Top upcoming IPOs of 2018: NSE, ReNew Power, HAL and more

While a record number of firms made their IPO debut in 2017, many key players plan to enter the primary market this year and raise funds for their expansion and growth. We look at some of these firms which are gearing up with their IPOs in 2018.

By Aseem Thapliyal  
Monday, January 1, 2018

As many as 153 initial public offers hit the Indian stock market in 2017, raising $11.6 billion, according to an EY report that said activity "looks good" for 2018 as well.

According to the report, the fourth quarter (October-December) of 2017 saw 22 IPOs hitting the market, an increase of 47 per cent quarter-on-quarter (Q-O-Q) in terms of number of deals.

While a record number of firms made their IPO debut in 2017,many key players plan to enter the primary market this year and raise funds for their expansion and growth.

We look at some of these firms which are gearing up with their IPOs in 2018.

HAL Government-owned Hindustan Aeronautics Ltd (HAL) received Sebi's approval for IPO in October 2017. The government plans to sell about 36.2 million shares via the military aircraft maker's IPO.  The firm is eyeing Rs 2,000 crore to Rs 2500 crore through stake sale in the HAL.

HAL logged a revenue of Rs 17,952 crore and a net profit of Rs 2,625 crore for the year ended last March.

SBI Capital Markets and Axis Capital are managing the IPO, which was first approved by the government in 2012.

The government will divest 10% stake in the company through the offering.

The company is engaged into design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.

Aster DM Healthcare Limited

Aster DM Healthcare Limited which operates as a healthcare company in the Middle East, India, and the Far East, is planning an initial public offering in 2018 as it seeks to take advantage of improved market sentiment for the Persian Gulf.

The company plans to sell 10% of its stake by October 2018, with a listing either in Mumbai or London, Chief Executive Officer Alisha Moopen said on May 28, 2017 in an interview in Dubai.

 The IPO proceeds will be used to settle debt and expand, including through acquisition.

The Dubai based firm which was found in 1987 operates hospitals and clinics, pharmacies, diagnostic centers, educational institutions, and healthcare management and healthcare support systems.

Aster is planning to raise about Rs 1,100 crore from the IPO.

Continental Warehousing Corporation

Logistics company Continental Warehousing Corporation (Nhava Sheva) Ltd is likely to hit the Dalal  Street with a Rs 1,000 crore IPO this year.

 The flagship firm of Chennai-based NDR Group owns and operates cargo handling facilities such as container freight stations and multimodal cargo handling terminals (MMTs) and private freight stations.

 In October 2016, the firm filed its draft red herring prospectus with capital markets regulator SEBI to float its initial public offering.

Bharat Serum and Vaccines Ltd

 Mumbai-based Bharat Serum and Vaccines  plans to enter the market this year with its Rs 2000 crore IPO.  The pharma firm was founded in 1971.

 The firm plans to sell its 30 percent stake in the primary market.  The vaccine maker has appointed investment bank Jefferies & Co. to arrange the share sale.

 The share sale is likely to be conducted in the first quarter of 2018. Acme Solar

Gurugram-based Acme Solar is planning to raise Rs 2,200 crore with the IPO this year.  The renewable energy firm filed draft prospectus with Sebi in September 2017.  On December 18, 2017, Sebi  gave approval to launch initial public offering to the firm.

Promoted by Manoj Kumar Upadhyay, the company has an existing portfolio of over 1.8 GW Solar PV Projects including 15 MW in Gujarat, 275 MW in Madhya Pradesh, 25 MW in Odisha, 30 MW in Chattisgarh, 310 MW in Andhra Pradesh, 490 MW in Telangana,  104 MW in Punjab, 50 MW in Uttarakhand, 30 MW in Uttar Pradesh, 25 MW in Bihar, 260 MW in Karnataka and 200 MW in Rajasthan. The company aims to generate 7500 MW by the year 2019.

Funds raised through the issue will be used to pay debt and to finance the company's 200 MW solar power project in Rajasthan and for other general corporate purposes.

ICICI Securities, Citigroup Global Markets India and Deutsche Equities India will manage the company's public issue.

