Companies managed to raise Rs 62,000 crore through IPOs in the fiscal year 2024.
In Short
- Companies raised Rs 62,000 crore through IPOs in FY24
- The market could see offerings worth up to Rs 70,000 crore in FY25
- 19 companies await SEBI approval to raise Rs 25,000 crore
The primary market has seen a lot of activity, driven by robust liquidity and investor interest in new public issue issues.
Companies raised Rs 62,000 crore through IPOs in fiscal year 2024, and the following fiscal year appears to be no exception.
Looking ahead, forecasts indicate that the market might see offerings worth up to Rs 70,000 crore in FY25, with some well-known names likely to make their Dalal Street debut.
According to Primedatabase.com, 19 firms are awaiting approval from the Securities and Exchange Board of India (Sebi) to fund up to Rs 25,000 crore. In addition, 37 more companies have filed documents with Sebi seeking to raise Rs 45,000 crore.
Nine of these companies are new-age technology companies looking to raise around Rs 21,000 crore. This demonstrates a good market trend, as more companies choose to go public.
Experts think that this tendency will continue in the coming fiscal year, with even larger transactions projected. According to Mahavir Lunawat of Pantomath Capital, “There’s a positive sentiment towards fundamentally good businesses along with robust business models.”
Despite the forthcoming general elections, observers expect the market to stay lively.
“The impending elections may result in some short-term volatility, especially closer to the election date. However, Abhishek Jain of Arihant Capital told The Economic Times that the long-term picture appears to be optimistic.
Here are several initial public offerings to keep an eye on:
Bharti Hexacom IPO – Bharti Hexacom, a subsidiary of Bharti Airtel, plans to raise Rs 4,275 crore through an IPO. It delivers mobile services throughout Rajasthan and the Northeast.
The public issue will be available for subscription beginning April 3 and will consist completely of an offer for sale (OFS), with TCIL selling 7.5 crore shares.
Go Digit Insurance IPO – This insurance company, sponsored by cricket star Virat Kohli, is planning an IPO valued approximately Rs 3600 crore. The IPO includes a fresh issue of shares worth Rs 1,250 crore and the sale of over 11 crore shares, according to the preliminary prospectus.
Ola Electric IPO – Ola Electric has filed preliminary paperwork for an initial public offering, with the goal of raising Rs 5,500 crore in fresh stock.
The company is presently awaiting regulatory approval, and the IPO is slated to launch in the second part of the year.
The public offering will comprise the selling of existing shares by current shareholders, known as an offer for sale (OFS), for a total of 9,51,91,195 shares. Promoter Bhavish Aggarwal intends to sell up to 4,73,94,014 shares through OFS, while Indus Trust, another member of the promoter group, proposes to sell up to 41,78,996 shares.
Brainbees Solutions IPO – Brainbees Solutions, which sells childcare goods under the brand name FirstCry, is preparing an IPO with new shares worth up to Rs 1,816 crore and a sale of up to 5.4 crore existing shares.
Waaree Energies IPO – Waaree Energies has submitted draft documents in preparation for an initial public offering. This IPO would consist of new shares worth Rs 3,000 crore and the sale of 32 lakh existing shares.
Waaree Energies is India’s top maker of solar PV modules, having 12 GW of installed capacity as of June 2023.
Tata Electric IPO – Tata Group is considering listing its electric car company on the stock market, which may happen within the next one to two years. If all goes as planned, the IPO might occur at the end of FY25.
Swiggy IPO – Swiggy is also considering going public later this year, according to many sources. According to Entrackr, they may submit their paperwork in May with the goal of launching the IPO during the holiday season.
Other notable firms expected to go public next fiscal year include Allied Blenders, Mobikwik, PayU, Garuda Aerospace, and NTPC Green, among others.
This article was published on India Today.
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