2023 so far has seen a range of initial public offerings from small and medium-sized companies (SMEs). The momentum in SME IPO space has picked up following the stellar debut of Dronacharya Aerial Innovations, which got listed at a premium of 90 per cent in December last year. Around 19 SME IPOs have hit the Street in the first two months of the current year.
The starting two weeks in March would see three SMEs coming up with their IPOs. This would be in addition to the two SME IPOs, namely Resgen and Itcons e-solutions, which are underway. These two issues will conclude on March 2, 2023. The three SME IPO to open in March are Systango Technologies, Vertexplus Technologies and Mcon Rasayan India.
Systango Technologies
The initial share sale of software solutions company Systango Technologies is set to open on March 2, 2023. The offer would close on March 6. The company has fixed the price band for the 38.68 lakh shares on offer at Rs 85-90 per share.
The company aims to utilise the proceeds for strategic investment and acquisitions, finance subsidiaries and meet working capital requirements. It provides end-to-end IT services to its customers that support their software development and applications.
Post issue, the promoter and group holding would come down to 71.96 per cent from the existing 97.73 per cent. Hem Securities is the lead manager to the issue, while Bigshare Services is the registrar.
Vertexplus Technologies
This SME IPO would also open on March 2 and close on March 6, 2023. The company has fixed the price band for the IPO at Rs 91-96 per share. Vertexplus Technologies is involved in the business of consulting, outsourcing, infrastructure and digital solutions.
Mcon Rasayan India
The Mcon Rasayan India IPO would open on March 6 and conclude on March 10. The company has fixed the price band at Rs 40 per share. The firm is involved in the manufacturing, marketing, and selling of construction chemicals and modern building materials.
The three said IPOs — Systango, Vertexplus and Mcon Rasayan — would eventually be listed on the NSE Emerge platform.
However, the mainboard IPO pitch has been slow until now in 2023 with no public offering till February. Divgi TorqTransfer Systems would be the first mainboard IPO of this year. The auto component manufacturer’s IPO would open for subscription tomorrow (March 1). The three-day initial share sale would conclude on March 3.
The IPO comprised a fresh issuance of equity shares aggregating up to Rs 180 crore and an offer for sale (OFS) of up to 39,34,243 equity shares by investors and other selling shareholders, according to the red herring prospectus (RHP).
As part of the OFS, NRJN Family Trust (investment company started by Infosys co-founder and non-executive chairman Nandan Nilekani), Oman India Joint Investment Fund II, Bharat Bhachandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag would offload shares.
NRJN has an 8.70 per cent shareholding in the company. The average cost of acquisition per equity share for the Nilekani family trust came at Rs 125.28, the RHP showed. And, the price band of the IPO is Rs 560-590 apiece. This implies that considering the higher price band of Rs 590, the family trust could fetch up to 370.94 per cent gains.
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