The upcoming months promise to be vibrant for the primary market, with over half a dozen companies, including Hyundai Motor India, Swiggy, and NTPC Green Energy, gearing up for initial public offerings (IPOs) aimed at raising approximately Rs 60,000 crore, according to merchant bankers.
In addition to these major players, firms such as Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems, and Garuda Construction are also preparing to launch IPOs in the October-November period.
Combined, these companies are set to raise Rs 60,000 crore through their IPOs.
Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, forecasts that over 30 IPOs will be launched from the end of September to December. These IPOs will span various sectors and deal sizes, comprising a mix of fresh issues and offers for sale.
The surge in IPO activity is attributed to several macroeconomic and sector-specific factors, as well as the willingness of funds to explore new opportunities, bolstered by substantial inflows into domestic mutual funds and robust capital formation across corporate India, Aggarwal noted.
These companies are leveraging the primary market to fund expansion plans, reduce debt, support working capital needs, and provide exit routes for existing shareholders.
Hyundai Motor India Ltd, the Indian arm of South Korea's Hyundai Motor Company, is anticipated to raise Rs 25,000 crore, making it the largest-ever IPO in India, potentially surpassing LIC's Rs 21,000 crore initial 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, as per the draft red herring prospectus (DRHP).
Food and grocery delivery giant Swiggy is also in the pipeline, aiming to raise Rs 10,414 crore through a combination of a fresh issue and OFS. The IPO includes a fresh issue of shares worth Rs 3,750 crore and an OFS component valued at Rs 6,664 crore.
Additionally, NTPC Green Energy, the renewable energy subsidiary of state-owned NTPC, plans to launch a Rs 10,000 crore IPO in early November, according to sources.
Afcons Infrastructure, part of the Shapoorji Pallonji Group, is preparing for a Rs 7,000 crore IPO, while Waaree Energies expects to raise Rs 3,000 crore through a fresh issue of shares, alongside 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 raised around Rs 64,000 crore collectively via mainboard IPOs, marking a 29 percent increase from the Rs 49,436 crore raised by 57 firms in 2023.
The primary market is witnessing strong interest from both issuers and investors across various sectors.
Looking ahead, the outlook for the IPO market in 2025 remains optimistic. The Securities and Exchange Board of India (Sebi) has approved 22 IPOs, with companies planning to raise around Rs 25,000 crore, according to V Prashant Rao, Director and Head of ECM, Investment Banking at Anand Rathi Advisors.
Additionally, over 50 firms have filed draft papers and are awaiting approval, collectively aiming to raise more than Rs 1 lakh crore, highlighting the significant momentum in the IPO market.
The positive sentiment is driven by strong macroeconomic fundamentals, favorable market conditions, and sectoral growth. However, potential risks such as market corrections and regulatory interventions could moderate the enthusiasm in the short term, noted Vaibhav Porwal, Co-founder of Dezrev.
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