13 IPOs hitting primary mkt this week

While this seems to indicate that the markets are overheating, we believe that this is more symptomatic of the attempt by most issuers who have valid Sebi observations and decent traction with investors to try and utilize their financials for Fiscal 2024 to launch IPOs - Munish Aggarwal, MD, Equirus

New Delhi: The IPO market will be bustling next week, with four companies, including Bajaj Housing Finance, set to launch their initial share-sale to raise a total of Rs8,390 crore.

Besides these four main-board IPOs, nine SMEs are preparing to debut with their maiden public issues next week, targeting to collect Rs254 crore. Together, these 13 firms are looking to raise Rs8,644 crore through IPO. Munish Aggarwal, Managing Director,head (equity capital markets), Equirus, expects the next two weeks to be hectic in terms of issuance activity in IPO markets.

“While this seems to indicate that the markets are overheating, we believe that this is more symptomatic of the attempt by most issuers who have valid Sebi observations and decent traction with investors to try and utilize their financials for Fiscal 2024 to launch IPOs,” he said. According to Sebi, financial data in the Red Herring Prospectus (RHP) must be less than six months old at the time of the IPO.

Therefore, September is the last month when companies can use their FY24 financials to launch IPOs, he added. The four main-board IPOs include that of Bajaj Housing Finance, which is expected to mobilise around Rs6,560 crore, PN Gadgil Jewellers ( Rs1,100 crore), Kross Ltd ( Rs500 crore), and Tolins Tyres (Rs230 crore).

Of these, the initial share-sales of Bajaj Housing Finance, Kross Ltd, and Tolins Tyres will open for subscription on September 9 and conclude on September 11, while that of PN Gadgil Jewellers will open on September 10 and close on September 12.

Additionally, Arkade Developers is expected to float IPO on September 16 and Western Carriers India may also soon come out with its public issue. So far this year, more than 50 main-board IPOs have been launched, along with one Follow-on Public Offering (FPO) by Vodafone Idea. The public issue of Shree Tirupati Balajee Agro Trading Company is underway and IPOs of Baazar Style Retail and Gala Precision Engineering closed earlier this month. Before that, IPOs of 10 firms, including Ola Electric Mobility and Brainbees Solutions Ltd, the parent firm of online e-commerce platform FirstCry, were concluded in August.

“We believe that the amount raised through main-board IPOs which was Rs80,000 crore till end of August, will expand to over Rs1.25 lakh crore by the end of this calendar year,” Equirus’ Aggarwal said.

Sunil Damania, Chief Investment Officer, MojoPMS, said: “As long as the secondary market remains strong, we can expect continued growth in the primary market for IPOs.