28 IPOs Worth Rs 38,000 Crore To Release In Second Half Of FY24, 41 More Await SEBI Approval

Compared to a record 31 IPOs in the first half of FY24, the second half will see the launch of 28 IPOs, with 41 more in line awaiting Sebi’s approval to launch their issues worth Rs 44,000 crore. 

Indian stock market is gearing up as 28 companies with initial public offerings (IPOs) worth Rs 38,000 crore queue up to release their issues in the second half of the current fiscal year, a report from Primedatabase revealed. Compared to a record 31 IPOs in the first half of FY24, the second half of the year will see the launch of 28 IPOs, with 41 more in line awaiting Sebi’s approval to launch their issues worth Rs 44,000 crore. 

However, fundraising through IPOs declined 26 per cent to Rs 26,300 crore in H1FY24, even as the number of public issues doubled to 31 in the period. Comparatively, the market saw 14 IPOs with a total mop-up of Rs 35,456 crore in the corresponding period a year ago, reported PTI citing the data. Primedatabase is a leading database on the primary capital markets. 

The research forum’s managing director, Pranav Haldea, noted that out of these 69 companies lined up, three new-age technology firms are planning to collectively raise Rs 12,000 crore.

Management company, Marketmen, stated that this group is led by OYO, which is planning to mop up more than Rs 8,300 crore, and Go Digit Insurance. Relatively, the first half of the fiscal only saw one tech issue by Yatra, which raised Rs 775 crore in September. The major issues in the previous fiscal year were Paytm, Zomato, and Nykaa, the report noted. 

Haldea further said that, notwithstanding the current volatility in the secondary market, the latter half of the current fiscal is likely to witness multiple IPOs being launched before it is placed on hold due to the general elections in 2024.

Brokerage firm, Angel One, stated that the major upcoming IPOs include OYO, Tata Technologies, JNK India, Dom Industries, Apeejay Surrendra Park Hotels, Epack Durables, BLS E-Services, India Shelter Finance Corporation, Cello World, RK Swamy, Flair Writing Industries, Go Digit Insurance, and Credo Brands Marketing among others. 

The report further noted that the Tata Technologies issue will mark the first IPO from the industry giant Tata Group after 19 years, with TCS as it’s last company to go public in 2004. Tata Technologies is a subsidiary of Tata Motors and provides high-end technology solutions. The IPO will consist of a 100 per cent offer-for-sale. The firm’s clientele includes 35 original equipment manufacturers and 12 new energy players. 

Oravel Stays (OYO Rooms) initially aimed to raise Rs 8,430 crore including a fresh issue worth Rs 7,000 crore and an offer-for-sale of Rs 1,430 crore. However, the hospitality firm is expected to lower it’s valuation and also the size of it’s issue. 

Haldea noted that overall public equity fundraising climbed 69 per cent to Rs 73,747 crore in the first half of the current fiscal year, against Rs 43,694 crore in the corresponding period of the previous fiscal year. While Mankind Pharma OPO (Rs 4,326 crore), followed by JSW Infrastructure (Rs 2,800 crore) were the largest issues in the first half of FY24, the smallest IPO in the period was Plaza Wires, which raised a mere Rs 67 crore. Nearly 21 out of the total 31 issues were released in August and September.