NEW DELHI: Fundraising via IPOs in India hit another landmark as economic growth, favourable market conditions and improvements in the regulatory framework helped companies raise a record Rs 1.6 lakh crore in 2024, while the pipeline for the next year holds out bigger promise. This exceptional year not only reflected the confidence of issuers but also highlighted investors’ eagerness to seize listing-day gains or back companies with strong long-term growth potential.
The year was marked by Hyundai Motor India’s historic IPO, the largest in the country’s history, which raised Rs 27,870 crore.
Companies of varying market capitalisations — large, mid, and small — tapped into the IPO route in 2024, with the average issue size rising significantly from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024.
The exceptional vibrancy of the IPO market was evident, with December alone seeing at least 15 launches.
“Rising retail participation, strong domestic inflows and active participation by FPIs (even though they have been net sellers in the secondary market), private capex increase and the government’s strategic focus on infrastructure and key sectors have collectively laid a strong foundation for the fundraising momentum in India,” V Prashant Rao, Director & Head – ECM, Investment Banking at Anand Rathi Advisors, said.
Fundraising momentum is expected to accelerate further in the New Year, potentially surpassing 2024’s record figures, market analysts said.
“Based on the 75 IPO documents, which are at various stages of approval/ marketing and the deal pipelines, we expect issuance activity in 2025 to cross Rs 2.5 lakh crore,” Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, said.
The IPO pipeline for the next year is set to feature major offerings, including HDB Financial Services’ proposed Rs 12,500 crore issue, LG Electronics India’s Rs 15,000 crore public float, and Hexaware Technologies’ Rs 9,950 crore offering.
According to data available with the exchanges, 90 maiden public issues were launched in 2024, collectively raising Rs 1.6 lakh crore. This includes eight IPOs scheduled to conclude on December 23-24. Besides, the Rs 500-crore IPO of Unimech Aerospace and Manufacturing is slated to open on December 23.
Additionally, Vodafone Idea raised Rs 18,000 crore through a follow-on public offer (FPO). About Rs 1.6 lakh crore raised in 2024 far exceeded Rs 49,436 crore garnered by 57 firms through IPOs in 2023.
By comparison, 2021 saw 63 companies raising Rs 1.2 lakh crore, marking the best IPO year in two decades, driven by abundant liquidity, increased retail investor participation, and sustained euphoria in the primary market.
The resurgence in activity also extended to the SME segment, where a record 238 small and medium enterprises raised Rs 8,700 crore, nearly doubling the Rs 4,686 crore raised in 2023, according to the data provided by primedatabase.com.
This growth reflects increasing interest in SME public offerings, although it comes with heightened risks for retail investors.
In response, Sebi decided to introduce stricter regulatory frameworks, including profitability requirements, a cap on the offer-for-sale (OFS) component and a “draw of lots” system for non-institutional investors (NIIs) to safeguard smaller investors.
Experts attributed this year’s robust IPO activity to a stable economic environment, policy continuity at the central government level, and broad-based economic growth.
“Stable economic environment, policy continuity at the central government level combined with broad-based growth have encouraged companies and investors to raise funds. Foreign portfolio investors have also been big buyers, especially in the larger IPOs,” said Pranjal Srivastava, Partner-Investment Banking at Centrum Capital.
Several factors, including private equity exits, sponsor-driven sales, and shifts in corporate funding strategies, have also driven the IPO activity.
“The resurgence of manufacturing and increased private capital expenditure are key contributors as companies look to fund expansion and modernisation. Many businesses are also focusing on diversifying their funding sources by shifting from debt-heavy models to equity, ensuring stronger balance sheets and reduced leverage,” said Neha Agrawal, MD & Head, Equity Capital Markets at JM Financial Institutional Securities.
Among the year’s largest main-board IPOs, Hyundai Motor India led the pack, raising Rs 27,870 crore, followed by Swiggy (Rs 11,327 crore), NTPC Green Energy (Rs 10,000 crore), Bajaj Housing Finance (Rs 6,560 crore), and Ola Electric Mobility (Rs 6,145 crore).
In contrast, Vibhor Steel Tubes launched the smallest IPO, raising just Rs 72 crore, indicating the diversity of companies accessing the capital markets.
For companies, going public provides crucial funds for expansion, working capital, and debt repayment while enhancing visibility and attracting new business opportunities. IPOs also serve as an exit strategy for long-term investors.
Interestingly, the IPO subscription ratios have been exceptionally high this year. Vibhor Steel Tubes saw an impressive subscription of 320 times, while other offerings like KRN Heat Exchanger and Refrigeration, Manba Finance, and Gala Precision Engineering were each subscribed over 200 times.
Additionally, IPOs of companies like One Mobikwik Systems, Unicommerce eSolutions, Diffusion Engineers, BLS E-Services, and Exicom Tele-Systems were subscribed more than 100 times.
This strong demand translated into substantial listing gains, with over 60 companies delivering positive returns on their debut day.
Vibhor Steel Tubes, BLS E-Services, Bajaj Housing Finance and KRN Heat Exchanger delivered more than 100 per cent gain, reflecting robust investor demand.
Meanwhile, India’s equity markets also saw record-breaking performances, with the NSE Nifty 50 reaching an all-time high of 26,216 points on September 27 and the BSE Sensex peaking at 85,836 points on September 26, supported by the country’s robust economic growth outlook.

