10 cos gear up to raise Rs 20K cr via IPOs in Dec

New Delhi: The primary market is expected to remain vibrant, with at least 10 companies, including supermart major Vishal Mega Mart and Blackstone-owned diamond grading firm International Gemmological Institute (India) Ltd expected to raise a combined Rs20,000 crore in the next month, merchant bankers said. Education-focused NBFC Avanse Financial Services, TPG Capital-backed Sai Life Sciences, hospital chain operator Paras Healthcare, and investment bank DAM Capital Advisors are also among the companies planning to launch their IPOs in December, they added. The companies aim to raise a total of Rs20,000 crore through their public offerings. These IPOs will span various sectors, and deal sizes, and include both fresh issues and offers for sale.

Trivesh D, COO of Tradejini, an online brokerage house, told that the Maharashtra election verdict and the UP Lok Sabha by-election results have created a positive market sentiment that could boost IPO activity and fundraising efforts. While 2024 has been a strong year for IPOs, some recent issues have struggled in the secondary market, highlighting the recurring challenge of pricing during a bull run when issuers often aim for higher valuations, he said. “For now, with election-related funds returning to the market and the grey market becoming active again, the IPO space has regained some momentum,” he added. The companies are tapping the primary market to provide an exit route to the existing shareholders, raise funds for expansion plans, retire debt, and support working capital requirements. Vishal Mega Mart is looking to float an Rs8,000-crore IPO, which will be entirely an offer-for-sale (OFS) of shares by promoter Samayat Services LLP, with no fresh issue of equity shares, according to the updated draft red herring prospectus (DRHP).