This time of the year we are experiencing a revived interest in Initial Public Offering (IPO). Just this month, we saw four very successful IPO launches and now we are going to focus on three IPO’s that are going to open today. All the three companies that announced their public issue, will hold their IPO’s open from today 29th September to 1st October.
The three IPO’s that are going to be launch today are from Likhitha Infrastructures Pvt. Ltd, UTI Asset Management Company, and Mazagon Dock Shipbuilders. All of the public offerings are going to trade on both the National Stock Exchange and The Bombay Stock Exchange.
UTI AMC IPO Details
UTI AMC or UTI Mutual Funds is a mutual funds company who is primary dealings include portfolio management, retirement funds, and life insurance among others. This Mumbai based mutual fund company is sponsored by many leading financial companies of the country, namely the State Bank of India, Punjab National Bank, Bank of Baroda, and Life Insurance Corporation of India.
In this IPO all the major stakeholders of UTI are selling a portion of their holding after receiving a warning from the Securities and Exchange Board of India (SEBI) earlier this year. The company is offering 38,987,081 Equity Shares with its fixed price band of Rs. 550 – 554 per share.
The asset management company is hoping to raise a capital of approximately 2159 Crore rupees. The minimum investment from an individual in order to buy the shares in the company will be around 14,958 rupees where they will be able to get their hands on 27 equity shares of Rs. 10 face value.
Likhitha Infrastructure Pvt. Ltd. IPO Details
This Hyderabad based gas and pipeline infrastructure company is also holding an IPO to raise capital for its expansion. Likhitha Infrastructure is one of the countries leading gas service infrastructure companies of the country with its network spread over multiple states. Through the IPO, Likhitha Infrastructure is looking to raise a capital of Rs. 61.20 crores.
The company fixed the price band of the issue at Rs. 117-120 per equity share. There are 5,100,000 equity Shares available for investors but the company has set the maximum limit of 1625 shares per individual where one can only buy shares in the multiples of 125. The minimum investment under this issue comes around Rs. 15,000.
The allotment of the shares will begin from 7th October and the issue will be listed on the 12th of October. With the Initial Public Offering, Likhitha Infrastructure will offer 25.86 percent of the post issue paid-up capital. All the funds raised in the issue will go towards the company’s expansion plans and working capital requirements.
Mazagon Dock Shipbuilders IPO Details
Mazagon Docks is the first Indian company to announce an IPO, in which the government holds a substantial stake. The shipbuilding company supplies equipment and machinery to the Indian Navy and operates under the Ministry of Defense. The IPO will reduce the stake held by the government in the company.
In the Initial Public Offering (IPO), Mazagon Dock will be selling 30,599,017 equity shares that if fully subscribed will raise capital of more than 413 crores. The shares for this sale are priced at the band of Rs. 135 – 140 Per Share. The shares are bundled into lots of 103 shares per lot.
To buy a single lot of shares from the issue one needs an amount approximately equal to Rs. 14,000. Mazagon Dock Shipbuilders also a special scheme for their employees where they will be offered shares at a discount of Rs. 10 per share who also have a portion of the total offering reserved for employees only.
Which to Buy?
Overall, all the companies are having an IPO issue on the same days and will be listed in the same stock exchange. Even the minimum investment amount for all the issues lies in the same range of 14,000 – 15,000 rupees. It would be very interesting to see which company will be able to procure maximum funds from this public offering and how will it impact the market value of the company post the issue.