Last Updated:December 20, 2024, 15:23 IST

Among the eight IPOs, the three issues opened on Friday are Senores Pharmaceuticals, Carraro India, and Ventive Hospitality.

Among the eight IPOs, the GMP is highest for Mamata Machinery at 107 per cent, while that of Carroro India is the lowest at zero.

The IPO market is buzzing with activity as several companies are vying for investor attention. Even as five IPOs were already live, three more mainboard initial public offerings (IPOs) have been opened. Here’s a quick look at the latest subscription status and grey market premium (GMP).

Among the eight IPOs, the three issues opened on Friday are Senores Pharmaceuticals, Carraro India, and Ventive Hospitality. They are witnessing their first day of bidding.

Five IPOs that were launched on Thursday are Mamata Machinery, DAM Capital Advisors, Transrail Lighting, Sanathan Textiles, and Concord Enviro Systems. So, these IPOs are witnessing their second day of bidding.

Among the eight IPOs, the GMP is highest for Mamata Machinery at 107 per cent, while that of Carroro India is the lowest at zero.

Here’s the latest GMP and subscription status, as of 3:00 pm on December 20:

Apart from this, diamond grading firm International Gemmological Institute (India) Ltd on Friday made a strong stock market debut with its shares being listed at a 22.3 per cent premium. Its shares were listed at Rs 510 apiece on the NSE, which is 22.3 per cent higher than the issue price of 417 apiece. However, overall weak sentiment in the markets dragged down the share price to Rs 468.05 apiece.

The BSE Sensex on Friday declined nearly 1,300 points to 77,980.11, while the NSE Nifty plummeted by 390 points to below 23,600 at 23,560.

Last Updated:December 19, 2024, 18:41 IST

The IPOs are Mamata Machinery, DAM Capital Advisors, Transrail Lighting, Sanathan Textiles, and Concord Enviro Systems.

Among the five IPOs, the GMP is highest for Mamata Machinery at 82.3 per cent, while that of Concord Enviro Systems is the lowest at 9.99 per cent.

IPO Alert, GMP Today, Subscription Status: After the stellar listings of Vishal Mega Mart, One MobiKwik Systems and Inventurus Knowledge Solutions IPOs, five more initial public offerings (IPOs) opened on Thursday. The IPOs are Mamata Machinery, DAM Capital Advisors, Transrail Lighting, Sanathan Textiles, and Concord Enviro Systems. Know which one is the best public offering for listing gains as per the latest GMP, and their latest subscription status.

All the five IPOs will remain open for public subscription from Thursday (December 19) to Monday (December 23).

