It has been a busy October for markets as India Inc. raised over Rs 15,000 crore so far in the month bolstered by a sustained rally in the stock market that took the benchmark indices to record highs this past week.
The euphoria in the primary markets is unlikely to die down soon as long as equity markers are flushed with liquidity.
Three companies are scheduled to open their issue in the coming week starting from 30 October to 3 November which includes names like Mahindra Logistics, New India Assurance, and Khadim India.
This trend is likely to be maintained as the market is breaking its own high, premium valuation of the secondary market which may be attracting investors towards IPOs and as many companies are waiting for a nod from SEBI due to attractive pricing, suggest experts.
“This trend cannot be shattered unless the market falls by more than 10 percent disturbing the confidence of retail investors which are currently shifting their liquidity towards primary, secondary and MF,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“This is owing to a change in investment style of public from physical to financial assets due to investor awareness and structural reform undertaken by the government towards cash hoarding,” he said.
Companies which have raised capital via IPO route in the month of October include names like Godrej Agrovet, MAS Financial Services, Indian Energy Exchange, General Insurance Corporation of India, and Reliance Nippon Life Asset Management.
So far in 2017, nearly 30 companies have collectively mopped up over Rs 40,000 crore through IPOs, surpassing the previous high recorded seven years ago, said a report.
Recently, we have seen three mega insurance offerings such as General Insurance Company of India which raised 11,372 crores, SBI Life Insurance Company raised 8,400 crores, and ICICI Lombard General Insurance Company raised Rs5,700 crore.
Another big boy, New India Insurance will hit D-Street on November 1 to raise up to Rs9,600 crores from primary markets.
October 31: Mahindra Logistics to raise up to Rs829 crore
Mahindra Logistics, the subsidiary of Mahindra and Mahindra, has fixed the price band at Rs 425-429 per share for its initial public offering that is scheduled to open on October 31 and close for subscription on November 2. 2017.
The discount of Rs 42 per share will be offered to its eligible employees. The minimum bid lot for the offer is fixed at 34 equity shares and in multiples of 34 shares thereafter, the company said in its filing.
The public issue comprises an offer for sale of 1,93,32,346 equity shares by parent firm Mahindra and Mahindra (that will offload of 96,66,173 shares - 13.74 percent stake); Normandy Holdings (92,71,180 shares) and Kedaara Capital (3,94,993 shares).
Normandy Holdings is a 100 percent subsidiary of Kedaara Capital.
November 1: New India Assurance to raise up to Rs9,700 crore
New India Assurance (NIA), the largest general insurance company in India, will hit the capital markets on November 1 to raise an estimated Rs 9700 crore through IPO. The company's initial share sale will close on November 3, they added.
NIA has fixed the price range of Rs. 770-800 for its upcoming Initial Public Offering (IPO), said sources close to the matter.
The fully government-owned company is selling 12 crores shares with a face value of Rs. 5 each of which 2.4 crore shares are a fresh issue and 9.6 crore shares are an Offer for Sale (OFS).
November 2: Khadim India eyes Rs 543 crore from IPO
Footwear retailer Khadim India expects to raise Rs 543 crore through initial public offer next week, with the company fixing a price band of Rs 745-750 per share, said a report.
The IPO will open for subscription from November 2-6, the company said in a statement.
Khadim India's initial public offer (IPO) comprises a fresh issue of equity shares aggregating up to Rs 50 crore besides, an offer for sale of up to 65,74,093 equity shares by the existing shareholders. The net proceeds from the issue would be utilised towards payment of loans and for general corporate purposes.