InvestorQ : Can you tell me about the IPOs opening this week?
Lavanya Subramanian made post

Can you tell me about the IPOs opening this week?

Anamika Sodhani answered.
4 weeks ago

It finally looks like the IPO season is back at full steam. In the coming week, a total of 4 IPOs are slated to announce their opening. For instance, the IPOs of DCX Systems, Bikaji Foods International, Global Health and Fusion Microfinance are all set to open during the current week. These 4 IPOs will combine fresh issue collections and offer for sale collections and between them they will raise an amount of Rs4,500 crore in the primary market. It would be a good way to test the depth and the appetite of the market and for cues one will have to look at the retail appetite, HNI appetite and institutional appetite through anchor book.

A little more about the business models of the 4 IPOs. Global Health is the franchise that runs Medanta Hospital chain, which was floated by noted heart surgeon Dr. Naresh Trehan, more than 15 years ago. DCX Systems is a cable company that basically caters to the niche communications and aerospace industry while Fusion Microfinance is a small lending platform for SMEs with a focus on the unbanked segment. They will look at the IPO to enhance their capital adequacy buffers. Finally, Bikaji Foods International is a fast foods and packed snacks company with a strong all-India franchise and good retail brand.

The IPOs of Fusion Microfinance and DCX Systems will open and also close during the current week. However, the IPOs of Bikaji Foods International and Global Health will open in the current week but close on the next Monday i.e. 07ths November 2022. These 4 IPOs will take the total IPO collections for the 2022 calendar year closer to the Rs50,000 crore market. However, the total absence of digital IPOs in this year (other than Delhivery), have led to underperformance in IPO collections compared to the previous year.