4 IPOs open on Aug 4: Krsnaa Diagnostics, Windlas Biotech, Devyani International and Exxar Tiles

Four IPOs will open for subscription on Wednesday (August 4). These include initial public offerings (IPOs) of Windlas Biotech, Devyani International, Krsnaa Diagnostics and Exxaro Tiles. Buoyed by bumper listings of Clean Science and Technology, GR Infraprojects, Zomato and Tatva Chintan Pharma Chem on the bourses, the four firms are expecting for their turn to make a strong debut on the Dalal Street.

Let’s take a look at four IPOs that will open for subscription this week: 

Krsnaa Diagnostics IPO: Aug 4 to 6; price band Rs 933-954

Krsnaa Diagnostics said it has fixed a price band of Rs 933-954 a share for its little over Rs 1,213 crore initial share-sale. The three-day IPO will open for public subscription on August 4 and conclude on August 6. The IPO comprises fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of up to 8,525,520 equity stocks by its existing shareholders.

As a part of the OFS, Phi Capital will sell 16 lakh equity shares, Kitara will offload 33,40,713 equity shares, Somerset Indus Healthcare Fund I Ltd will offer 35,63,427 equity shares and Lotus Management Solutions will sell 21,380 equity shares. At the upper end of the price band, the IPO is expected to mobilise Rs 1,213.3 crore. Proceeds from the fresh issue will be used for financing the cost of establishing diagnostics centers at Punjab, Karnataka, Himachal Pradesh, and Maharashtra; repayment of loans availed by the company and general corporate purposes. 

The company said investors can bid for a minimum of 15 equity shares and in multiples of 15 thereafter.

Krsnaa Diagnostics provide a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centres pan-India. The company focuses on the public private partnership (PPP) diagnostics segment, and has the largest presence in the diagnostic PPP segment.

As of June 2021, the company operated 1,823 diagnostic centres offering both radiology and pathology services in 13 states across the country.

Windlas Biotech IPO: Aug 4 to 6; price band at Rs 448-460

Windlas Biotech, manufacturer of pharmaceutical formulations, has fixed a price band of Rs 448-460 a share for its initial share-sale. The three-day initial public offer (IPO) will open on August 4 and conclude on August 6. The IPO comprises fresh issuance of equity shares worth Rs 165 crore and and an offer for sale of up to 5,142,067 equity shares. As a part of the OFS, Vimla Windlass will offload 11.36 lakh equity shares, and investor Tano India Private Equity Fund II will sell 40,06,067 equity shares. At the upper end of the price band, the initial share-sale will fetch Rs 401.53 crore.

The proceeds from the IPO will be utilised for purchasing of equipment required for capacity expansion of the facility at Dehradun Plant -IV and addition of injectables dosage capability at the facility at Dehradun Plant-II. It will also be used for funding incremental working capital requirements, repayment/ prepayment of certain of borrowings and general corporate purposes.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non institutional investors.

Devyani International IPO: Aug 4 to 6; price band at Rs 86-90

Devyani International, the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, ha fixed a price band of Rs 86-90 a share for its Rs 1,838-crore initial share-sale. The three-day initial public offering (IPO) will open for subscription on August 4. The IPO consists of fresh issue of equity shares worth Rs 440 crore and an offer-for-sale of up to 155,333,330 equity shares by promoter and existing shareholder. Under the offer-for-sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will offload 6,53,33,330 shares and promoter RJ Corp will sell 9 crore shares. The offer includes a reservation of up to 5.50 lakh equity shares for the company’s employees. Also, 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Investors can bid for minimum 165 equity shares and in multiples of 165 equity shares thereafter. At the upper end of the price band, the IPO is expected to fetch Rs 1,838 crore.

Proceeds from the fresh issue will be used to retire debt and general corporate purposes. Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major Pepsico, and has interests in the Indian retail F&B sector. The company is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee besides its own brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar. It currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 2021 in India.

Devyani International is led by Ravi Kant Jaipuria, promoter of RJ Corp and Virag Joshi, President and CEO, who have been key strategists of the expansion efforts by the company.

Exxaro Tiles IPO: Aug 4 to 6; price band at Rs118-120

Exxaro Tiles, a leading manufacturer of vitrified tiles, on Friday said it has fixed a price band of Rs 118-120 a share for its initial share-sale. The-three day initial public offering (IPO) will open on August 4, and conclude on August 6. The initial public offering of up to 1,342,4000 equity shares comprises a fresh issue of up to 1,11,86,000 equity shares and an offer-for-sale of up to 22,38,000 equity shares by Dixitkumar Patel. At the upper end of the price band, the IPO will fetch Rs 161.08 crore.

Proceeds from the fresh issue would be utilised towards repaying/prepaying of borrowings, fund its working capital requirements besides utilising it for general corporate purposes. Promoted by Mukeshkumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel, Exxaro Tiles is primarily engaged in the business of manufacturing and marketing of vitrified tiles used majorly for flooring solutions catering to residential and commercial segments. It currently has an over 2,000 dealer network across 27 states.

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