4 IPOs To Hit Dalal Street On 31 March As FY23 Concludes

The following Friday, after a day off on Thursday, will be a busy day for the primary market in the SME sector, as four IPOs will be available for bidding on 31 March.

These four companies plan to collect more than Rs 100 crore in funding. MOS Utility and Infinium Pharmachem will be listed on the NSE Emerge platform, while Exhicon Events Media Solutions and Sancode Technologies will be listed on the BSE SME sector.

MOS Utility, a provider of digital goods and services, is the largest among them, raising nearly Rs 50 crore through an SME IPO. The IPO of 65.74 lakh shares includes a new issuance of 57.74 lakh shares as well as an offer for the sale of 8 lakh shares.

The firm has set the IPO price band at Rs 72-76 per share, with a lot size of 1,600 shares.

The proceeds of the new issue will be used primarily for working capital needs, as well as for general corporate purposes.

MOS is a technology-enabled provider of digital goods and services in the B2C, B2B and financial technology arenas via an integrated business model delivered through an online portal.

Sancode Technologies will be the second IPO to go public on 31 March.

The Rs 5.15-crore IPO is a fixed-price issuance with only a fresh issue component. The selling price per share is Rs 47, and the lot size is 3,000 equity shares.

Sancode, which will also use the funds for working capital, is a software and product development business that provides an API-enabled platform and solutions.

On 6 April, Sancode Technologies and MOS Utility will conclude their public offerings.

On 31 March, Infinium Pharmachem will be the third one to go public. It is the second biggest public issue, with a size of more than Rs 25 crore.

It is also a fixed-price offering, with an offer price of Rs 135 per share and a lot size of 1,000 equity shares.

Infinium Pharmachem provides contract research and manufacturing services (CRAMS) to its customers to provide customised and completely confidential solutions. It specialises in the production and distribution of iodine derivatives, pharmaceutical intermediates and active pharmaceutical components (APIs).

Because the offer contains only a fresh issue component, the company will use the entire amount, minus issue costs, for marketing and branding, debt repayment and incremental working capital needs.

The final IPO will be Exhicon Events Media Solutions. It is a book-built issuance with 2,000 equity shares per lot.

The offer will net the business more than Rs 21 crore, which will be raised entirely through a new issue of 33 lakh shares. The price range has been established at Rs 61-64 per share.

In addition to IPO costs, the proceeds of the IPO will be used to cover a working capital gap and general corporate expenses, as well as the purchase of exhibition material.

Exhicon offers a comprehensive variety of products and services to the exhibitions, conferences, and events industries. It offers turnkey event and trades fair construction services for small to big graph B2B and B2C fairs and events.

On 5 April, Infinium Pharmachem and Exhicon Events Media Solutions will conclude their public offerings.

Overall, we have seen a rush of public issues in the SME sector in the first quarter of the current calendar year, but the mainboard IPO segment appears to be less enthusiastic, which could be due to secondary market correction and consolidation.

Besides the above four, a total of 35 businesses launched their public issues in the SME segment in 2023 against only 4 IPOs – Divgi TorqTransfer System, Global Surfaces, Udayshivakumar Infra and Advalon Technologies – on the mainboard.