Shivalic Power Control is set to launch its public issue by the end of this month or early July. The NSE Emerge-bound company plans to issue 64,32,000 equity shares with a face value of Rs 10 each. The SME player filed its Draft Red Herring Prospectus (DRHP) with the NSE in March 2024.

According to the DRHP, Shivalic Power Control will allocate Rs 30.20 crore from the net proceeds towards working capital requirements, and Rs 5.81 crore for acquiring new machinery. The remaining funds will be used for constructing a new assembly line, inorganic growth, and general corporate purposes. Corporate Capital Ventures is the sole book-running lead manager of the IPO, while Skyline Financial Services is the registrar for the issue.

Shivalic Power Controls manufactures a wide range of electric panels including PCC panels, IMCC panels, smart panels, MCC panels, outdoor panels, HT panels, CFD panels, DG synchronisation panels, LT & HT APFC panels, power distribution boards, bus ducts, and more.

Amit Kumar Jindal, the founder of Shivalic Power Controls, emphasized that the entire manufacturing process, from designing to production, is conducted at their facility in Faridabad. The company aims to increase its working capital to optimize costs and receive vendor discounts for payments. Jindal also highlighted the importance of ongoing innovation and efficiency, urging the industry to adopt new technologies to remain competitive.

Shivalic Power Controls serves renowned clients such as Hewlett Packard, Jindal Steel & Power, DCM Shriram, Rungta Mines, Bikaji Foods, Dabur, Radico, JK Cement, Orient Papers, Escorts, Reliance Cement, Naini Paper, and Yamaha Motors. The company recently secured a major order for the RBI data center and serves over 15 sectors in India and internationally, including clients in Nepal, Bangladesh, Uganda, Kenya, Algeria, and Nigeria.

For the nine months ending December 31, 2023, Shivalic Power Controls reported a net profit of Rs 7.6 crore with a revenue of Rs 63.55 crore. For FY23, the profit stood at Rs 7.16 crore with a revenue of Rs 82.15 crore.

The week commencing May 27 will see limited activity in the mainboard segment with no new public issues scheduled. However, the SME segment will be bustling with five IPOs lined up for launch.

Mainboard segment

Awfis Space Solutions will conclude its Rs 599-crore IPO on May 27. Over the initial three days starting May 22, the issue was oversubscribed 11.4 times, drawing strong interest from diverse investor categories. The workspace solutions provider is set to debut on the bourses on May 30. In the grey market, its IPO shares are trading at a 25-30% premium over the upper price band of Rs 383 per share, according to market observers. 

SME segment

The SME segment will be active with a new IPO launching each day next week:

Vilas Transcore IPO

Opening Date: May 27

Issue Size: Rs 95.26 crore

Price Band: Rs 139-147 per share

Closing Date: May 29

The Gujarat-based power distribution and transmission components manufacturer plans to use the proceeds for strategic investments, factory construction, acquiring new machinery, and general corporate purposes.

Beacon Trusteeship IPO

Opening Date: May 28

Issue Size: Rs 32.52 crore

Price Band: Rs 57-60 per share

Closing Date: May 30

The IPO includes a fresh issue of 38.72 lakh shares and an offer-for-sale (OFS) of 15.48 lakh shares. Proceeds will fund technology infrastructure, acquisition of Beacon RTA Services, new office premises, and general corporate purposes.

Ztech India IPO

Opening Date: May 29

Issue Size: Rs 37.30 crore

Price Band: Rs 104-110 per share

Closing Date: May 31

The civil engineering products designer will use the funds for working capital, general corporate purposes, and IPO expenses.

Aimtron Electronics IPO

Opening Date: May 30

Issue Size: Rs 87.02 crore

Price Band: Rs 153-161 per share

Closing Date: June 3

The Gujarat-based ESDM services provider will allocate the proceeds to repay borrowings, install additional machinery, and meet working capital requirements.

TBI Corn IPO

Opening Date: May 31

Issue Size: Rs 44.94 crore

Price Band: Rs 90-94 per share

Closing Date: June 4

The Sangli-based corn meal grits manufacturer will utilize the funds for expanding its existing unit, working capital, and general corporate purposes.

SME listing

GSM Foils will close its Rs 11.01-crore IPO on May 28, after opening on May 24 and receiving a robust response with a subscription rate of 16.63 times on the first day. Trading in its equity shares will commence on NSE Emerge from May 31, marking the only listing from the SME segment next week.

