IPO frenzy next week: Five main-board, 6 SMEs to hit primary market to raise Rs 18,500 cr

The IPO market is set to be bustling next week, with 11 companies like Vishal Mega Mart, TPG Capital-backed Sai Life Sciences and fintech firm One Mobikwik Systems gearing up to launch their initial share sales, collectively aiming to raise nearly Rs 18,500 crore.

Other mainboard IPOs to be launched during this period are Inventurus Knowledge Solutions Ltd and Blackstone-owned diamond grading firm International Gemmological Institute (India) Ltd.

Alongside the five main-board IPOs, six SMEs are preparing to float their maiden public issues next week to garner over Rs 150 crore collectively.

Together, these 11 companies aim to raise approximately Rs 18,500 crore through public offerings.

These IPOs will span various sectors and deal sizes and include fresh issues and offers for sale.

The companies are tapping the primary market to provide an exit route to the existing shareholders, raise funds for expansion plans, retire debt and support working capital requirements.

Trivesh D, COO of Tradejini, an online brokerage house, had said the Maharashtra election verdict and the UP Lok Sabha by-election results created a positive market sentiment that could boost IPO activity and fundraising efforts.

While 2024 has been a strong year for IPOs overall, some recent issues have struggled in the secondary market, highlighting the recurring challenge of pricing during a bull run when issuers often aim for higher valuations, he stated.

So far in 2024, 78 main-board companies, including Hyundai Motor India, Swiggy, NTPC Green Energy, Bajaj Housing Finance and Ola Electric Mobility, have mobilised around Rs 1.4 lakh crore collectively via mainboard.

This was way higher than Rs 49,436 crore garnered by 57 firms through the route in 2023.

The IPOs of Vishal Mega Mart, Sai Life Sciences and Mobikwik will be open for public subscription on December 11 and conclude on December 13.

Further, the three-day initial share-sales of Inventurus Knowledge Solutions and International Gemmological Institute will open on December 12 and December 13, respectively.

Before this, the public issues of Property Share Investment Trust SM REIT and Suraksha Diagnostic concluded their IPOs in the first week of December.

Vishal Mega Mart is looking to float an Rs 8,000 crore IPO, which will be entirely an offer-for-sale (OFS) of shares by promoter Kedaara Capital-led Samayat Services LLP, with no fresh issue of equity shares, according to the updated draft red herring prospectus (DRHP).

The price band has been set at Rs 74 to Rs 78 per share.

Sai Sai Life Sciences has fixed a price band of Rs 522 to Rs 549 per share for its Rs 3,043 crore initial public offering (IPO).

This comprises a fresh issue of equity shares worth Rs 950 crore and an offer for sale (OFS) of 3.81 crore shares by a promoter, investor shareholders and other shareholders.

The Mobikwik IPO is aiming to raise Rs 572 crore through a fresh issue of 2.05 crore shares. The price band for the offering has been set at Rs 265 to Rs 279 per share.

The issue by Inventurus Knowledge Solutions consists entirely offer for sale, comprising 1.88 crore shares and merchant bankers have pegged the issue size at Rs 2,500 crore.

International Gemmological Institute is eyeing Rs 4,225 crore through the IPO. The issue includes a fresh issue of equity shares worth Rs 1,475 crore and an OFS valued at Rs 2,750 crore by promoter BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone, red herring prospectus showed.

The share price band of Inventurus Knowledge Solutions and International Gemmological Institute will be announced on Monday.

Upcoming SME IPOs are Dhanlaxmi Crop Science Ltd (December 9-11), Toss The Coin Ltd and Jungle Camps India Ltd (both December 10-12), Supreme Facility Management Ltd and Purple United Sales Ltd (December 11-13) and Yash Highvoltage Ltd (December 12-16).

The primary market is experiencing strong interest from issuers and investors across various sectors.

The IPO investors over the past five fiscal years have enjoyed significant gains. 236 IPOs launched between FY21 and FY25 delivered an average listing gain of 27 per cent for the retail bucket, with current gains soaring to 105 per cent (as of October 31, 2024), Trivesh stated.