7 IPOs To Watch Out For In The Second Half Of FY24 28 companies are actively planning to raise around INR 38,000 crore, according to a report
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This year, the Indian initial public offering (IPO) market has come back with a bang. In the first half of FY24, we have seen 31 initial share sales so far. According to a report by Prime Database, quoted by various media houses, the positive trend is expected to continue. In the second half of the fiscal year, 28 companies are actively planning to raise around INR 38,000 crore, the report said.
It also mentioned that 41 companies are awaiting approval from the Securities and Exchange Board of India (SEBI) to launch their IPOs, with a combined value of INR 44,000 crore. However, despite a significant increase in the number of IPOs from 14 to 31 in the first half of the current fiscal year, the total funds raised through these IPOs saw a decline of 26% to INR 26,300 crore as against INR 35,456 crore the year before.
Even though some experts say that the fundraising environment for IPO may get tough given the geopolitical tensions in the Middle East, Ukraine-Russia war and the resulting global inflation, the good part is several known names have already prepped to make their entry in the initial share sale segment in the coming months of FY24. Here are the 7 prominent IPOs waiting to happen.
This is by far the most anticipated IPO. Tata Technologies, a subsidiary of Tata Motors, filed an addendum with SEBI to its draft red herring prospectus (DRHP) last week. It said that Tata Technologies would offer 9.57 crore shares in its planned IPO with a face value of INR 2 per share.
As per media reports, the hospitality unicorn is seeking to raise $250 million in funding from investors amidst the delay of its IPO. A portion of this capital will reportedly be allocated to settling its $660 million term loan B. OYO also plans to offer secondary shares at a reduced price compared to the primary capital raise valuation. The company reported a 14% rise in operating revenue for the fiscal year 2023, along with a 38% decrease in losses.
The insurance company refiled its preliminary IPO papers with SEBI after making certain changes to its employee stock appreciation rights scheme in April this year. The IPO comprises fresh issue of INR 1,250 crore and an offer for sale (OFS) of up to 109.45 million shares by shareholders and promoters. Actor Anushka Sharma and Cricketer Virat Kohli are among the investors in the firm.
Noida-based EbixCash plans to raise INR 6,000 crore through its IPO. The issue is fresh equity of shares. The technology-enabled provider of digital products in the B2C and B2B space has already got the regulator's approval. The 6,000 crore IPO will make it the biggest public offer of 2023 to date.
Flair Writing Industries
The leading pen maker has filed draft papers with markets regulator Sebi for an INR 745 crore IPO. The total offer size comprises a fresh issue of equity shares up to INR 365 crore and an OFS of up to INR 380 crore.
Apeejay Surrendra Park Hotels
Apeejay Surrendra Park Hotels plans to raise INR 1,050 crore through an IPO route. It owns and operates hotels under the brand name, The Park. The IPO would be the second biggest hotel IPO in India so far, after Chalet Hotels' INR 1,641 crore IPO in February 2019. The Kolkata-headquartered company filed its DRHP in August and the IPO comprises a fresh equity issue of INR 650 crore and an OFS of INR 400 crore of face value of INR 1 each.
Fincare Small Finance Bank
The bank filed papers in May and has now received approval from SEBI to raise funds via IPO. Fincare Small Finance Bank Ltd will issue equity shares with a face value of INR 10 apiece, consisting of a fresh issuance of up to INR 625 crore and an OFS of up to 1.70 crore equity shares by the promoter and investor selling shareholders. Fincare Small Finance Bank is a digital-first SFB with a focus on unbanked and under-banked customer segments.