ABS Marine Services, a renowned offshore vessel management company, is gearing up for its much-anticipated Initial Public Offering (IPO) scheduled to launch on May 10, 2024. This IPO, tailored for small and medium enterprises (SMEs), offers investors an opportunity to partake in the company’s growth story. Here’s everything you need to know about ABS Marine Services’ IPO:

Offering details:

• Price band: The IPO’s price band is set between ₹140 to ₹147 per share.
• Fundraising objective: ABS Marine Services aims to raise over ₹96.29 crore through the issuance of 65.5 lakh fresh shares.
• Investment options: Investors can bid for a minimum of 1000 shares and in multiples thereof. The minimum investment mandated for retail investors is ₹147,000.

Allocation breakdown:

• QIBs: Reserved not more than 50% of the issue.
• Retail investors: Allocated not less than 35% of the issue.
• NIIs: Reserved not less than 15% of the issue.

Key dates:

• Subscription deadline: May 15, 2024.
• Allotment conclusion: Expected by May 16, 2024.
• Listing date: Tentatively scheduled for May 21, 2024, on the NSE SME platform.

Management and Partnerships:

• Promoters: The company is backed by Captain P B Narayanan, Shreelatha Narayanan, Arathi Narayanan, and Captain Jeevan Krishnan Sanjeevan.
• Lead manager: GYR Capital Advisors Private Limited.
• Registrar: Purva Sharegistry India Pvt Ltd.
• Market makers: Giriraj Stock Broking and Commodity Mandi.

Company overview:

• Establishment: ABS Marine Services Limited was founded in October 1992.
• Vessel portfolio: As of December 31, 2023, the company manages a fleet of five vessels, including two advanced offshore vessels and three harbor vessels.
• Service spectrum: In addition to vessel management, the company provides crew management services for a diverse range of vessels, including oil tankers, gas carriers, bulk carriers, passenger ships, and high-speed vessels.
• Financial performance: Notably, ABS Marine Services witnessed a commendable 21.27% increase in revenue and a significant rise of 147.22% in profit after tax (PAT) for the financial year ended on March 31, 2024.

With a robust track record in vessel management and promising financial performance, ABS Marine Services’ IPO presents an enticing opportunity for investors seeking exposure to the maritime sector’s growth potential. Stay tuned for updates as the company sets sail towards its public debut.

This week on the stock market, the primary market segment will see a mix of activity with the closure of the much-anticipated Vodafone Idea FPO and a flurry of IPOs in the SME segment. Investors can look forward to the debut of JNK India, as it launches its Rs 649.5-crore initial public offering (IPO). The SME segment steals the spotlight with three IPOs opening for subscription and four listings making their market debut. Here’s a breakdown of the key happenings:

Main Board

Vodafone Idea FPO (VIL): The follow-on public offer (FPO) by Vodafone Idea, India’s third-largest telecom operator, closes on April 22nd. This is the largest FPO in India’s history, with the company aiming to raise Rs 18,000 crore through a fresh issue of shares. Investors are cautiously optimistic despite VIL’s financial struggles, with the backing of large investors offering some hope.

SME Segment

Unlike the quiet main board, the SME segment is buzzing with activity this week. Four companies are scheduled to list their shares: Faalcon Concepts (April 26th), Green Hi-tech Ventures (April 23rd), Grill Splendour Services (April 23rd), and Ramdev baba Solvent (April 23rd).

New IPOs:

Three new IPOs are opening for subscription this week, offering investors a chance to participate in the growth stories of emerging companies.

JNK India:

A Maharashtra-based company engaged in designing and manufacturing process-fired heaters and related equipment. The IPO opens on April 23rd and closes on April 25th with a price band of Rs 395-415 per share. 

This IPO includes fresh shares worth Rs 300 crore and an offer-for-sale of up to 8.42 million shares. At the upper price band, the issue size is expected to be Rs 650 crore, with a post-issue market capitalization of approximately Rs 2,300 crore.

As of March 31, 2023, JNK India Limited employed 192 permanent employees. The company’s revenue surged by 38.5%, and profit after tax (PAT) rose by 28.84% between the financial years ending March 31, 2023, and March 31, 2022.

Varyaa Creations:

A wholesaler of gold, silver, precious stones, and semi-precious stones. The fixed-price IPO of Rs 20.10 crore opens on April 22nd and closes on April 25th .

With a share price of ₹150 and a minimum lot size of 1000 shares, retail investors can participate with a minimum investment of ₹150,000. High net-worth individuals (HNIs) can invest in 2 lots (2,000 shares) with a minimum investment of ₹300,000.

