8 IPOs worth Rs9k cr to hit St in Sept

Around 7-8 IPOs are likely to hit the Indian market worth Rs 9,000 crore in the month of September alone, experts say. "As more as eight companies looking to raise a cumulative Rs 9,000 crore could launch their initial public offerings (IPOs) next month after a busy August that saw eight IPOs," says Himanshu from Sunidhi Brokers.

Time taken for IPO approvals at 18-year low, says a report by primedatanase.com. The average number of days taken for IPO approvals in 2021 is at an 18-year low at just 67 days. That compares with an average of 214 days taken for the IPO approvals in 2008, or 198 days in 2013, or about 100 days in 2018, showed data compiled from primedatabase.com. The IPO proposal of Mumbai-based realty major Macrotech Developers and Seven Islands Shipping got approvals in just 35 days early this year while the issues of Ami Organics, Vijaya Diagnostics, and Glenmark Life Sciences received regulatory nods in 44-48 days. To elaborate it, Vijaya Diagnostics, Penna Cement, Bajrang Power and Ispat are the companies likely to come out with their IPOs in September. Arohan microfinance has already received DRHP from SEBI. Manoj Kumar Nambiar, MD, Arohan, told Bizz Buzz that his company has already received DRHP from SEBI, but he was yet to decide about the date for IPO. Fusion is another MFI which has applied for DRHP, though

it was yet to get the clearance from capital markets regulator, sources said.

On Thursday, south-based diagnostic chain Vijaya Diagnostics announced its plans for a Rs 1,895-crore IPO. Ami Organics will announce its plans for a Rs 600-crore issue on Friday.

Penna Cement, Shri Bajrang Power and Ispat are the other companies likely to come out with their IPOs in September. Paras Defence and Space Technologies could also hit the Street next month, but it is not clear how much the company is planning to raise. After two months of robust activity, marked by heavy subscriptions and listing gains, the enthusiasm in the IPO market seems to be on the wane. Five out of the eight companies that made their debut on the bourses in August were listed at a discount. In fact, KFC and Pizza hut franchisee Devyani International which rose 56 per cent on its debut, was the only stock to list with good listing gains in the month. The tepid listings had an effect on subscriptions, with Nirma group owned Nuvoco Vistas' high networth individual (HNI) and retail portions not getting fully subscribed.

Some analysts have blamed the bunching together of so many issues for the tepid listings, while some have pointed to the selling pressure in the broader markets even as the benchmark indices have hit new highs this month.

However, bankers defended their decision to go ahead with issues by insisting that it was a sign of a robust primary market and a bit of irrational expectation on the part of investors regarding listing gains. Some analysts said the demand would return if there are quality issuances with attractive pricing.