Hyundai, Swiggy, and NTPC Green Energy set to raise ₹60,000 Cr within two months

India IPO

Updated Sep 30, 2024

The momentum in the IPO market is supported by strong inflows into domestic mutual funds and robust capital formation in corporate India.

Hyundai, Swiggy, and NTPC Green Energy set to raise ₹60,000 Cr within two months

The IPO market is experiencing a strong surge, driven by favorable macroeconomic conditions, sector-specific factors, and fund managers' interest in innovative ideas. Over the next two months, more than half a dozen companies, including Hyundai Motor India, Swiggy, and NTPC Green Energy, are expected to raise approximately Rs 60,000 crore through initial public offerings (IPOs), according to merchant bankers.

Other companies joining the IPO rush include Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems, and Garuda Construction, all of which are planning to tap into the primary market during October and November.

Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, anticipates over 30 IPOs between late September and December, spread across various sectors and deal sizes. The momentum in the IPO market is supported by strong inflows into domestic mutual funds and robust capital formation in corporate India.

The companies aim to use the raised funds for expansion, debt reduction, working capital, and providing exit routes to existing shareholders. Hyundai Motor India is set to raise Rs 25,000 crore, making it potentially the largest-ever IPO in India, surpassing LIC’s Rs 21,000 crore offering. Hyundai’s IPO will be an offer-for-sale (OFS) with no fresh issue component.

Swiggy, the food delivery giant, is expected to raise Rs 10,414 crore through a mix of a fresh issue and OFS. The IPO will include a fresh issue of Rs 3,750 crore and an OFS worth Rs 6,664 crore. NTPC Green Energy, the renewable energy subsidiary of NTPC, is also planning to launch a Rs 10,000 crore IPO in early November. Afcons Infrastructure, part of the Shapoorji Pallonji Group, aims to raise Rs 7,000 crore, while Waaree Energies plans to raise Rs 3,000 crore through a fresh issue and an OFS.

Additionally, Niva Bupa Health Insurance and One Mobikwik Systems are planning to raise Rs 3,000 crore and Rs 700 crore, respectively. So far in 2024, 62 companies, including Bajaj Housing Finance, Ola Electric Mobility, and Brainbees Solutions (parent of FirstCry), have collectively raised Rs 64,000 crore through mainboard IPOs, marking a 29% increase compared to the Rs 49,436 crore raised by 57 companies in 2023.

The outlook for the IPO market in 2025 remains positive, with SEBI approving 22 IPOs aiming to raise Rs 25,000 crore. Over 50 more companies have filed draft papers and await approval, with plans to raise over Rs 1 lakh crore, signaling continued strength in the IPO market. Despite the positive sentiment, there are potential risks such as market corrections and regulatory changes that could moderate investor enthusiasm, according to Vaibhav Porwal, Co-founder of Dezerv.