MUMBAI: Seven companies including Bajaj Housing Finance, debt arranging platform Northern Arc and jewellery player PN Gadgil Jewelers are hitting the primary capital markets next week, seeking to mop up close to Rs 11,000 crore.
The other issuers tapping the market next week are Arkade Developers, Tolins Tyres, auto component player Kross and Gala Precision Engineering.
While the issue from Bajaj Housing Finance is the largest at Rs 7,000 crore, the Chennai-based debt arranger Northern Arc is raising Rs 1,500 crore, the Pune-headquartered almost 200-year-old PNG Jewelers is mopping up Rs 1,100 crore, Kross is looking at raising Rs 500 crore, the city-based Arkade Developers which is primarily into redevelopment in the megapolis is seeking to garner Rs 430 crore in a fully primary issue, the Kerala-based Tolin Tyers is eyeing Rs 230 crore, and the city-based Gala Precision Engineering is looking at garnering Rs 180 crore, according to their filings with the regulator Sebi.
The Rs 7,000-crore Bajaj Housing issue is the first IPO from the Pune-based group since May 2008 and consists of a fresh issue of Rs 4,000 crore and an offer for sale of up to Rs 3,000 crore by the selling shareholder Bajaj Finance.
The Bajaj Group has filed the draft red herring prospects with market regulator Sebi for a Rs 7,000-crore primary share sale from its housing finance arm Bajaj Housing Finance.
The Bajaj group, founded in 1926, has several publicly traded companies -- Bajaj Finserv (May 2008), which is the parent of the issuer and also the group’s holding company of its financial services vertical; Bajaj Finance, another promoter of the firm hit the market in 1994; and flagship Bajaj Auto which went public much earlier and is the world’s most profitable two-wheeler maker.
According to the Sebi filing, only Bajaj Finance is participating in the offer for sale of up to Rs 3,000 crore though Bajaj Finserv is also a promoter.
The Chennai-based Northern Arc Capital, which is primarily into arranging debt for small businesses and micro lenders but also has a non-banking arm, is raising Rs 1,500 crore through the public issue in a mix of fresh issue and offer for sale by its external investors, the details of which are not known as of now.
The 1,100 crore issue of Pune-headquartered jewelry retailer PNG Jewelers, which has 39 stores across Maharashtra and Goa, consists of fresh issue of Rs 850 crore and the Rs 250 crore of OFS by the family trust SVG Business Trust that fully owns the company established in 1832 in Sangli in Maharashtra.
The sixth generation entrepreneur Saurav Gadgil, who is the chairman and managing director of the company, told TNIE here that the proceeds from the issue will be used to repay Rs 300 crore of working capital from banks and that after the IPO the company will go for gold metal loans.
Rs 400 crore from the issue will be used to open 12 more new stores in the home state, he said, adding each store will entail an investment of around Rs 40 crore.
Gadgil also said the company had a top line of Rs 6,000 crore for the year ending March 2024 from which it earned Rs 180 crore.
The Kochi-based Tolins Tyres, which is into tyres and treads, is hitting the market with a public offer of Rs 230 crore-- Rs 200 crore in fresh issue and rest in OFS—with promoter and chairman Kalamparambil Varkey Tolin selling for Rs 15 crore and his wife Jerin Tolin also divesting equity worth Rs 15 crore.
Tolins Tyres, which began in 1982, manufactures tread rubber at its three units -- two in Kalady, Kerala, and one in Ras Al Khaimah in the UAE.
The Jamshedpur-based auto component maker Kross, manufacturing trailer axles and suspension assembly units for medium and heavy commercial vehicles and tractors, is raising Rs 500 crore from the IPO that comprises a fresh issue of Rs 250 crore and an OFS of Rs 250 crore.
The OFS portion comprises share sale by Sudhir Rai for Rs 168 crore and for Rs 82 crore by Anita Rai.
The Mumbai-based Arkade Developers aims to raise Rs 430 crore which will entirely be a fresh issue of shares and the company plans to use the proceeds for ongoing and upcoming projects.
The city-based Gala Precision Engineering is raising Rs 180 crore through the issue that opens on September 2 consisting of a fresh issue of 25,58,416 shares and OFS of 6,16,000 shares.