The Upcoming IPO Surge: A Look at Major Players and Market Dynamics
The Indian primary market is poised for a significant surge in initial public offerings (IPOs) over the next two months, with more than half a dozen companies, including industry giants like Hyundai Motor India, Swiggy, and NTPC Green Energy, preparing to raise approximately ₹60,000 crore. This wave of IPOs reflects a robust interest from both issuers and investors, driven by favorable macroeconomic conditions and sector-specific growth.
Major Players in the Upcoming IPO Wave
Among the notable companies gearing up for their IPOs, Hyundai Motor India stands out with plans to raise ₹25,000 crore, potentially marking the largest IPO in Indian history. This offering is set to surpass the previous record held by LIC’s ₹21,000 crore initial share sale. Hyundai’s IPO will consist entirely of an offer-for-sale (OFS) of over 14 million shares by its parent company, Hyundai Motor Company, with no fresh issue component.
Following closely is Swiggy, the food and grocery delivery giant, which is targeting to raise ₹10,414 crore through a combination of fresh issues and OFS. The IPO will include a fresh issue of shares worth ₹3,750 crore alongside an OFS component valued at ₹6,664 crore.
NTPC Green Energy, the renewable energy arm of state-owned NTPC, is also set to make waves with its ₹10,000 crore IPO, expected to launch in the first week of November. This reflects a growing trend towards sustainability and renewable energy investments in the Indian market.
Other companies in the mix include Afcons Infrastructure, which plans to raise ₹7,000 crore, and Waaree Energies, aiming for ₹3,000 crore through a fresh issue. Niva Bupa Health Insurance and One Mobikwik Systems are also in the fray, looking to raise ₹3,000 crore and ₹700 crore, respectively.
Market Dynamics and Investor Sentiment
The current momentum in the IPO market can be attributed to several macroeconomic factors, including strong inflows into domestic mutual funds and a general trend of robust capital formation across corporate India. Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, anticipates that over 30 IPOs will be launched between September and December, showcasing a diverse range of sectors and deal sizes.
The companies are primarily tapping into the primary market to fund expansion plans, retire existing debt, support working capital needs, and provide exit routes for current shareholders. This strategic approach highlights the evolving landscape of corporate financing in India.
Historical Context and Future Outlook
The enthusiasm for IPOs is not a new phenomenon. In 2023 alone, 62 companies, including notable names like Bajaj Housing Finance and Ola Electric Mobility, collectively raised around ₹64,000 crore through mainboard IPOs. This marks a 29% increase from the previous year, indicating a growing appetite for public offerings.
Looking ahead, the outlook for the IPO market in 2025 appears positive, with the Securities and Exchange Board of India (Sebi) having approved 22 IPOs so far, 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.
Risks and Considerations
While the current sentiment surrounding IPOs is overwhelmingly positive, it is essential to recognize potential risks. Market corrections and regulatory interventions could temper enthusiasm in the short term. Vaibhav Porwal, Co-founder of Dezrev, cautions that while the IPO frenzy shows no signs of abating, vigilance is necessary to navigate the inherent volatility of the market.
Conclusion
As the Indian primary market gears up for a flurry of IPOs, the upcoming months promise to be exciting for investors and companies alike. With major players like Hyundai, Swiggy, and NTPC Green Energy leading the charge, the landscape of corporate financing in India is set for a transformative phase. The interplay of strong investor sentiment, favorable economic conditions, and strategic corporate initiatives will undoubtedly shape the future of the IPO market in India.