11 companies such as Vishal Mega Mart, TPG Capital-backed Psi Life Sciences and fintech firm One Mobiquik Systems are gearing up to launch their initial share sale, collectively raising around Rs. 18,500 crore, with the IPO market set to explode next week.
Overview of upcoming IPOs
Other mainboard IPOs launched during this period include Inventurus Knowledge Solutions Ltd and Blackstone-owned diamond grading firm International Gemological Institute (India) Ltd.
SME IPO in pipeline
Along with five main-board IPOs, six SMEs are gearing up to launch their maiden public issues next week to collectively raise Rs. Can earn more than 150 crores.
Total fundraising target
Together, these 11 companies raised approximately Rs. 18,500 crore is targeted to be raised.
Different sectors and deal sizes
These IPOs will span different sectors and deal sizes and include new issues and offers for sale.
Reasons for tapping the primary market
Companies are tapping the primary market to provide exit routes to existing shareholders, raise funds for expansion plans, retire debt and support working capital needs.
Market sentiment boost
Trivesh D, COO of online brokerage house, Tredjini, said the Maharashtra election verdict and UP Lok Sabha by-election results have created positive market sentiment which could boost IPO activity and fundraising efforts.
Challenges in pricing during a bull run
While 2024 has been a strong year for IPOs overall, some recent issues in the secondary market have struggled, highlighting the recurring challenge of pricing during bull runs when issuers often aim for higher valuations, he said.
IPO activity in 2024
So far in 2024, 78 main-board companies including Hyundai Motor India, Swiggy, NTPC Green Energy, Bajaj Housing Finance and Ola Electric Mobility have collectively invested around Rs. 1.4 lakh crore has been collected.
This route in 2023 received by 57 companies through the route Rs. 49,436 crore is more than
Details of the upcoming IPO
The IPOs of Vishal Mega Mart, Sai Life Sciences and Mobiquik will open for public subscription on December 11 and close on December 13.
Additionally, three-day initial share-sales of Inventurus Knowledge Solutions and International Gemmological Institute will open on December 12 and December 13 respectively.
Earlier, public issues of property share investment trust SM REIT and Security Diagnostics concluded their IPOs in the first week of December.
Major IPOs and their details
Vishal Mega Mart IPO: As per the updated draft red herring prospectus, Rs. 8,000 crore IPO, which will be an all-share offer-for-sale (OFS) by promoter Kedara Capital-led Samayat Services LLP, with no fresh issue of equity shares. (DRHP). The price band has been fixed at Rs 74 to Rs 78 per share.
IPO of Sai Life Sciences: Its Rs. 3,043 crore for the IPO per share at Rs. 522 to Rs. 549 fixed price band. In this, promoters, investor shareholders and other shareholders contributed Rs. Includes fresh issue of 950 crore equity shares and OFS of 3.81 crore shares.
Mobikwik IPO: 2.05 crore through fresh issue of shares at Rs. 572 crore is the target to collect. The price band for the offer is Rs. 265 to Rs. 279 per share has been fixed.
Inventurus Knowledge Solutions IPO: The issue is fully offered for sale, comprising 1.88 crore shares and merchant bankers have pegged the issue size at Rs. 2,500 crore has been decided.
International Gemological Institute IPO: Through IPO Rs. 4,225 crore is expected to be obtained. The red herring prospectus shows that Blackstone’s affiliate promoter BCP Asia II TopCo Pte Ltd has raised Rs. 1,475 crore worth of equity shares and Rs. The issue includes OFS worth Rs 2,750 crore.
Price band announcements
The share price band of Inventurus Knowledge Solutions and International Gemmological Institute will be announced on Monday.
SME IPO Schedule
Upcoming SME IPOs are Dhanalakshmi Crop Sciences Ltd (Dec 9-11), Toss The Coin Ltd and Jungle Camps India Ltd (both Dec 10-12), Supreme Facility Management Ltd and Purple United Sales Ltd (Dec 11-13) and Yash High Voltage . Ltd (December 12-16).
Investor Sentiment and IPO Performance
The primary market is experiencing strong interest from issuers and investors in various sectors.
IPO investors have reaped significant gains in the last five financial years. The 236 IPOs launched between FY21 and FY25 yielded an average listing gain of 27 per cent for the retail bucket, compared to current gains of 105 per cent (as on October 31, 2024), Trivesh said.
(with PTI inputs)