Investors can expect an onslaught of initial public offerings (IPOs) in the third quarter of the year, as over 30 companies want to go public between October and December.
At least 35 companies plan to go public during the period with the aim of raising about Rs. 80,000 billion if the stock market remains strong, The Economic Times reported after speaking with bankers who are familiar with the details.
There are several companies planning to go public in the third quarter of the year, including Paytm, Nykaa, Policybazaar, Go Airlines, and Adani Wilmar.
Deciphered: Why so many companies are going public in 2021
All of the above companies along with Star Health and Allied Insurance and Emcure Pharma aim to raise between Rs.4,000 billion and Rs.16,600 billion through their IPOs.
The ET report added that companies like Paradeep Phosphates, Vedant Fashions, CMS Infosystems and Northern Arc each plan to raise approximately Rs 2,000 crore-Rs 2,500 crore.
At least 14 companies, including Paradeep Phosphates, Go Airlines, Ruchi Soya Industries, Arohan Financial Services, Utkarsh Small Finance and Fincare Small Finance, already have approval from Sebi to raise around Rs.22,000 billion. A further 64 companies have submitted their IPO applications to Sebi.
It should be noted that Policybazaar and Nykaa are expected to launch their IPOs in October, at around Rs 6,000 billion and Rs 4,000 billion, respectively. Chennai-based Star Health and Allied Insurance also plans to go public for Rs 7,000 billion To start at the end of this month.
Other companies like MobiKwik, Paradeep Phosphates, CMS Infosystems, Northern Arc, Sapphire Foods and Tarsons Products can also start their IPOs this month.
Meanwhile, digital payment company Paytm expects to launch its IPO in November. This is likely to be the largest IPO ever in Indian history. The digital new age startup has filed for an IPO for Rs 16,600 crore and has pending regulatory approval.
WILL IPO FRENZY CONTINUE?
The majority of company IPOs have done well this year due to strong stock market momentum, higher liquidity and greater investor demand.
Experts believe that IPOs will continue to be in high demand unless liquidity and other supportive market conditions change dramatically. While not every public issue gets a good response, most of them are expected to do well.
According to data from primary market tracker Prime Database, 42 companies went public this year and reached the primary market, earning nearly 70,000 billion rupees.
Most of the previous IPOs are trading above their issue price and few have stalled. Some IPOs like Paras Defense, Ami Organics, GR Infraprojects, Clean Science and Tatva Chintan Pharma have doubled.