IPO update: NSDL, Muthoot Microfin file DRHP with SEBI; Yatharth Hospital raises ₹120 cr via pre-IPO placement

After taking some breather in recent months, the primary market is now seeing a flurry of initial public offerings (IPOs) as strong rally in the stock market has prompted companies to test investor appetite for new listings. This week, as many as four IPOs will open for subscription, while six firms will make their debut on stock exchanges from mainboard and small and medium enterprises (SMEs) segment, including Cyient DLM and Senco Gold.

In a fresh development, National Securities Depository (NSDL), a market infrastructure institution, and Muthoot Microfin, microfinance subsidiary of Muthoot Pappachan Group, have filed their draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds via IPO route. Besides, Yatharth Hospital & Trauma Care Services, a Noida-based healthcare provider, has raised ₹120 crore through pre-IPO placement of equity shares.

NSDL, India's first electronic securities depository, on July 7 filed a document with capital market regulator the SEBI for its IPO, which is completely an offer for sale (OFS) from key investors, including NSE, HDFC Bank, SBI, IDBI Bank, and SUUTI. The company will issue up to 57,260,001 equity shares of face value ₹2 each.

“The offer for sale of equity shares comprises up to 22,220,000 stocks by IDBI Bank; up to 18,000,001 equity shares by NSE; up to 5,625,000 by Union Bank of India; up to 4,000,000 by State Bank of India; up to 4,000,000 by HDFC Bank; up to 3,415,000 by administrator of the specified undertaking of the Unit Trust of India (SUUTI),” as per document filed with the SEBI.

ICICI Securities Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, IDBI Capital Markets & Securities Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the issue. 

Microfinance company Muthoot Microfin has also taken the IPO route to raise up to ₹1,350 crore through public listing of shares. The IPO will consist of a fresh issue of equity shares worth ₹950 crore and an OFS of ₹400 crore. The capital raised from fresh issue of equity shares will be used to strengthen the company's capital base in order to meet future capital needs.

ICICI Securities Limited, Axis Capital Limited, JM Financial Limited and SBI Capital Markets Limited are the book running lead managers to the issue.

Meanwhile, Yatharth Hospital & Trauma Care Services has undertaken a pre-IPO placement of 40,00,000 equity shares for cash at a price of ₹300 per share (including a share premium of ₹290 per share) aggregating to ₹120 crore. The company, while filed for IPO in March last year, has allotted shares to Plutus Wealth Management LLP, Think India Opportunities Master Fund, Vikas Vijaykumar Khemani, Rosy Blue Diamonds Pvt. Ltd., and Viraj Russell Mehta.

Besides, as many as six companies are lined up to make their debut on stock exchanges this week. Shares of electronics manufacturing services and solutions provider Cyient DLM will be listed today, while Kolkata-based jewellery retailer Senco Gold to make its debut on July 14. In the SME segment, four firms will be listed, starting with Global Pet Industries on July 10. While Synoptics Technologies and Tridhya Tech will list on July 13, Alphalogic Industries will debut on July 14.

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