12+ companies eyeing ₹10,000cr through IPOs in coming weeks
What's the story
More than a dozen companies are planning to launch their initial public offerings (IPOs) in the next two to three weeks. The firms are looking to raise nearly ₹10,000 crore. The move comes after supportive policy measures such as GST 2.0 and the Reserve Bank of India (RBI)'s monetary policy easing through rate cuts. The list of firms includes iValue Infosolutions, Saatvik Green Energy, and JinKushal Industries, among others.
Launch timeline
Upcoming IPOs
The companies are expected to announce their price bands in the week starting September 15. They plan to launch their IPOs before September 30. After the previously mentioned offerings, Anantam Highway InvIT (Alpha Alternatives), Epack Prefab Technologies, Pranav Construction, and TruAlt Bioenergy will follow suit. These firms are likely to announce their price bands between September 22-30, with launches planned for late September or early October.
Financial goals
Plans to raise ₹10,000 crore
Collectively, these companies are looking to raise nearly ₹10,000 crore through these IPOs. The funds will be used for capital expenditure needs, expansion plans, debt repayment, and general corporate purposes. This comes as a continuation of a strong year for IPOs, with 55 companies already raising nearly ₹75,000 crore through their maiden public offerings so far.
Market trends
Factors driving current IPO surge
The current surge in IPO activity is being driven by policy tailwinds like income tax relief, GST 2.0 reforms, and the RBI's rate cuts. Despite Foreign Portfolio Investors (FPIs) selling Indian equities, many companies are rushing to the market due to favorable liquidity and strong support from Domestic Institutional Investors (DIIs). Vaqarjaved Khan of Angel One said, "IPOs are coming in sectors backed by strong tailwinds," including financial services, retail, renewables, manufacturing, and healthcare sectors.
Future prospects
Retail and institutional support boost IPO sentiment
The outlook for the IPO market remains strong, with many companies still queuing up for mainboard listings. This is backed by steady SIP inflows from retail investors and institutional backing from DIIs. Shobhit Mathur of Ionic Wealth said, "There is increased activity and buzz in the IPO markets after a hiatus." He added that these factors have improved investor sentiment for H2 2023.
Notable offerings
Major upcoming issues to watch out for
Among the major upcoming IPOs are Jain Resource Recycling, aiming to raise ₹2,000 crore, hospital chain Park Medi World with a ₹1,260 crore issue, and Saatvik Green Energy targeting ₹1,150 crore. Meanwhile, biofuel producer TruAlt Bioenergy is expected to garner ₹1,000 crore through its issue, and brokerage Anand Rathi Share and Stock Brokers is looking to raise ₹750 crore.