In the wake of a remarkable 31 initial share sales during the first half of this fiscal year, the Indian IPO market remains resilient. Currently, 28 companies are poised to raise a collective Rs 38,000 crore in the second half, while an additional 41 firms eagerly await SEBI’s green light for IPOs valued at Rs 44,000 crore, as per a recent report.
Key Highlights of Upcoming IPOs in Indian Stock Market
- Indian IPO market thrives with 28 companies targeting Rs 38,000 crore in H2 FY24.
- 41 firms await SEBI approval for IPOs valued at Rs 44,000 crore, indicating a robust pipeline.
- Funds raised through IPOs fell by 26% to Rs 26,300 crore in H1 FY24 despite increased activity.
- OYO and Go Digit Insurance lead the upcoming IPO wave, with OYO aiming for over Rs 8,300 crore.
- Tata Technologies returns to the IPO scene, the first Tata company to go public in 19 years.
- Public equity fundraising surges by 69% to Rs 73,747 crore in H1 FY24.
- Diverse IPO landscape in H1 FY24, with Mankind Pharma’s Rs 4,326 crore offering leading the way.
Mixed Performance in Fundraising Despite Increased Activity
Despite the number of IPOs more than doubling to 31 in the first half of the fiscal year, funds raised through initial public offerings witnessed a 26% drop, totalling Rs 26,300 crore. This decline is in contrast to the Rs 35,456 crore raised from 14 IPOs during the same period in the previous year, according to the Prime database.
Key Players in the Upcoming IPO Wave
Prominent companies such as OYO and Go Digit Insurance are leading the pack in the upcoming IPO wave. OYO reportedly seeks to raise over Rs 8,300 crore, contributing to the robust IPO pipeline. However, the first half of the fiscal year saw only one tech issue by Yatra, which successfully raised Rs 775 crore in late September. Notably, the previous fiscal year saw blockbuster issues like Paytm, Zomato, and Nykaa. Market analysts believe that despite current market volatility, several IPOs are likely to be launched in the next half before a potential pause due to general elections.
OYO Rooms, originally planning to raise Rs 8,430 crore, may adjust its valuation and issue size. It was one of the major players in the first half of FY24’s IPO wave, aiming to mop up over Rs 8,300 crore. This significant fundraising goal is contributing to the robust IPO pipeline.
Tata Technologies Returns to the IPO Scene
Tata Technologies is making its comeback to the IPO scene, becoming the first Tata company to go public in 19 years since TCS in 2004. The operating subsidiary of Tata Motors, Tata Technologies, specialises in high-end technology solutions and is expected to offer over 811 lakh shares in the IPO as part of the offer for sale.
Strong Financial Performance in H1 FY24
Tata Technologies is a major player in the automotive ER&D services sector, boasting an impressive client roster of 35 original equipment manufacturers and 12 new energy players. OYO, originally planning to raise Rs 8,430 crore, may adjust its valuation and issue size. Overall, public equity fundraising witnessed a substantial 69% increase, totalling Rs 73,747 crore in H1 FY24, compared to Rs 43,694 crore in the first half of FY23.
Diverse IPO Landscape
The first half of FY24 featured a diverse landscape of IPOs, with Mankind Pharma’s Rs 4,326 crore offering leading the way. This was followed by JSW Infrastructure (Rs 2,800 crore) and RR Kabel (Rs 1,964 crore). In contrast, Plaza Wires had the smallest IPO, raising just Rs 67 crore, with an average issue size of Rs 848 crore. The majority of these 31 issues were launched in August and September, showcasing a dynamic IPO market.
What Opportunities do these bring To the Indian Market?
For Indian market investors, this surge in IPO activity presents both opportunities and challenges. On the positive side, a thriving IPO market indicates a growing appetite for investment in Indian businesses, potentially leading to significant returns for early investors. However, the decline in funds raised during H1 FY24, despite increased IPO activity, suggests that investors should exercise caution and conduct thorough due diligence before participating in these offerings.
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.