The primary market is witnessing a tremendous surge in activity with high liquidity and enhanced investor appetite for new issue launches irrespective of the market sentiments.
Companies raised Rs 62,000 crore through initial share sales in fiscal 2024 and the pipeline looks equally strong. As much as Rs 70,000 crore worth of offerings are expected to hit the markets next fiscal with some big names in the mix.
About 19 companies, which have an offering worth Rs 25,000 crore, are currently sitting on Sebi approval, while another 37 companies planning Rs 45,000 crore have filed their prospectus papers with the regulator and are awaiting approval, according to Primedatabase.com.
Out of these 56 companies, 9 are new-age tech companies, which are looking to raise roughly Rs 21,000 crore.
“The IPO momentum is anticipated to persist in the coming financial year, with larger deals on the horizon. There’s a positive sentiment towards fundamentally good businesses along with robust business models,” said Mahavir Lunawat of Pantomath Capital.
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The factors that are expected to sustain the buoyancy of the primary market include increased domestic capital, improved governance, thriving Indian entrepreneurship, favourable government policies with FDI support, and diligent institutional investors.
Experts said despite the upcoming general elections, the next couple of months should still see a few IPOs being launched.
“The upcoming elections might cause some short-term volatility, particularly closer to the election date. However, the long-term outlook seems positive,” said Abhishek Jain of Arihant Capital.
Big names to watch out
Bharti Hexacom IPO
The Rs 4,275 crore public offer of Bharti Hexacom will kick-off the primary market activity next fiscal. Bharti Hexacom, a subsidiary of Bharti Airtel, runs mobile services in Rajasthan and the Northeast circles of India.
The issue, which will open for subscription on April 3, is completely an offer for sale (OFS), under which TCIL will offload 7.5 crore shares.
Go Digit Insurance IPO
Capital markets regulator Sebi has approved the IPO of new age insurance company Go Digit, which is backed by star cricketer Virat Kohli.
Digit’s IPO, which is estimated to be around Rs 3600 crore, comprises a fresh issue of shares worth Rs 1,250 crore ($152.1 million) and an offer for sale of 109.4 million shares, according to the draft prospectus.
Ola Electric IPO
Ola Electric has filed draft papers for an IPO, which has a fresh equity issue of Rs 5,500 crore. The company is awaiting regulatory approval and the IPO should hit the market anytime in the second half of the fiscal.
The public offer also comprises an offer for sale (OFS) of 9,51,91,195 shares by existing shareholders. Promoter Bhavish Aggarwal will offer upto 4,73,94,014 shares in the OFS, and Indus Trust, which is also a part of the promoter group entity, will offer upto 41,78,996 shares.
Brainbees Solutions IPO
Brainbees Solution, which operates omnichannel businesses of childcare products under the brand name FirstCry, is planning for an IPO and has already filed draft papers.
The issue includes a fresh issue of shares worth up to Rs 1,816 crore and an offer for sale (OFS) of up to 54.4 million shares.
Waaree Energies IPO
Solar PV modules maker Waaree Energies filed its draft papers and is readying an IPO, which includes a fresh equity issue worth Rs 3,000 crore and an offer for sale (OFS) of 32 lakh shares.
Waaree Energies is a manufacturer of solar PV modules in India with an aggregate installed capacity of 12 GW, as of June, 2023. Its portfolio of solar energy products consists of multicrystalline modules, monocrystalline modules and TopCon modules.
Tata Electric IPO
Tata Group is actively considering listing its electric vehicles business and the public offer could come in the next one to two years. If things go according to plan, the IPO may be launched towards the end of FY25.
Swiggy IPO
Online food delivery giant Swiggy is considering going later this year, according to various reports. The company may file its papers in May and launch the IPO in the festive season, according to Entrackr.
Other notable IPOs
Some other notable companies that are expected to launch their issues next fiscal include Allied Blenders, Mobikwik, PayU, Garuda Aerospace, NTPC Green among others.