According to market observers, among these five initial public offerings, the grey market premium (GMP) is the highest for Mamata Machinery at 82.3 per cent, while that of Concord Enviro Systems is the lowest at 9.99 per cent. It indicates that all the five IPOs are likely to provide positive listing gains for investors.

Going by the GMP data, the highest listing gain potential is in Mamata Machinery as its grey market premium currently stands at 82.3 per cent, followed by DAM Capital Advisors (53.71 per cent), Transrail Lighting (40.97 per cent), Sanathan Textiles (18.69 per cent), and Concord Enviro Systems (9.99).

On Wednesday, the GMP numbers had stood at 45.68 per cent, 38.16 per cent, 27.78 per cent, 7.79 per cent, and zero, respectively.

Here’s the latest subscription status till 2:40 pm:

Mamata Machinery IPO

The Mamata Machinery IPO is a book built issue of Rs 179.39 crore. It is entirely an offer for sale of 0.74 crore shares. Its price band has been fixed at Rs 230 to Rs 243 per share.

On the first day of bidding, the IPO received a decent 16.67 times subscription. Its retail portion has been subscribed by a whopping 24.18 times, while the NII category has got 18.96 times subscription. Its QIB category has been subscribed by 1.51 times.

DAM Capital Advisors IPO

The DAM Capital Advisors IPO is a book built issue of Rs 840.25 crore. It is entirely an offer for sale of 2.97 crore shares. Its price band has been fixed at Rs 269 to Rs 283 per share.

On the first day of bidding, the IPO received a 2.78 times subscription. Its retail portion has been subscribed by 3.94 times, while the NII category has got 3.73 times subscription. The QIB category got a 1 per cent subscription.

Transrail Lighting IPO

The Transrail Lighting IPO is a book built issue of Rs 838.91 crore. It consists of a fresh issue of 0.93 crore shares aggregating to Rs 400.00 crore and an offer for sale of 1.02 crore shares aggregating to Rs 438.91 crore.

On the first day of bidding, the IPO received a 2.12 times subscription. Its retail portion has been subscribed by 2.98 times, while the NII category has got 2.16 times subscription. The QIB category got a 77 per cent subscription.

Sanathan Textiles IPO

The Sanathan Textiles IPO is a book built issue of Rs 550 crore. It comprises a fresh issue of 1.25 crore shares aggregating to Rs 400.00 crore and an offer for sale of 0.47 crore shares aggregating to Rs 150.00 crore.

On the first day of bidding, the IPO received a 0.48 times subscription. Its retail portion has been subscribed by 0.82 times, while the NII category has got 0.33 times subscription.

Concord Enviro Systems IPO

Concord Enviro IPO is a book built issue of Rs 500.33 crores. It consists of a fresh issue of 0.25 crore shares aggregating to Rs 175 crore and an offer for sale of 0.46 crore shares aggregating to Rs 325.33 crore.

On the first day of bidding on Thursday, the IPO received a 0.6 times subscription. Its retail portion has been subscribed by 1.04 times, while the NII category has got 0.35 times subscription.

On Thursday, December 19, Inventurus Knowledge Solutions Ltd, a provider of healthcare support services, made an impressive stock market debut, posting a listing gain of 43% over the issue price of Rs 1,329.

A day before, on Wednesday, December 18, One MobiKwik Systems Ltd also made a stellar stock market debut with a listing gain of 58.51 per cent. Vishal Mega Mart Ltd also made a strong stock market debut with a listing gain of 41 per cent.

