Five-Star Business Finance, Global Health, Pristine Logistics, Kaynes Technology and Uniparts India are among the companies that are planning to launch their maiden public issues pre- or post-Diwali, said bankers.
After a few IPOs launched in May struggled to
through, investors and companies turned cautious amid a weak secondary market. While there were no IPOs in June and July, only six companies have since made initial public share sales, raising about ₹3,500 crore.
The Nifty50 index dropped more than 15% between April and June.
“Geopolitical tensions, a sharp increase in interest rates by (the US) Fed, rising crude, inflation, and global growth concerns have spoiled the mood in both secondary and primary markets during the last five to six months,” said V Jayasankar, head of equity capital markets at Kotak Investment Banking. “Investors now feel that the volatility will subside, and the market is nearing the bottom; hence, some companies are preparing for the roadshows to launch IPOs.”
Chennai-headquartered Five-Star Business Finance, backed by TPG, Matrix Partners and Norwest Ventures, is planning to launch its ₹2,752 crore IPO after Diwali, according to bankers. The non-bank finance company received market regulator Sebi’s approval in January this year.
Eminent cardiologist Naresh Trehan-promoted Global Health, which operates hospitals under the Medanta brand, is exploring the launch of its IPO this month, said bankers. The hospital chain is looking to raise ₹2,200-2,500 crore, including selling new shares of ₹500 crore. Anant Investments, an affiliate of private equity major Carlyle Group, is set to offload a partial stake in Global Health through an offer for sale.
“Indian markets or currency have not fallen badly compared to other countries, and sentiments in the secondary market are improving day by day,” said Dharmesh Mehta, managing director of DAM Capital Advisors. “Indian markets are still not out of the woods, but selective IPOs, especially smaller to midsize, will sail through as there is enough liquidity in the system for reasonable-sized IPOs.”
Tracxn Technologies’ ₹310 crore IPO will open for subscription Monday. Delhi-based Pristine Logistics &
is likely to launch a ₹1,100 crore IPO this month, while Kaynes Technology and Uniparts India are planning to raise ₹1,000 crore each. Some other companies planning to launch their IPOs in the next one month, according to bankers, include Rustomjee Group’s Keystone Realtors, Landmark Cars, India Exposition Mart, DCX Systems, Green and GPT Healthcare.
So far this year, 21 companies have raised ₹43,776 crore compared with 63 companies that have raised ₹1.19 lakh crore in 2021, according to Prime Database. Some of the recent IPOs have received strong responses from investors. The ₹500 crore IPO of Hyderabad-based Electronics Mart was subscribed 71.93 times last Friday. The ₹755 crore public issue of Harsha Engineering International was subscribed 75 times in September, while the ₹562 crore issue of Dreamfolks Services was subscribed 57 times in late August.