InvestorQ : What are the IPOs that are going to be opening in the coming week starting on 15 February?
diksha shah made post

What are the IPOs that are going to be opening in the coming week starting on 15 February?

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Niti Shenoi answered.
5 months ago
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In the coming week we are going to see two IPOs opening for fresh subscription and one IPO of Brookefield REITs will also be listing in the bourses in the week once again testing the appetite of the market for real estate investment trusts as an asset class. But let me first dwell on the two IPOs to be open this week on Monday 15 February.

You can call it the week of 2 IPOs on the bourses with both the IPOs opening for subscription on the same day. RailTel IPO and the Nureca IPO will open for subscription simultaneously on Monday 15 of February. RailTel IPO will entirely be an offer for sale wherein the government will partially exit its holding in the company through the issue.

The government of India, which is the promoter of RailTel, will sell a total of 8.71 crore shares to the public through the offer for sale or OFS in the price band of Rs.93-94. This will help the government to raise a sum of Rs.820 crore at the upper end of the price band that has been set by the company and the book running lead managers.

Investors looking to put money in the RailTel public issue can bid for minimum bid lots of 155 shares and retail investors can bid up to 13 lots such that it falls within the statutory investment limit of Rs.2,00,000 per applicant. The IPO will not impact the outstanding shares of the company as the OFS funds will go to the government coffers only.

The other IPO of Nureca will be a much smaller issue in terms of size. It will look to raise just about Rs.100 crore at an issue price band of Rs.396-400. The issue size will be around Rs.100 crore at the upper end of the price band. Nureca already has anchor investor commitments of Rs.44.55 crore ahead of the IPO.

The thing to note is that QIBs have a 75% reservation in the IPO, HNIs have 15% quote and the retail investors have been allotted only 10% quota in the issue. Hence oversubscription in the retail quote could be relatively high. Investors can bid in minimum lot of 35 shares and retail investors can bid up to 14 lots maximum.

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