NEW DELHI, Dec 8: The IPO market is anticipated to be very active next week, with 11 companies—including Vishal Mega Mart, Sai Life Sciences backed by TPG Capital, and fintech firm One Mobikwik Systems—preparing to initiate their initial share sales, collectively targeting nearly Rs 18,500 crore.
Other significant IPOs expected during this time include those from Inventurus Knowledge Solutions Ltd and the Blackstone-owned International Gemmological Institute (India) Ltd.
In addition to the five mainboard IPOs, six SMEs are also set to launch their inaugural public offerings next week, aiming to raise over Rs 150 crore together.
Collectively, these 11 companies plan to raise around Rs 18,500 crore through public offerings.
These IPOs will cover a variety of sectors and deal sizes, including both fresh issues and offers for sale.
The companies are accessing the primary market to provide an exit route for existing shareholders, secure funding for expansion strategies, reduce debt, and meet working capital needs.
Trivesh D, COO of Tradejini, an online brokerage firm, noted that the results of the Maharashtra election and UP Lok Sabha by-elections have fostered positive market sentiment, potentially enhancing IPO activity and fundraising efforts.
While 2024 has been robust in terms of IPO performance overall, some recent issues have faced challenges in the secondary market, underscoring the ongoing difficulty of pricing during a bull cycle when issuers often seek higher valuations, he added.
So far this year, 78 mainboard companies—including Hyundai Motor India, Swiggy, NTPC Green Energy, Bajaj Housing Finance, and Ola Electric Mobility—have raised about Rs 1.4 lakh crore combined via the mainboard route.
This figure significantly surpasses the Rs 49,436 crore garnered by 57 firms through the same route in 2023.
The IPOs for Vishal Mega Mart, Sai Life Sciences, and Mobikwik will be available for public subscription from December 11 to December 13.
Additionally, the three-day initial share sales for Inventurus Knowledge Solutions and the International Gemmological Institute will commence on December 12 and December 13, respectively.
Previously, the public offerings by Property Share Investment Trust SM REIT and Suraksha Diagnostic were completed during the first week of December.
Vishal Mega Mart is planning to launch an Rs 8,000 crore IPO, which will consist entirely of an offer-for-sale (OFS) of shares by the promoter Kedaara Capital-led Samayat Services LLP, with no new equity shares issued, according to the updated draft red herring prospectus (DRHP).
The price range has been established at Rs 74 to Rs 78 per share.
Sai Life Sciences has set a price range of Rs 522 to Rs 549 per share for its Rs 3,043 crore IPO, which includes a fresh issuance of equity shares valued at Rs 950 crore along with an OFS of 3.81 crore shares by a promoter, investor shareholders, and other shareholders.
The Mobikwik IPO aims to raise Rs 572 crore through a new issue of 2.05 crore shares, with a price band set between Rs 265 and Rs 279 per share.
The offering from Inventurus Knowledge Solutions is entirely an OFS of 1.88 crore shares, with merchant bankers estimating the issue size at Rs 2,500 crore.
The International Gemmological Institute aims to raise Rs 4,225 crore through its IPO, which includes a fresh issue of equity shares worth Rs 1,475 crore and an OFS valued at Rs 2,750 crore from promoter BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone, as indicated in the red herring prospectus.
The share price bands for Inventurus Knowledge Solutions and the International Gemmological Institute will be revealed on Monday.
Upcoming SME IPOs include Dhanlaxmi Crop Science Ltd (December 9-11), Toss The Coin Ltd and Jungle Camps India Ltd (both December 10-12), Supreme Facility Management Ltd and Purple United Sales Ltd (December 11-13), and Yash Highvoltage Ltd (December 12-16).
The primary market is currently witnessing strong interest from both issuers and investors across multiple sectors.
IPO investors over the past five fiscal years have realized significant returns, with 236 IPOs launched between FY21 and FY25 providing an average listing gain of 27 percent for retail investors, and current gains reaching 105 percent (as of October 31, 2024), Trivesh noted. (PTI)
