of products, including outer diameter pipes, nominal bore pipes, section pipes, and slotted pipes.

The IPO consists entirely of a fresh issue of up to 2 m equity shares with a face value of Rs 10 each.

At the upper price band, the company aims to raise approximately Rs 282.8 m from the public offering. Investors can bid for a minimum of 1,000 shares and in multiples thereafter.

As per the red herring prospectus (RHP), PSSR plans to allocate Rs 265 m from the IPO proceeds towards working capital requirements, with the remaining funds earmarked for issue-related expenses.

On the financial front, the company reported revenues of Rs 1,391.1 m and a profit after tax (PAT) of Rs 38.6 m in the first half of the current fiscal year, compared to Rs 2,977.4 m in revenue and Rs 63.6 m in PAT for FY24.

Khambatta Securities is the sole book-running lead manager, while Bigshare Services serves as the IPO registrar.

Here are the key details of the IPO.

Issue period: 12 February 2025 to 14 February 2025

Type of Issue: Book built issue of 2 m shares

Face value: Rs 10 per equity share

Price band:Rs 132-140 per share

Lot size: 1,000 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 140,000

Tentative IPO allotment date: 17 February 2025

Tentative listing date: 19 February 2025

#2 Voler Car

Next SME IPO on the list is Voler Car.

Voler Car specializes in Employee Transportation Services (ETS), catering to IT/ITeS companies, large corporates, and multinational clients across major Indian cities.

Its ETS solutions provide seamless home-to-office-to-home transportation, supported by 24/7 customer service, dedicated location teams, and a fleet of verified vehicles operated by professional chauffeurs.

The Voler Car IPO comprises a fresh issue of 3 m equity shares, amounting to Rs 270 m, with no offer-for-sale (OFS) component.

The company plans to utilize the net proceeds from the IPO to meet its working capital requirements, address general corporate expenses, and cover IPO-related costs.

GYR Capital Advisors Private Limited is the book-running lead manager for the IPO, while Kfin Technologies Limited serves as the issue registrar.

As of 11 February 2025, Voler Car's shares were trading at a premium of Rs 11 in the grey market.

Here are the key details of the IPO.

Issue period: 12 February 2025 to 14 February 2025

Type of Issue: Book built issue of 3 m shares

Face value: Rs 10 per equity share

Price band: Rs 85-90 per share

Lot size: 1,600 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 144,000

Tentative IPO allotment date: 17 February 2025

Tentative listing date: 19 February 2025

#3 Maxvolt Energy

Next SME IPO on the list is Maxvolt Energy.

The company is primarily engaged in manufacturing lithium-ion batteries across a wide range, distributed through a diversified sales and distribution network, including authorized dealers, distributors, and OEMs.

In addition to manufacturing, the company supplies graphene battery packs and battery chargers, which are designed and developed under its brand name.

The company's manufacturing unit is located in Ghaziabad, Uttar Pradesh, covering an area of 18,000 square feet, with a combined installed production capacity of 97.2 MWh of batteries as of 30 September 2024.

The Quality Power IPO is a book-built issue consisting of a fresh issue of 2.4 m equity shares, along with an offer-for-sale (OFS) of 0.6 m shares.

Smart Horizon Capital Advisors Private Limited is the book-running lead manager of the Maxvolt Energy IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

Here are the key details of the IPO.

Issue period: 12 February 2025 to 14 February 2025

Type of Issue: Book built issue of 3 m shares

Face value: Rs 10 per equity share

Price band: Rs 171-180 per share

Lot size: 800 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 144,000

Tentative IPO allotment date: 17 February 2025

Tentative listing date: 19 February 2025

#4 LK Mehta Polymers

Next SME IPO on the list is LK Mehta Polymers.

The company is engaged in the trading and manufacturing of plastic products, along with the reprocessing of raw materials such as polypropylene and polyethene granules for various customers.

It markets its products under the brand name "Super Pack," emphasizing quality and long-term customer relationships.

The IPO comprises a fresh issue of 1 m shares, with the net proceeds allocated towards meeting working capital requirements and general corporate purposes.

Financially, the company reported a revenue of Rs 188.7 m in FY24, up from Rs 171.4 m in the previous year. Its net profit stood at Rs 8.6 m, a significant turnaround from a net loss of Rs 0.1 m in FY23.

Swastika Investment Ltd is the book-running lead manager, while Bigshare Services Pvt Ltd serves as the registrar for the issue.

Here are the key details of the IPO.

Issue period: 13 February 2025 to 17 February 2025

Type of Issue: Book built issue of 1 m shares

Face value: Rs 10 per equity share

Price band: Rs 71 per share

Lot size: 1,600 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 113,600

Tentative IPO allotment date: 18 February 2025

Tentative listing date: 21 February 2025

#5 Shanmuga Hospital

Last on the list is Shanmuga Hospital.

Shanmuga Hospital Limited, a multispecialty hospital with a 151-bed capacity, is equipped with advanced healthcare technology to serve the medical needs of the community and nearby regions.

Accredited by NABH and NABL, the hospital is committed to delivering high-quality healthcare services, encompassing prevention, treatment, and rehabilitation.

The Shanmuga Hospital IPO is a fixed-price issue amounting to Rs 206.2 m, consisting entirely of a fresh issue of 3.8 m shares.

The funds raised will be utilized for capital expenditure towards purchasing additional medical equipment and for general corporate purposes.

Finshore Management Services Limited is the book-running lead manager for the IPO, while Integrated Registry Management Services Private Limited serves as the registrar.

Here are the key details of the IPO.

Issue period: 13 February 2025 to 17 February 2025

Type of Issue: Book built issue of 3.8 m shares

Face value: Rs 10 per equity share

Price band: Rs 54 per share

Lot size: 2,000 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 108,000

Tentative IPO allotment date: 18 February 2025

Tentative listing date: 20 February 2025

Conclusion

Investing in IPOs can present significant opportunities, but it also comes with inherent risks. One of the key attractions of IPOs is the potential for early access to high-growth companies, which could become market leaders over time.

However, IPOs are often priced at high valuations, raising concerns about overvaluation. It's important to assess whether the company's fundamentals justify the IPO price.

Additionally, IPO stocks can be volatile, especially in the initial days or months after listing, which may be a concern for investors seeking stability.

For those considering long-term investments, evaluating the company's growth prospects, management quality, corporate governance, and competitive position is crucial.

Finally, the broader market conditions can significantly impact IPO performance, particularly in challenging economic environments.

While IPOs may not be suitable for risk-averse investors, those with higher risk tolerance and an interest in potentially high returns might find them appealing.

Prospective investors should conduct thorough research into the company's financials and corporate governance practices to ensure the investment aligns with their financial goals and risk tolerance.

For more information on IPOs, check out the list of upcoming IPOs.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...