The coming months could see some busy days on the IPO street, as a large number of companies – including some marquee ones – could gear up to launch their initial public offers (IPOs), totalling up to as much as Rs one lakh crore worth of fresh paper, in addition to an even greater value of draft red herring prospectus (DRHPs) pending with the market regulator for approvals.
Data from Prime Database shows that nearly 70 companies with a valid Sebi approval are in queue to launch their IPOs in coming months, the total value of which is pegged at a little over Rs 1 lakh crore. The list includes prominent names like NSDL, LG Electronics, JSW Cement, Kalpataru, and Credila Financial Services, among others. The list has nearly two dozen IPOs with an issue size of over Rs 1,000 crore each.
LG Electronics India (Rs 15,000 crore), Credila Financial Services (Rs 5,000 crore), JSW Cement (Rs 4,000 crore), SMPP Ltd (Rs 4,000 crore), Continuum Green Energy (Rs 3,650 crore), Hero Fincorp (Rs 3,668 crore), Anthem Biosciences (Rs 3,395 crore), National Securities Depository Ltd (Rs 3,000 crore), Avanse Financial Services (Rs3,000 crore), Manjushree Technopack (Rs 3,000 crore), Veritas Finance (Rs 2,800 crore), Ecom Express (Rs 2,600 crore), SK Finance (Rs 2,200 crore) and Travel Food Services (Rs 2,000 crore) are some of the mega IPOs expected to hit the markets in the coming months.
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Raghav Gupta, Joint CEO, IIFL Capital said he strongly believes that the IPO activity is going to significantly improve in the coming months. “Nearly 150-200 companies are gearing up to file DRHP in the coming months following the buoyancy in the secondary markets. Also, nearly 70 companies are ready with Sebi approvals and would get launched in the coming months,” Gupta said.
There is also another set of nearly 70 IPOs with a total value of Rs 1.12 lakh crore, awaiting Sebi’s approval for their draft red herring prospectus (DRHPs), to launch their offer. The Sebi approval, once received, would be valid for a year.
Prime Database reveals that companies awaiting Sebi nod include issues of Tata Capital (Rs 20,000 crore), HDB Financial Services (Rs 12,500 crore), Dorf-Ketal Chemicals India (Rs 5,000 crore), Physicswallah (Rs 4,600 crore), Prestige Hospitality Ventures (Rs 2,700 crore), Wework India (Rs 2,500 crore), Imagine Marketing (Rs 2,125 crore), Innovatiview India (Rs 2,000 crore) and Jain Resource Recycling (Rs 2,000 crore), among others.
Market participants say the sudden rush for IPOs is primarily on account of improved sentiment after Indo-Pak border hostilities eased and global tariff war cooled down with trade talks getting underway. However, experts do not rule out headwinds, if any, to still impact the IPO rollout in the months ahead.
“While it is true that some geopolitical and economic concerns may have eased, markets are inherently dynamic, and some potential headwinds may still impact the IPO pipeline. From a global macro perspective, interest rate volatility & slowdown in the developed markets could dent global risk sentiment,” said the IIFL Capital CEO.
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