Companies Rush to Primary Market to Raise ₹60,000 Crore in October-November
Companies Rush to Primary Market to Raise ₹60,000 Crore in October-November
As the stock market reaches unprecedented heights, a wave of companies is gearing up to tap into the primary market, aiming to raise a substantial ₹60,000 crore through initial public offerings (IPOs) during the months of october and November. Major players like NTPC Green Energy, hyundai Motor india, and swiggy are leading this charge.
Key IPOs on the Horizon
Hyundai Motor India:
Expected to raise ₹25,000 crore, potentially becoming the largest IPO in indian history, surpassing the ₹21,000 crore raised by LIC.
The offering will be entirely an offer-for-sale (OFS), comprising over 14.2 million shares, with no fresh issue component.
Swiggy:
The food and grocery delivery giant aims to secure ₹10,414 crore through a combination of a fresh issue of ₹3,750 crore and an OFS of ₹6,664 crore.
NTPC Green Energy:
Planning a ₹10,000 crore IPO in the first week of November, focusing on renewable energy initiatives.
Other Notable IPOs:
Afcons Infrastructure: ₹7,000 crore
Waaree Energies: ₹3,000 crore
Niva Bupa health Insurance: ₹3,000 crore
One Mobikwik Systems: ₹700 crore
Current Market Trends
According to Munish Aggarwal, managing director and head of Equity capital Markets at Equirus, over 30 IPOs are anticipated between late september and December. This surge is driven by a combination of strong macroeconomic conditions, increased mutual fund inflows, and robust capital formation among indian corporations.
Companies are utilizing these IPOs for various purposes, including:
Expanding operations
Reducing debt
Supporting working capital needs
Providing exit routes for existing shareholders
Performance of Recent IPOs
This year, 62 companies, including Bajaj Housing Finance, ola Electric Mobility, and Brainbees Solutions (parent of FirstCry), have collectively raised around ₹64,000 crore through the mainboard market. This figure marks a 29% increase from ₹49,436 crore collected by 57 firms in 2023.
Outlook for 2025
Looking ahead, the IPO market in 2025 appears optimistic. The Securities and Exchange Board of india (Sebi) has already approved 22 IPOs, with companies planning to raise approximately ₹25,000 crore. Additionally, more than 50 firms have submitted draft papers for approval, aiming for a total raise exceeding ₹1 lakh crore.
Market experts note that the current sentiment is bolstered by strong economic fundamentals, favorable market conditions, and growth across sectors. While the IPO frenzy is expected to continue, potential risks such as market corrections and regulatory changes could temper enthusiasm in the near future.
As the stock market reaches unprecedented heights, a wave of companies is gearing up to tap into the primary market, aiming to raise a substantial ₹60,000 crore through initial public offerings (IPOs) during the months of october and November. Major players like NTPC Green Energy, hyundai Motor india, and swiggy are leading this charge.
Key IPOs on the Horizon
Hyundai Motor India:
Expected to raise ₹25,000 crore, potentially becoming the largest IPO in indian history, surpassing the ₹21,000 crore raised by LIC.
The offering will be entirely an offer-for-sale (OFS), comprising over 14.2 million shares, with no fresh issue component.
Swiggy:
The food and grocery delivery giant aims to secure ₹10,414 crore through a combination of a fresh issue of ₹3,750 crore and an OFS of ₹6,664 crore.
NTPC Green Energy:
Planning a ₹10,000 crore IPO in the first week of November, focusing on renewable energy initiatives.
Other Notable IPOs:
Afcons Infrastructure: ₹7,000 crore
Waaree Energies: ₹3,000 crore
Niva Bupa health Insurance: ₹3,000 crore
One Mobikwik Systems: ₹700 crore
Current Market Trends
According to Munish Aggarwal, managing director and head of Equity capital Markets at Equirus, over 30 IPOs are anticipated between late september and December. This surge is driven by a combination of strong macroeconomic conditions, increased mutual fund inflows, and robust capital formation among indian corporations.
Companies are utilizing these IPOs for various purposes, including:
Expanding operations
Reducing debt
Supporting working capital needs
Providing exit routes for existing shareholders
Performance of Recent IPOs
This year, 62 companies, including Bajaj Housing Finance, ola Electric Mobility, and Brainbees Solutions (parent of FirstCry), have collectively raised around ₹64,000 crore through the mainboard market. This figure marks a 29% increase from ₹49,436 crore collected by 57 firms in 2023.
Outlook for 2025
Looking ahead, the IPO market in 2025 appears optimistic. The Securities and Exchange Board of india (Sebi) has already approved 22 IPOs, with companies planning to raise approximately ₹25,000 crore. Additionally, more than 50 firms have submitted draft papers for approval, aiming for a total raise exceeding ₹1 lakh crore.
Market experts note that the current sentiment is bolstered by strong economic fundamentals, favorable market conditions, and growth across sectors. While the IPO frenzy is expected to continue, potential risks such as market corrections and regulatory changes could temper enthusiasm in the near future.