IPO or Initial Public Offering is the process by which a company raises capital from public by launching its shares for the first time in the market. After an IPO the shares are listed on the exchanges and investors can trade in them.
IPO are a very lucrative investment option for investors provided that it is the best chance to get shares at their true valuation. Also, IPO provides great short-term profits may times in the form of listing gains.
We have witnessed many blockbuster IPOs in the last few years like IRCTC, D-Mart etc. which have been a huge success and delivered massive gains to the investors. The IPO of Burger King which was launched earlier this year was also in huge demand and as a result was over-subscribed by multiple times.
Today, let us take a look at some of the IPOs which are expected to launch in June 2021. Some of these companies have already filed their DRHP with SEBI and got the necessary approval for IPO, but the process was somehow delayed due to the second wave of Covid-19 in India.
So, without further ado, here are some of the IPOs which are expected in June 2021.
Table of Content
Upcoming IPOs in June 2021
Shyam Metallics and Energy
The 1107 Crore worth IPO of the Kolkata based company was expected in April 2021 but got delayed due to high market volatility and second wave of Covid. The company is one of the leading producers of ferro alloys and integrated metals in India. The DRHP was filed in February 2021 and the IPO got a go ahead from SEBI on 17th May 2021. The fresh issue includes equity shares worth Rs 657 Crores and an offer for sale worth 405 Crore Rs.
The IPO is expected in first or second week of June 2021 and it is expected that it will be priced very aggressively due to the current market conditions.
Sona Comstar
The Gurugram based firm is one of the leading manufacturers of automotive components in India which are used as an OEM part by companies across India, United States, Europe, and China. The company filed its DRHP in February and got a nod on 11th May 2021 from SEBI. The fresh issue will include a fresh issue of shares worth Rs 300 crores and an offer for sale of nearly Rs 5700 Crores.
The IPO is expected to be launched in mid or late June and the company plans to utilize the raised capital for clearing off some debts and corporate uses.
Arohan Financial
The non-banking financial company based in India filed its DRHP in February 2021 and is expected to launch an IPO worth Rs 1800 Crores. The company got a go ahead from SEBI in May 2021 and plans to use the raised funds for corporate purpose and working capital requirements. The IPO may have a fresh issue worth Rs 850 Crores.
The IPO of Arohan Financial is expected in late June. However, there are chances that the IPO may be delayed till July as well.
Dodla dairy
Dodla is a leading name in the dairy business in South India. Based out in the Indian state of Telangana, Dodla plans to raise 800 crores from the IPO. The firm got a go ahead from SEBI in April 2021, but the IPO was delayed due to the prevailing conditions. The issue will include a fresh issue worth Rs 50 crores. Most of the issue will be an offer for sale.
The IPO is expected by June end and the company plans to utilize the capital for funding its requirements of capital expenditures and repayment of debts.
Krishna Institute of Medical Sciences (KIMS Hospitals)
Krishna Institute of Medical Sciences is a leading healthcare service provider in the Indian state of Andhra Pradesh and Telangana. Popularly known as KIMS hospitals the company plans to raise around Rs 200 Crore through the IPO. The firm got an approval from SEBI in May 2021.
The IPO is expected in June 2021. The company has a network of over 9 multi-specialty hospitals with a combined capacity of more than 3000 beds.
Conclusion
IPOs can be a very lucrative investment option but like all other investment instruments they also have a risk factor associated with them. Thus, it I better to have an idea about your risk appetite before investing in them. You can get a free risk profile analysis from a reputed investment advisor. As per the SEBI norms, you can apply for an IPO using the ASBA (Application Supported by Blocked Amount process).
Happy Investing!
