Historically, the period from April to June has seen a lull in IPO activity, coinciding with general election years in India. Since 2004, no IPOs have launched in May during election cycles. This quiet period reflects market caution due to the uncertainty surrounding elections. However, 2024 is proving to be an exception, with three major initial public offerings (IPOs) set to hit the Indian primary market this week.
The upcoming week will see IPOs from three distinct sectors: Blackstone-backed Aadhar Housing Finance, healthcare tech firm Indegene, and travel distribution company TBO Tek. These companies aim to raise nearly Rs 6,400 crore collectively. The last IPO launch in the Indian market was JNK India, which raised Rs 650 crore last month. Here’s a closer look at each of the three IPOs:
Aadhar Housing Finance IPO, backed by Blackstone Group Inc., is looking to raise Rs 3,000 crore through its IPO. This includes a fresh issue of equity shares worth Rs 1,000 crore and an Offer-for-Sale (OFS) of Rs 2,000 crore by BCP Topco VII Pte Ltd. Currently, BCP Topco holds 98.72% of Aadhar Housing Finance, with ICICI Bank owning 1.18%. The company has set a price band of Rs 300 to Rs 315 per share. A significant portion of the fresh issue proceeds—Rs 750 crore—will go towards meeting capital requirements for onward lending, with the rest allocated for general corporate purposes.
Healthcare technology firm Indegene’s IPO aims to raise Rs 1,842 crore, with a price band set at Rs 430 to Rs 452 per share. The IPO comprises a fresh issue of equity shares worth Rs 760 crore and an OFS totaling Rs 1,082 crore. Selling shareholders in the OFS include existing investors CA Dawn Investments, Vida Trustees, and Brighton Park Capital, among others. Indegene plans to use proceeds from the fresh issue to pay down debt, fund capital expenditure, and support inorganic growth.
Indegene has already allocated 12,141,102 equity shares to anchor investors at Rs 452 per share, with strong demand from both domestic and international investors. The anchor book allocation raised Rs 5,487,778,104, with notable participants like SMALLCAP WORLD FUND, American Funds, and Fidelity Funds.
Travel distribution firm TBO Tek’s IPO consists of a fresh issue of equity shares worth Rs 400 crore and an OFS totaling Rs 1,151 crore. The IPO price band is set at Rs 875 to Rs 920 per share, with the upper limit valuing the IPO at Rs 1,551 crore. Proceeds from the fresh issue will be used to expand the company’s platform, potentially through acquisitions and the addition of new buyers and suppliers.
Check: Upcoming IPO in May 2024
The launch of these three IPOs during a general election period represents a rare and potentially optimistic shift in market sentiment.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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