Upcoming IPOs: IPO frenzy seems to be going strong in the Indian stock market. More than a dozen companies submitted their draft papers for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) in a single day.


The capital markets regulator revealed that it received preliminary papers for maiden listings from 13 firms on Monday, reported PTI. These firms included Vikram Solar, Varindera Constructions, Aditya Infotech, and Ajax Engineering, among others.


The draft papers showed that collectively, the companies are estimated to raise at least Rs 8,000 crore. These listings come from firms across sectors. Notably, the primary market has been witnessing a strong interest from issuers and investors lately. In 2024 so far, 62 companies have already garnered nearly Rs 64,000 crore together via mainboard, logging a gain of 29 per cent from Rs 49,436 crore raised collectively by 57 firms in 2023.


Reasons Behind The IPO Craze


This interest in the IPO markets can be attributed to several factors. Munish Aggarwal, MD Head - Equity Capital Markets, Equirus, explained that multiple key macroeconomic factors, sector-specific indicators, and the investors’ inclination to venture into new ideas has helped continue the craze for maiden listings. Further, the expert said this momentum was ‘partially led by strong inflows into domestic mutual funds as well as the robust capital formation happening across corporate India’.


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Aggarwal noted that this interest in IPOs is expected to continue well in 2025 unless something unexpected happens that manages to disrupt the global economy and markets. He stated that number of transactions and issuance amount is also estimated to increase going forward.


Other firms that filed their draft papers on Monday included Vikran Engineering, Rahee Infratech, Viney Corporation, Dev Accelerator, Midwest, Sambhv Steel Tubes, Jaro Institute of Technology Management and Research, Scoda Tubes, and All Time Plastics Ltd.