2 days ago
Six IPOs Open Wednesday Amid Varied Business Risks
Six companies are offering shares to the public on Wednesday.
Together, they want to raise ₹4,510 crore.
Each company has different risks that investors should study before buying shares.
Asset Reconstruction Company depends on recovering money from troubled loans.
Rentomojo depends on people continuing to rent furniture and appliances.
LCC Projects depends heavily on government water and irrigation contracts.
Karamtara Engineering relies strongly on its Maharashtra facilities, solar products and exports.
Manipal Payments has concentrated customers and suppliers, while Steamhouse India depends heavily on coal and repeat orders.
Six companies plan to raise a combined ₹4,510 crore through IPOs opening on Wednesday, September 9.
Asset Reconstruction Company’s ₹733 crore IPO is entirely an Offer For Sale and depends heavily on stressed-asset recoveries and management fees.
Rentomojo’s ₹1,256 crore issue faces risks from rental demand, subscriber churn, metro-city concentration and warehouse incidents.
LCC Projects relies heavily on government irrigation and water-supply contracts, while rising receivables, debt and contingent liabilities could pressure finances.
Karamtara Engineering, Manipal Payments and Steamhouse India face customer, supplier, geographic, sectoral, raw-material and foreign-exchange concentration risks.
- Who
- Karamtara Engineering, LCC Projects, Steamhouse India, Manipal Payments, Asset Reconstruction Company and Rentomojo.
- What
- The six companies are opening IPOs that cumulatively seek to raise ₹4,510 crore, while their offer documents identify major business risks.
- Where
- The companies operate across India, with specific concentrations in Maharashtra, Gujarat, Madhya Pradesh and tier-1 metropolitan townships; some businesses also serve export markets.
- When
- The IPOs open for subscription on Wednesday, September 9; financial risk data cited in the article covers financial years 2024 to 2026.
- Why
- The companies are raising funds through fresh issues and/or selling shares held by existing investors, while investors are being warned about operational, financial and regulatory risks.
Key facts
- Combined IPO size
- ₹4,510 crore
- IPO structure
- Asset Reconstruction Company is a pure Offer For Sale; the other five combine fresh issues and Offer For Sale components.
- Asset Reconstruction Company
- ₹733 crore issue priced at ₹132–₹139 per share.
- Rentomojo
- ₹1,256 crore issue priced at ₹384–₹404 per share.
- LCC Projects
- ₹427 crore issue priced at ₹139–₹146 per share.
- Karamtara Engineering
- ₹875 crore issue priced at ₹241–₹254 per share.
- Steamhouse India
- ₹414 crore issue priced at ₹77–₹81 per share.
- Key concentration risk
- The companies report substantial dependence on particular customers, suppliers, regions, products, government contracts or raw materials.
Sources
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