Even now, the market regulator Securities and Exchange Board of India (SEBI) has decided to tighten rules on initial public offerings (IPOs) to manage the extreme volatility of stock prices on their listing day and also to protect their proceeds, which are earmarked for future acquisitions, As many as 23 companies are set to submit their public offerings in the March quarter of the current fiscal.
In total, these companies aim to raise around Rs 44,000 crore through the IPO route, with technology-driven companies leading the way. This comes after 63 companies mopped up a record Rs 1.2 lakh crore through initial public offerings (IPOs) in 2021, even as the coronavirus pandemic affected the domestic economy.
Hotel aggregator OYO (Rs 8,430 crore), 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 some of the key entities expected to make their first share sales in the March quarter, commercial bankers said.
Some other companies that will also be making their IPOs during this period include Mobiwik, Skanray Technologies, Healthium Medtech and Sahajanand Medical Technologies, commercial bankers to be further informed.
Apart from these companies, PowerGrid InvIT (Infrastructure Investment Trust) raised Rs 7,735 crore through its IPO while Brookfield India Real Estate Trust raised Rs 3,800 crore through REIT (Real Estate Investment Trust).
Excess liquidity, huge stock market gains and increased private investor participation fueled continued euphoria in the IPO market in 2021, experts say.
These companies are raising funds for organic and inorganic growth initiatives, debt payments and exits to existing shareholders, they said.