IPO market to see 5 entries from West Bengal for ₹7,000 cr fundraise in FY22

Soon after BSE Sensex touched the 60,000 mark, companies are heading over to the primary market to gain into the gains. Among them are likely to be five companies from West Bengal, engaged in various activities ranging from packaged food to ethnic wear, planning to raise as much as ₹7,300 crore via the IPO route by the end of this financial year.

“IPOs have come mainly from the West and South in recent times. Kolkata-based companies are now joining the IPO bandwagon in a big way to make the most of the current bullish enthusiasm towards equities in general and IPOs in particular,” HDFC Securities Retail Research Head Deepak Jasani told PTI.

The West Bengal-based companies expected to float initial public offerings (IPOs) include Vedant Fashions Ltd which owns leading ethnic and celebration wear brand 'Manyavar', Tarsons Products engaged in manufacturing and marketing of various laboratory equipment, dairy and packaged food company Keventer Agro, Arohan Financial Services and Tega Industries which is in the design and production of consumables for mineral beneficiation.

“The mix of industries is interesting. From packaged foods and beverages to finance, from ethnic outfit retailers to mining... these companies spread across the spectrum of new age and traditional businesses. About ₹7,000 crore worth IPOs are in the pipeline which will bring the focus back on Kolkata,” Jasani further told the news agency.

Vedant Fashions Ltd has filed papers with the market regulator for an offer for sale (OFS) of 3.64 crore equity shares by the promoter and existing shareholders. The company intends to raise ₹2,500 crore, as per the market sources.

Tarsons Products has also filed its draft papers with SEBI in August to raise around ₹1,500 crore - a fresh issue of ₹150 crore and OFS of up to 1.32 crore shares by the promoter and existing shareholders.

Keventer Agro, which has filed DRHP in August 2021, is looking to raise around ₹800 crore which comprises fresh issuance of equity shares worth ₹350 crore and an OFS of 1.07 crore equity shares.

Tega Industries is reportedly planning to raise ₹700-750 crore. Arohan Financial Services, which has received the market regulator's go-ahead for an IPO and the float could be around ₹1,800 crore, market watchers estimated.

In June, city-based Shyam Metalics raised about ₹900 crore. According to available information, some 80 companies across the country are in the process to tap the primary market to raise around ₹50,000 crore in FY 2021-22.