Seven IPOs to raise ₹720 crore this week
After sweeping the secondary market, the fear of missing out fever seems to have gripped the primary market, with corporates rushing to raise funds before the financial year ends this month.
Seven initial public offerings (IPOs) will raise ₹720 crore this week. Two firms will be listed on the mainboard, and five on SME exchanges. Relentlessly rally and optimistic outlook for India have pushed key benchmark indices to new highs.
Investors have ramped up equity investment, especially through mutual fund (MF) schemes, touching a new high and inflows through Systematic Investment Plan, hitting a record ₹19,187 crore amid rising concern over valuation.
Viraj Gandhi, CEO, Samco Mutual Fund, said inflows into equity MF schemes hit a 22month high of ₹26,866 crore, powered by ₹11,262 crore in sectoral funds.
He said 20 NFOs raised ₹11,470 crore, including eight equityoriented schemes that attracted ₹8,692 crore in investment.
Of the seven upcoming IPOs, Popular Vehicles and Krystal Integrated are mainboard issues. The five SME IPOs include KP Green Engineering, Pratham EPC, Signoria Creation, Royal Sense and AVP Infracon.
Mainboard issues
Two firms viz. Popular Vehicles & Services and Krystal Integrated Services will raise ₹600 crore and ₹300 crore respectively via IPOs opening on Tuesday.
KP Green Engineering IPO will open for subscription on March 15 and will raise ₹184 crore.
AVP Infracon will unveil the IPO on March 13 to raise ₹52 crore at the upper end of the price band. While the ₹36crore SME IPO of Pratham EPC Projects, which opened on Monday, will mopup ₹36 crore, Signoria Creation and Royal Sense IPOs will open for subscription on Tuesday and raise ₹9 crore and ₹10 crore through the bookbuilt issue.
Kresha Gupta, Founder, Chanakya Opportunities Fund, said about 40 firms raised ₹1,406 crore so far this year and six mopped up ₹194 crore in March.
“We expect this momentum to continue throughout the year, with an estimated 250 firms listing on the SME platform in 2024, compared to 184 in 2023. This rising SME IPO trend is crucial for India’s economic growth ambitions as they contribute 33% of GDP,” he added.
This week, new listings on the main board include Bharat Highways InvIT, JG Chemicals, Gopal Snacks and RK Swamy.
Five stocks, including Pune EStock Broking, Shree Karni Fabcom, Koura Fine Diamond Jewelry, Sona Machinery and V R Infraspace, will be listed on SME Exchanges this week.
(The writer is with The Hindu businessline)