Three firms set to float IPOs for over ₹6,400 cr this wk
The primary market is gearing up for significant activity this week, with three companies—Blackstonebacked Aadhar Housing Finance, healthcare tech firm Indegene and travel distribution firm TBO Tek—poised to float IPOs aiming to collectively raise nearly ₹6,400 crore.
JNK India had garnered ₹650 crore through its initial share sale last month.
Since 2004, there hasn’t been a single IPO launch during May in the last four general election cycles. Typically, the April to June period during these years has been slow for the primary markets due to election uncertainty, said Mahavir Lunawat, managing director, Pantomath Capital Advisors.
However, this trend has changed now with the launch of three mainboard initial public offerings (IPOs) next week.
Samir Bahl, CEO of Anand Rathi Advisors told PTI that the new trend is a positive sign indicating the maturing of the Indian capital markets and confidence in India’s long-term growth story irrespective of political developments.
The three-day IPO of Indegene will open for subscription on 6 May, while that of Aadhar Housing Finance and TBO Tek will be launched on 8 May.
Of the total IPO size of ₹6,393 crore, the OFS (offerfor-sale) component accounted for a significant ₹4,233 crore.
Pranjal Srivastava, Partner Investment Banking at Centrum Capital, said that the primary market momentum continues due to overall positive economic sentiments, bull run in secondary markets and strong flows.
The ₹3,000-crore IPO of Aadhar Housing Finance is a combination of a fresh issue of equity shares worth ₹1,000 crore and an OFS of ₹2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc.
The company has set a price band of ₹300 to ₹315 a share for its IPO. It plans to utilise ₹750 crore of the fresh issue proceeds to meet future capital requirements towards onward lending and a portion will also be used for general corporate purposes.
TBO Tek’s maiden public issue is a mix of a fresh issue of equity shares aggregating up to ₹400 crore and an OFS of up to 1.25 crore equity shares worth ₹1,151 crore by promoters and investors.
Those selling shares in the OFS are promoters—Gaurav Bhatnagar, Manish Dhingra and LAP Travel—and investors—TBO Korea and Augusta TBO.
The company has set a price band of ₹875 to ₹920 per share for its IPO. At the upper end of the price band, the IPO size is pegged at ₹1,551 crore.
Since 2004, there has not been a single IPO launch during May over the last four general election cycles