Companies Set To Raise Above Rs 45,000 Cr Via IPOs In Oct-Nov

After a slowdown in the primary markets and a few tepid listings recently, the primary market is set to fly high in the upcoming months and as per several media reports and experts tracking the development told BW Businessworld that around 30 companies will gear up and bring along a sum of Rs 35,000-45,000 crore via share sale between October-November 2021.

In an exclusive conversation with BW Businessworld, Amit Pamnani, Chief Investment Officer & DGM, Swastika Investmart, said, "2021 is an optimistic year with over 40 successful IPOs so far and it is expected to cross 60 IPOs this year." He further added that companies in the last few years were on a wait & watch mode.

"Now we are daily receiving new inquiries from founders for bringing the IPO of their companies," Pamnani highlighted.

With the recent IPO of Paras Defence & Space Technologies marking record figures as the issue got oversubscribed by 304 times, the appetite of investors seems to be strong and hence companies will gear up their process of listing, said experts speaking to BW Businessworld. Post the successful listing of Zomato, several other internet companies plan to raise funds via a public offering of shares.

Nykaa, Policybazaar, and Mobikwik are the top companies among others that will list on the Indian bourses. A large portion of the fundraising will include new-age internet companies and financial services, experts said.

Ajay Tyagi, Chairman, Securities and Exchange Board of India, speaking at an industry event by CII, said, "Growth-oriented technology companies have raised Rs 15,000 crore through initial share sales in the last 18 months and IPOs worth around Rs 30,000 crore by such firms are in the pipeline."

Having a similar view, Pamnani said, "We analyzed that investors are bullish on the potential of technology, innovation & consumption sectors. New edge tech companies like Zomato, Ease my trip, Nazara, Paras Defence has bought confidence in the veins of startup promoters which has formed an IPO queue on exchanges."

The IPO of Policybazaar will contribute Rs 6,017 crore to the pipeline, further, Nykaa(Rs 4,000 crore), Mobikwik(Rs 1,900 crore), Ixigo(Rs 1,600 crore), Aditya Birla Sun Life AMC(Rs 2,768 crore), Emcure Pharmaceuticals (Rs 4,500 crore), and several other companies will hit the Dalal-Street soon. (The above figures of the issue size may vary depending on the final documents filed by the companies)

Few experts also attributed the reasons for inflows in the Indian markets to a slowdown in China as Chinese enterprises are facing several regulatory storms which have prompted investors to seek opportunities in other economies across the world. "Another aspect contributing to this inflow is the regulatory storm that Chinese enterprises are facing, which is prompting investors to look at other growing economies," said Samco Securities in a weekly note.

So far in the current year, more than Rs 70,000 crore is already raised via public issues by companies, making 2021 a historic year in the capital markets. Adding to this, upcoming IPOs of LIC and Paytm will make the pipeline bigger than ever. LIC is expected to raise Rs 70,000-1,00,000 crore, while Paytm will raise around Rs 16,000 crore.

With ample liquidity in the markets amid the central banks keeping their dovish stance on interest rates and the Indian markets so far negating the possibilities of the US bond tapering, we can see a big action in the primary markets, analysts said. The bull run in the market and involvement of retail participation is also a major factor that will create an impact on the fundraising plans, the Sensex has already crossed 60,000 and the Nifty-50 is nearing 18,000, furthermore, the rally doesn't seem to end as even the minor corrections of 3-4 per cent are getting arrested in the markets and are making way for an upward leg.