India's primary market is set for a significant surge next month as over a dozen companies, including prominent names like Zepto, Truhome Finance, and Shiprocket, prepare to launch their initial public offerings, collectively targeting to raise more than Rs 25,000 crore amidst improving investor sentiment.
Key Points
- Over a dozen companies, including Zepto, Truhome Finance, and Shiprocket, are set to launch their IPOs next month, aiming to raise over Rs 25,000 crore.
- Zepto plans to raise up to Rs 8,010 crore, while Truhome Finance has proposed a Rs 3,000-crore IPO, and Shiprocket targets Rs 2,342.35 crore.
- The upcoming IPOs reflect improving investor sentiment and healthy demand in the primary market, with 36 companies having launched IPOs so far this year.
- Experts anticipate continued buoyancy in IPO activity, with India expected to raise around $20 billion through IPOs this calendar year.
- Investors are becoming more selective, favouring well-priced IPOs over aggressively valued offerings for healthy returns.
The coming month is likely to witness an IPO rush with more than a dozen companies, including Zepto, Truhome Finance and logistics platform Shiprocket gearing up to launch their initial share-sale.
The upcoming issues, expected to collectively raise over Rs 25,000 crore, include a mix of fresh equity issuances and offer for sale (OFS) component, merchant bankers said.
Companies Capitalising on Market Stability
"With markets stabilising and investor sentiment improving, companies that were waiting on the sidelines are now moving ahead with their IPO plans," said Bhavesh Shah, MD & Head-Investment Banking at Equirus Capital.
Among the largest offerings, Zepto plans to raise up to Rs 8,010 crore through a fresh issue, along with an OFS of up to 11.34 crore equity shares.
Housing finance company Truhome has proposed a Rs 3,000-crore IPO, comprising a fresh issue of up to Rs 1,500 crore and an OFS of an equal amount.
Elevate Campuses intends to raise Rs 2,550 crore entirely through a fresh issue, while Shiprocket has filed for a Rs 2,342.35-crore IPO, including a fresh issue of up to Rs 1,100 crore and an OFS worth Rs 1,242.35 crore.
Diverse Range of Offerings
Other companies preparing to hit the capital markets include Innovatiview India (up to Rs 2,000 crore, entirely through OFS) and Milky Mist Dairy Food (Rs 1,553 crore).
In addition, Dhoot Transmission, ARCIL (Asset Reconstruction Company India Ltd), Ardee Industries, Gaja Alternative Asset Management, Rays of Belief, Hy-Tech Engineers, Shankesh Jewellers and Learnfluence Education are also planning to launch their maiden public offerings.
The fresh pipeline comes amid sustained activity in the primary market, reflecting improving investor sentiment and healthy demand for new listings.
Outlook for India's IPO Market
Market participants expect IPO activity to remain buoyant as companies look to capitalise on favourable fundraising conditions.
So far this year, 36 companies have launched their IPOs, including nine that hit the primary market this month.
Moreover, Manipal Health Enterprises and Juniper Green Energy are set to open their public issues on July 29 and July 30, respectively. MV Electrosystems is also scheduled to launch its IPO next week.
Looking ahead, Shah said the long-term outlook for India's IPO market remains strong despite periodic volatility.
"The primary market has undergone a structural transformation, with equity becoming an increasingly preferred source of growth capital.
"While there will always be tactical pauses driven by market volatility, the underlying pipeline remains very strong.
"I continue to expect India to raise around $20 billion through IPOs this calendar year," he said.
He added that well-priced IPOs are likely to continue delivering healthy returns, while aggressively valued offerings may witness limited upside, as investors become increasingly selective rather than indiscriminately bullish.
