MUMBAI: The angry IPO set something of a record this month. In the first 20 days of August, up to 23 regulatory requests were made to start primary stock sales valued at around Rs 40,000 billion, while eight companies are raising over Rs 18,200 billion a month.
Some of these companies come from the startup arena such as fintech, e-commerce, online travel and SaaS (Software-as-a-Service).
So far this year over 40 new advertisements have brought in around 70,000 billion rupees. The huge investor interest, especially from the retail segment, is very visible as many IPOs are oversubscribed more than 100 times and many brokers say the total number of issues could exceed 100 this year.
The IPO market is so hot that it has caught the attention of the monetary authority, which in its latest bulletin says that “2021 could well be the year of the country’s IPOs”.
Some of the key submissions out of the total of 23 per month are Delhi-based PB Fintech, the promoter of insurance distributor Policybazaar, which Sebi is seeking for an expense of Rs 6,000 crore; and Pune-based Emcure Pharma, which aims to raise Rs 5,000 crore.
In addition, Adani Wilmar, the FMCG arm of the Adani Group, is targeting Rs 4,500 crore, and Mumbai-based online fashion and apparel brand Nykaa, whose holding company FSN E-Commerce, has filed for Rs 4,000 crore.
The list also includes Le Travenues Technology, headquartered in Gurugram, the promoters of the online travel booking company Ixigo, who want to raise 1,800 crore Rs for an issue; and Rategain Travel Technologies, the first Software-as-a-Service (SaaS) company to go public in the country with a spend of Rs 1,500 billion; and Noida-based Rategain is the country’s largest SaaS company in the hospitality and travel industries.
Another major expense of Rs 1,500 crore comes from Tarsons Products of Calcutta, which manufactures a range of high quality laboratory items. Tarsons has a diversified product portfolio with over 1,700 storage units for 300 products and operates five production sites in Bengal.
Other mid-sized IPOs include Kochi-based auto dealer Popular Vehicles & Services, which filed for Rs 700 crore last week; Beauty and wellness company VLCC; Sapphire Foods, which operates all of the Yum Brands stores in the country such as KFC, Pizza Hut, and Taco Bell; Go Fashion India (Go Colors); Merger microfinance; and payment solutions provider AGS Transact Technologies, which filed an issue for Rs 800 crore on Friday.
And the biggest day for the road was August 4th when four companies – Krsnaa Diagnostics (Rs 1,213 crore), Windlas Biotech (Rs 401 crore in the new edition and the rest in OFS), Devyani International, the largest franchisee of pizza Hut, KFC and Costa Coffee in the country (Rs 1,838-crore) and Exxaro Tiles, which makes glazed tiles (Rs 161-crore) – went public.
The companies are backed by record listings from Clean Science & Technology, GR Infraprojects, Zomato (which was the largest spending this year at Rs 9,300 billion) and Tatva Chintan Pharma Chem.
The AGS issue is purely an offer to sell shares by promoter Ravi B Goyal and other selling shareholders. Goyal will sell up to Rs. 792 billion worth of shares through the OFS and other selling shareholders will offload shares worth Rs. 8 billion.
In the first 15 days of August, eight companies successfully completed initial public offerings, raising revenues of over Rs 18,200 billion.
Some of the brand names that completed the share sale process include Chennai-based specialty chemicals maker Chemplast Sanmar, which raised Rs.3,850 billion; Contract development and manufacturing organization Windlas Biotech (Rs 401 billion); Home financier Aptus Value Housing (Rs.2,780 billion), online car trading platform Cartrade Tech (Rs.3,000 billion) and pharmaceutical company Krsnaa Diagnostics (Rs.1,213 billion) also completed the share sale.
Despite oversubscribing over 20.3 times the Rs 3,000 crore-Rs Cartrade issue, the stock made a tepid debut on the street on Friday, falling nearly 8 percent at the close of trading, though it opened lower at Rs 1,600 compared to that Issue price of Rs 1,618.
In addition, Nuvoco Vista Corporation, which has completed the initial public offering of Rs 5,000 crore and is scheduled to go public next Monday, is part of the Nirma Group and is one of the largest cement and concrete manufacturers offering a range of products such as cement, ready-mixed concrete, building materials such as adhesives, putty, dry plaster, cap stones, etc.