NEW DELHI: Investment bank DAM Capital Advisors on Wednesday said it has raised Rs 251 crore from anchor investors, a day before opening of its initial share-sale for public subscription. Nomura, Goldman Sachs, HSBC, Societe Generale, Nippon India Mutual Fund (MF), HDFC MF, Kotak MF, and Aditya Birla Sun Life MF are among the anchor investors, according to a circular uploaded on the BSE website.
As per the circular, DAM Capital has allotted 88.86 lakh shares to 33 funds at Rs 283 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 251.48 crore.
The initial share-sale, with a price band of Rs 269-283 per share, will open for public subscription on December 19 and conclude on December 23.
The IPO is solely an offer-for-sale (OFS) of 2.97 crore equity shares worth Rs 840.25 crore, by a promoter and investors at the upper end of the price band, with no fresh issue component.
Those selling shares in the OFS are promoter Dharmesh Anil Mehta, investors Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria.
Since the entire issue is an OFS, all the proceeds from the IPO will go directly to the selling shareholder, rather than to the company.
In its draft papers, the company stated it plans to go public to achieve the benefit of listing equity shares on the stock exchanges and allow selling shareholders to sell their shares through the OFS.
At the upper end of the price band, the company’s market capitalisation has been pegged at Rs 2,000 crore.
Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
DAM Capital Advisors provides a wide range of financial solutions in areas of (i) investment banking comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory; and institutional equities comprising broking and research.
Headed by Mehta, DAM Capital Advisors is a leading investment bank in the country with a market share of 12.1 per cent based on the number of IPOs and qualified institutional placements undertaken by it as the book-running lead manager in FY24, according to a Crisil report.
Nuvama Wealth Management is the sole merchant banker for the issue. The equity shares of the company are expected to be listed on December 27 on the BSE and the NSE.

New Delhi: Supermarket chain Vishal Mega Mart has mobilised Rs 2,400 crore from anchor investors, an update with the exchange showed.

Those who were allotted shares in the anchor round included SBI Mutual Fund, Government of Singapore, Nomura Funds Ireland Public Ltd, Axis Mutual Fund (MF), HDFC MF and ICICI Prudential MF, according to a circular uploaded on BSE’s website.

Overall, a total of 18 domestic mutual funds participated through 44 schemes, collectively accounting for 53.33 per cent of the anchor portion.

As per the circular, Vishal Mega Mart has allotted 30.76 crore equity shares to 89 funds at Rs 78 apiece, which is also the upper-end of the price band. This takes the transaction size to Rs 2,400 crore.

The Rs 8,000-crore initial public offering (IPO) of Vishal Mega Mart opens for subscription on December 11 and will conclude on December 13. Shares are available in the price range of Rs 74 to Rs 78 apiece.

The proposed IPO is entirely an offer-for-sale (OFS) of shares by promoter Kedaara Capital-led Samayat Services LLP, Samayat Services LLP, with no fresh issue of equity shares.

At present, Samayat Services LLP holds 96.55 per cent stake in the Gurugram-based supermart major.

Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder.

The updated draft filing was filed in October after Vishal Mega Mart’s confidential offer document was approved by Sebi on September 25. The company filed its offer document in July through the confidential pre-filing route.

Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator’s comments. This UPDRHP-I is made available for public comments over 21 days.

Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

Vishal Mega Mart’s product range includes both in-house and third-party brands, covering three key categories — apparel, general merchandise, and fast-moving consumer goods (FMCG). As of June 30, 2024, it operates 626 Vishal Mega Mart stores across India, along with a mobile app and website.

According to the Redseer report, India’s aspirational retail market was valued at Rs 68-72 trillion in 2023 and is projected to reach Rs 104-112 trillion by 2028, growing at a CAGR of 9 per cent. The shift towards organized retail is driven by higher quality expectations, wider product assortments, better pricing (especially in FMCG), urbanization, and opportunities for organized players to grow.

Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India. J.P. Morgan India, Morgan Stanley India Company are the book-running lead managers for the issue.

New Delhi: Private equity major TPG Capital-backed Sai Life Sciences on Friday said it has fixed a price band of Rs 522-549 per equity share for its Rs 3,043 crore Initial Public Offering (IPO) that opens for public subscription on December 11.

The intial share sale will conclude on December 13, and the bidding for the anchor portion will open for a day on December 10, the company announced.

