The Buzzing Primary Market: Upcoming IPOs to Watch
The primary market is poised for an exciting week ahead, with the much-anticipated IPO of Swiggy leading the charge. Alongside Swiggy, four other initial public offerings (IPOs) are set to open for subscription, making it a vibrant period for investors. The mainboard will see offerings from Acme Solar Holdings, Sagility India, and Niva Bupa Healthcare, while Neelam Linens will debut in the SME segment. This article delves into the details of these upcoming IPOs and the overall market landscape.
Swiggy IPO: A Major Player in the Food Delivery Sector
Swiggy, one of India’s leading food delivery platforms, is gearing up to launch its IPO on November 6, with bidding open until November 8. The company has set a price range of Rs 371-390 per share, with a fresh equity sale amounting to Rs 4,499 crore. Notably, the offer for sale (OFS) component has been reduced to 17.5 crore shares, reflecting the company’s strategy to adapt to current market conditions.
Originally targeting a valuation of around $15 billion, Swiggy has adjusted its expectations to $11.3 billion due to market volatility and the lukewarm debut of Hyundai India. The proceeds from the IPO will be allocated towards investments in its subsidiary Scootsy, enhancing technology and cloud infrastructure, and bolstering brand marketing efforts over the next four to five years. Noteworthy investors such as BlackRock and the Canada Pension Plan Investment Board (CPPIB) are expected to participate, making this the second-largest stock offering in India this year.
Acme Solar Holdings IPO: A Step Towards Renewable Energy
Acme Solar Holdings is set to open its IPO for subscription on November 5, with bidding available until November 8. The price band for this offering is set between Rs 275-389 per share, with a total issue size of Rs 2,900 crore. This includes fresh equity shares worth Rs 2,395 crore and an OFS component of Rs 505 crore.
The company aims to utilize the net proceeds to repay certain outstanding borrowings and for general corporate purposes. Established in 2015, Acme Solar focuses on renewable energy solutions, contributing to India’s goal of achieving net-zero emissions. The company is also known for its innovative green technologies, including the production of green ammonia.
Sagility India IPO: A Focus on Healthcare Services
Sagility India, a healthcare-focused services provider, will launch its IPO on November 5, with a price band set at Rs 28-30 per share. The total size of the IPO is Rs 2,107 crore, consisting entirely of an OFS of 70.22 crore shares by the promoter, Sagility B.V. Notably, there is no fresh issue component, meaning all proceeds will go to the selling shareholder.
The original size of the IPO was reduced from 98.44 crore shares, reflecting a strategic decision by the promoter, who will retain 85% of their stake post-IPO. Sagility B.V. is an affiliate of EQT Private Capital Asia, and this offering marks a significant step for the Bengaluru-based company in the healthcare sector.
Niva Bupa Healthcare IPO: Strengthening the Health Insurance Market
Niva Bupa Healthcare is set to open its IPO for subscription on November 7, with bidding available until November 11. The price band, which will include a fresh equity sale of Rs 800 crore and an OFS of Rs 1,400 crore, is yet to be announced. The OFS will see Bupa Singapore Holdings and Fettle Tone offloading their stakes.
The company plans to use the net proceeds from the fresh issue to enhance its capital base and strengthen solvency levels, alongside general corporate purposes. Niva Bupa is notable for being the second standalone health insurer to enter the Indian stock market through an IPO, following Star Health & Allied Insurance Company.
Market Outlook: A Promising Pipeline Ahead
The IPO landscape is looking robust, with 26 companies currently holding Sebi approval to raise approximately Rs 72,000 crore. Additionally, another 55 companies are awaiting regulatory approval to raise around Rs 89,000 crore. This fiscal year has already seen fundraising nearing Rs 1 lakh crore, with expectations of reaching new heights by March 2025.
As the primary market gears up for these significant IPOs, investors are advised to stay informed and consider the potential opportunities that lie ahead. With a mix of established players and emerging companies, the upcoming week promises to be a pivotal moment for the Indian stock market.