Warburg, Apax Brave India IPO Market in $1 Billion December Push

(Bloomberg) -- A clutch of Indian companies are pushing to raise more than $1 billion combined from initial public offerings in December, in what will be one of the first major tests of the market since Paytm's tumultuous listing.

Warburg Pincus-backed pharmacy chain MedPlus Health Services Ltd. and Healthium Medtech Ltd., a maker of surgical instruments controlled by buyout firm Apax Partners, are among listing hopefuls aiming to sell shares next month, according to people with knowledge of the matter. 

Developer Shriram Properties Ltd. is considering launching its offering before the end of the year, the people said. Wedding apparel maker Vedant Fashions Ltd. could also kick off its share sale in December, according to one of the people. If they're all successful, it could become the busiest December for Indian IPOs on record, surpassing the $972 million raised in the same month of 2012, data compiled by Bloomberg show.

The next few weeks will show whether Mumbai IPO investors will be more receptive to listings outside the technology industry, whose eye-popping valuations led to a tumultuous debut for fintech giant Paytm, formally known as One 97 Communications Ltd. So far, those lining up for December listings are sticking with their fundraising targets, the people said. 

MedPlus was approved for an IPO of as much as $219 million in mid-November, while Shriram Properties applied in April for permission to sell up to $107 million worth of shares. Healthium has been approved and may seek about $350 million, one of the people said. 

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Vedant, known for its clothing brand Manyavar, could raise about $300 million from a listing, the person said. The company is awaiting a nod from the market regulator to proceed with its first-time share sale.

Star Health & Allied Insurance Co., backed by billionaire investor Rakesh Jhunjhunwala, began taking orders Tuesday for an IPO that's seeking to raise as much as $975 million. Anchor investors including the Monetary Authority of Singapore and the Baillie Gifford Pacific Fund subscribed to 35.7 million shares at 900 rupees each, the top of a marketed range, according to an exchange filing.

Taken together, December's listings would raise well over $1 billion.

An external representative for Healthium, MedPlus, Shriram Properties and Star Health said they had received approval from the regulator and are planning to launch their IPOs soon. A representative for Vedant didn't respond to requests for comment.

Things are looking less rosy for the country's digital startups, which were spooked by fintech giant Paytm's 37% plunge over its first two trading days. Rival payment provider MobiKwik plans to defer its listing to next year, people with knowledge of the matter said. Candidates such as logistics company Delhivery Ltd. and the operators of Oyo Hotels and online pharmacy PharmEasy have filed draft prospectuses and are awaiting regulator approval. 

A spokesperson for MobiKwik said the company has a clear path to profitability and will list at the right time.

Indian firms have already surpassed the record for IPO volumes this year, with $15.5 billion raised so far. Analysts have expressed concern, however, that the reaction to Paytm's offering could affect the valuations that Indian stocks may achieve.

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