Shivam Chemicals:

Established in October 2010, Shivam Chemicals Limited specializes in the production of Hydrated Lime (Calcium Hydroxide) and distributes various products, including Poultry feed supplement (MBM), Di-Calcium Phosphate (Feed Grade), Magnesium Oxide, and Limestone Powder. The company’s subsidiary, Shivam Chemicals and Minerals Private Limited, located in Dahej, Gujarat, specializes in producing hydrated lime, with a manufacturing capacity of 60,000 MT.

Shivam Chemicals IPO, set to open for subscription from April 22 to April 25. This IPO, valued at Rs 20.18 crores, offers 45.87 lakh fresh shares at an IPO price of Rs 44 per share.

For retail investors, the minimum lot size is 3000 shares, requiring a minimum investment of ₹132,000. High net-worth individuals (HNIs) can invest in 2 lots (6,000 shares), amounting to ₹264,000.

Emmforce Autotech:

Emmforce Autotech Limited, founded in 2012, specializes in manufacturing and exporting drivetrain parts for niche vehicles, including differential housings, locks, covers, and more. The company’s competitive strengths include engineering excellence, quality assurance, and an experienced management team.

Emmforce Autotech IPO, valued at Rs 53.90 crores, featuring a fresh issue of 55 lakh shares. Subscriptions open on April 23, 2024, and close on April 25, 2024, with allotments expected by April 26, 2024. The IPO is set within a price band of Rs 93 to Rs 98 per share. Retail investors can participate with a minimum of 1200 shares, requiring an investment of ₹117,600, while HNIs can invest in 2 lots (2,400 shares), totaling ₹235,200.

This week presents a mix of abundant opportunities for investors. The closure of the Vodafone Idea FPO and the IPOs in the SME segment offer options for both seasoned and new investors.

Small and Medium Enterprises (SMEs) are the backbone of India’s economy, fostering innovation, creating job opportunities, and driving economic growth. As of 2022, India has witnessed a surge in SME registrations, with over 66 lakh new enterprises established across the country. While SMEs typically rely on private funding, the avenue of SME Initial Public Offerings (IPOs) offers them access to public capital markets, paving the way for expansion and growth. Following the IPO, the shares of SMEs are traded on stock exchanges, allowing public investors to become stakeholders in these enterprises. SMEs can announce their IPOs on dedicated platforms such as NSE Emerge and BSE SME. These platforms offer relaxed guidelines compared to mainboard IPOs, making it feasible for smaller companies to access public capital markets.

The investment and turnover thresholds for small and medium enterprises are outlined as follows:

1) Small Enterprise: Investment between ₹1 crore to ₹10 crore, Turnover between ₹5 crore to ₹50 crore

2) Medium Enterprise: Investment between ₹10 crore to ₹50 crore, Turnover between ₹50 crore to ₹250 crore

Benefits of SME IPOs for Businesses:

1) Access to Capital: Overcome the challenge of limited funding by raising capital from public investors.

2) Increased Visibility: Get listed on a stock exchange, boosting brand recognition and credibility.

3) Improved Liquidity: Offer shareholders an exit strategy by allowing them to trade shares on the exchange.

4) Enhanced Credibility: Public listing demonstrates financial transparency and stability, attracting potential partners.

Requirements for SME IPOs:

To qualify for an SME IPO, companies must meet certain criteria:

1) Incorporation under the Companies Act, 1956

2) Post-issue paid-up capital of up to ₹25 Crore

3) Net tangible assets worth ₹1.5 Crore

4) A minimum track record of three years for firms formed by converting partnership/proprietorship/LLP firms

5) Possession of a website

6) Continuity of promoters for at least one year post-IPO filing

7) Agreement to trade in Demat securities and contract with depositories

Upcoming SME IPOs:

Investors keen on SME IPOs can explore current and upcoming offerings. Some notable upcoming SME IPOs include:

1) Greenhitech Ventures Limited

Open Date: April 12, 2024

Close Date: April 16, 2024

Issue Price: Rs. 50.00

2) Grill Splendour Services Limited

Open Date: April 15, 2024

Close Date: April 18, 2024

Issue Price: Rs. 120.00

3) Ramdevbaba Solvent Limited

Open Date: April 15, 2024

Close Date: April 18, 2024

Issue Price: Rs. 80.00 – 85.00

4) Emmforce Autotech Limited

Open Date: April 23, 2024

Close Date: April 25, 2024

Issue Price: Rs. 93.00 – 98.00