 "IPO, Investment, Markets")
At least 28 companies are looking to raise Rs 38,000 crore in the second half of fiscal 2023, while another 41 are awating market regulator Sebi's nod to launch intial public offerings worth Rs 44,000 crore, according to data analysed by Primedatabase.
Major upcoming IPOs include OYO, Tata Technologies, JNK India, Dom Industries, Apeejay Surrendra Park Hotels, Epack Durables, BLS E-Services, India Shelter Finance Corporation, Cello World, RK Swamy, Flair Writing Industries, Go Digit Insurance, and Credo Brands Marketing, among others.
The proposed Tata Technologies issue will be the first IPO from the Tata stable after 19 years — the last Bombay House company to go public was TCS in 2004. Tata Technologies is an operating subsidiary of Tata Motors and offers high end technology solutions. Tata Motors is expected to hive off over 811 lakh shares in the IPO as part of the offer for sale.
"Notwithstanding the present volatility in the secondary market, the next 4-5 months are likely to see several IPOs being launched before a pause on account of the general elections," said Pranav Haldea of Prime database.
The largest IPO in the first half of 2023-24 was from Mankind Pharma (Rs 4,326 crore). This was followed by JSW Infrastructure (Rs 2,800 crore) and RR Kabel (Rs 1,964 crore). At the other end, the smallest IPO was from Plaza Wires raising just Rs 67 crore.
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The average deal size was Rs 848 crore.
The first half of 2023 have seen 31 corporates raise Rs 26,300 crore through main board IPOs. As many as 21 out of the 31 IPOs came in just 2 months of August and September.
Just 1 out of the 31 IPOs (Yatra) was from a new age technology company (NATC) pointing towards a continuing slowdown in IPOs from this sector.
While companies from multiple sectors tapped the IPO market in the last six months, one key sector which was missing was BFSI with just Rs 1,525 crore (or 6 per cent) being raised by companies from this sector (in comparison to 61 per cent in the same period last year).
Anchor investors collectively subscribed to 36 per cent of the total public issue amount in the first half of fiscal 2023.
Domestic Mutual Funds played a slightly more dominant role than FPIs as anchor investors with their subscription amounting to 15 per cent of the issue amount with FPIs at 14 percent.
Domestic Mutual Funds played a slightly more dominant role than FPIs as anchor investors with their subscription amounting to 15 per cent of the issue amount with FPIs at 14 percent.
In comparison to the first half of 2022-23, the response of retail investors increased tremendously. The average number of applications from retail increased to 10.02 lakh, in comparison to 7.57 lakh in 2022-23
. The highest number of applications from retail were received by Ideaforge (22.29 lakhs) followed by Aeroflex (21.62 lakhs) and SBFC Finance (20.19 lakhs).
. The highest number of applications from retail were received by Ideaforge (22.29 lakhs) followed by Aeroflex (21.62 lakhs) and SBFC Finance (20.19 lakhs).
