IPOs galore
: Many companies are planning to launch a wave of initial
public offerings
(IPOs) in May, ignoring the usual worries about market instability during
season. Firms like Indegene,
Aadhar Housing Finance
, TBO Tek, Go Digit, Awfis Space Solutions, and Kronox aim to raise over Rs 10,000 crore through IPOs this month.
As per an ET report, 24 companies have already raised about Rs 18,000 crore from IPOs in 2024.
The ongoing national elections will continue in phases until June 1.
Indegene, a health tech company backed by Carlyle, has announced plans to raise Rs 1,842 crore through its IPO. The price range for the
IPO
is set between Rs 430 and Rs 452 per share. The public subscription will start on May 6. The IPO will include a fresh issue of Rs 760 crore and an offer for sale (OFS) of 23.9 million shares.
ALSO READ | New success story after smartphone exports! Telecom equipment production crosses Rs 45,000 crore milestone
Aadhar Housing Finance, owned by Blackstone, plans to launch a Rs 3,000 crore public issue in the second or third week of May. The IPO includes a fresh issue of shares worth up to Rs 1,000 crore and an offer for sale of about Rs 2,000 crore. This affordable housing finance company has scaled down its OFS from the earlier proposed Rs 4,000 crore.
Ajay Saraf, head of investment banking at
ICICI Securities
, said that the
primary market
isn’t much affected by elections, geopolitical issues, or inflation because of strong investments from both domestic and foreign sources. He added that
investors
are showing a strong interest in high-quality IPOs, even if the broader market has some uncertainties.
Apart from Indegene and Aadhar Housing Finance, Go Digit General Insurance, supported by Canada-based Prem Watsa’s Fairfax Group, will launch its first public issue this month. The IPO will consist of a new issue of shares valued at Rs 1,250 crore and an offer for sale of 109.4 million shares by promoters and existing shareholders. Cricketer Virat Kohli and his wife, actress Anushka Sharma, are among the firm’s investors.
TBO Tek, a travel distribution platform, plans to raise over Rs 1,000 crore through an IPO in the second week of May. This includes Rs 400 crore in new equity and an offer for sale (OFS) of up to 15.6 million shares.
ALSO READ | Micron to export first batch of India-made semiconductor chips from Gujarat’s Sanand in 2025
“The primary market remains highly resilient, bolstered by robust flows from both domestic and foreign portfolio investors,” said V Jayashankar, head of equity capital markets at Kotak Investment Banking. He added that because recent IPOs have been successful and delivered good returns, the momentum for new IPOs is likely to continue.
Last week, Vodafone Idea raised Rs 18,000 crore in India’s largest follow-on public offer (FPO). The FPO was oversubscribed by seven times, and the share price is now 20% higher than the offer price. Bharti Hexacom, which went public on April 12, is trading at a 52% premium following its recent Rs 4,275 crore IPO.
Ola
Electric Mobility
aims to raise around $1 billion through an IPO before India’s election results are announced, if it receives approval from the Securities and Exchange Board of India (Sebi) in time, according to bankers. The IPO will include a fresh issue of up to Rs 5,500 crore and an offer for sale (OFS) of 95.2 million shares by existing investors.
Votes in India’s general election will be counted on June 4.
