Upcoming IPO: Great Opportunity to Earn, IPO of 3 Companies Will Open Tomorrow
Upcoming IPO
The primary market is expected to experience a high level of activity in the coming days, as three companies are set to launch their Initial Public Offerings (IPOs) simultaneously.
This event is scheduled to take place on Friday, June 23. What makes these IPOs particularly noteworthy is that all three companies have opted to bring their shares to the market through the Small and Medium Enterprises (SME) route. Collectively, these companies aim to raise around Rs 134 crore through their IPOs.
Investors and traders will have the opportunity to participate in the bidding process for the IPOs of Essen Specialty Films, Greenchef Appliances, and Magson Retail and Distribution starting from June 23. The bidding period will last until June 27, providing interested parties with a few days to evaluate the offerings and submit their bids.
Essen Specialty Films, a company operating in the specialty films sector, plans to make its shares available for public trading through this IPO.
Greenchef Appliances, on the other hand, is focused on the production of household appliances and will also be offering shares to the public. Lastly, Magson Retail and Distribution, as the name suggests, operates in the retail and distribution sector and is expected to list its shares through the IPO.
With the simultaneous IPO launches of these three companies, market participants will have the opportunity to diversify their investment portfolios and potentially take advantage of the growth prospects presented by these SMEs.
1. Essen Specialty Films IPO
Essen Specialty Films, the largest company among the three launching IPOs, is a prominent player in the home furnishing industry.
The company specializes in exporting a wide range of specialized plastic products to multinational giants such as IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohls, and Kroger.
Its strong presence in the global market and its association with renowned brands make Essen Specialty Films an attractive investment opportunity.
Through its IPO, Essen Specialty Films aims to raise a substantial amount of Rs 66.33 crore. The company plans to achieve this by issuing a total of 61.99 lakh equity shares.
Among these shares, 46.99 lakh shares will be freshly issued, enabling the company to raise capital for expansion and growth. Additionally, 15 lakh shares will be offered for sale by the promoters of the company, providing an opportunity for existing stakeholders to monetize their holdings.
To participate in the IPO, retail investors can bid for a minimum and maximum of one lot, with each lot consisting of 1,200 equity shares.
Therefore, an investor willing to bid for one lot will need to invest Rs 1,28,400 (1,200 shares multiplied by Rs 107, the upper end of the price band).
High net worth individuals have the option to bid for a maximum of two lots, allowing them to invest up to Rs 2,56,800 in the IPO.
Essen Specialty Films has outlined the utilization of the IPO proceeds. The funds raised will be allocated towards reducing the company’s debt burden, fulfilling working capital requirements, and supporting various other corporate purposes.
This strategic allocation of funds aims to strengthen the company’s financial position and facilitate future growth initiatives.
It is worth noting that Essen Specialty Films is part of the Rajoo Group, a well-established conglomerate. Another company within the group, Raju Engineers, is already listed on the Bombay Stock Exchange (BSE), adding to the credibility and track record of the group.
Investors looking for exposure to the growing home furnishing industry and the potential of specialized plastic products can consider participating in Essen Specialty Films’ IPO.
The company’s established customer base, export-oriented business model, and plans for expansion make it an exciting prospect for investors seeking long-term growth opportunities.
2. Greenchef Appliances IPO
Greenchef Appliances, a renowned kitchen appliance manufacturer, is the second company set to launch its IPO. The company plans to issue a total of 61.63 lakh shares as part of its IPO, with the aim of raising Rs 53.62 crore.
This offering consists entirely of fresh shares, meaning that the company will receive the entire amount (excluding issue expenses) generated from the IPO.
The funds raised will be utilized for various purposes, including setting up additional plant and machinery, constructing factory buildings, and meeting working capital requirements.
The price band for the Greenchef Appliances IPO has been fixed at Rs 82-87 per share. Investors will have the opportunity to bid for shares on a lot-wise basis, with each lot comprising 1,600 shares.
Retail investors can bid for a minimum and maximum of one lot, which would require an investment of approximately Rs 1,39,200.
High net worth individuals, on the other hand, have the option to invest a maximum of two lots, amounting to around Rs 2,78,400.
Greenchef Appliances aims to leverage the IPO proceeds to expand its manufacturing capabilities, enhance its infrastructure, and ensure sufficient working capital for future operations.
The company’s focus on kitchen appliances aligns with the growing demand for innovative and high-quality kitchen solutions, making it an attractive proposition for investors.
By participating in the Greenchef Appliances IPO, investors can potentially benefit from the company’s expansion plans and capitalize on the increasing consumer interest in kitchen appliances. The IPO provides an opportunity to invest in a reputable brand operating in a thriving industry, with the potential for long-term growth and profitability.
3. Magson Retail IPO
Magson Retail and Distribution, the third company to launch its IPO, operates in the frozen foods supply sector. The company aims to raise approximately Rs 13.74 crore through its IPO, which consists of a fixed-price issue comprising 21.14 lakh fresh shares.
The funds raised from the IPO will be utilized by Magson Retail and Distribution to establish an organization and stores under the franchisee model, form strategic partnerships with key suppliers, and fulfill its working capital requirements.
Investors interested in the Magson Retail IPO can bid for shares on a lot basis, with each lot comprising 2,000 shares.
Retail investors have the option to bid for a minimum and maximum of one lot, requiring an investment of approximately Rs 1.3 lakh. High net worth individuals, on the other hand, can invest a maximum of two lots, amounting to around Rs 2.6 lakh.
Magson Retail and Distribution specializes in the retail and distribution of savory, frozen meals, and specialty foods. Currently, the company operates 26 retail outlets across western India.
Out of these, 16 stores are operated directly by the company, while seven stores operate under the franchise model, and three are operated through joint ventures. All of these stores operate under the brand name “MagSon.”
Upon completion of the IPO, the shares of Essen Specialty Films, Greenchef Appliances, and Magson Retail and Distribution will be listed on the NSE Emerge on July 6.
This provides investors with an opportunity to trade and invest in these companies through the stock exchange platform.
