In the midst of a booming stock market, several companies are eager to tap into the public investment pool through Initial Public Offerings (IPOs). In an exciting development, 13 companies have applied for IPO approval from the Securities and Exchange Board of India (SEBI) on the same day. If all these applications are approved, these firms will raise at least Rs 8,000 crore from the public.
The companies represent a variety of industries, showcasing the broad interest in India’s capital markets. Many of these IPOs feature a mix of fresh issues and offers for sale (OFS) from existing shareholders. Some notable names among the companies filing for approval are Vikram Solar, Aditya Infotech, and Varindra Constructions.
Growing Optimism in the Indian Market
The wave of IPO filings highlights the rising confidence of companies in the Indian market. According to market data, a total of 62 companies have already raised Rs 64,000 crore through IPOs this year, a 29% increase compared to the Rs 49,436 crore raised by 57 companies in the whole of 2023. This indicates a growing appetite for public investment and a positive outlook among businesses in India.
Sectoral Representation and IPO Plans
Among the 13 companies that have submitted their draft papers to SEBI, each has its own strategy for raising funds:
- Vikram Solar is looking to raise Rs 1,500 crore through a mix of fresh shares and an OFS by the promoters.
- Aditya Infotech aims to raise Rs 1,300 crore, which includes Rs 500 crore from fresh equity shares and Rs 800 crore from an OFS by the promoters.
- Varindra Construction is planning a Rs 1,200 crore IPO, with Rs 900 crore from fresh issues and Rs 300 crore from an OFS.
Other companies like Ajax Engineering, Rahi Infratech, Vikran Engineering, and more have also submitted their IPO applications, looking to raise significant amounts. For instance:
- Rahi Infratech plans to raise Rs 420 crore with an OFS of 27 lakh shares by promoters.
- Vikran Engineering is proposing an IPO with Rs 900 crore from fresh shares and Rs 100 crore from an OFS.
- Sambhav Steel Tubes aims for a Rs 540 crore IPO, with Rs 440 crore from fresh shares and Rs 100 crore from an OFS.
These filings represent a wide array of industries, including engineering, technology, steel, and more, showing a diversified interest in public capital.
Positive Outlook for IPOs in 2025
With more companies lining up to raise funds, the trend of increased IPO activity is expected to continue into 2025. According to Munish Aggarwal, head of equity capital markets at Equiras, the IPO boom will likely persist if there are no major global economic disruptions. As per merchant bankers, major companies like Hyundai Motor India, Swiggy, and NTPC Green Energy are preparing to raise a combined Rs 60,000 crore through IPOs in the coming months.
How Will These IPOs Be Structured?
Several IPOs will include a mix of fresh issues and offers for sale (OFS) by promoters. Here’s a snapshot of the fundraising plans of some of the key players:
- Jarrow Institute of Technology Management and Research plans to raise Rs 570 crore, including Rs 170 crore from fresh shares and Rs 400 crore from an OFS by the promoter Sanjay Salunkhe.
- All Time Plastics intends to raise Rs 350 crore through fresh issues, along with an OFS of 52.5 lakh shares by promoters.
- Skoda Tubes is proposing an IPO with Rs 275 crore in fresh shares, while Dev Accelerator plans a fresh issue of 2.47 crore shares.
What’s Next for the Investors?
As these IPO applications are processed by SEBI, investors will soon have more options to explore in the stock market. The enthusiasm surrounding these IPOs reflects the growing confidence in India’s economy and the increasing number of businesses looking to expand through public offerings.
This surge in IPO filings is expected to keep the market momentum strong, offering opportunities for both companies and investors in the near future. With such a diverse range of companies entering the market, investors will have plenty of choices across different sectors, potentially yielding great returns in the long run.
