MUMBAI: The primary market is poised for robust activity in December, with at least 10 companies planning to raise a combined Rs20,000 crore through initial public offerings (IPOs), according to merchant bankers.
Key players include Vishal Mega Mart, targeting an Rs8,000 crore IPO, and Blackstone-owned International Gemmological Institute (India), aiming to raise Rs4,000 crore.
Other prominent entrants include Avanse Financial Services, which is set to launch a Rs3,500 crore IPO comprising a fresh issue of up to Rs1,000 crore and an offer for sale (OFS) of up to Rs 2,500 crore by selling shareholders.
Sai Life Sciences and Paras Healthcare are also among the companies in the pipteline.
Sentiments buoyant
“The market sentiment remains buoyant despite some headwinds, including challenges faced by earlier IPOs in the secondary market due to high valuations during a bull run and renewed corruption allegations against Adani Group companiesm,” a market analyst told businessbenchmark.news.
These factors have not deterred companies from tapping into the IPO route to fund expansion, reduce debt, and provide exits for existing shareholders.
Positive election outcomes in states like Maharashtra and Uttar Pradesh have further boosted investor confidence, contributing to the revival of market activity.
Over 75 companies have collectively raised Rs1.3 lakh crore through IPOs in 2024 so far, surpassing the Rs49,436 crore raised by 57 companies in 2023.
Good listing gains so far
Retail investors, in particular, have reaped benefits, with average listing gains of 27 per cent and peak returns touching 105 per cent.
While the pipeline remains strong, with over 30 IPOs expected next month, experts caution about potential liquidity strain, especially if foreign investors continue withdrawing funds.
“The sheer volume of IPOs could test the market’s capacity to absorb them, but the underlying appetite remains strong,” Saurabh Patwa, Head of Research and Portfolio Manager, Quest Investment Advisors, was quoted as saying.
Despite recent controversies and past setbacks in the secondary market, the IPO segment shows no signs of slowing down, with issuers and investors alike gearing up for an active December.
