Investors can expect a rush of initial public offerings (IPO) during the third quarter of the year as over 30 companies are looking to go public between October and December.
At least 35 companies are planning to launch IPOs during the period with an aim to raise approximately Rs 80,000 crore if the stock market remains strong, reported The Economic Times after speaking to bankers familiar with details.
There are several companies that are planning to go public during the third quarter of the year including Paytm, Nykaa, Policybazaar, Go Airlines and Adani Wilmar.
All the companies mentioned above along with Star Health and Allied Insurance and Emcure Pharma are each looking to raise between R 4,000 crore and Rs 16,600 crore from their IPOs.
The ET report added that companies like Paradeep Phosphates, Vedant Fashions, CMS Infosystems and Northern Arc are each planning to raise roughly Rs 2,000 crore-Rs 2,500 crores.
At least 14 companies including Paradeep Phosphates, Go Airlines, Ruchi Soya Industries, Arohan Financial Services, Utkarsh Small Finance and Fincare Small Finance, already have Sebi’s approval to raise around Rs 22,000 crore. An additional 64 companies have submitted their IPO applications with Sebi.
It may be noted that Policybazaar and Nykaa are expected to launch their public offerings in October to raise Rs 6,000 crore and Rs 4,000 crore, respectively. Chennai-based Star Health and Allied Insurance also plans to launch its Rs 7,000 crore IPO later this month.
Other companies like MobiKwik, Paradeep Phosphates, CMS Infosystems, Northern Arc, Sapphire Foods and Tarsons Products may also launch their public offerings this month.
Meanwhile, digital payment firm Paytm expects to launch its go public in November. This is likely to be the biggest ever IPO in India’s history. The new-age digital startup has filed for a Rs 16,600 crore IPO and the regulatory approval is pending.
WILL IPO FRENZY CONTINUE?
A majority of company IPOs have performed well this year due to the strong stock market momentum, higher liquidity and greater demand among investors.
Experts believe that IPOs will continue to witness strong demand if liquidity and other supporting market conditions do not change drastically. While each public issue may not get a good response, most of them are expected to do well.
According to data from primary markets tracker Prime Database, 42 companies have gone public and hit the primary market this year, raising nearly Rs 70,000 crore.
Most of the earlier IPOs are trading above their issue price and only a few have faltered. Some IPOs like Paras Defence, Ami Organics, GR Infraprojects, Clean Science and Tatva Chintan Pharma have doubled.