The primary market will continue to be abuzz with more than half a dozen companies, including Hyundai Motor India, drink and NTPC Green Energy, have prepared initial public offerings over the next two months to raise around Rs 60,000 crore, merchant bankers said.
Apart from these three companies, Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems and Garuda Construction are among the companies planning to launch initial public offerings (IPOs) during October-November, they added.
Together, these companies are looking to raise Rs 60,000 crore through their IPOs.
Munish Aggarwal, managing director and head of capital markets at Equirus, expects more than 30 IPOs to be launched between end-September and December. This will be across all sectors, transaction sizes and a mix of new issues and offers for sale.
The strong impulse in IPO Markets are driven by several key, sector-specific macroeconomic factors and the willingness of funds to pursue new ideas, which is driven in part by strong domestic mutual fund inflows and the robust capital formation occurring across corporate India, he added.
Companies are turning to the primary market to raise funds for expansion plans, pay down debt, support working capital requirements and provide exit routes to existing shareholders.
Hyundai Motor India Ltd, the Indian subsidiary of South Korea’s Hyundai Motor Company, is expected to raise Rs 25,000 crore, making it the largest investment ever. IPO in India.
This could surpass LIC’s initial share sale worth Rs 21,000 crore.
The automaker’s entire issue will be an offer for sale (OFS) of 14,21,94,700 shares of Hyundai Motor Company, without any fresh issue component, according to its draft red herring prospectus (DRHP).
Other major IPOs scheduled include food and grocery delivery giant. drink which according to sources, aims to raise Rs 10,414 crore through fresh issue and OFS.
drink ‘s IPO It consists of a fresh issue of shares worth Rs 3,750 crore and an OFS component of Rs 18.52 crore worth Rs 6,664 crore.
Also, NTPC Green Energy, the renewable energy arm of state-owned NTPC, is looking to launch its Rs 10,000-crore project. IPO in the first week of November, sources told PTI earlier.
Shapoorji Pallonji group’s construction company Afcons Infrastructure will also join the IPO rush in with a Rs 7,000-crore offering, while Waaree Energies is expected to raise Rs 3,000 crore through a fresh share issue, along with an OFS component.
Niva Bupa Health Insurance and One Mobikwik Systems plan to raise Rs 3,000 crore and Rs 700 crore, respectively.
Additionally, 62 companies, including Bajaj Housing Finance, Ola Electric Mobility and Brainbees Solutions, the parent of FirstCry, have already mobilized around Rs 64,000 crore collectively through the motherboard, which is an increase of 29 per cent over to Rs 49,436 crore raised by 57 companies through the route in 2023.
The primary market is experiencing great interest from issuers and investors from various sectors.
Looking ahead, the prospects for IPO The market in 2025 remains broadly positive as Sebi has approved 22 IPOs as of now and companies plan to raise around Rs 25,000 crore, said V Prashant Rao, director and head of ECM, investment banking at Anand Rathi Advisors. .
In addition, more than 50 companies have submitted drafts and are awaiting approval.
Together, these companies aim to raise over 1 lakh crore, reflecting the significant momentum in the IPO market, he added.
The positive sentiment is supported by strong macroeconomic fundamentals, favorable market conditions and sectoral growth.
Furthermore, there are no signs of IPO The frenzy is fading and this behavior could persist in the short term. However, risks such as market corrections and regulatory interventions could temper enthusiasm, said Vaibhav Porwal, co-founder of Dezrev.
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