MC EXCLUSIVE Big-ticket tech IPOs worth $4.5 billion to light up Dalal Street soon after Diwali

Collectively, these companies are expected to raise around $4 billion to $4.5 billion through their initial share sales.

The domestic IPO market is expected to see a flurry of issuances after Diwali, with at least half a dozen new age technology companies busy with international and domestic investor roadshows, in their bid to attract investors.

The list of upcoming public issues includes companies such as Groww, Lenskart, Meesho, Pine Labs, Fractal Analytics and Physicswallah, people aware of these company’s IPO plans told Moneycontrol.

Collectively, these companies are estimated to raise around $4-4.5 billion through initial share sale.

“All these companies are currently in some stage of their investor roadshows, whether domestic or international. Most of them are targetting to launch their IPOs post Diwali, in late October or November, and some may even target a launch in December, depending on investor appetite and market conditions,” said one of the sources cited above.

“The recent successful IPO and the bumper listing of Urban Company has shown that investor appetite for fresh paper by new age companies is strong. Given the unique business models of these companies, they too should be able to generate significant investor interest,” the source added.

Another person familiar with the IPO plans added that the primary market is seeing good traction lately, with record launches in September and several major issuances slated to hit the market in October, including the much-awaited IPOs of Tata Capital as well as LG Electronics India.

“The second half of the fiscal year is expected to see more activity in the IPO market, with several large deals including the tech companies in the pipeline. Foreign investors who are selling Indian stocks in the secondary market continue to buy in IPOs, and the domestic demand is very healthy too, although on the pricing front companies are having to offer a higher discount to investors, given the overall volatility in the markets,” the second source said.

Emails sent to Groww, Physicswallah, Meesho, Lenskart, Fractal Analytics did not elicit a response till the time of publication of this story.

Upcoming IPOs

Moneycontrol had first reported about Pine Labs' investor roadshows and IPO launch plans on September 18. Pine Labs is likely to raise up to $700 million, or nearly Rs 6,200 crore from the public issue.

Lenskart’s IPO is expected to be around Rs 7,500-8,000 crore (around $900 million), while Meesho’s share sale is likely to be around Rs 8,000-8,500 crore (nearly $950 million) in size. Ed-tech firm Physicswallah is looking to raise Rs 3,820 crore ($430 million) through its IPO, and Fractal Analytics is planning to mop up around Rs 4,900 crore (nearly $550 million) from the proposed share sale. Online investment platform Groww is likely to raise around $800 million to $1billion (around Rs 7,100-8,900 crore) from its planned IPO.