IPO rush: 66 issues targeting Rs 72,000-crore lined up for FY25

The major trigger for both primary and secondary markets this year is the general elections, which are likely during April-May 2024

The IPO pipeline is expected to remain robust for the rest of the current financial year and in the next one as well, with more than Rs 72,000 crore worth of securities heading for the primary market, analysts have said.

As many as 25 companies have received the approval of the Securities and Exchange of Board of India (SEBI) to raise approximately Rs 27,190 crore and another 41 companies are waiting for nod to raise a total of Rs 45,576 crore.

The major trigger for both primary and secondary markets this year is the general elections, which are due by May, Pranav Haldea, MD, Prime Database, told Moneycontrol. The average IPO size is likely to be bigger in calendar year 2024 as more large firms are coming with public issues compared to the previous year.

Also Read: Retail investors shouldn’t rush into IPOs, wait for prices to stabilise, says SEBI chief Buch

The biggest public issues in the pipeline are OYO ( around Rs 8,430 crore), Ebix Cash (Rs 6,000 crore), NSDL (Rs 4,500 crore), First Cry (Rs 4,000 crore) and Digit Insurance (Rs 3,500 crore).

Prime Database shows that around seven so-called new-age technology companies — Ola Electric, Awfis, MobiKwik, Protea, Oravel Stays, Go Digit General Insurance and Brainbees Solutions — are expected to go public in calendar 2024.

In 2023, only two such companies – Yatra and Mamaearth – went public.

S Ramesh, managing director and CEO of Kotak Investment Banking, said the funding winter would end by 2024, with the return of public market dynamism. He expects equity worth $10 billion to be raised from the IPO market over the next 12-24 months.

Also Read: 15-20 unicorns to go public in 2 years, expect 10+ decacorns by 2025: Kotak Investment Banking

In the banking/financial services segment, seven companies will go public. Jana Small Finance Bank and Capital Small Finance Bank open for subscription on February 7, Fincare Small Finance Bank and Ebixcash expected to open later in the year.

The much-awaited National Security Depository, Akme Fintrade and Asirvad Micro Finance are awaiting SEBI approval.

In the tourism sector, which is expected to see big growth in the coming years, three IPOs are lined up. Apeejay Surrendra Park Hotels’ Rs 920 crore opened for subscription on February 5, while Ritesh Agarwal’s OYO and Juniper Hotels await the regulator’s nod.

Also Read: Ram Mandir may attract 50 mn tourists a year: Jefferies assesses the Ayodhya multiplier

V Jayasankar, managing director at Kotak Investment Banking, expects 15-20 unicorns to go public in the next 12-24 months and India to have 10-plus internet decacorns by the end of 2025.

Around 57 firms raised Rs 49,434 crore through mainboard IPOs in 2023, 17 percent lower than the Rs 59,302 crore mopped up by 40 issues in 2022. However, excluding the mega LIC public offer, IPO mobilisation increased by 28 percent in 2023.

Also Read: IPOs worth Rs 75,000 crore expected in 2024, NSDL may go public this year: Pranav Haldea

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.