4 Upcoming IPOs to Watch Out for This Week

IPO was one of the biggest themes this year with some record-breaking numbers, in terms of number of deals as well as number of value of deals.

From tech giants to emerging startups, public offerings have reshaped the market dynamics and captured investor attention. In 2024, the IPO market surpassed an impressive Rs 1.6 trillion (tn) in value, as reported by Prime Database.

Despite challenging equity market conditions, the momentum in the primary market shows no signs of slowing down. Starting 30 December four IPOs are set to hit the market, offering fresh opportunities for investors.

In this article, we explore the details of these upcoming IPOs.

• Mainboard IPO

#1 Indo Farm Equipment

First on the list is Indo Farm Equipment IPO with an issue size of Rs 2.6 billion (bn).

The company's facilities include advanced equipment like induction furnaces, automated moulding lines, and a metallurgy laboratory, underscoring its robust manufacturing capabilities.

The IPO comprises a fresh issue of 8.6 million (m) equity shares and an offer for sale (OFS) of up to 3.5 m shares by promoter Ranbir Singh Khadwalia.

The company aims to raise funds to expand its production capacity for Pick & Carry Cranes, repay specific loans, and invest in its NBFC subsidiary, Barota Finance. The remaining funds will be allocated for general corporate purposes.

Its unique aspect lies in having an in-house NBFC setup. The company has a total income of Rs 3.8 bn, which increased by 1% in FY24. Its net profit too rose by 1% in FY24 to Rs 156 m.

Over the past three years, the company has maintained steady growth, reflecting its position as a profit-generating entity with over two decades of operational experience.

Aryaman Financial Services Limited is the book-running lead manager of the Indo Farm Equipment IPO, while Mas Services Limited is the registrar for the issue.

Here are the key details of the IPO.

Issue period: 31 December 2024 to 2 January 2025

Type of Issue: Book built issue of 12.1 m shares

Face value: Rs 10 per equity share

Price band: Rs 204-215 per share

Lot size: 69 shares

Application limit: Maximum thirteen lots for retail investors. Retail investors can make an application for a minimum of Rs 14,835 for one lot (69 shares).

Tentative IPO allotment date: 3 January 2025

Tentative listing date: 7 January 2025

• SME IPOs

#1 Technichem Organics

First on the SME IPO list is Technichem Organics with an issue size of Rs 252.5 m.

The company is engaged in the business of manufacturing a wide range of chemicals, speciality chemicals, pigment & dye intermediates and air oxidation chemistry.

Operating in 11 countries, the company achieved a total export value of Rs 176.9 m in FY24, with 20.6% of these exports going to China. The company's domestic sales for the same financial year amount to Rs 287 m.

Technichem Organics specialises in producing customised products for the agrochemical, coatings, pharmaceutical, dye, pigment, and speciality chemicals industries, with an annual manufacturing capacity of 950 tonnes. The issue is entirely a fresh issue of 4.6 m shares.

The company plans to utilise the IPO money for funding capital expenditure towards setting up a new plant, repayment or prepayment, and general corporate purposes.

For FY24 its revenue decreased by 8% to Rs 469.7 m, down from Rs 510.1 m. Meanwhile, the net profit jumped 173% to Rs 47.2 m, up from Rs 17.2 m.

Here are the key details of the IPO.

Issue period: 31 December 2024 to 2 January 2025

Type of Issue: Book built issue of 4.6 m shares

Face value: Rs 10 per equity share

Price band: Rs 52-55 per share

Lot size: 2,000 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 110,000

Tentative IPO allotment date: 3 January 2025

Tentative listing date: 7 January 2025

#2 Leo Dry Fruits and Spices

Next on the list is Leo Dry Fruits and Spices IPO with an issue size of Rs 251.2 m.

Leo Dryfruits is actively involved in the manufacturing, trading, and marketing of a diverse range of spices, dry fruits, and grocery products under the brand name VANDU, as well as frozen and semi-fried items marketed under the brand FRYD.

The company also offers a variety of seasonings, cheese bites, poppy seeds, sesame seeds, and other grocery items. To expand its product line, Leo Dryfruits has introduced Ghee under the Vandu brand.

Additionally, the company serves as an anchor distributor for Campa Cola soft drinks.

The company has established partnerships with various Police Canteens, the Canteen Store Department (CSD), and the Indian Naval Canteen to supply its products.

Its strength lies in the enhanced brand equity developed over the years.

The issue is entirely a fresh issue of 4.8 m shares. The company plans to utilise the IPO money for funding working capital requirements, branding, advertisement, marketing activities, and general corporate purposes.

For FY24 its revenue jumped 71% to Rs 622.6 m. While its net profit jumped 83% to Rs 66.3 m, up from Rs 36.3 bn a year back.

Shreni Shares Limited is the book-running lead manager of the Leo Dry Fruits and Spices IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

Here are the key details of the IPO.

Issue period: 1 January 2025 to 2 January 2025

Type of Issue: Book built issue of 4.8 m shares

Face value: Rs 10 per equity share

Price band: Rs 51-52 per share

Lot size: 2,000 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 104,000

Tentative IPO allotment date: 6 January 2025

Tentative listing date: 8 January 2025

#3 Fabtech Technologies Cleanrooms

Last on the list is Fabtech Technologies Cleanrooms IPO with an issue size of Rs 277.4 m.

Fabtech Technologies Cleanrooms Limited specialises in modular panels and door systems designed for cleanroom environments in the pharmaceutical, biotech, and healthcare industries.

Offering end-to-end solutions, the company handles everything from design and engineering to installation and validation of cleanroom components like wall panels, HVAC systems, doors, and epoxy flooring.

Established in 2015 under the umbrella of the Fabtech Group, which boasts over 28 years of experience in the engineering sector, the company underwent a rebranding initiative in 2024.

As part of the IPO, Fabtech plans to issue up to 3,264,000 fresh equity shares, each with a face value of Rs 10.

The upcoming IPO aims to generate funds for multiple strategic objectives, including supporting the company's long-term working capital requirements, acquiring equity shares in Kelvin Air Conditioning and Ventilation Systems Private Limited and addressing general corporate needs.

For FY24 its revenue decreased 22% to Rs 979.9 m, down from Rs 1,251 m a year back. Its net profit too dropped 27% to Rs 57.8 m, down from Rs 79.6 m a year back.

Vivro Financial Services Private Limited is the book-running lead manager of the Fabtech Technologies IPO, while Maashitla Securities Private Limited is the registrar for the issue.

Here are the key details of the IPO.

Issue period: 3 January 2025 to 7 January 2025

Type of Issue: Book built issue of 3.3 m shares

Face value: Rs 10 per equity share

Price band: Rs 80-85 per share

Lot size: 1,600 shares

Application limit: Retail investors can make an application for a maximum of one lot of Rs 136,000

Tentative IPO allotment date: 8 January 2025

Tentative listing date: 10 January 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.

However, 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...