New Delhi: With the Indian stock market’s mainboard segment showing no signs of activity in the upcoming initial public offerings (IPO) arena for a second week in a row, investors might redirect their attention to the bustling small and medium enterprise (SME) segment. This segment is preparing to welcome two new entrants through public offerings. This marks a clear shift in market dynamics as SMEs take center stage while the larger entities take a step back.
At the forefront of the upcoming IPOs in the SME sector are Ramdevbaba Solvent and Grill Splendour Services, both companies priming themselves to open up shares to the public for subscription. The offerings are of particular interest due to their potential impact on the SME landscape and investor portfolios.
Beginning with Grill Splendour Services, their IPO is eagerly anticipated by market watchers. The subscription window opens on April 15, 2024, providing investors with a brief period until April 18, 2024, to secure their share of the company known for its hospitality and service sector prowess.
While the allotment date for Grill Splendour Services’ shares remains undecided, all indicators suggest that should the scheduling hold firm, allotments could be stamped as early as April 19, 2024. This would place the listing date shortly thereafter on April 23, 2024 — a momentous day for the company as it takes its business public for the first time.
The Grill Splendour Services IPO is valued at Rs 16.47 crores as a fixed price issue, and while this may be on the modest side compared to some previous market entries, it carries significant weight within the SME segment. Each share is expected to debut at Rs 120, with a lot size set at 1200 shares. For retail investors, the minimum investment hurdle stands at Rs 144,000, positioning this IPO as a noteworthy investment for those willing to back an enterprise on the rise in the service industry.
In parallel, Ramdevbaba Solvent enters the market with an IPO set to capture the attention of investors interested in the solvent and chemical production sector. This IPO will also open on April 15, 2024, following suit and concluding alongside Grill Splendour Services on April 18, 2024.
The Ramdevbaba Solvent IPO carries a book-built issue size of Rs 50.27 crores, hinting at a robust entry into the public domain. Positioned at a competitive price band ranging from Rs 80 to Rs 85 per share, the offering is expected to garner significant interest, particularly from investors tapping into the industrial production sector.
This week also witnesses Vodafone Idea’s attempt to alleviate its financial pressures by launching a considerable Follow-on Public Offering (FPO). The telecom behemoth is rolling out an FPO worth a staggering Rs 18,000 crores. With such a vast sum in play, the offering will capture widespread attention when it opens on April 18, 2024, and remains available for subscriptions until April 22, 2024.
As the SME sector takes the spotlight, there is a clear indication of the growing influence and essential role these enterprises play in the broader economic tapestry. Despite no activity on the mainboard, the vivacious offerings of Ramdevbaba Solvent and Grill Splendour Services signify a healthy and diverse market that fosters growth across all business scales.
Investors are undoubtedly keening their senses to the market’s pulse, as the week’s IPO offerings suggest that opportunities to bolster their portfolios are not solely confined to the giants of the mainboard. These SME listings could mark the continuation of a trend where nimbleness and sector-specific growth potential become equally, if not more enticing than the sometimes stagnant waters of larger, well-established corporations. The upcoming week may be quiet for mainboard IPOs, but for the SME segment, it’s nothing short of a beacon calling for potential growth and investment opportunities.
