IPO Rush to Stay in March Quarter as Firms Aim to Raise Rs 44,000 Crore; Details Here

IPOs in 2022: The IPO rush on the Dalal Street sees to be removed from over as we head in direction of the brand new 12 months, as markets are set to remain abuzz with new points developing each different day. According to stories, the first markets will maintain busy with actions as nearly two dozen firms want to float their Initial Public Offerings, or IPOs, within the March 2022 quarter. The IPOs are going to collectively increase Rs 44,000 crore this quarter, the report says, quoting service provider bankers. Last 12 months has been an distinctive 12 months, and this 12 months too, that is set to proceed.

In 2021, as many as 63 firms had raised a complete sum of a document Rs 1.2 lakh crore via IPOs even throughout the pandemic. This 12 months’s rush comes as a response to that. A big portion of the entire funds this 12 months can be gathered by firms pushed by expertise.

Apart from these companies, PowerGrid InvIT (Infrastructure Investment Trust) mopped up Rs 7,735 crore via its IPO, whereas Brookfield India Real Estate Trust raised Rs 3,800 crore via REIT (Real Estate Investment Trust).

Excessive liquidity, big itemizing features and elevated retail investor participation spurred a persistent euphoria within the IPO market in 2021.

The companies which might be anticipated to boost funds via their IPOs throughout the March quarter embrace resort aggregator OYO (Rs 8,430 crore) and provide chain firm Delhivery (Rs 7,460 crore), the service provider bankers mentioned.

In addition, Adani Wilmar (Rs 4,500 crore), Emcure Pharmaceuticals (Rs 4,000 crore), Vedant Fashions (Rs 2,500 crore), Paradeep Phosphates (Rs 2,200 core), Medanta (Rs 2,000 crore) and Ixigo (Rs 1,800 crore) are anticipated to drift their preliminary share-sales, they added.

Also, Skanray Technologies, Healthium Medtech, and Sahajanand Medical Technologies are prone to come out with their IPOs throughout the interval underneath assessment, the service provider bankers mentioned.

These companies are elevating funds for natural and inorganic progress initiatives, debt funds and giving exits to present shareholders.

“Initial public listing by the companies is done to raise capital through the public which increases the liquidity of the share as well as helps in valuation discovery,” said Eklavya, founder, Recur Club.

LearnApp.com founder and CEO Prateek Singh said the tech companies now want to expand globally and to do that, they will require capital; and this capital is being picked up through the IPO route.

Besides, anchor investors in these companies have been waiting for an exit to get rewarded, this exit is being offered to the anchor investors through the IPO route, he added.

The continued activity in the primary market comes at a time when Sebi has decided to tighten the IPO rules to tackle the extreme volatility in the stock prices on their listing day.

These measures include putting a cap on the quantum of issue proceeds a company can use for unidentified inorganic growth, as well as restricting the number of shares that can be offered by selling shareholders and increasing the lock-up of shares subscribed by anchor investors.

Yash Ashar, partner and head (capital markets) at Cyril Amarchand Mangaldas, said: “Inability to raise money for future unidentifiable acquisitions would impact capital raising plans of some unicorns, particularly, where such companies may not have any other use of capital and where existing shareholders are not keen to sell.”

He added that these amendments are mainly a reaction to several IPOs in 2021.

“These proposed changes to the law could have a long-term impact… These changes may impact plans of issuers planning to list on Indian stock exchanges,” he added.

(With PTI Inputs)

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