Bandhan Bank, Bharat Dynamics and more: Four IPOs that will hit Dalal Street this week

Initial public offerings: While a number of companies are taking the IPO route, the last few listings have not been rewarding for investors on the back of tepid market sentiment. Last week, HG Infra Engineering, the sixth listing of the year, made its stock market debut.

Initial public offerings: Bharat Dynamics will launch its public issue on March 13 and close on March 15. Image source: Reuters

It's raining Initial public offerings (IPOs) on Dalal Street. The ongoing week is scheduled to have four IPOs - Bharat Dynamics, Bandhan Bank, Hindustan Aeronautics, and Karda Constructions - which will test their fate in the primary market. While a number of companies are taking the IPO route, the last few listings have not been rewarding for investors on the back of tepid market sentiment. Last week, HG Infra Engineering, the sixth listing of the year, made its stock market debut, but the shares slipped below their issue price, ending nearly 2 per cent lower on the bourses.

Aster DM Healthcare (1.31 times), Galaxy Surfactants (14 times), Amber Enterprises (115.32 times), Newgen Software (8.17 times) and Apollo Microsystems (250 times) are some of the IPOs that hit Dalal Street so far in 2018. Below is the brief description of the four IPOs to be launched next week:

1) Bharat Dynamics IPO

Bharat Dynamics will launch its public issue on March 13 and close on March 15. The defence public sector company has fixed the price band between Rs 413 and Rs 428 per equity share for its IPO to raise around Rs 960 crore. The government will sell a total of 22,451,953 shares of Bharat Dynamics, diluting its stake by about 12 per cent.

2) Bandhan Bank IPO

Bandhan Bank will launch up to Rs 4,473 crore ($688.6 million) initial public offering of shares on March 15, in what will be the biggest ever initial share sale by a local bank. The Kolkata-based bank and its shareholders will be selling up to 119.3 million shares, or about 10 per cent of the post-issue share capital of the bank, in a price range of Rs 370 to Rs 375 each in the IPO.

3) Hindustan Aeronautics IPO

State-owned Hindustan Aeronautics will open its Rs 4,200-crore initial public offering for subscription on March 16, 2018 in the price band of Rs 1,215 to Rs 1,240 per share. The government is offering a discount of Rs 25 per share to retail investors. The aerospace company, with a Navratna status, will offer 3,41,07,525 equity shares through an offer for sale. Around 668,775 shares will be reserved for subscription by employees.

4) Karda Constructions IPO

Realty firm Karda Constructions (KCL) will open its IPO on March 21 in the price band of Rs 175 to 180 per equity share. The Nashik-based real estate company will offer 43 lakh equity shares, out of which the fresh issue will be of 23 lakhs of equity shares and offer for sale for 20 lakh shares.

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