The IPO is a combination of a fresh issue of equity shares worth up to Rs 950 crore and an Offer For Sale (OFS) of up to 3.81 crore equity shares by a promoter, investor shareholders and other shareholders, according to the Red Herring Prospectus (RHP).

Under the OFS, one of the promoter entities — Sai Quest Syn Pvt Ltd — and investor shareholders — TPG Asia VII SF Pte Ltd, HBM Private Equity India — will offload their respective stakes.

Bharathi Srivari, Anita Rudraraju Nandyala, Raju Penmasta, Dirk Walter Sartor, Jagdish Viswanath Dore, Rajagopal Srirama Tatta and K Pandu Ranga Raju were the other selling shareholders who will also divest their stakes in the company.

At the upper end of the price band, the company is going to fetch around Rs 3,042.62 crore from the IPO.

Earlier, the Hyderabad-based Sai Life Sciences had filed its IPO papers with the Securities and Exchange Board of India (Sebi) in July 2024 and obtained the markets regulator’s approval in November, to float the initial share sale.

Of the IPO proceeds, funds to the tune of Rs 720 crore will be used for debt payment and a portion will be used for corporate general purposes.

Investors can bid for a minimum of 27 equity shares and in multiples thereafter.

Sai Life Sciences provides end-to-end services across the drug discovery, development, and manufacturing value chain, for small molecule New Chemical Entities (NCE), to global pharmaceutical innovator companies and biotechnology firms.

During the six-month ended September 2024, Sai Life Sciences reported a total income of Rs 693.35 crore against Rs 656.8 crore a year ago. It posted a net profit for the six months at Rs 28.01 crore as compared to a loss of Rs 12.92 crore last year.

Kotak Mahindra Capital Company Ltd, IIFL Capital Services Ltd (formerly IIFL Securities Ltd), Jefferies India and Morgan Stanley India Company are the book running lead managers, while KFin Technologies is the registrar for the IPO.

The company’s shares are proposed to be listed on the BSE and National Stock Exchange (NSE).

New Delhi: Online food delivery platform Swiggy is all set to make its stock market debut on Wednesday after the company looks to raise Rs 11,327 crore through its IPO.

Swiggy IPO: Will Investors Make Money?

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd said that a cautious approach needed for the Swiggy IPO. “Swiggy, a leading player in India’s burgeoning food delivery and e-commerce sector, is set to make its stock market debut. While the IPO received a decent subscription of 3.59 times, the current grey market premium (GMP) of around ₹1 (0.26%) indicates a muted investor response. This subdued sentiment is likely influenced by the company’s continued losses, despite steady revenue growth” Nyati said.

The IPO’s valuation, while appearing reasonable based on certain metrics, presents a challenge due to negative earnings. Additionally, the current volatile market conditions may further impact the listing performance, she added.

“Given these factors, a cautious approach is recommended. Investors with a high-risk tolerance and a long-term perspective may consider the IPO, but it’s essential to acknowledge the potential risks associated with the company’s current financial position and the broader market uncertainties,” Nyati said.

 

 

 

Swiggy IPO Subscription

Swiggy’s Rs 11,327 crore IPO was subscribed 3.59 times on the last day of bidding on Friday after a muted response from the investors in the initial two days of its public issue.

Swiggy IPO was subscribed 0.35 times and 0.12 times on the issue’s second and first day, respectively. The reserve portion of qualified institutional buyers (QIBs) subscribed 6.02 times, the non-institutional investors (NIIs) portion saw 0.41 times subscription, the retail individual investors (RIIs) portion subscribed 1.14 times, and the employee portion subscription was 1.65 times.

The company has fixed a price band between Rs 371 and Rs 390.

NEW DELHI: Swiggy, the food delivery and quick-commerce giant, is set to launch its initial public offering (IPO) on Wednesday, aiming for a valuation of approximately $11.3 billion.
The public subscription period for Swiggy’s initial public offering (IPO) will run from November 6 to November 8.

