Wave of IPOs Set to Hit Dalal Street

Over a dozen companies, including Vikram Solar, Aditya Infotech, and Varindera Constructions, have filed for IPOs aiming to collectively raise at least Rs 8,000 crore. The strong IPO momentum is driven by macroeconomic factors and robust capital formation in corporate India. More firms are set to launch IPOs soon.

A wave of initial public offerings (IPOs) is set to hit Dalal Street with over a dozen companies, including Vikram Solar, Aditya Infotech, and Varindera Constructions, filing preliminary papers with markets regulator Sebi in a single day.

According to the draft papers filed on Monday, these firms are expected to collect at least Rs 8,000 crore collectively.

The IPOs span various sectors, deal sizes, and include combinations of fresh issues and offers for sale (OFS).

This surge comes amid strong primary market interest from issuers and investors across different sectors. Notably, 62 companies have already mobilized approximately Rs 64,000 crore via the mainboard, marking a 29 percent increase from the Rs 49,436 crore collected by 57 firms throughout 2023.

Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, noted that this momentum is driven by key macroeconomic factors, sector-specific drivers, and a willingness of funds to explore new ideas, assisted by strong inflows into domestic mutual funds and robust capital formation in corporate India.

"Unless a major black swan event disrupts the global economy and markets, we expect this momentum to continue into 2025, with increases in both the number of transactions and issuance amounts," he added.

Apart from the aforementioned companies, others such as Ajax Engineering, Rahee Infratech, and Vikran Engineering also filed draft papers on Monday. Companies are entering the primary market to raise funds for expansion, debt retirement, working capital, and to provide exit routes for shareholders.

Vikram Solar's IPO involves fresh equity issues worth up to Rs 1,500 crore and an OFS of up to 1.74 crore shares by its promoters. Aditya Infotech aims to raise Rs 1,300 crore through an IPO comprising a Rs 500 crore fresh equity issue and an Rs 800 crore OFS. Varindera Constructions' Rs 1,200 crore IPO includes Rs 900 crore in fresh equity issues and a Rs 300 crore OFS by promoters. Vikran Engineering proposes to raise up to Rs 900 crore through fresh share issues and Rs 100 crore through an OFS by promoters.

Additionally, companies like Hyundai Motor India, Swiggy, and NTPC Green Energy are among those gearing up for IPOs in the next two months, aiming to raise a combined Rs 60,000 crore, according to merchant bankers.

(With inputs from agencies.)