After a record-breaking 31 initial share sales in the first half of this fiscal year, the IPO pipeline remains robust, with 28 firms aiming to raise Rs 38,000 crore in the second half and an additional 41 awaiting approval from Sebi to launch initial public offerings worth Rs 44,000 crore, according to a report. Despite the number of IPOs more than doubling to 31 in the first half, with a total mop-up of Rs 35,456 crore, fundraising through initial public offerings fell by 26% to Rs 26,300 crore compared to the previous year, as reported by Prime Database. Of these 69 companies in the IPO pipeline, three new-age technology firms plan to collectively raise Rs 12,000 crore.
OYO is reported to be the leader in the pack, seeking to raise over Rs 8,300 crore, followed by Go Digit Insurance. In contrast, the first half saw only one tech IPO by Yatra, which raised Rs 775 crore in late September. Notable IPOs in the previous fiscal year included Paytm, Zomato, and Nykaa. Pranav Haldea, Managing Director of Prime Database, noted that despite current volatility in the secondary market, the next half is expected to see several IPOs launched before a potential pause due to general elections.
According to leading brokerage Angel One, 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 proposed Tata Technologies IPO will be the first IPO from the Tata Group in 19 years, with Tata Motors expected to sell over 811 lakh shares in the offer for sale. The IPO will comprise a 100% offer for sale. Tata Technologies is a key player in automotive engineering and R&D services, serving 35 original equipment manufacturers and 12 new energy companies.
Originally, OYO Rooms planned to raise Rs 8,430 crore, with Rs 7,000 crore in fresh issue and Rs 1,430 crore in offer for sale. However, it is expected to revise its valuation and issue size. According to Haldea, overall public equity fundraising increased by 69% to Rs 73,747 crore in the first half of FY24, up from Rs 43,694 crore in the first half of FY23. The largest issue in the first half was Mankind Pharma’s Rs 4,326 crore IPO, followed by JSW Infrastructure (Rs 2,800 crore) and RR Kabel (Rs 1,964 crore). The smallest IPO came from Plaza Wires, raising just Rs 67 crore, with an average size of Rs 848 crore. Out of the 31 IPOs in the first half, 21 were launched in August and September.