Swiggy IPO subscription details and pricing

The food delivery giant has set a share price range between Rs 371 and Rs 390 for its first public offering. Swiggy is expected to finalise the basis of IPO share allotment by November 11, with shares being credited to the demat accounts of successful bidders by November 12.
Earlier commenting on the pricing, Swiggy Food Marketplace CEO Rohit Kapoor said, “We feel we have priced it right and we are looking forward to the next few days.”
“Our pricing is in the range of Rs 371-390 which corresponds to a value of about $ 11.3 billion roughly. It is not exact because it depends on where the issue actually clears at the end of the day,” Kapoor told PTI.

Swiggy’s IPO structure and valuation

The Bengaluru-based company plans to raise Rs 11,327 crore through the IPO, which will include a fresh issue of shares worth Rs 4,499 crore and an offer for sale (OFS) totaling Rs 6,828 crore.
At the upper price band, Swiggy’s valuation is expected to reach approximately $11.3 billion (around Rs 95,000 crore). By comparison, competitor Zomato, which went public in July 2021, currently has a market capitalisation of Rs 2.13 lakh crore.

Allocation of IPO proceeds

As detailed in the IPO documents, Swiggy plans to use Rs 137.41 crore from the proceeds to repay debt for its subsidiary, Scootsy.
Additionally, Swiggy plans to invest Rs 982.40 crore in expanding Scootsy’s Dark Store network within the quick commerce sector. Of this amount, Rs 559.10 crore will be used to establish Dark Stores, while Rs 423.30 crore will go toward lease or license expenses.
Swiggy also intends to allocate Rs 586.20 crore for enhancing its technology and cloud infrastructure, Rs 929.50 crore for brand marketing and promotional activities, and additional funds for inorganic growth opportunities and general corporate purposes.

Swiggy’s valuation and market speculation

Addressing speculation about Swiggy’s valuation, Kapoor explained that no actual reduction has occurred, emphasising that true valuation is established only during actual transactions.
“This is all speculation in the media on what the value is. So the fact of the matter is, the value has not gone up or down. The value is exactly where it is supposed to be… I just want to set clearly on record that there has been no lowering of valuation per se. There was a discovery process and at the end of it, this is the price that we collectively feel very good about,” he added.

Previous profit and loss

Established in 2014, Swiggy reported revenue of Rs 3,310.11 crore, whilst experiencing a net loss of Rs 611.1 crore for the quarter ending June 2024, an improvement from Rs 564 crore in the corresponding period last year.
For the financial year concluding March 31, 2024, the organisation’s net loss decreased from Rs 4,179.31 crore to Rs 2,350.24 crore, suggesting improved financial performance.

NEW DELHI: HDB Financial Services, an HDFC Bank subsidiary, has submitted draft documentation to Sebi for raising Rs 12,500 crore through an IPO. The offering consists of Rs 2,500 crore in fresh equity shares and Rs 10,000 crore through an OFS by HDFC Bank, as detailed in the Draft Red Herring Prospectus (DRHP) submitted on Wednesday. Currently, HDFC Bank maintains a 94.36 percent ownership in this NBFC subsidiary.
The fresh issue proceeds will be used to enhance the company’s Tier-I capital base, supporting future capital requirements and business expansion through increased lending capabilities.
The listing initiative aligns with RBI’s October 2022 directive, which requires upper layer NBFCs to achieve stock exchange listing within a three-year timeframe.
HDFC Bank’s board gave approval for the Rs 12,500 crore share sale, including a Rs 10,000 crore OFS for HDB Financial Services, earlier this month.
Twelve book-running lead managers has been appointed to oversee HDB Financial Services’ IPO. This includes prominent financial institutions such as JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India) Pvt Ltd, IIFL Securities, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management, and UBS Securities India.
Post-IPO, HDB Financial Services will remain under the bank’s control as a subsidiary, adhering to applicable regulatory requirements.
Incorporated in 2007, HDB Financial Services is a prominent player in India’s non-banking financial company (NBFC) sector providing services like lending and BPO services. It reported a net worth of approximately Rs 13,300 crore at the end of the June quarter.