Don’t we all get excited when we see a “Coming Soon” signboard? Be it a favorite movie, a much anticipated OTT series, or a favorite store, that’s exactly the vibe in India’s primary market right now.
Over the next two months, the IPO seasons will have over 24 companies lining up to launch their IPOs, aiming to raise a whopping ₹30,000 crore collectively! This buzz can potentially make it the biggest IPO season India has ever seen.
What’s Driving This Surge in IPO Activity?
This surge in IPO activity can be attributed to a few key factors. First, the recent return of the Modi government for a third term has instilled investor confidence in the stability of the Indian economy. The expectation of consistent policies, particularly those focused on infrastructure spending and domestic manufacturing, is seen as a positive sign for business growth.
Second, despite recent highs in the broader market indices, investor appetite for new offerings remains strong. This suggests a continued belief in the potential of Indian companies and a willingness to participate in their growth stories.
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A Diverse Mix of Companies Seek Funding This IPO Season
The companies planning IPOs come from various sectors, offering something for almost every investor. Here are a few names to keep an eye on:
- Infrastructure: Afcons Infrastructure, a leading player in the engineering and construction space, is looking to raise ₹7,000 crore.
- Pharmaceuticals: Generic drug maker Emcure Pharmaceuticals is aiming for a ₹2,200-₹2,300 crore IPO.
- Consumer Goods: Allied Blenders and Distillers, one of India’s largest IMFL producers, is eyeing ₹1,500 crore in funding.
- Consumer Durables: Stanley Lifestyles, a major player in home appliances, is also expected to join the IPO rush.
- Finance: Online microfinance provider Asirvad Microfinance is also expected to join the IPO party.
- Renewables: The clean energy sector is well-represented, with companies like Waaree Energies (photovoltaic panels) and Premier Energies (solar cells and modules) planning IPOs.
- Technology: One MobiKwik Systems, a popular mobile wallet platform, is another potential IPO entrant.
This isn’t an exhaustive list, but it gives you a taste of companies seeking investor capital. With 18 companies already receiving approval from the Securities and Exchange Board of India (Sebi) to raise over ₹20,000 crores and another 37 awaiting approval for their combined offering exceeding ₹50,000 crores, the pipeline is brimming with potential.
Record-Breaking IPO Season on the Horizon?
The success of Ixigo’s recent IPO, fully subscribed within hours thanks to strong retail investor demand, is a positive sign for the upcoming season. Fueled by the Modi government’s focus on infrastructure spending and domestic manufacturing, the market anticipates policy continuity that can foster robust economic growth. This optimism encourages many companies to capitalize on the current market sentiment and raise funds for expansion.
What Should Investors Consider?
Will it surpass the ₹49,500 crore raised in 2023? Only time will tell. While the sheer volume of IPOs is exciting, it’s important to remember that not every offering will be a guaranteed success. Investors must thoroughly research each company’s financials, prospects, and competitive landscape before making investment decisions. Don’t get swept away by the hype—due diligence is critical.
Conclusion
This upcoming IPO season promises to be busy and potentially record-breaking for the Indian primary market. Look for these companies and do your research to see if any align with your investment goals. Remember, informed decisions are the best way to navigate this exciting yet complex market landscape.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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IPO | Current IPO | Upcoming IPO | Listed IPO
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
