The IPO frenzy seems to not be ending any time soon. The primary market is expected to remain strong with at least 10 firms planning to raise a combined Rs 20,000 crore via maiden issues in the next month, merchant bankers revealed.
The companies scheduled to launch their public offers include Vishal Mega Mart, NBFC Avanse Financial Services, International Gemmological Institute (India) Ltd, Sai Life Sciences, DAM Capital Advisors, and Paras Healthcare, reported PTI. These initial public offerings (IPOs) span several sectors and deal sizes and include both fresh issues and offers for sale.
Citing Trivesh D, COO, Tradejini, the news agency said that the results of the Maharashtra election and the UP Lok Sabha by-election results have generated a positive market sentiment that could enhance IPO activity and fundraising efforts.
“While 2024 has been a strong year for IPOs, some recent issues have struggled in the secondary market, highlighting the recurring challenge of pricing during a bull run when issuers often aim for higher valuations. For now, with election-related funds returning to the market and the grey market becoming active again, the IPO space has regained some momentum,” the expert said.
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These firms are utilising the primary market to give an exit route to the current shareholders, raise funds to finance their expansion plans, and support the working capital requirements.
Amongst the upcoming issues, Vishal Mega Mart is planning to float a maiden offer worth Rs 8,000 crore. The issue will entirely be an offer-for-sale (OFS) by promoter Samayat Services LLP, its draft red herring prospectus (DRHP) revealed.
At the same time, Avanse Financial Services plans to launch an IPO worth Rs 3,500 crore. The listing includes a fresh issue of equity shares worth Rs 1,250 crore and an OFS worth Rs 2,750 crore by promoter BCP Asia II TopCo Pte Ltd, the DRHP showed.
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