The Indian IPO market is experiencing activity following the conclusion of the Lok Sabha elections, with expectations of heightened activity in the primary market. Over the next few months, the market is poised to grow, with 55 companies planning to raise more than ₹68,000 crore.
There has already been notable activity in the IPO sector in the current fiscal year. Seven issues have successfully raised ₹19,455 crore. With the fiscal year still in progress, five more IPOs will launch in June alone.
This follows a robust previous year (FY24), when 76 companies went public, amassing ₹61,922 crore. The record was set in FY22, with 53 companies raising a whopping ₹1.1 trillion, showcasing the robust potential of India’s primary market.
The upcoming period in India’s primary market is set to be particularly active as many companies are poised to launch their Initial Public Offerings (IPOs). Well-known industry players such as Afcons Infrastructure, Emcure Pharmaceuticals, and Allied Blenders and Distillers are among those planning to capitalise on market conditions by raising substantial funds.
Other notable names include Asirvad Microfinance, Stanley Lifestyles, and Waaree Energies. The list extends to Premier Energies, Shiva Pharmachem, Bansal Wire Industries, One MobiKwik Systems, and CJ Darcl Logistics. Based on recent analyses, these companies are reportedly scheduling their IPOs within the next couple of months, signalling a vibrant phase for the primary markets.
Hyundai Motor India, a subsidiary of Hyundai Motor Company, South Korea, is preparing for an IPO that could potentially be India’s largest. It aims to raise up to $3 billion (approximately ₹25,000 crore). Hyundai IPO reflects the company’s valuation, which investment banks peg between $22-28 billion. The funds raised are planned to enhance operational capabilities and expand market presence in India’s growing automotive sector.
Ola Electric is targeting an IPO size of ₹7,250 crore, including a fresh issue of ₹5,500 crore and an OFS of ₹1,750 crore. The proceeds of Ola IPO are aimed at scaling up manufacturing capabilities for its electric vehicles, with significant allocations for R&D and strategic acquisitions. This IPO marks a critical step in Ola’s strategy to lead the electric mobility wave in India.
Swiggy is gearing up for an IPO to raise around $1.25 billion (approximately ₹9,375 crore), involving a fresh issue and an OFS. Positioned strongly against competitors like Zomato, Swiggy plans to use the IPO funds to drive further technological innovation and market expansion. Swiggy IPO reflects Swiggy’s robust growth trajectory despite operational losses, highlighting its aggressive expansion strategy in the food delivery sector.
Bajaj Housing Finance plans to raise ₹7,000 crore through its IPO, intended to augment its capital base for future business requirements, particularly in housing finance. The funds will also enhance its capabilities to offer a variety of mortgage products. Bajaj Housing Finance IPO is aligned with regulatory requirements and aims to strengthen Bajaj Housing Finance’s position in the financial services industry.
Afcons Infrastructure aims to raise ₹7,000 crore through an IPO that includes both a fresh issue and an OFS. The company intends to use the proceeds of Afcons Infrastructure IPO for capital expenditure and long-term working capital needs. Afcons has a substantial presence in the engineering and construction sectors, both domestically and internationally, and is part of the Shapoorji Pallonji Group, known for its significant infrastructure projects.
Waaree Energies is set to raise ₹3,000 crore through its IPO to finance the setup of a 6GW manufacturing facility for solar wafers, cells, and modules in Odisha. Waaree Energies IPO is aimed at bolstering Waaree’s manufacturing capabilities to meet the growing global demand for renewable energy solutions, solidifying its position as a leader in the solar PV market.
Navi Technologies, led by Sachin Bansal, plans an IPO of ₹3,350 crore, which will be utilised to support its financial services arms, Navi Finserv and Navi General Insurance, to ensure they meet regulatory capital requirements. Navi Technologies IPO will exclusively involve a fresh issue of equity shares, reflecting Navi’s focus on expanding its digital financial services.
NSDL, India’s largest securities depository, is planning a ₹3,000 crore IPO exclusively through an OFS by its existing shareholders, including prominent banks and financial institutions. NSDL IPO is intended to enhance NSDL’s liquidity and market presence, reinforcing its pivotal role in India’s financial market infrastructure.
The Securities and Exchange Board of India (SEBI) has already given the green light to 18 companies to launch their IPOs, collectively expected to raise over ₹20,000 crore. This approval is a crucial step in facilitating these companies in their public market debut.
The recent IPO of Ixigo (Le Travenues), which was listed on June 18, was oversubscribed at a rate of 98.10x and listed at a premium of 48.49%, underscoring the positive market sentiment and the investors’ confidence in the robustness of India’s primary market post-elections.
The completion of the Lok Sabha polls is typically viewed positively by the markets. A clear electoral outcome boosts investor confidence and contributes to a favourable investment climate. The swift resumption of IPOs post-election, including the highly successful opening of Ixigo’s IPO, reflects this sentiment.
The upcoming months are crucial for the Indian IPO market as it harnesses economic stability to fuel growth and expansion across diverse sectors. With significant capital expected to be raised, these IPOs represent not just growth opportunities for the companies but also for the broader Indian economy, enhancing its profile as a thriving market for investors and stakeholders alike.
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Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.
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