IPO wave shows no signs of abating in May; election clarity bolsters investor confidence

Aadhar Housing Finance Ltd, Indegene, TBO Tek, and others are expected to raise as much as Rs 7,000 crore from initial public offers this month.

With the Indian equity markets outpacing major global indices in April despite geopolitical tensions in the Middle East and election-related uncertainty, the primary market will continue to see a flurry of IPO launches and listings in May. Aadhar Housing Finance Ltd, Indegene, TBO Tek, and others are expected to raise as much as Rs 7,000 crore from initial public offers this month.

This year, the Indian primary market has bucked a two-decade trend of coming to a virtual standstill before a general election with record fundraising. Data shows that the amount raised in IPOs in the six months prior to the 2024 election cycle is more than seven times the amount raised in the previous four election cycles put together.

"And more issues are likely to be launched even in May,” Pranav Haldea, managing director of Prime Database Group told Moneycontrol. Experts said investors and companies are less uncertain about the outcome of the elections this year, leading to a strong positive sentiment in both the primary and secondary markets.

Despite the general elections, the IPO pipeline remains robust, said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors. "Despite a lackluster beginning to FY25 in the IPO market, we are optimistic about the potential of the upcoming public issues," he added.

Here are the upcoming IPOs in May

Indegene IPO

Private equity firms Carlyle- and Nadathur Fareast-backed Indegene, which provides digital-led commercialisation services for the life sciences industry, will launch its IPO on May 6. The price band for the Rs1,842-crore issue has been fixed at Rs 430-452 per share. The IPO, which will close on May 8, comprises a fresh issue of equity shares worth Rs 760 crore and an offer-for-sale (OFS) of 2.39 crore equity shares by the existing shareholders.

The Bengaluru-based company has reserved up to 50 percent of the net issue size for qualified institutional buyers (QIB), 15 percent for non-institutional investors NIIs or high-net-worth individuals (HNIs), and the remaining 35 percent for retail investors. The anchor book, up to 60 percent of the QIB portion, will be opened for subscription on May 3.

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TBO Tek IPO

General Atlantic-backed TBO Tek, an online travel distribution platform, is going to be the second company to hit Dalal Street with its IPO in May, after Indegene. The IPO will open for subscription on May 8 and close on May 10, 2024, while the price band is expected to be announced by end of the current week.

The public issue comprises a fresh issuance of shares worth Rs 400 crore and an offer-for-sale (OFS) of 1.25 crore equity shares by promoters and investors.

Gaurav Bhatnagar and Ankush Nijhawan-founded TBO Tek will spend Rs 260 crore out of the net fresh issue proceeds for its growth and strengthening platform by adding new buyers and suppliers. Further, Rs 40 crore will be utilised for unidentified inorganic acquisitions, and the remaining proceeds for general corporate purposes.

The company has reserved 75 percent of the net public issue for QIBs, 15 percent for NIIs/HNIs and the remaining 10 percent shares for retail investors.

Aadhar Housing Finance IPO

Blackstone-backed Aadhar Housing Finance is likely to launch its IPO this month. The company has decided to reduce the size of its initial public offer to Rs 3,000 crore from the originally planned Rs 5,000 crore as the affordable home financier gears up to launch the issue in early May, four persons in the know told Moneycontrol.

Initially, the offer for sale component was Rs 4,000 crore and now it has been revised to Rs 2,000 crore. As per the original split, the IPO consisted of a fresh issue of shares of up to Rs 1,000 crore and an offer-for-sale component of as much as Rs 4,000 crore. The IPO valuation of Aadhar Housing Finance has been fixed at around Rs 13,500 crore, the source said.

Also Read | General Atlantic-backed TBO Tek IPO to hit Dalal Street on May 8

Go Digit General Insurance IPO

Go Digit General Insurance, backed by Canada-based Prem Watsa's Fairfax Group, is also likely to launch its maiden public issue this month. Market regulator SEBI gave Go Digit, last valued at $3.5 billion, the go-ahead in March this year to launch an IPO after multiple compliance issues delayed approval for the deal originally planned in 2022.

