India's frenzied market for maiden share issues driven by ample liquidity got another booster shot as over a dozen companies filed preliminary IPO papers with market regulator SEBI in a single day on Sept. 30. These firms are expected to collectively garner at least Rs 8,000 crore through a combination of fresh issues and offer for sale.
The companies which submitted their draft red herring prospectus with SEBI on Monday include top seekers like Vikran Engineering Ltd., Sambhv Steel Tubes Ltd., Vikram Solar Ltd. and Aditya Infotech Ltd.
Apart from these, Varindera Constructions Ltd., Ajax Engineering Ltd., Rahee Infratech Ltd., Midwest Ltd., Viney Corp., Jaro Institute of Technology Management and Research, All Time Plastics Ltd., Scoda Tubes Ltd., and Dev Accelerator Ltd. also applied for IPO.
The companies are tapping the primary market to raise funds for expansion plans, retire debt, support working capital requirements and provide exit routes to existing shareholders.
Solar photovoltaic module manufacturer Vikram Solar aims raise up to Rs 1,500 crore, while CCTV and video surveillance provider Aditya Infotech plans to mop up Rs 1,300 crore.
Given the hot issues in the primary market, analysts warn about the necessity of increased inflows to stop foreign investors from switching away from the secondary market.
The answer to increased inflows lies in the hopes of a soft landing in the US. If soft landing comes under a bit of doubt under a rate cut cycle, inflows into risky assets will take a hit, according to Vikas Kumar Jain, equity strategist at CLSA Research.
The boom in the country's public offers is on a record trajectory as the funds raised in the July-September period is potentially set to top nine months of fundraising.
So far this year, about 62 companies have mopped up a total sum of Rs 84,512.6 crore so far, the highest since 2021.
Bigger issues are coming up like Hyundai Motor India Ltd., NTPC Green India Ltd., the Softbank-backed Swiggy Ltd., and Ather Energy Pvt. These four companies alone will raise over Rs 36,850 crore if and when they go public this year.
(With inputs from PTI.)
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