NSE The country's biggest stock exchange filed draft prospectus with Sebi in December 2016 and is set to enter the market this year.

The approval for the Rs 10,000-crore IPO has been hanging fire with SEBI still to resolve the co-location matter which involved alleged preferential access given by the NSE to some brokers.

The case relates to some brokers allegedly getting preferential access to NSE servers through co-location facility, early login and access to the 'dark fibre'-- which can allow them a split-second faster access to datafeed of the exchange. Even a split-second faster access can yield huge gains for a trader.

The company's shareholders include several prominent names such as SBI, LIC, IFCI, IDBI Bank, Goldman Sachs, Stock Holding Corporation, Tiger Global and Citigroup.

ReNew Power

 India's largest clean energy producer plans to enter the market via a Rs 4,500 crore share sale this year.

Goldman Sachs, the largest shareholder in the company, Abu Dhabi Investment Authority, Asian Development Bank and Global Environment Fund could partially sell their stakes in the proposed issue.

Gurugram-based ReNew Power Ventures  is an Independent Power Producer (IPP) of clean energy with more than 3000 MW of commissioned and under-construction clean energy assets. Of this more than 2GW assets are already commissioned.

ICICI SecuritiesICICI Securities, a unit of private sector lender ICICI Bank, plans to go public this year.

ICICI Securities has hired Bank of America Merrill Lynch, Citigroup, Citic CLSA, Edelweiss and IIFL Holdings for the Rs Rs 3,000 crore- Rs 4,000 crore IPO.

The public issue comprises sale of 64,428,280 equity shares, amounting to 20 per cent stake, by ICICI Bank, according to the draft red herring prospectus (DRHP). The offer includes a reservation of up to 32.21 lakh shares for individual and Hindu Undivided Family (HUF) shareholders of ICICI Bank.

The broking firm offers investment banking, institutional broking, retail broking and private wealth management services.

Reliance General Insurance

The insurer filed IPO papers with Sebi on October 2017 and received nod from the market regulator for going public on on November 30.

The IPO comprises fresh issue of little over 1.67 crore shares by Reliance General Insurance besides an offer for sale of 5.03 crore shares by Reliance Capital.

Reliance General Insurance Company, a part of Anil Ambani-led Reliance Group plans to utilise the proceeds from the fresh issue towards augmenting the solvency margin and consequently increasing the solvency ratio. Besides, the money will be used to meet future capital requirements, which are expected to arise out of growth.

At the end of March 2017, Reliance General Insurance's book value stood at Rs 1,250 crore. The company's valuation is expected to be over Rs 6,000 crore, an average multiple of around five times, merchant banking sources said.

Motilal Oswal Investment Advisors, Credit Suisse Securities (India) Pvt Ltd, Edelweiss Financial Services, UBS Securities, Haitong Securities and IDBI Capital Markets & Securities will manage the IPO.

Galaxy SurfactantsSpeciality chemicals manufacturer Galaxy Surfactants plans to go public with a Rs 1,000 crore IPO this year.

During the initial share sale, as many as 307 shareholders will sell 63,31,674 shares of the company, according to the draft red herring prospectus (DRHP )filed with Sebi.

ICICI Securities, Edelweiss Financial Services and JM Financial Institutional Securities will manage the public issue. Its shares are proposed to be listed on the BSE and the NSE.

Galaxy caters to customer's needs in the skin care, hair care, sun care, oral care, baby care and home care markets.

This is the company's second attempt to go public. Earlier in 2011, Galaxy Surfactants had entered the capital markets to raise over Rs 200 crore through an initial share sale. However, it withdrew from the IPO market due to tepid response from investors.Apollo Microsystems

Apollo Microsystems will enter the market in January 2018 to raise Rs 156 crore.

 The firm will sell shares in a price band of Rs 270 to Rs 275 per share. 

The firm will issue 19,78,454 shares for the share sale which be held from January 10 to  January 12 this year.  

The Hyderabad-based firm is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company. It designs, develops and sells high-performance, mission and time critical solutions to Defence, Space and Home Land Security for Ministry of Defence, government controlled public sector undertakings and private sectors.

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