December expected to be yet another busy month for IPOs

November has smashed the record for highest-ever mobilisation through initial public offerings (IPOs), and December is likely to be equally busy, according to investment banking sources.

As many as 16 issues cumulatively worth over Rs 22,000 crore are expected to hit the market during the month. Of these, four have already set the ball rolling, while others are likely to make formal announcements in the coming days.

Warburg Pincus-backed pharmacy chain MedPlus Health Services and Healthium Medtech, a maker of surgical instruments controlled by buyout firm Apax Partners, are among listing hopefuls aiming to sell shares next month, according to people with knowledge of the matter. 

MapmyIndia, AGS Transact, and Data Patterns are also looking to launch their IPOs soon, said people in the know.

Developer Shriram Properties is considering launching its offering before the end of the year, the people said. 

Wedding apparel maker Vedant Fashions could also kick off its share sale in December, according to one of the people. If they’re all successful, it could become the busiest December for IPOs on record, surpassing the record of $972 million (around Rs 7,300 crore) raised in the same month of 2012, data compiled by Bloomberg show.

The next few weeks will show whether IPO investors will be more receptive to listings outside the technology industry, whose eye-popping valuations led to a tumultuous debut for fintech giant Paytm. So far, those lining up for December listings are sticking with their fundraising targets, the people said.

MedPlus was approved for an IPO of as much as $219 million (about Rs 1,645 crore) in mid-November, while Shriram Properties applied in April for permission to sell up to $107 million (around Rs 803 crore) worth of shares. Healthium has been approved and may seek about $350 million (about Rs 2,630 crore), one of the people said.

Vedant, known for its clothing brand Manyavar, could raise about $300 million (Rs 2,252 crore) from a listing, the person said. The company is awaiting a nod from the market regulator the Securities and Exchange Board of India (Sebi) to proceed with its first-time share sale.

An external representative for Healthium, MedPlus, and Shriram Properties said they had received approval from the regulator and are planning to launch their IPOs soon. A representative for Vedant didn’t respond to requests for comment.

Things are looking less rosy for the country’s digital start-ups, which were spooked by Paytm’s 37 per cent plunge on its stock market debut. Rival payment provider MobiKwik plans to defer its listing to next year, people with knowledge of the matter said. Candidates such as logistics company Delhivery and the operators of Oyo Hotels and online pharmacy PharmEasy have filed draft prospectuses and are awaiting Sebi’s approval.

A spokesperson for MobiKwik said the company has a clear path to profitability and will list at the right time. 

Indian firms have already surpassed the record for IPO volumes this year, with $15.5 billion raised so far.

Analysts have expressed concern, however, that the reaction to Paytm’s offering could affect the valuations that Indian stocks may achieve.

Indian firms have already surpassed the record for IPO volumes this year, with $15.5 billion (around Rs 1.16 trillion) raised so far. Analysts have expressed concern, however, that the reaction to Paytm’s offering could affect the valuations that Indian stocks may achieve.