• Source:JND
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IPO: A wave of initial public offerings (IPOs) is about to hit Dalal Street, with over a dozen companies, including Vikram Solar, Aditya Infotech, and Verindera Construction, filing initial papers with market regulator Sebi in a single day. In draft papers filed on Monday, these companies are expected to collectively raise at least Rs 8,000 crore. These IPOs are across sectors, a combination of deal size and fresh issues and offers for sale (OFS). The filing comes as the primary market faces strong interest from both issuers and investors across various sectors.

Furthermore, 62 companies have already raised about Rs 64,000 crore collectively through the mainboard, a 29 per cent increase over the Rs 49,436 crore raised by 57 firms through the route throughout 2023.

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The strong momentum in the IPO market has been driven by several key macroeconomic, sector-specific factors, and funds' willingness to look at new ideas, partly driven by strong inflows into domestic mutual funds as well as strong capital formation taking place across corporate India, said Munish Agarwal, Equirus Capital said the managing director head of Markets.

Unless there is a major black swan event that disrupts global economies and markets, we expect markets to continue the momentum in 2025 with further growth in both the number of transactions and the volume of issues, he added.

In addition to Bikram Solar, Aditya Infotech, and Borindera Construction, other companies that filed draft papers on Monday include Ajax Engineering, Rahi Infratech, Bikram Engineering, Midwest, Vini Corporation, Sambhav Steel Tubes, Zaro Institute of Technology Management & Research, All Time Plastics Ltd., Skoda Tubes, and Dave Accelerator.

Companies are tapping the primary market to raise funds for expansion plans, retire debt, support working capital needs, and provide exits to existing shareholders. Solar module manufacturer Vikram Solar's proposed IPO combines a fresh issue of up to Rs 1,500 crore of equity and an offer for sale (OFS) of up to 1.74 crore shares by its promoters.

Aditya Infotech is looking to raise Rs 1,300 crore through an IPO including a fresh issue of Rs 500 crore equity shares and an OFS of Rs 800 crore shares by promoters. The Rs 1,200 crore IPO of Verindera Construction is a mix of fresh issue of Rs 900 crore equity shares and OFS of Rs 300 crore shares of the promoter.

The proposed IPO of infrastructure EPC company Bicron Engineering includes a fresh issue of shares of up to Rs 900 crore and an OFS of up to Rs 100 crore by the promoter. In addition, more than half a dozen companies including Hyundai Motor India, Swiggy, and NTPC Green Energy lined up IPOs in the next two months to raise a total of Rs 60,000 crore, merchant bankers said.

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(With PTI's Inputs)