As September comes to a close, over six companies are gearing up to raise approximately Rs 60,000 crore through initial public offerings (IPOs) in the next 60 days. Major IPOs include Hyundai Motor India, Swiggy, and NTPC Green Energy, expected in October and November.
As September draws to a close, over half a dozen companies are preparing to raise approximately Rs 60,000 crore through their initial public offerings (IPOs) in the coming 60 days.
The Reserve Bank of India (RBI) has declared September the busiest IPO month in fourteen years, and the primary market buzz is showing no signs of slowing down.
Big names like Hyundai Motor India, Swiggy, and NTPC Green Energy are among the major IPOs set to hit Dalal Street in October and November.
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More Companies Joining the IPO Wave
In addition to these three high-profile companies, other firms like Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems, and Garuda Construction are also planning their IPO launches during the October-November period, according to merchant bankers, as reported by PTI.
Over 30 IPOs Expected Before 2024 Ends
The IPO frenzy is expected to continue until the end of 2024, with over 30 IPOs anticipated by December. According to Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, this wave of IPOs will span across various sectors, include deals of varying sizes, and consist of a mix of fresh issues and offers for sale.
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What’s Driving the IPO Surge?
The IPO boom in India is being propelled by strong macroeconomic indicators, robust inflows into domestic mutual funds, and significant capital formation. The Indian stock market’s rapid growth is aligning with a surge in IPO activity, reflecting increased investor interest.
Aggarwal noted that the strong momentum in the IPO market is also supported by robust capital formation across corporate India and the influx of funds into mutual funds.
For companies, IPOs present an opportunity to raise capital for expansion, retire debt, support working capital requirements, and provide exit routes for existing shareholders. These factors have contributed to the current IPO rush.
Top Three Much-Awaited IPOs in 2024
1. Hyundai Motor India IPO
Hyundai Motor India, a subsidiary of South Korea’s Hyundai Motor Company, is preparing to launch the largest-ever IPO in India. The company aims to raise Rs 25,000 crore through its IPO, potentially surpassing LIC’s Rs 21,000-crore record-breaking share sale.
The 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 Hyundai’s draft red herring prospectus (DRHP).
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2. Swiggy IPO
Online food delivery giant Swiggy is set to enter the market with a Rs 10,414 crore IPO. The offering will include both a fresh issue of shares worth Rs 3,750 crore and an OFS component of 18.52 crore shares, valued at Rs 6,664 crore.
3. NTPC Green Energy IPO
NTPC Green Energy, the renewable energy subsidiary of state-owned NTPC, is planning a Rs 10,000 crore IPO in early November. Ahead of the IPO launch, the company is set to hold roadshows in key locations such as Mumbai, London, and the United States, according to sources cited by CNBC TV-18.
What’s Next for the IPO Market in 2025?
There is speculation that the IPO momentum might slow down in 2025 after a highly successful 2024. However, V Prashant Rao, Director & Head of ECM, Investment Banking at Anand Rathi Advisors, remains optimistic about the outlook for the IPO market in 2025.
Rao highlighted that Sebi has already approved 22 IPOs, with companies aiming to raise around Rs 25,000 crore next year. The overall sentiment towards IPOs is expected to remain positive heading into 2025.
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(With PTI Inputs)
