Suspense Crime Sach Ka Dam
There is still excitement in the primary market and at least 10 companies are preparing to raise Rs 20,000 crore through initial public offering (IPO) next month. Merchant bankers say that 10 companies, including supermarket Vishal Mega Mart and Blackstone-owned diamond grading company International Gemological Institute (India) Limited, are preparing to bring public issues next month i.e. in December. He said that these also include education-focused non-banking financial company (NBFC) Avanse Financial Services, TPG Capital-backed Sai Life Sciences, hospital chain operator Paras Healthcare, and investment bank DAM Capital Advisors.
20,000 crore rupees will be raised
The target of these companies is to raise a total of Rs 20,000 crore through their IPOs. These IPOs will be of different sectors and sizes. These include both issue of new shares and offer for sale (OFS). Trivesh D, Chief Operating Officer (COO) of online brokerage house Tradejini, said that the results of the Maharashtra elections have created a positive sentiment in the market. This will accelerate IPO activities. He said that 2024 has been a strong year for IPOs. However, the stock market has struggled a bit recently.
Vishal Mega Mart IPO
He said, “At present, election-related funds are coming back into the market and the gray market is becoming active again. Companies are tapping the primary market to provide an exit route to existing shareholders, raise funds for expansion plans, repay debt, and support working capital requirements. According to updated IPO documents, Vishal Mega Mart plans to raise Rs 8,000 crore from the public issue. This will be entirely in the form of an offer for sale (OFS) from promoter Samayat Services LLP. Gemological Institute is hoping to raise Rs 4,000 crore through IPO. IPO documents show that this initial share sale includes a fresh issue of equity shares worth Rs 1,250 crore and a sale offer of Rs 2,750 crore by Blackstone subsidiary BCP Asia Two Topco Pte Ltd.
Avanse Financial will raise Rs 3500 crore.
Avanse Financial Services aims to raise Rs 3,500 crore from the IPO. This includes an OFS of up to Rs 1,000 crore by issuing new shares. Apart from this, diagnostic chain Suraksha Diagnostics, packaging equipment manufacturer Mamta Machinery, and Transrail Lighting will bring their IPOs next month. This year, 75 companies including Hyundai Motor India, Swiggy, NTPC Green Energy, Bajaj Housing Finance, Ola Electric Mobility, and FirstCry parent company Brainbees Solutions have already collectively raised about Rs 1.3 lakh crore through main-stage IPOs. This is much more than the amount of Rs 49,436 crore raised by 57 companies through this route in the whole of 2023.
More than 30 IPOs will come.
Looking ahead, more than 30 IPOs are expected to come in the coming months. IPO investors have made significant profits in the last five financial years. Trivesh said that 236 IPOs were launched between FY 2020-21 and 2024-25. These have made an average profit of 27 percent on the day of listing.
