The primary market is expected to stay busy at least for the next 12 months. Data from primedatabase.com indicates that domestic companies could raise over Rs 1.15 lakh crore through initial public offerings (IPO) in the coming year.
India Inc has raised more than Rs 61,000 crore in 2024 so far and Rs 95,400 crore in the last 12 months from the primary market. Data showed that at least 22 IPOs worth Rs 15,530 crore have received approval from market regulator Sebi to launch their public offers. Some of the major names on the list include SK Finance and Asirvad Micro Finance which are expected to raise Rs 2,200 crore and Rs 1,500 crore from the primary markets.
Western carriers (India), Onest Ltd, Shiva Pharmachem, Indo Farm Equipment, Arkade Developers, Denta Water & Infra Solutions, Kross and PN Gadgil Jewellers are among other names on the list.
Pantomath Capital Advisors said, “The Indian IPO market has witnessed a notable upswing recently, driven by strong market sentiment, robust economic growth, low inflation and stable interest rates.”
On the other hand, 42 companies, which are expected to raise Rs 1.01 lakh crore, have filed their offer documents with the market regulator and waiting for the approval. The pipeline includes names such as auto major Hyundai Motor India which is expected to raise Rs 25,000 crore through IPO. Online food delivery firm Swiggy and retailer Vishal Mega Mart are expected to raise Rs 8,000 crore each from the primary market.
In August alone, 19 companies filed DRHPs with SEBI — the highest monthly filings in over a year. The names include players such as ECom Express, Hero Motors, Paras Healthcare, Hero Fincorp, Smartworks Coworking Spaces, JSW Cement and International Gemmological Institute (India) filed their papers with Sebi in August.
Where B2C e-commerce logistics solutions provider ECom Express is expected to raise Rs 2,600 crore through IPO, Blackstone-owned International Gemmological Institute (India) is expected to raise Rs 4,000 crore through the public offer.
“Our analysts anticipate that the IPO market will remain vibrant for the remainder of the year due to these favourable market conditions. Recently listed IPOs have performed exceptionally well, boosting confidence among both companies and investors. This renewed optimism is prompting investors to look at opportunities in the primary market and driving promoters to raise funds through IPOs. Foreign investors also favour India’s primary market for its potential for higher returns,” said Pantomath Capital Advisors in a note.