IPO pipeline to remain strong; 10 companies aim to raise Rs 20,000 crore in December

The superior marketplace is expected to stay vibrant, with astatine slightest 10 companies, including supermart large Vishal Mega Mart and Blackstone-owned diamond grading steadfast International Gemmological Institute (India) Ltd expected to rise a combined Rs 20,000 crore successful the adjacent month, merchant bankers said.

Education-focused NBFC Avanse Financial Services, TPG Capital-backed Sai Life Sciences, infirmary concatenation relation Paras Healthcare, and concern slope DAM Capital Advisors are besides among the companies readying to motorboat their IPOs successful December, they added.

The companies purpose to rise a full of Rs 20,000 crore done their nationalist offerings. These IPOs volition span assorted sectors, and woody sizes, and see some caller issues and offers for sale.

Trivesh D, COO of Tradejini, an online brokerage house, told PTI that the Maharashtra predetermination verdict and the UP Lok Sabha by-election results person created a affirmative marketplace sentiment that could boost IPO enactment and fundraising efforts.

While 2024 has been a beardown twelvemonth for IPOs, immoderate caller issues person struggled successful the secondary market, highlighting the recurring situation of pricing during a bull tally erstwhile issuers often purpose for higher valuations, helium said.

"For now, with election-related funds returning to the marketplace and the grey marketplace becoming progressive again, the IPO abstraction has regained immoderate momentum," helium added.

The companies are tapping the superior marketplace to supply an exit way to the existing shareholders, rise funds for enlargement plans, discontinue debt, and enactment moving superior requirements.

Vishal Mega Mart is looking to interval an Rs 8,000-crore IPO, which volition beryllium wholly an offer-for-sale (OFS) of shares by promoter Samayat Services LLP, with nary caller contented of equity shares, according to the updated draught reddish herring prospectus (DRHP).

Gemmological Institute is eyeing Rs 4,000 crore done an IPO. The archetypal stock merchantability is simply a operation of a caller contented of equity shares worthy Rs 1,250 crore and an OFS valued astatine Rs 2,750 crore by promoter BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone, draught papers showed.

Avanse Financial Services is aiming to motorboat Rs 3,500 crore IPO. This comprises a caller contented of equity shares of up to Rs 1,000 crore and OFS of up to Rs 2,500 crore by the selling shareholders.

The company, promoted by Olive Vine Investment Ltd, an affiliate of backstage equity large Warburg Pincus, proposes to usage the funds to summation its superior basal for aboriginal needs.

Also, diagnostic concatenation Suraksha Diagnostic, packaging instrumentality shaper Mamata Machinery and Transrail Lighting volition interval their respective nationalist issues successful the adjacent month.

Moreover, 75 companies, including Hyundai Motor India, Swiggy, NTPC Green Energy, Bajaj Housing Finance, Ola Electric Mobility and FirstCry's genitor Brainbees Solutions person already mobilised astir Rs 1.3 lakh crore collectively via mainboard.

This was mode higher than Rs 49,436 crore garnered by 57 firms done the way successful the full 2023. The superior marketplace is experiencing beardown involvement from some issuers and investors crossed assorted sectors.

Going ahead, implicit 30 IPOs are expected successful the coming month. This immense pipeline could strain liquidity and the market's quality to sorb them, particularly if overseas investors support pulling retired funds, Saurabh Patwa, Head of Research and Portfolio Manager, Quest Investment Advisors, said.

Additionally, IPO investors implicit the past 5 fiscal years person enjoyed important gains. As galore arsenic 236 IPOs were launched betwixt FY21 and FY25 which delivered an mean listing summation of 27 per cent for the retail bucket, with existent gains soaring to 105 per cent (as of October 31, 2024), Trivesh said.