The Buzzing IPO Market: A Look Ahead
The Indian primary market is poised for an exciting period as more than half a dozen companies, including industry giants like Hyundai Motor India, Swiggy, and NTPC Green Energy, prepare to launch initial public offerings (IPOs) over the next two months. Collectively, these firms aim to raise approximately ₹60,000 crore, signaling a robust appetite for capital in the market.
A Diverse Lineup of Companies
In addition to Hyundai, Swiggy, and NTPC Green Energy, several other notable companies are gearing up for their IPOs. Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems, and Garuda Construction are also in the mix, each with their own financial goals and strategic plans. This diverse lineup reflects a broad spectrum of sectors, from automotive and food delivery to renewable energy and healthcare.
Hyundai Motor India: Setting New Records
Hyundai Motor India Ltd, the Indian subsidiary of South Korea’s Hyundai Motor Company, is expected to make headlines with its anticipated ₹25,000 crore IPO, which would mark the largest-ever IPO in India. This offering is set to surpass the previous record held by LIC’s ₹21,000-crore initial share sale. According to the draft red herring prospectus (DRHP), the entire issue will consist of an offer-for-sale (OFS) of 14,21,94,700 shares by Hyundai Motor Company, with no fresh issue component.
Swiggy and NTPC Green Energy: Major Players in the Market
Following Hyundai, food and grocery delivery giant Swiggy is also making waves with plans to raise ₹10,414 crore through a combination of fresh issues and an OFS. The IPO will include a fresh issue of shares worth ₹3,750 crore and an OFS component valued at ₹6,664 crore. Meanwhile, NTPC Green Energy, the renewable energy arm of state-owned NTPC, is preparing to launch its ₹10,000 crore IPO in the first week of November, further underscoring the growing interest in sustainable energy solutions.
The Broader IPO Landscape
The excitement in the IPO market is not limited to these major players. Afcons Infrastructure is looking to raise ₹7,000 crore, while Waaree Energies aims for ₹3,000 crore through a fresh issue. Niva Bupa Health Insurance and One Mobikwik Systems are also in the fray, targeting ₹3,000 crore and ₹700 crore, respectively. This surge in IPO activity is indicative of a broader trend, with 62 companies, including Bajaj Housing Finance and Ola Electric Mobility, having already mobilized around ₹64,000 crore collectively via mainboard offerings in 2023.
Positive Outlook for the Future
The outlook for the IPO market remains broadly positive, with expectations of over 30 IPOs to be launched between September-end and December. Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, notes that the strong momentum is driven by favorable macroeconomic conditions, sector-specific growth, and significant inflows into domestic mutual funds. Companies are tapping the primary market to fund expansion plans, retire debt, and support working capital requirements.
Regulatory Environment and Market Sentiment
As the IPO frenzy continues, regulatory bodies like Sebi have already approved 22 IPOs for 2025, with companies planning to raise around ₹25,000 crore. Additionally, over 50 firms have filed draft papers and are awaiting approval, collectively aiming to raise more than ₹1 lakh crore. This reflects a significant momentum in the IPO market, supported by strong macroeconomic fundamentals and favorable market conditions.
However, while the enthusiasm for IPOs appears robust, experts caution against potential risks such as market corrections and regulatory interventions that could temper the current excitement. Vaibhav Porwal, Co-founder of Dezrev, emphasizes that while the IPO frenzy shows no signs of slowing down in the short term, vigilance is necessary to navigate potential market fluctuations.
Conclusion
The upcoming months promise to be a thrilling time for the Indian IPO market, with a diverse array of companies seeking to capitalize on favorable conditions. As investors and issuers alike remain optimistic, the primary market is set to remain abuzz with activity, reflecting the dynamic nature of corporate India and its aspirations for growth and innovation.