Amidst the ongoing decline in the stock market, a spectacular recovery was seen on Friday. Both Sensex and Nifty registered a huge jump of 2 percent. Now some experts are assuming that the Indian market may again see a rise. Merchant bankers say that 10 companies, including supermart Vishal Mega Mart and Blackstone-owned diamond grading company International Gemological Institute (India) Limited, are preparing to launch a public issue next month i.e. in December.
These companies will show their talent on Dalal Street
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, he said.
The target is Rs 20,000 crore
These companies aim to raise a total of Rs 20,000 crore through their public issue. 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 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 somewhat recently.
He said that currently 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.
Vishal Mega Mart is also bringing IPO
According to the updated IPO documents, Vishal Mega Mart is planning to raise Rs 8,000 crore from the public issue. This will be entirely in the form of an offer for sale (OFS) from the promoter Samayat Services LLP. The Gemological Institute is hoping to raise Rs 4,000 crore through IPO. The initial share sale comprises a fresh issue of equity shares worth Rs 1,250 crore and an offer for sale worth Rs 2,750 crore by Blackstone’s subsidiary BCP Asia Two Topco Pte Ltd, IPO documents show.
Avanse Financial Services aims to raise Rs 3,500 crore from the IPO. In this, up to Rs 1,000 crore will be raised by issuing new shares. Also, it includes OFS of up to Rs 2,500 crore. In addition, diagnostic chain Security Diagnostics, packaging equipment maker Mamta Machinery and Transrail Lighting will bring their respective IPOs next month.
Till now these companies have shown their strength in the market
This year, 75 companies, including Hyundai Motor India, Swiggy, NTPC Green Energy, Bajaj Housing Finance, Ola Electric Mobility and FirstCry’s parent company Brainbees Solutions, have already collectively raised about Rs 1.3 lakh crore through main platform IPOs. This is much more than the amount of Rs 49,436 crore raised by 57 companies through this route in the entire 2023.
30 more companies may be listed this year
Looking ahead, more than 30 IPOs are expected in the coming months. IPO investors have made significant profits in the last five financial years. Trivesh said that 236 IPOs were launched between the financial years 2020-21 and 2024-25. There has been an average profit of 27 percent on the day of listing.
