Daijiworld Media Network - Mumbai
Mumbai, Jul 26: India's primary market is expected to witness a surge in initial public offerings (IPOs) next month, with more than a dozen companies, including quick commerce platform Zepto, housing finance firm Truhome Finance and logistics company Shiprocket, preparing to launch their maiden share sales.
According to merchant bankers, the upcoming IPOs are collectively expected to raise over Rs 25,000 crore through a combination of fresh equity issues and offers for sale (OFS).
Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, said companies that had delayed their public issues are now moving ahead as market conditions improve.
"With markets stabilising and investor sentiment improving, companies that were waiting on the sidelines are now moving ahead with their IPO plans," he said.
Among the biggest offerings, Zepto plans to raise up to Rs 8,010 crore through a fresh issue, along with an OFS of up to 11.34 crore equity shares.
Truhome Finance has proposed a Rs 3,000-crore IPO, comprising a fresh issue of up to Rs 1,500 crore and an OFS of an equal amount.
Elevate Campuses plans to raise Rs 2,550 crore entirely through a fresh issue, while Shiprocket has filed for a Rs 2,342.35-crore IPO, including a fresh issue of up to Rs 1,100 crore and an OFS worth Rs 1,242.35 crore.
Other companies expected to tap the capital markets include Innovatiview India, which plans to raise up to Rs 2,000 crore entirely through an OFS, and Milky Mist Dairy Food with a proposed Rs 1,553-crore public issue.
Several other firms, including Dhoot Transmission, Asset Reconstruction Company India Ltd (ARCIL), Ardee Industries, Gaja Alternative Asset Management, Rays of Belief, Hy-Tech Engineers, Shankesh Jewellers and Learnfluence Education, are also preparing to launch their IPOs.
The robust pipeline follows sustained activity in the primary market this year. So far, 36 companies have launched IPOs, including nine this month. Manipal Health Enterprises and Juniper Green Energy are scheduled to open their public issues on July 29 and July 30, respectively, while MV Electrosystems is also set to launch its IPO next week.
Shah said India's long-term IPO outlook remains strong despite intermittent market volatility, with equity continuing to emerge as a preferred source of capital for businesses.
He added that while reasonably priced IPOs are likely to deliver healthy returns, investors are becoming increasingly selective, reducing the scope for aggressively valued offerings to generate strong listing gains.