The IPO market will be bustling this week, with four companies, including Bajaj Housing Finance, set to launch their initial share sale to raise a total of Rs 8,390 crore.
Besides these four main-board IPOs, nine SMEs are preparing to debut with their maiden public issues this week, targeting to collect Rs 254 crore. Together, these 13 firms are looking to raise Rs 8,644 crore through IPO.
The next two weeks are expected to be hectic in terms of issuance activity in IPO markets.
The four main-board IPOs include that of Bajaj Housing Finance, which is expected to mobilise around Rs 6,560 crore, P N Gadgil Jewellers ( Rs 1,100 crore), Kross Ltd ( Rs 500 crore), and Tolins Tyres (Rs 230 crore).
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.
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 P N 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.
The companies are tapping the primary market to raise funds for expansion plans, retire debt, support working capital requirements and provide exit routes to the existing shareholders.
SME IPO Latest
Apart from the main board, SMEs launching their IPOs this week are — Aditya Ultra Steel, Shubhshree Biofuels Energy, Share Samadhan, Gajanand International, SPP Polymers, Trafiksol ITS Technologies, Excellent Wires and Packaging, Innomet Advanced Materials, and Envirotech Systems.
These companies are aspiring to mobilize between Rs 12-45 crore each through public issues.
The IPOs for Aditya Ultra Steel, Shubhshree Biofuels Energy, Share Samadhan, and Gajanand International will begin on September 9; SPP Polymers and Trafiksol ITS Technologies on September 10; Excellent Wires and Packaging and Innomet Advanced Materials on September 11; and Envirotech Systems on September 13.
Recently, IPOs have garnered significant subscription levels. In August, main-board IPOs were subscribed on an average of over 75 times, while the year-to-date average for 2024 is 66 times.
For SME IPOs, the average subscription in August was 290 times, with a year-to-date average of more than 259 times, data showed.
Experts said that the recent surge in SME stocks and strong listing gains in some of the companies are largely driven by three key factors — liquidity, FOMO effect and robust retail participation.
Also, the fear of missing out (FOMO) on quick gains has spurred continued investment in SME IPOs.
A study by Sebi also highlighted flipping behaviour among investors in the initial share-sale market with investors (excluding anchor) selling 54% of IPO shares allotted to them by value within a week.
Recently, the regulator has aired concerns around activity in SME IPOs and experts expect some slowdown in activity in that market.
(With PTI inputs)
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