December IPO Frenzy: Five Companies Set to Debut on Indian Stock Exchanges on December 19

Transrail Lighting

Transrail Lighting Ltd., an engineering, procurement, and construction (EPC) company specializing in power transmission and distribution, is set to launch its initial public offering (IPO) on December 19, 2024. The IPO will close on December 23, 2024, with the anchor investor bid period beginning a day earlier on December 18, 2024. The company has set a price band of Rs 410 to Rs 432 per share for the IPO with a lot size of 34 shares.

The IPO comprises a fresh issue of shares worth Rs 400 crore and an offer-for-sale (OFS) of 1.02 crore equity shares by its promoter, Ajanma Holdings Pvt. Ltd worth 438.91 crores. At the upper limit of the price band, the total offer size stands at Rs 838.91 crore. Transrail Lighting may also consider a pre-IPO placement of Rs 50 crore.

The company will use the proceeds from the fresh issue to fund incremental working capital requirements, support capital expenditure, and allocate the remaining amount for general corporate purposes.

The shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Inga Ventures Pvt., Axis Capital, HDFC Bank, and IDBI Capital Market Services are the book-running lead managers for the IPO. Transrail Lighting's price-to-earnings ratio stands at 22.05 times for the fiscal year ending March 2024, based on the upper end of the price band, while the industry price-to-earnings ratio stands at 58.26 times.

Sanathan Textiles

Sanathan Textiles Ltd., an Indian yarn manufacturer, is preparing to launch its initial public offering (IPO) on December 19, 2024. The company aims to raise Rs 550 crore through the IPO, which will be used to fuel its growth and debt reduction strategy. The IPO comprises both an offer-for-sale (OFS) component of Rs 150 crore and a fresh issue of shares worth Rs 400 crore. The price band for the IPO has been set at Rs 305-321 per share.

The company plans to use the net proceeds for the following: to pay off or reduce some of its debts, invest in its subsidiary, Sanathan Polycot Private Limited, to help repay or reduce its subsidiary's debts, and for general business needs.

Sanathan Textiles is unique in India as the only company to have three verticals of yarn—polyester, cotton, and technical textiles—at one location. Currently, the company’s manufacturing capacity is 2.23 lakh tonnes per annum across these three verticals: 2 lakh tonnes of polyester yarn, 14,000 tonnes of cotton yarn, and 9,000 tonnes of technical textiles. By FY27, Sanathan Textiles plans to more than double its yarn production capacity to nearly 5 lakh tonnes per annum.

The company's expansion plans will be driven by its new facility in Punjab, which is expected to begin operations in 2025. In Phase 1, the facility will manufacture 2.5 lakh tonnes of polyester film yarn annually, more than doubling the company's polyester capacity. The construction of the facility is in its final stages, and commissioning is expected in the first quarter of the next fiscal year.

DAM Capital Advisors Ltd. and ICICI Securities Ltd. are the book-running lead managers for the IPO, while KFin Technologies Ltd. is the registrar.

Concord Enviro Systems

Concord Enviro Systems Ltd., a global provider of water and wastewater treatment solutions, is set to launch its initial public offering (IPO) at a price band of Rs 665 to Rs 701 per share. The IPO will open for bidding from December 19 to December 23, 2024. 

The IPO consists of a fresh issue worth Rs 175 crore and an offer for sale (OFS) of 46.40 lakh shares worth Rs. 325.33 crore by promoters and a major foreign investor, AF Holdings. Promoters divesting shares in the OFS include Prayas Goel, Prerak Goel, Pushpa Goel, Nidhi Goel, and Namrata Goel.

The company plans to use the net proceeds from the fresh issue in several ways: to invest in its fully owned subsidiary, Concord Enviro FZE (CEF), for its new project in the UAE to set up an assembly unit for water and wastewater treatment systems; to invest in another subsidiary, Rochem Separation Systems (India) Private Limited (RSSPL), to expand its manufacturing and storage facilities in Vasai; to purchase new plant and machinery for the company; to help repay or reduce CEF's existing loans; to support CEF's working capital needs; to invest in the joint venture, Reserve Enviro Private Limited, to expand its pay-per-use business; to fund technology and growth initiatives for entering new markets; and for general business purposes.

Concord Enviro Systems specializes in providing comprehensive water and wastewater treatment and reuse solutions. The company has in-house capabilities to develop solutions across the entire value chain, from design and manufacturing to installation, commissioning, operation, maintenance, and digitalization solutions, including the IoT. Concord Enviro Systems serves 310 customers worldwide, with exports to countries in North America, Latin America, Africa, the Middle East, and Southeast Asia.

Motilal Oswal Investment Advisors Ltd. and Equirus Capital Pvt. are the lead book running managers for the IPO. The minimum bid size for the IPO is 21 shares, and bids can be made in multiples thereof. The company's price-to-earnings ratio is 30.79 times for the fiscal year ended March 2024, calculated at the upper end of the price band, while the industry price-to-earnings ratio is 35.88.

Mamata Machinery

The company was originally incorporated as Patel Machinery Private Ltd. The name was changed to Mamata Machinery Pvt. Ltd. after a special resolution by shareholders on September 19, 1988.

Mamata Machinery Pvt. Ltd., a manufacturer and exporter of plastic packaging machinery, is preparing to launch its initial public offering (IPO) on December 19, 2024. The IPO will be open for subscription until December 23, with an expected listing date of December 27, 2024, on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

The IPO is structured as a pure offer for sale (OFS), with existing shareholders offloading 73.82 lakh shares worth Rs. 179.39 cr at a face value of Rs 10 per share. The price band for the IPO has been set at Rs 230-243 per share. The minimum bid size is 61 shares. The OFS involves several shareholders, including Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP.

The company specializes in manufacturing and exporting a range of plastic packaging machinery:

• Plastic bag and pouch-making machines
• Packaging machines
• Extrusion equipment

Mamata Machinery provides end-to-end manufacturing solutions for the packaging industry, primarily serving direct consumer brands in the FMCG, food and beverage sectors. The company also supplies bag and pouch-making machines to converters and service providers. Their machinery finds applications in both packaging and non-packaging areas, such as e-commerce bags and garment packaging bags.

Beeline Capital Advisors Pvt. is the lead bookrunner for the IPO, and Link Intime India Pvt. is the registrar. Not less than 35% of the issue is reserved for retail investors, and an employee reservation portion of 35,000 shares has also been set aside.