Our Bureau Suddenly, the primary market at the main board of the exchanges has turned active, as a slew of companies are hitting the road for funds in the next few days. While the initial public offering of PSU major MSTC is currently on, the country’s first real estate investment trust (REIT) will open for subscription on March 18.
Besides, the Centre is also planning to launch the fourth tranche of the further fund offer (FFO) of Central Public Sector Enterprises Exchange-Traded Fund (CPSE-ETF) next week, according to sources.
Among the other companies that are expected to tap the capital markets before this fiscal year ends include Metropolis Healthcare and Muthoot Microfin.
Embassy Office Parks REIT, the first ever by a Real Estate Investment Trust in India, will open on March 18 at a price band of ₹299-300 a unit. Embassy REIT is issuing units aggregating up to ₹4,750 crore. The issue will close on March 20.
CPSE-ETF may hit the market on March 19 at a base issue of ₹3,500 crore; the FFO is likely to have a greenshoe option as well to retain additional subscription, as the Centre is targeting to raise about ₹10,000 crore through the issue.
The IPO size of Metropolis Healthcare is 1.527 crore shares of face value ₹2 each, which is an offer-for-sale of up to 50.178 lakh shares by Dr Sushil Kanubhai Shah (the promoter selling shareholder) and up to 1.025 crore shares by Ca Lotus Investments (the investor selling shareholder) .
Metropolis Healthcare offers a comprehensive range of clinical laboratory tests and profiles, which are used for prediction, early detection, diagnostic screening, confirmation and/or monitoring of the disease.
Muthoot Microfin, part of the Muthoot Pappachan Group, is likely to raise about ₹1,000 crore through the IPO, including an offer-for-sale by its promoters. The proceeds will be used for expansion of the company’s footprint in Northern India.
The Muthoot Microfin IPO comprises a fresh issue of shares aggregating up to ₹500 crore and an offer-for-sale of up to 1.63 crore equity shares, according to the company’s DRHP.
Lukewarm response
Meanwhile, the IPO of MSTC has received only lukewarm response from investors. The ₹226-crore IPO, which came out at a price band of ₹121–128 a share, received bids for just 12 per cent on the second day of the issue, according to the NSE. The Kolkata-based PSU plans to offload 1.767 crore shares through the IPO, which is closing on Friday (March 15).
A Mini Ratna company, under the Ministry of Steel, MSTC provides e-commerce-related services across diversified industry segments.
According to market participants, as the market turned active especially with foreign portfolio investors back in force, some of the companies want to capitalise on the market sentiment. With the fiscal year ending, the Centre is pushing for stake-sale to meet its disinvestment and fiscal targets, they added.