With December upon us, the Indian stock market is gearing up for a month full of potential. Despite the current market volatility, we are set to see significant activity in the primary markets, with over 10 companies ready to launch their Initial Public Offerings (IPOs).
In addition, seven other companies are preparing to list their shares on stock exchanges. This diverse influx of sectors—retail, finance, healthcare, and technology—opens valuable opportunities for investors to diversify their portfolios and capitalize on potential growth in this dynamic environment.
Why does December stand out for IPOs?
Historically, year-end typically brings increased market activity. Investors seek to capitalize on new opportunities, while companies strive to conclude the year with a financial boost. December is often recognized for its market stability, making it an appealing time for initial public offerings (IPOs). Many investors use December to diversify their portfolios and strategize for the upcoming year.
Overview of the Upcoming IPOs in December
This December, several companies across various sectors are entering the public market. These IPOs, which include a mix of established firms and ambitious startups, promise to add diversity to the investment landscape.
Let’s delve deeper into the upcoming IPOs in December 2024 and understand them better.
| Name of the IPO | Date | Offer Size (cr) |
| Vishal Mega Mart | Not announced | 8000 |
| International Gemmological Institute (IGI) IPO | Not Announced | 4000 (fresh issue 1250cr & OFS 2500cr) |
| Avanse Financial IPO | Not Announced | 3500cr (fresh issue 1000 cr & OFS 2500 cr) |
| Property Share Investment Trust REIT | Dec 2nd – 4th | Fresh issue 352.9 |
| Nisus Finance Services Co. IPO | Dec 4th – 6th | 114.24 |
| Emerald Tyre Manufacturers IPO | Dec 5th – 9th | 49.26 |
Key Companies Launching IPOs in December 2024
1. Vishal Mega Mart IPO
Supermarket giant Vishal Mega Mart is preparing to make a significant splash in the primary market with its Rs 8,000 crore IPO. Scheduled for mid-December, this offering is entirely an Offer for Sale (OFS), with promoter Samayat Services LLP looking to offload its stake. The proceeds from the IPO will not benefit the company directly but will allow the promoter to capitalize on Vishal Mega Mart’s growth and market position.
This IPO is expected to attract considerable interest, given the company’s established presence in the retail sector. With a widespread network of stores nationwide and a strong focus on value-for-money products, Vishal Mega Mart appeals to the price-sensitive Indian consumer.
- Offer Size: Rs 8,000 crore
- Purpose: Stake offloading by the promoter
2. International Gemological Institute (IGI) IPO
The International Gemological Institute, a global diamond certification and grading leader, is another highly anticipated IPO. Owned by US private equity giant Blackstone, IGI plans to raise Rs 4,000 crore through its public offering. The IPO comprises a fresh issue of Rs 1,250 crore and an OFS component of Rs 2,750 crore.
The funds raised will acquire IGI Belgium and IGI Netherlands, reinforcing IGI’s global footprint in the gemological space. Additionally, part of the proceeds will go toward general corporate purposes. IGI’s IPO is expected to appeal to investors seeking exposure to the growing luxury goods and certification services market.
- Offer Size: Rs 4,000 crore
- Purpose: Acquisitions and corporate funding
3. Avanse Financial Services IPO
Avanse Financial Services, a Non-Banking Financial Company (NBFC) specializing in education loans, plans to raise Rs 3,500 crore. The IPO will consist of a fresh issue of Rs 1,000 crore and an OFS of Rs 2,500 crore. The fresh issue proceeds will bolster the company’s capital base, enabling it to meet the increasing demand for education financing.
Avanse has carved out a niche by offering tailored financial solutions for students, covering everything from tuition fees to living expenses. The company’s growth trajectory, underpinned by India’s expanding education sector, makes this IPO attractive for investors seeking long-term growth.
- Offer Size: Rs 3,500 crore
- Purpose: Capital base augmentation
Other Notable IPOs in December 2024
4. Property Share Investment Trust REIT
Property Share Investment Trust is set to raise Rs 352.91 crore through a fresh issue. The REIT offers investors a unique opportunity to gain exposure to high-quality commercial real estate without the need to buy the property outright.
