29 March 2024 – The primary market is witnessing a surge in activity, buoyed by high liquidity and heightened investor interest in new issue launches regardless of market sentiments.
In fiscal 2024, companies raised Rs 62,000 crore through initial share sales, and the pipeline for the upcoming fiscal appears robust. Approximately Rs 70,000 crore worth of offerings are anticipated to debut in the markets next fiscal, featuring some well-known names.
Currently, 19 companies, with offerings worth Rs 25,000 crore, await Sebi approval, while another 37 companies, with plans to raise Rs 45,000 crore, have filed their prospectus papers with the regulator and are awaiting approval, according to Primedatabase.com. Among these, nine new-age tech companies aim 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.
Despite the upcoming general elections, the next couple of months are expected to witness several IPO launches.
“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.
Key Offerings to Watch Out For
1. Bharti Hexacom IPO: The Rs 4,275 crore public offer by Bharti Hexacom, a subsidiary of Bharti Airtel, marks the beginning of primary market activity next fiscal.
2. Go Digit Insurance IPO: Sebi has approved the IPO of new age insurance company Go Digit, backed by star cricketer Virat Kohli, estimated to be around Rs 3600 crore.
3. Ola Electric IPO: Ola Electric has filed draft papers for an IPO with a fresh equity issue of Rs 5,500 crore, expected to hit the market in the second half of the fiscal.
4. Brainbees Solutions IPO: Brainbees Solution, operator of childcare products under the brand name FirstCry, is planning an IPO with a fresh issue of shares worth up to Rs 1,816 crore.
5. Waaree Energies IPO: Solar PV modules maker Waaree Energies plans an IPO with a fresh equity issue worth Rs 3,000 crore.
6. Tata Electric IPO: Tata Group is considering listing its electric vehicles business, with plans to launch the IPO towards the end of FY25.
7. Swiggy IPO: Online food delivery giant Swiggy is considering an IPO later this year, aiming to file its papers in May and launch the IPO during the festive season.
Other notable companies expected to launch their IPOs next fiscal include Allied Blenders, Mobikwik, PayU, Garuda Aerospace, and NTPC Green, among others.