IPOs Outlook: Temporary Slowdown with Promising Future

The IPO market is experiencing a brief slowdown with only two new public issues planned next week, Garuda Construction and Engineering, and Shiv Texchem raising Rs 365 crore. Despite this, the overall outlook remains promising, with numerous firms planning substantial IPOs in the near future.

After a flurry of initial public offerings (IPOs) in recent weeks, the primary market is set for a brief slowdown. Only two new public issues are scheduled for the upcoming week, with the aim of raising Rs 365 crore.

September witnessed 12 IPOs in the mainboard segment and 40 in the SME segment, indicating a bustling market activity. However, the IPO lineup for the week starting October 7 includes Garuda Construction and Engineering on the main board and Shiv Texchem in the SME sector, poised to raise Rs 264 crore and over Rs 101 crore respectively.

Despite the temporary lull, the IPO market's future seems optimistic, with 26 firms ready to raise Rs 72,000 crore, having Sebi's approval, while another 55 companies await clearance to raise Rs 89,000 crore. Upcoming notable IPOs include Hyundai Motor India Ltd's Rs 25,000 crore offering, potentially the largest in India's history, surpassing LIC's Rs 21,000 crore IPO.

(With inputs from agencies.)