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Volume Icon4 IPOs likely to open this week. Which one's worth your money?

Four companies are looking to raise over Rs 4,000 cr this week via IPO. DCX Systems and Bikaji Foods are already seeing investors' interest in the grey market. Do these IPOs deserve your money?

ImageNikita Vashisht New Delhi
IPOs to watch out for once the primary market starts buzzing

This is going to be one of the busiest weeks for primary market investors in a long time. 
A relay of four initial public offers kick started yesterday, with cables and wire harness assemblies manufacturer DCX Systems launching its public offer.

The Rs 500 crore IPO was subscribed 2 times on the first day of the issue, supported by retail investors.

DCX’s IPO will be followed by that of Fusion Microfinance, which will run between November 2 and 4.

Fusion Microfinance has fixed a price band of Rs 350-368 per share for its Rs 1,104 crore initial public offering.
The issue will have fresh issue worth 600 crore rupees, and an offer-for-sale of 13.69 million equity shares.

Later in the week, the IPOs of Global Health and Bikaji Foods will open for subscription on November 3 and close on November 7.

While Global Health Limited, which operates and manages hospitals under the Medanta brand, has set a price band of 319-336 rupees per share for its Rs 2,206 crore IPO.

Confectionary and savouries company Bikaji Foods has set its price band at Rs 285 to Rs 300 per equity share.
It aims to raise around Rs 900 crore via an OFS of 29.37 million shares.

Together, these four companies are expected to fetch around Rs 4,100-4,500 crore.
Experts say this litmus test for the IPO market, which has remained subdued this year, may push the revival button.

G Chokkalingam, Founder and Chief Investment Officer at Equinomics Research says, the 4 IPOs may mark revival of primary market. Rate cycle has likely peaked. Global, domestic markets to recover from now on. Only Brent crude’s breach of $100/barrel-mark can trigger a correction.

Only 22 companies have floated their IPOs in the first 10 months of 2022, raising over Rs 44,000 crore.
By comparison, 63 companies raised over Rs 1.2 trillion via IPOs in 2021.
So, which of the latest 4 IPOs are worth investors' money?

ASTHA JAIN, SENIOR RESEARCH ANALYST, HEM SECURITIES recommends subscribe DCX Systems for listing and long-term gains. Recommend ‘Subscribe’ Fusion Microfinance on attractive valuation, strong rural focus. Global Health has large-scale hospital chain with strong financial performance; recommend ‘Subscribe’

Meanwhile, apart from the IPO market buzz, auto sales data, manufacturing PMI data, and Q2 results season will guide investors today.
Adani Ports, JK Tyres, LIC Housing Finance, Nykaa, Punjab National Bank, Tech Mahindra, and Varun Beverages are among the major companies due to report their numbers. 

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First Published: Nov 01 2022 | 8:43 AM IST