Indian IPO Rush Heats Up (Image Source: iStockphoto)
A wave of Indian companies are defying seasonal trends and launching initial public offerings (IPOs) in May, despite the ongoing national elections. This surge in activity reflects strong investor appetite and a resilient primary market.
Several firms, including Indegene, Aadhar Housing Finance, TBO Tek, Go Digit, Awfis Space Solutions, and Kronox, are aiming to raise over Rs 10,000 crore ($1.2 billion) through IPOs this month. This follows a strong start to the year, with 24 companies already garnering Rs 18,000 crore through IPOs in 2024.
According to The Times of India report, the experts attribute this market buoyancy to a confluence of factors. Ajay Saraf, head of investment banking at ICICI Securities, highlights the unwavering support from domestic and foreign investors, suggesting the primary market has a degree of insulation from external factors like elections, geopolitical tensions, and inflation.
This enthusiasm is evident in the upcoming offerings. Healthcare company Indegene, backed by Carlyle, seeks to raise Rs 1,842 crore, while Aadhar Housing Finance, owned by Blackstone, targets Rs 3,000 crore. The insurance player Go Digit, backed by Fairfax Group, also joins the fray with a planned IPO this month.
Travel platform TBO Tek further bolsters the activity, aiming to raise over Rs 1,000 crore through its IPO. V Jayashankar, head of equity capital markets at Kotak Investment Banking, emphasizes the robust investor flows driving this momentum.
Recent successful IPOs like Vodafone Idea’s FPO and Bharti Hexacom’s listing, both witnessing significant oversubscriptions and post-listing gains, contribute to the positive sentiment.
Adding to the buzz is Ola Electric Mobility’s potential IPO before the election results. The electric vehicle manufacturer seeks to raise around USD 1 billion, subject to regulatory approval.
With strong investor backing and a resilient primary market, Indian companies are capitalizing on the current environment to unlock fresh growth opportunities.
