India's primary market activity will remain muted in the final week of June and the opening week of July, with only two mainboard initial public offerings (IPOs) scheduled to open for subscription.
Textile manufacturer Aastha Spintex Ltd. and packaging solutions provider Knack Packaging Ltd. will launch their public issues between June 29 and July 3.
The two IPOs aim to raise funds for expansion and business operations at a time when the primary market is seeing fewer new listings than in previous weeks.
Aastha Spintex IPO Opens June 29
Aastha Spintex Ltd. will open its Rs 170 crore IPO for subscription on June 29. The issue is priced in a band of Rs 125 to Rs 136 per equity share and will close on July 1, according to a company statement.
The company said the proceeds will be used for the partial payment towards the acquisition of Falcon Yarns Pvt. Ltd., funding the acquired company's working capital requirements through inter-corporate deposits, and general corporate purposes.
Aastha Spintex manufactures and trades carded, combed and compact combed cotton yarns, cotton bales and related by-products. It operates an integrated spinning and ginning facility in Halvad, Morbi district, Gujarat.
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Knack Packaging IPO To Open On July 1
Knack Packaging Ltd. will open its IPO for public subscription on July 1. The issue, valued at nearly Rs 440 crore, has a price band of Rs 161 to Rs 170 per share, valuing the company at about Rs 2,080 crore at the upper end of the band.
According to the company's public announcement, the IPO will close on July 3, while the anchor investor portion will open for one day on June 30.
The public issue consists of a fresh issue of equity shares worth up to Rs 380 crore and an offer for sale of up to 35 lakh equity shares, valued at about Rs 59.5 crore, by existing shareholders. The total issue size is Rs 439.5 crore.
The company said it will use the proceeds from the fresh issue to establish a manufacturing facility at Borisana in Kadi, Mehsana district, Gujarat. The remaining funds will be used for general corporate purposes.
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