The Next Big IPO's

Infibeam

Online shopping portal Infibeam Incorporation will hit the capital markets on March 21 to mop-up Rs 450 crore through an initial share plan, becoming the first e-commerce firm to tap the IPO route. 

The company has fixed the price band at Rs 360-432 per equity share for the IPO.

The initial public offer (IPO) will conclude on March 23, as per the latest update available with capital markets regulator Securities and Exchange Board of India (Sebi).

As per Draft Red Herring Prospectus, Gujarat-based Infibeam plans to come out with public issue of equity shares worth up to Rs 450 crore. Infibeam competes with Flipkart, Amazon, Snapdeal and others in the e-commerce space.

Started in 2007, Infibeam runs several e-commerce services like Infibeam.com, BuildaBazaar, Incept and Picsquare. It has proposed to list its shares on the NSE and BSE.

Infibeam plans to utilise the IPO proceeds towards setting up of cloud data centre and shifting and setting up of registered and corporate office of the company. Besides, the funds will be used for setting up of 75 logistics centres, purchase of software and for other general corporate purposes. 

Health Care Global Enterprise (HCG)

HealthCare Global Enterprises initial public offerings (IPO) is going to hit the capital market on March 16. The company has fixed a price band of Rs 205-218 for its IPO. The issue will close on March 18. The company got the Securities and Exchange Board of India, or Sebi, nod in November 2015.

About the company: HCG is a specialty healthcare provider focused on cancer and fertility. Under the HCG brand, the company operates the largest cancer care network in India. Under the Milann brand, the company operates fertility centres. The HCG network consists of 14 comprehensive cancer centres, including its Centre of Excellence in Bengaluru, 3 freestanding diagnostic centres and 1 day-care chemotherapy centre, across India. The HCG network operates through a “hub and spoke” model where the HCG Centre of Excellence in Bengaluru serves as a hub to the other cancer centres. The company has four Milann fertility centres in Bengaluru.

About the offer: The IPO comprises fresh issue of up to 1.16 crore equity shares and an offer for sale of up to 1.82 crore shares by its existing shareholders. The offer, which closes on March 18, would constitute up to 35.03 per cent of the company’s post-offer paid-up equity share capital.

Objective of the offer: The proceeds of the issue will be used towards purchase of medical equipments, investment in IT software, services and hardware, prepayment of debt of around Rs 147 crore and other general corporate purposes.

Outlook: The company’s operations have been growing on top lines, but bottom line were in negative. However, its model of cancer and fertility treatment under HCG and Milann brands are expected to generate positive earnings going forward. Moreover, the issue is offer for sale, the amount raised would go to the selling shareholders and on the valuation front, the issue looks pricey. An investor who has high risk appetite can opt the issue.

Bharat Wire Ropes

The initial public offer (IPO) of Bharat Wire Ropes will open on 18 March 2016 and conclude on 22 March 2016. The company, a speciality wire ropes manufacturing company, aims to raise Rs 70 crore through its IPO. The offer would also include reservation of equity shares worth Rs 3.5 crore for subscription by eligible employees.

The Mumbai-based firm has priced the offer in the band of Rs 40-45 per share. Proceeds of the issue would be utilised for setting up a manufacturing plant at Chalisgaon, Maharashtra and for other general corporate purposes.