It’s pretty well known by now that the Indian primary market is on the upswing this year. But what h -pened is that the segment has just hit a new all-time high in terms of total IPO income this year.
With the upcoming public offering of beauty and fashion group Nykaa, which is expected to raise over 5,350 billion rupees, the cumulative total fundraising would exceed 70,000 billion rupees for the first time in a single calendar year.
Data from the Prime Database shows that after taking into account the proceeds from Nykaa’s IPO, which opened on October 28, the cumulative amount would be Rs.72,324 billion.
The previous high was recorded in 2017 when a total of 67,147.44 billion rupees were raised through 36 issues. In addition, the current annual record is also a big jump from Rs 26,613 billion last year raised through 15 IPOs.
In the meantime, a total of 41 IPOs have come onto the market in the first nine months of the current calendar year. The maximum number of initial public offerings this year was recorded in March, when nine companies started their initial public offerings. It followed in August when eight companies came into the public markets for listing.
Interestingly, it is believed that cumulative fundraising could reach Rs 1 lakh crore in the current calendar year as there are many large issues in the pipeline.
Last week, the Securities and Exchange Board of India (SEBI) -proved at least seven more IPOs, including Policybazaar, PayTM and ESAF Small Finance Bank, among others. PayTM’s IPO is expected to be around Rs 17,000 billion, while Policybazaar is expected to raise over Rs 6,000 billion.
Meanwhile, Nykaa’s IPO will be followed by Fino Payments Bank and Sigachi Industries, with the two issues combined expected to bring in just over Rs.1,300 billion.
Data from the Prime Database also shows that more than 20 companies have submitted their documents to SEBI and are awaiting regulatory -proval. The cumulative size of these companies’ offerings is well over Rs 34,000 billion, although some of these issues could spill over into the next year.
Also read: Nykaa aims to raise over Rs 5,350 crore through IPO