Five IPOs to hit mkt in H1 of Nov, set to raise over Rs 27K cr

The other three firms whose initial share-sales are set to open are Sapphire Foods India, which operates KFC and Pizza Hut outlets, decorative aesthetics supplier SJS Enterprises and microcrystalline cellulose manufacturer Sigachi Industries. 

The IPOs of FSN E-Commerce Ventures Ltd, which runs online marketplace for beauty and wellness products Nykaa, and Fino Payments Bank are currently open for public subscription. 

The three-day initial share-sales of Nykaa and Fino Payments Bank will conclude on November 1 and November 2, respectively. Nykaa is looking to raise Rs 5,352 crore through its IPO, while fintech firm Fino Payments Bank is seeking to mobile Rs 1,200 crore through the initial share-sale. 

Together, these seven companies will raise nearly Rs 33,500 crore through initial share-sales. Of these, a major chunk will be garnered by technology based companies. 

Prior to these, Aditya Birla Sun Life AMC had floated its Rs 2,778-crore in initial share-sale on September 29. 

“Bull markets are the best times when any company going public seems to get better premiums and valuations on the business,” Prateek Singh, Founder and CEO, LearnApp.com. 

“Tech companies in particular get a better premium because of their ability to scale exponentially, which is why we are seeing many tech start-ups raise cash by going for an IPO this time,” he said. 

He, further, said that the trend of technology based companies going public to continue in the immediate future until the market calms down and moves downward. So if the markets fall in the future, the IPOs will also reduce. 

So far in 2021, as many as 41 companies have floated their IPOs to raise Rs 66,915 crore and Devina Mehra of First Global said the year should be closing with Rs 1 lakh crore primary market fundraise. 

Apart from these, PowerGrid InvIT, the infrastructure investment trust (InvIT) sponsored by the Power Grid Corporation of India mopped up Rs 7,735 crore through its IPO and Brookfield India Real Estate Trust raised Rs 3,800 crore via its initial share-sale. 

The fund raising so far in this year is way higher than Rs 26,611 crore collected by 15 companies through initial share-sales in the entire 2020. 

Such impressive fund raising through IPOs was last seen in 2017 when firms mobilised Rs 67,147 crore through 36 initial share-sales. 

Mehra, founder of First Global and Smallcase portfolio manager, said, “Anytime any route for raising funds is available, everyone jumps in till it is at the stage of a frenzy. We have seen that happen several times in the past in the IPO market as well - happens every few years. The IPOs will keep coming till the market remains favourable.” 

“The biggest merit for Paytm’s IPO would be that they have so much more diversified regulatory access under one roof. This focus on diversification means that none of their particular business books has depth unlike other major players who focus more on specialising,” Nikhil Kamath, Co-founder, True Beacon and Zerodha, said.