The strong momentum in IPO markets is driven by several key macroeconomic, sector-specific factors and the willingness of funds to look at new ideas
The primary market will remain abuzz with more than half a dozen companies, including Hyundai Motor India, Swiggy, and NTPC Green Energy, lined up initial public offerings over the next two months to raise around Rs 60,000 crore, merchant bankers said.
Apart from these three firms, Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems, and Garuda Construction are among the companies planning to launch initial public offerings (IPOs) during October-November, they added.
Together, these firms are looking to raise Rs 60,000 crore through their IPOs. Munish Aggarwal, Managing Director and Head - Equity Capital Markets at Equirus, expects over 30 IPOs to be launched between September-end and December. This will be across sectors, deal sizes and a combination of fresh issues and offers for sale.
The strong momentum in IPO markets is driven by several key macroeconomic, sector-specific factors and the willingness of funds to look at new ideas, which is partially led by strong inflows into domestic mutual funds and the robust capital formation happening across corporate India, he added.
The companies are tapping the primary market to raise funds for expansion plans, retire debt, support working capital requirements and provide exit routes to the existing shareholders.
Hyundai Motor India Ltd, the Indian subsidiary of South Korea's Hyundai Motor Company, is expected to raise Rs 25,000 crore, making it the largest-ever IPO in India.
This could surpass LIC's Rs 21,000-crore initial share sale.
The automaker's entire issue will be an offer-for-sale (OFS) of 14,21,94,700 shares by Hyundai Motor Company, with no fresh issue component, according to its draft red herring prospectus (DRHP).
Other major IPOs lined up include food and grocery delivery giant Swiggy, which according to sources, is targeting to raise Rs 10,414 crore via fresh issue and OFS.
Swiggy's IPO consists of a fresh issue of shares worth Rs 3,750 crore and an OFS component of 18.52 crore worth Rs 6,664 crore.
Further, NTPC Green Energy, the renewable energy arm of state-owned NTPC, is looking to launch its Rs 10,000 crore IPO in the first week of November, sources told PTI earlier.
Shapoorji Pallonji Group's construction firm Afcons Infrastructure will also join the IPO rush with a Rs 7,000 crore offer while Waaree Energies is expected to raise Rs 3,000 crore through a fresh issue of shares, in addition to an OFS component.
Niva Bupa Health Insurance and One Mobikwik Systems are planning to raise Rs 3,000 crore and Rs 700 crore, respectively.
Moreover, 62 companies, including Bajaj Housing Finance, Ola Electric Mobility, and FirstCry's parent Brainbees Solutions have already mobilised around Rs 64,000 crore collectively via mainboard, marking a 29 per cent increase from Rs 49,436 crore collected by 57 firms through the route in 2023.
The primary market is experiencing strong interest from issuers and investors across various sectors.
Going ahead, the outlook for the IPO market in 2025 remains broadly positive as Sebi approved 22 IPOs as of now with companies planning to raise around Rs 25,000 crore, V Prashant Rao Director & Head - ECM, Investment Banking at Anand Rathi Advisors, said.
Additionally, over 50 firms have filed draft papers and are awaiting approval.
Cumulatively, these companies aim to raise more than 1 lakh crore, reflecting the significant momentum in the IPO market, he added.
The positive sentiment is supported by strong macroeconomic fundamentals, favourable market conditions, and sectoral growth.
Further, there are no signs of the IPO frenzy fizzling out and this behaviour might persist in the short term. However, risks like market corrections and regulatory interventions could moderate the enthusiasm, Vaibhav Porwal, Co-founder, Dezerv, said.