The Reserve Bank of India (RBI) called September the busiest IPO month in fourteen years. The month is near its end, but the primary market buzz is unlikely to fade as more than half a dozen companies want to raise around ₹60,000 crore in the next sixty days. Hyundai Motor India, Swiggy, and NTPC Green Energy are big IPO names set to hit Dalal Street in October and November.
Apart from the three big IPO names, several other firms like Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems, and Garuda Construction are also planning to launch their initial public offerings (IPOs) during October-November, reported PTI citing merchant bankers.
The IPO rush is likely to continue till the end of the year with the Indian stock market witnessing the entry of 30 new IPOs, according to Munish Aggarwal, Managing Director and Head - Equity Capital Markets at Equirus. The new IPO arrival will be a combination of listings from across sectors, varying deal sizes, and a mix of fresh issues and offers for sale.
The IPO market in India is flourishing due to positive key macroeconomic indicators, strong inflows into domestic mutual funds, and robust capital formation. The IPO rush aligns with the Indian stock market’s stellar growth, indicating a heightened investor interest. The strong momentum of IPO markets is partially driven by strong inflows into domestic mutual funds and the robust capital formation happening across corporate India, he added.
IPOs also provide an opportunity for companies to boost their capex and raise funds for expansion plans, retire debt, support working capital requirements, and provide exit routes to existing shareholders. Here is the list of the top three much-awaited IPOs of 2024.
The subsidiary of South Korea's Hyundai Motor Company is likely to become the largest-ever IPO in India as it is eyeing to raise ₹25,000 crore from the market. The investment could surpass LIC’s ₹21,000-crore initial share sale.
The automaker's entire issue will be an offer-for-sale (OFS) of 14,21,94,700 shares by Hyundai Motor Company, with no fresh issue component, reported PTI citing Hyundai’s draft red herring prospectus (DRHP).
Online food aggregator, Swiggy is also looking to enter into market with a ₹10,414 crore IPO. The company is planning to raise the amount via fresh issue and offer for sale (OFS). Swiggy's IPO consists of a fresh issue of sharesworth ₹3,750 crore and an OFS component of 18.52 croreworth ₹6,664 crore.
The renewable energy arm of state-owned NTPC, is all set to launch its ₹10,000 crore IPO in the first week of November, sources told PTI earlier. Ahead of its IPO launch, the company will hold roadshows in multiple locations across India and abroad, including Mumbai, London, the United States, etc, reported CNBC TV-18 earlier.
After a tremendously positive response to IPOs in 2024, there are speculations about the fading interest in the primary market next year. Expressing confidence in the IPO market, V Prashant Rao Director & Head - ECM, Investment Banking at Anand Rathi Advisors, said that the outlook for IPO market in 2025 will remain broadly positive as Sebi approved 22 IPOs as of now with companies planning to raise around ₹25,000 crore.