The company plans to raise Rs 1,250 crore through its listing in addition to an OFS of 109.4 million shares, as per the DRHP. So far, Go Digit has not shared IPO dates or details. Notably, cricketer Virat Kohli and his wife, actor Anushka Sharma, are among investors in the firm.

Upcoming SME IPOs in May

Slone Infosystems IPO

Slone Infosystems, an IT hardware solutions provider, has also planned for fundraising via the IPO route on May 3, the last day of the coming week. The closing date will be May 7. It aims to raise Rs 11.06 crore via IPO of 14 lakh equity shares at Rs 79 per share. It is a fixed-price issue.

The Mumbai-based company will spend the fresh issue money for the purchase of laptops, desktops, SSD, and RAM. It will also use the funds for repayment of debts and general corporate purposes.

Finelistings Technologies IPO

The Finelistings Technologies IPO will open for subscription on May 7 and conclude on May 9, 2024. It is a BSE SME IPO and the company aims to raise Rs 13.53 crore via the initial stake sale. The issue is priced at Rs 123 per equity share.

The company, engaged in various businesses, namely retail of used luxury cars and software development services, has reserved 50 percent of the net public issue for NIIs/HNIs and the remaining 50 percent shares for retail investors. The IPO allotment date is May 10 and the IPO might list on BSE on May 14, 2024.

Also Read | Indegene IPO: 10 things to know before subscribing to the Rs 1,841-crore issue

Winsol Engineers IPO

Winsol Engineers Limited is set to launch its IPO on May 6. The company provides integrated engineering, procurement, construction, and commissioning services for Balance of Plant (BoP) Solutions for solar and wind power generation firms.

The bidding for Winsol Engineers IPO will conclude on May 9. The IPO allotment is expected to be finalized on May 10 and the equity shares of Winsol Engineers will list on NSE SME with a tentative listing date fixed on May 14.

Winsol Engineers IPO price band is set at Rs 71-75 per share. The IPO lot size is 1,600 shares. At the upper end of the price band, the company plans to raise Rs 23.36 crore from the book-built issue which is entirely a fresh issue of 31.15 lakh equity shares. The company plans to use the net issue proceeds towards working capital requirements and general corporate purposes.

Refractory Shapes IPO

Bricks manufacturer Refractory Shapes will also launch its IPO this month. The small and medium enterprise (SME) IPO (entirely fresh issue) will open for subscription on May 6 and close on May 9. The Mumbai-based company has set the price band for the issue at Rs 27 - 31 per share.

Retail investors must invest a minimum of Rs 1.24 lakh, with the minimum lot size for an application being 4,000 shares. With this book-building issue, the company aims to raise over Rs 18.60 crore.

Listings this month

Aside from the above-mentioned firms, three other companies are scheduled for listing this month, all from the SME segment. These include Storage Technologies & Automation, Amkay Products, and Sai Swami Metals & Alloys.

Storage Technologies & Automation, which designs and manufactures storage racking system under the trademark Racks & Rollers, launched its Rs 29.95-crore IPO for subscription on April 30, with a price band at Rs 73-78 per share.

The public issue, which comprises only a fresh issue of 38.4 lakh equity shares with no offer-for-sale (OFS) component, will close on May 3 and the firm will list on bourses on May 8

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The Maharashtra-based healthcare products maker Amkay Products' IPO will also close on May 3 and the company will list on May 8. The price band for the issue has been fixed at Rs 52-55 per share. At the upper price band, it aims to raise Rs 12.61 crore via an IPO of 22.92 lakh equity shares, comprising only a fresh issue.

Sai Swami Metals & Alloys' IPO will conclude on May 3 and the allotment is expected to be finalized on May 6. The Stainless steel products trader will list on BSE SME with a tentative listing date fixed as May 8.

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