This IPO, with a price band of Rs 10,00,000 to Rs 10,50,000 per share, targets high-net-worth individuals and institutional investors. The funds will acquire and manage income-generating properties, giving investors regular dividends and capital appreciation.
- Open Date: Dec. 2
- Close Date: Dec. 4
- Listing Date: Dec. 9
5. Nisus Finance Services Co. IPO
Nisus Finance Services Co. will launch its Rs 114.24 crore IPO, offering shares at a price band of Rs 170-180 per share. The company provides innovative financial solutions, including real estate funding and structured credit.
By participating in this IPO, investors can tap into the growing demand for alternative financing in India, particularly in the real estate sector, which is undergoing significant growth.
- Open Date: Dec. 4
- Close Date: Dec. 6
- Listing Date: Dec. 11
6. Emerald Tyre Manufacturers IPO
Emerald Tyre Manufacturers is set to raise Rs 49.26 crore through its IPO. The company targets small and mid-sized investors with a price band of Rs 90-95 per share. Emerald Tyre specializes in producing durable and cost-effective tires for domestic and international markets.
Given the increasing demand for automotive components, particularly in emerging markets, this IPO presents a promising opportunity for investors looking to benefit from the growth of the automobile industry.
- Open Date: Dec. 5
- Close Date: Dec. 9
- Listing Date: Dec. 12
December 2024 IPO Listings
Several companies that launched their IPOs in November are slated to list in December, offering investors a chance to trade these newly issued stocks:
- Ganesh Infraworld (Dec. 6)
- Suraksha Diagnostic (Dec. 6)
- Agarwal Toughened Glass India (Dec. 9)
- Apex Ecotech (Dec. 10)
- Abha Power and Steel (Dec. 12)
- Rajputana Biodiesel (Dec. 15)
- Rajesh Power Services (Dec. 16)
These listings are expected to bring liquidity and further excitement to the market, offering opportunities for both short-term gains and long-term investments.
Why December IPOs Are Exciting for Investors
December’s lineup of IPOs offers diverse opportunities across sectors such as retail, finance, real estate, and manufacturing. Each company has a unique value proposition, allowing investors to tailor their portfolios to their risk appetite and investment goals.
Moreover, year-end IPOs often benefit from heightened investor participation, as many look to close their annual financial planning on a high note. Companies like Vishal Mega Mart and IGI, with their strong brand presence and growth strategies, stand out as potential winners.
Tips for Investing in December IPOs
- Research Thoroughly: Delve into the company’s financials, industry position, and growth prospects.
- Understand the Risks: IPO investments come with risks; carefully evaluate market conditions and company valuations.
- Diversify Your Portfolio: Don’t put all your eggs in one basket. Spread your investments across different sectors.
- Monitor Allotments and Listing Gains: Know the allotment process and potential listing day gains.
How to Apply for an IPO in India
Ready to invest? Follow these steps:
- Open a Demat Account
- Select the IPO
- Apply via ASBA or UPI
- Wait for Allotment
Conclusion
December 2024 is shaping up to be a thrilling month for IPO enthusiasts. With a robust lineup spanning various industries, there’s something for every investor. Whether you seek growth stories like Vishal Mega Mart or steady income through REITs, the upcoming IPOs offer many opportunities.
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FAQ
What is the significance of an Offer for Sale (OFS) in an IPO?
An OFS allows existing shareholders, often promoters, to sell their stakes. It provides liquidity to shareholders without diluting the company’s equity.
Are December IPOs a safe bet for investors?
While IPOs can offer high returns, they also come with risks. Investors should carefully assess the company’s fundamentals and market conditions before investing.
How can retail investors apply for an IPO?
Retail investors can apply through their bank’s ASBA service or via UPI-enabled applications provided by brokers.
What factors should I consider before investing in an IPO?
Key factors include the company’s financial health, business model, market potential, and the broader economic environment.
Can IPO investments help diversify my portfolio?
Investing in IPOs can introduce new sectors and industries to your portfolio, enhancing diversification and potentially reducing risk.
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.
