Rs 38k-cr worth 28 IPOs will hit D St in H2

The proposed Tata Technologies issue will be the first IPO from the Tata stable after 19 years -- the last Bombay House company to go public was TCS in 2004. Tata Motors is expected to hive off over 811 lakh shares in the IPO as part of the offer for sale

Bleak Report

♦ Fund raising via IPOs fell 26% to Rs26,300 cr in H1

♦ However, number of issues more than doubled to 31

♦ Total mop-up was Rs 35,456 cr in H1/FY23

♦ Only one tech issue i.e. Yatra, which raised Rs775 cr, in H1

Mumbai: After a record 31 initial share sales in the first half of this fiscal, the IPO pipeline looks strong with 28 firms eyeing to raise Rs38,000 crore in the second half and another 41 awaiting Sebi’s nod to launch initial public offerings (IPOs) worth Rs44,000 crore, a report said.

Fund raising through IPOs fell 26 per cent to Rs26,300 crore in the first half of the current fiscal, despite the number of issues more than doubling to 31, from 14 issues with the total mop-up of Rs 35,456 crore in the year-ago period, according to Primedatabase.

According to Pranav Haldea, managing director of Prime Database, which is a leading database on the primary capital markets, of these 69 companies, three new-age technology firms are collectively planning to mop up Rs12,000 crore. According to marketmen, the pack is led by OYO, which is said to be looking to mop up over Rs8,300 crore and Go Digit Insurance.

As against this, the first half saw only one tech issue by Yatra which had raised Rs775 crore in late September. The bumper issues in the previous fiscal were Paytm, Zomato and Nykaa. According to Haldea, notwithstanding the present volatility in the secondary market, the next half is likely to see several IPOs being launched before a pause on account of the general elections.

According to the leading brokerage Angel One, the major upcoming IPOs include OYO, Tata Technologies, JNK India, Dom Industries, Apeejay Surrendra Park Hotels, Epack Durables, BLS E-Services, India Shelter Finance Corporation, Cello World, RK Swamy, Flair Writing Industries, Go Digit Insurance, and Credo Brands Marketing, among others. The proposed Tata Technologies issue will be the first IPO from the Tata stable after 19 years -- the last Bombay House company to go public was TCS in 2004.

Tata Technologies is an operating subsidiary of Tata Motors and offers high end technology solutions. Tata Motors is expected to hive off over 811 lakh shares in the IPO as part of the offer for sale. The IPO will be a 100 per cent offer for sale. Tata Technologies is a leading player in the automotive ER&D services. Its client roster includes 35 original equipment manufacturers and 12 new energy players. Oravel Stays or OYO Rooms originally planned to mop up Rs 8,430 crore comprising Rs7,000 crore of fresh issue and Rs1,430 crore of offer for sale. However, it is expected to tone down the valuation and also the size of the issue.

According to Haldea, overall public equity fundraising increased 69 per cent to Rs73,747 crore in H1 of FY24 from Rs43,694 crore in the first half of FY23. The largest issue in the first half was the Rs4,326 crore Mankind Pharma OPO, followed by JSW Infrastructure (Rs2,800 cr) and RR Kabel (Rs1,964 cr). On the other hand, the smallest IPO was from Plaza Wires, which raised just Rs67 crore and the average size was Rs848 crore. As many as 21 out of these 31 issues came in August and September.