Primary Market There is still excitement in India and at least 10 companies are preparing to raise Rs 20,000 crore through initial public offering (IPO) next month. Merchant bankers say that next month i.e. in December, 10 companies including supermart Vishal Mega Mart and Blackstone-owned diamond grading company International Gemological Institute (India) Limited are preparing to launch a public issue. These also include education-focused non-banking financial company (NBFC) Avanse Financial Services, TPG Capital-backed Sai Life Sciences, hospital chain operator Paras Healthcare and investment bank DAM Capital Advisors, he said.
Rs 20,000 crore will be raised
The target of these companies is to raise a total of Rs 20,000 crore through their IPO. These IPOs will be of different sectors and sizes. These include both issue of new shares and offer for sale (OFS). Trivesh D, Chief Operating Officer (COO) of online brokerage house Tradejini, said that the results of Maharashtra elections have created a positive sentiment in the market. This will accelerate IPO activities. He said 2024 has been a strong year for IPOs. However, the stock market has struggled some recently.
vishal mega mart ipo
He said, “At present, election related funds are coming back into the market and the gray market is becoming active again. Companies are tapping the primary market to provide an exit route to existing shareholders, raise funds for expansion plans, repay debt and support working capital requirements. According to the updated IPO documents, Vishal Mega Mart is planning to raise Rs 8,000 crore from the public issue. This will be entirely in the form of an offer for sale (OFS) from the promoter Samayat Services LLP. The Gemological Institute is hoping to raise Rs 4,000 crore through the IPO. The initial share sale comprises a fresh issue of equity shares worth Rs 1,250 crore and an offer for sale worth Rs 2,750 crore by Blackstone’s subsidiary BCP Asia Two Topco Pte Ltd, IPO documents show.
Avanse Financial will raise Rs 3500 crore
Avanse Financial Services aims to raise Rs 3,500 crore from the IPO. In this, up to Rs 1,000 crore will be raised by issuing new shares. Also, it includes OFS of up to Rs 2,500 crore. Besides this, diagnostic chain Suraksha Diagnostics, packaging equipment maker Mamta Machinery and Transrail Lighting will launch their respective IPOs next month. This year, 75 companies including Hyundai Motor India, Swiggy, NTPC Green Energy, Bajaj Housing Finance, Ola Electric Mobility and FirstCry parent Brainbees Solutions have already collectively raised about Rs 1.3 lakh crore through main platform IPOs. This is much higher than the amount of Rs 49,436 crore raised by 57 companies through this route in the whole of 2023.
More than 30 IPOs will come
Looking ahead, more than 30 IPOs are expected in the coming months. IPO investors have made significant profits in the last five financial years. Trivesh said that 236 IPOs were launched between the financial years 2020-21 and 2024-25. There has been an average profit of 27 percent on the day of listing.
