Two companies, Star Health and Allied Insurance Company and Tega Industries, are set to float their initial public offerings (IPOs) next week to cumulatively raise Rs 7,868 crore. The three-day initial share-sale of Star Health will open on November 30 and conclude on December 2, while that of Tega Industries will be open for public subscription during December 1-3.
This comes after 10 firms successfully concluded their initial public offerings in November. So far in 2021, as many as 51 companies have launched their IPOs to raise over Rs 1 lakh crore, according to the analysis of data with exchanges. Apart from these, PowerGrid InvIT, the infrastructure investment trust (InvIT) sponsored by the Power Grid Corporation of India, mopped up Rs 7,735 crore through its IPO and Brookfield India Real Estate Trust raised Rs 3,800 crore via its initial share sale.
The fundraising so far this year is way higher than Rs 26,611 crore collected by 15 companies through initial share sales in the entire 2020. Such impressive fundraising through IPOs was last seen in 2017 when firms mobilized Rs 67,147 crore through 36 IPOs. Star Health’s IPO comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer for sale of up to 58,324,225 equity shares by promoters and existing shareholders. Those offering shares through the offer for sale are promoter and promoter group — Safecrop Investments India LLP, Konark Trust, MMPL Trust — and existing investors — Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai.
Star Health has fixed a price band of Rs 870-900 a share and at the upper end of the price band, the initial share sale is expected to fetch Rs 7,249.18 crore. Proceeds from the fresh issue would be used to augment the company’s capital base.
Star Health, a leading private health insurer in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala. The IPO of Tega Industries, a manufacturer of consumables for the mining industry, is purely an offer of sale of 1,36,69,478 equity shares by promoters and an existing shareholder.
As a part of the offer for sale, promoters Madan Mohan Mohanka will offload up to 33.14 lakh equity shares and Manish Mohanka will sell 6.63 lakh equity shares. In addition, Wagner, an affiliate of the US-based private equity firm TA Associates, will offload 96.92 lakh equity shares through the offer for sale.
The price band has been set at Rs 443-453 a share and at the upper end of the price band, the initial public offering is expected to fetch Rs 619.22 crore. The Kolkata-based Tega Industries offers comprehensive solutions to marquee global clients in the mineral beneficiation, mining and bulk solids handling industry, through its wide product portfolio.
The equity shares of both companies will be listed on the BSE and NSE.