Two IPOs open this week with 83 percent of the money going to the companies
Steamhouse India and Manika Plastech open within three days of each other. Between them, INR 445 crore of the INR 540 crore sought is fresh issue, an unusual split for a September window.
Two companies open initial public offerings this week, and between them they are asking the market for about INR 540 crore, of which roughly INR 445 crore, or 83 percent, is fresh issue that reaches the companies rather than selling shareholders.
Steamhouse India opens on 9 September and closes on 11 September, with a price band of INR 77 to INR 81 per share on a face value of INR 2. The offer is a fresh issue of INR 353 crore and an offer for sale of INR 61 crore, a total of INR 414 crore. Fresh issue is 85 percent of the offer. The company says proceeds will repay borrowings and fund capacity expansion at its Ankleshwar and Panoli facilities and a new steam generation plant at Dahej GIDC. Equirus Capital is the sole book running lead manager. Steamhouse generates and distributes industrial gases, mainly steam and nitrogen, through pipeline networks, and says it pioneered the community boiler system in India in 2014.
Manika Plastech opens on 11 September and closes on 16 September, with a band of INR 40 to INR 43 on a face value of INR 2. The fresh issue is INR 92.5 crore. The offer for sale is stated only in shares, 76,74,418 of them, which at the upper band works out to about INR 33 crore and puts the total offer near INR 125 crore, with fresh issue at about 74 percent. Proceeds are earmarked for plant and machinery, repayment of borrowings and general corporate purposes. Pantomath Capital Advisors is the book running lead manager.
The clustering is not coincidence. Under the SEBI ICDR Regulations, restated financial statements in an offer document cannot be more than six months old at the issue opening date, which makes March year-end accounts unusable after about 30 September. Both issues close comfortably inside that window.
