By Nesil Staney
The coming week is packed with both SME and mainboard initial public offerings (IPOs), with several major launches across sectors such as finance, infrastructure, and healthcare. Bankers involved in these transactions say there is strong bullishness in the equity markets, spanning IPOs, qualified institutional placements (QIPs), and block deals.
HDB Financial Services IPO is the largest next week. It opens on 25 June and closes on 27 June, with tentative listing on both exchanges on 1-2 July. The bookbuilding is of Rs 12,500.00 crore. This includes a combination of a fresh issue of 2,500.00 crores and an offer for sale of Rs 10,000.00 crore. The price band is yet to be announced.
Among others, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, and Mayasheel Ventures have issue launch periods in week 20–24 June. AJC Jewels Manufacturers IPO opens on 23 June and closes on 26 June, with listing on 1 July. Also on the list for next week is Globe Civil Projects and Shri Hare-Krishna Sponge Iron. Capillary Technologies, a firm that offers AI-based software products, is also launching an IPO next week. It will be a fresh issue of ₹430.00 crore and offer for sale of 1.83 crore shares.
“There is a great interest from institutions this month for IPOs and QIPs,” said Sudhakar Poojary, vice president, corporate & family office at ICICI Securities. This euphoria was shared by his colleague Vijay Shyamsunder Malpani.
Ellenbarrie Industrial Gases, a fifty-year-old industrial gas firm and Kalpataru, a prominent developer in Mumbai, both launched their IPOs on Thursday.
A stock market luminary, Mukul Agarwal, invested Rs 25 crore in Ellenbarries Gases for a 0.45% stake. Other marquee names include Ashoka India Equity Investment Trust with a 1.09% stake for 60.99 crores and Clarus Capital with a 0.89% stake, acquired for an investment of 50 crores. All of these investments were above the upper price band of Rs 400.
Last year, the volume of equity deals in India, including IPOs, reached a record $70 billion, second only to the US. IPOs made up around $19 billion of this volume, with an average deal size of $275 million. As many as 11 IPOs were priced at above $500 million. This year, the second half could see a lot more deals than the first half, said experts.
“India is seen as a politically stable growth economy. In today’s world, compared to a lot of other countries, you can say that more confidently about India,” said Devarajan Nambakam, Co-Head, India Investment Banking at Goldman Sachs in a report.
India is projected to contribute 15%+ of global GDP growth between 2025–2030, higher than Germany, Japan, and even the entire G7, said a whitepaper from investment bank Equirus on Thursday.
The sentiment in the IPO street is also manifest in other fund-raising products such as QIPs and block deals. This week, Biocon successfully executed a Rs 4500 crore QIP to bolster growth in biosimilars and generics. A non-banking financial company (NBFC), Capri Global Capital, also announced the successful completion of QIP, raising Rs 2,000 crore from a diverse group of institutional investors, including Sunil Singhania’s Abakkus Asset.
“There is an increased interest from HNIs and institutions to buy on dip. This has led to great demand for IPOs and QIPs,” said Amit Jain, a founder at Ashika Group, which invested more than Rs 100 crore in the Biocon QIP.
There was also a series of high-profile block deals this month, from Reliance Industries selling Asian Paints to SBI Mutual and ICICI Prudential. Also were block deals in Zydus Wellness, Hindustan Zinc, IKS Health, Vishal Mega Mart and several others.