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19 Nov 2024
Next week will see a surge in IPO activity, with 13 companies, including major players like Bajaj Housing Finance, preparing to enter the primary market to raise a total of Rs 8,644 crore. This includes four main-board IPOs aiming to collect Rs 8,390 crore and nine SME issues targeting Rs 254 crore.
The upcoming IPOs feature Bajaj Housing Finance, which seeks to raise Rs 6,560 crore, P N Gadgil Jewellers at Rs 1,100 crore, Kross Ltd aiming for Rs 500 crore, and Tolins Tyres with a target of Rs 230 crore. The IPOs for Bajaj Housing Finance, Kross Ltd, and Tolins Tyres will be open from September 9 to September 11, while P N Gadgil Jewellers will be available from September 10 to September 12.
Additionally, Arkade Developers is expected to launch its IPO on September 16, with Western Carriers India potentially following soon after. So far this year, over 50 main-board IPOs have been launched, including Vodafone Idea’s FPO. Recent IPOs like Shree Tirupati Balajee Agro Trading and those from Baazar Style Retail and Gala Precision Engineering have closed, while August saw IPOs from notable firms like Ola Electric Mobility and FirstCry.
Munish Aggarwal from Equirus anticipates a busy two weeks for IPO markets, attributing the rush to companies wanting to utilize their FY24 financials before the September deadline set by Sebi. He forecasts that the total amount raised through main-board IPOs will exceed Rs 1.25 lakh crore by year-end.
Sunil Damania of MojoPMS highlights that while strong secondary markets support continued IPO activity, any drop below offer prices could dampen momentum. Companies are leveraging IPOs to fund expansion, pay off debt, and provide exits for existing shareholders.
Among SMEs, Aditya Ultra Steel, Shubhshree Biofuels Energy, Share Samadhan, and Gajanand International will be available from September 9; SPP Polymers and Trafiksol ITS Technologies from September 10; Excellent Wires and Packaging and Innomet Advanced Materials from September 11; and Envirotech Systems from September 13. These SME IPOs are aiming to raise between Rs 12-45 crore each.
Recent IPOs have seen high subscription levels, with main-board IPOs in August being subscribed over 75 times on average. For SMEs, August’s average subscription was 290 times, with a year-to-date average of over 259 times. Vaibhav Porwal from Dezerv attributes this to liquidity, the fear of missing out (FOMO), and strong retail participation, though warns of potential market corrections and regulatory interventions. V K Vijayakumar from Geojit Financial Services notes concerns about the oversubscription of SMEs lacking track records, signaling possible regulatory scrutiny ahead.
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