IPO Market in March 2021: The last month of FY 2021 i.e. March is bringing many earning opportunities for investors. The boom in the IPO market has continued in the last year and is going to catch more speed in March. Several companies, including MTAR and Laxmi Argonics, are in line to launch their IPOs at the end of the financial year. Let us know that in the first two months of the year 2021, 8 companies have launched IPOs. These companies have been successful in raising Rs 12,720 crore from the primary market. Companies have raised about Rs 44000 crore from the IPO market so far since the last year i.e. 2020.
Now 2021 can also prove to be a great month in terms of IPO. Market experts have quoted banking sources and investment bankers as saying that in March 2021, 10 to 16 companies can launch their IPOs. Through these IPOs, these companies are aiming to raise Rs 25,000 crore. In March, out of the companies that want to launch their IPO, 9 companies have also approved it by SEBI.
MTAR IPO to open on March 3
The IPO of MTAR Technology will open from 3 to 5 March. The company plans to raise Rs 596 crore from this IPO. The price band of this IPO has been kept at Rs 574-575 and the face value is Rs 10 per equity share. The IPO’s lot size is 26 shares, that is, it is necessary to invest at least Rs 14950. Under the IPO, there will be a fresh issue of Rs 123.52 crore and an offer for sale of Rs 472.90 crore.
MTAR Technology has been serving in the field of Defense, Aerospace and Energy sector for last 4 decades. The client list includes names like ISRO, NPCIL, DRDO, Bloom Energy, Rafael. MTAR Tech recently raised Rs 100 crore from SBI Mutual Funds and Axis Mutual Funds at a price of Rs 540 per share through pre IPO placements. With this, the valuation of the company has increased to Rs 1660 crore. The order book of the company is also very strong. The debt on the company is also very low.
Laxmi Organics is a company that makes speciality chemicals. Laxmi Organics may come out with an IPO of Rs 800 crore in March. It has also received SEBI approval. For this IPO, it will issue fresh shares worth Rs 500 crores and the shares of Rs 300 crores will be issued by the promoter of the company, Yellow Stone Trust. Laxmi Organics was started in 1992. The company manufactures acetaldehyde and acetic acid. The company will use the funds from the IPO to expand its business apart from capital and general corporate needs.
These companies are also in the queue
Apart from MTAR Tech and Laxmi Organics, the companies which are in the queue to launch IPOs include Kalyan Jewelers IPO of Rs 1750 crore, Suryodaya Small Finance Bank’s IPO of Rs 400 crore, Barbecue Nation’s IPO of Rs 1000 to 1200 crore, Craftsman Automation 180 crore IPO, Najara Technologies ‘IPO of 900 to 1000 crore, Annai Infra Developers’ IPO of 250 crores, apart from companies like Aadhar Housing Finance and India Pesticides.
8 IPOs so far this year
Talking about the year 2021, 8 IPOs have come so far. These include companies such as IRFC, Indigo Paints, Home First Finance, Stove Craft, Brookfield India, Heranba Industries, Nureca Limited and RailTel.
How to invest in an IPO
You can invest directly at your level in an IPO, for which you have to have a Demat account. It can be invested through a broker. Every brokerage house maintains a separate section on its website for investing in IPOs, where you can apply for an IPO after filling in some information. Chief among this information is how much stock you want to apply at what price. According to your application, the same amount is blocked from the IPO till the listing.