In the second quarter of the current fiscal year, several companies are preparing to enter the stock market through initial public offerings (IPOs). This process allows companies to raise new capital by releasing shares of their company to the public. The news of a new IPO is typically met with great enthusiasm in the market due to the potential for both short-term and long-term gains. When a company receives fresh capital, it can potentially experience accelerated growth, offering opportunities for long-term wealth creation. Additionally, investors can take advantage of short-term gains when the company’s shares are initially listed on the stock exchange. With these considerations in mind, here is the list of Upcoming IPO’s in July 2023 all set to launch.

IPOs to Watch Out for in July 2023

These are the companies on the list of new IPOs in July.

Company Name	IPO Size in ₹ crore	Release Date
Penna Cement	1,550	Not announced
Sterlite Power Transmission Ltd.	1,250	Not announced
Fincare SFB Ltd.	1,330	Not announced
Bajaj Energy Ltd.	5,450	Not announced
Gemini Edible & Fats India	2,500	Not announced
Chemspec Chemicals Ltd.	700	Not announced

Details of the New IPOs in July

Penna Cement

Penna Cement, a prominent cement manufacturing company headquartered in Hyderabad, is preparing for its IPO. With a strong presence in 13 states across western and southern India, the company operates four manufacturing units that collectively have an annual installed capacity of 10 million tons.

Penna Cement has filed a Draft Red Herring Prospectus (DRHP) to raise Rs. 1550 crore through the IPO. The offering includes a combination of fresh issue of equity shares and an offer for sale (OFS) of equity shares, amounting to Rs. 13,000 crore and Rs. 250 crore, respectively. As outlined in the prospectus, the funds raised will be allocated towards debt repayment, modernization of cement and raw grinding mills, and the establishment of an advanced waste heat recovery plant.

Sterlite Power Transmission Ltd.

Sterlite Power Transmission Ltd., a prominent player in the power transmission and infrastructure sector, is expected to make its debut in the stock market through an IPO in July. The company operates in both India and Brazil and holds a significant position in the private sector.

Sterlite Power Transmission Ltd. has published a prospectus to raise funds amounting to Rs. 1,250 crore. Additionally, the company may engage in a pre-IPO placement activity to raise approximately Rs. 220 crore. This pre-IPO placement allows companies to secure funds before their IPO and serves as a measure to mitigate the risks associated with the IPO potentially underperforming compared to expectations.

Fincare Small Finance Bank Ltd

Fincare Small Finance Bank Ltd. has submitted a Draft Red Herring Prospectus (DRHP) to raise approximately Rs. 1,330 crore through an IPO. The funds raised will be utilized to strengthen the bank’s Tier – I capital base and address its future capital requirements.

The IPO offering consists of Rs. 330 crore through fresh issue of equity shares and Rs. 1,000 crore through an offer for sale (OFS) of equities by existing investors. The selling investors include Fincare Business Services Ltd., Wagner Ltd., North Fund V LLP, Kotak Mahindra Life Insurance Company Ltd., Edelweiss Tokio Life Insurance Company Ltd., Bharti AXA, and others.

Bajaj Energy Ltd.

As one of India’s leading private thermal power-generation companies, this company operates five coal-based thermal power plants in Uttar Pradesh, each with a capacity of 450 megawatts. In total, the company has an installed capacity of 2,430 MW.

The company intends to raise Rs. 5,450 crore through an IPO. The funds raised will be allocated towards acquiring stakes in Lalitpur Power Generation Ltd.

Gemini Edible and Fats India

Gemini Edible and Fats India, a rising player in the edible oils and fats sector, has established a strong presence in the southern states of India. The company has filed a Draft Red Herring Prospectus (DRHP) to raise Rs. 2500 crore through an IPO, which will involve a mix of fresh shares and an offer for sale of equities.

Gemini Edible and Fats India is among the companies planning to launch their IPOs in July 2023. The funds raised from the IPO will be utilized to enhance the visibility and reputation of the brand.

Chemspec Chemicals Ltd.

Chemspec Chemicals Ltd., headquartered in Mumbai, has submitted a Draft Red Herring Prospectus (DRHP) to raise Rs. 700 crore through an IPO. The offering will solely consist of a pure offer for sale from existing promoters and shareholders. The company specializes in manufacturing essential additives for FMCG ingredients, particularly for skin and hair care products. The intended use of the funds is to provide liquidity to shareholders and strengthen brand visibility.

The specific dates for the IPO have not been finalized yet.

The bottom line

Before considering investments in any of these new IPOs in July, it is crucial to thoroughly review the Draft Red Herring Prospectus (DRHP) and conduct comprehensive research on the company’s fundamentals, financials, and competitive position. This will provide a better understanding of the company’s potential prospects.

Investing in an IPO allows investors to be part of the company’s growth trajectory. However, it is important to note that IPO investments carry significant risk and the possibility of capital loss. Therefore, it is essential to carefully evaluate the IPO proposal and assess your own risk tolerance before making any financial commitments.

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