 "Next week, four major IPOs, led by Bajaj Housing Finance, seek to raise ₹8,390 crore amid a bustling market landscape.")
The IPO Market is gearing up for a busy week, with four major companies, including Bajaj Housing Finance aiming to raise a total of Rs 8,390 crore. Other key players include P N Gadgil Jewellers, Kross Ltd, and Tolins Tyres, all set for subscription between September 9 and 12. This surge in IPO activity aligns with the financial reporting timeline, as September is the last month companies can use their FY24 financials. Additionally, nine SMEs plan to enter the Market, contributing an expected Rs 254 crore. Despite a robust environment for IPOs, experts caution that continued momentum could be jeopardized if some listings fall below their offering prices, urging investors to remain cautious.
The IPO Market is set to witness a flurry of activity next week as four major companies, including Bajaj Housing Finance, prepare to launch their initial public offerings. Collectively, these companies aim to raise a staggering Rs 8,390 crore. The initial share-sales will include Bajaj Housing Finance looking to mobilize approximately Rs 6,560 crore, along with P N Gadgil Jewellers seeking Rs 1,100 crore, Kross Ltd aiming for Rs 500 crore, and Tolins Tyres looking to raise Rs 230 crore.
Nine small and medium enterprises (SMEs) are also jumping into the action, planning to debut with their maiden public issues next week and target an additional Rs 254 crore. This brings the total amount these 13 firms hope to raise through IPOs to Rs 8,644 crore.
Munish Aggarwal, Managing Director at Equirus, highlighted that the upcoming weeks will be busy for the IPO markets. He noted that this surge is due to many issuers wanting to utilize their financials from Fiscal 2024 before new regulations come into play, as September marks the last month eligible companies can leverage FY24 financial data for their IPOs.
The main-board IPOs will open for subscription from September 9 for most, while P N Gadgil Jewellers will start on September 10. Furthermore, additional IPOs from companies like Arkade Developers and Western Carriers India are also on the horizon.
This year has seen over 50 main-board IPOs already launched, and With significant interest from investors, Aggarwal believes that the current amount raised from IPOs will cross Rs 1.25 lakh crore by year’s end. However, experts urge caution, noting that if several IPOs begin to list below their offer prices, it could dampen Market activity.
Recent data also indicates strong subscription levels in the Market, with main-board IPOs being subscribed over 75 times in August alone. The interest in SME IPOs has been even more pronounced, with subscription rates averaging around 290 times.
As the IPO landscape continues to evolve, investors are advised to focus on the fundamentals, especially in the SME sector, which has become increasingly volatile.
What is happening with IPOs next week?
Next week, 13 companies are going to the primary Market to raise a total of Rs 8,644 crore through their IPOs.
Why are these companies launching IPOs now?
These companies want to raise money from investors to support their business growth and expansion plans.
How does an IPO work?
An IPO, or initial public offering, is when a private company sells shares to the public for the first time to raise funds.
What should investors consider before buying IPO shares?
Investors should look at the company’s financial health, business model, and Market conditions before deciding to invest in IPO shares.
Will all 13 IPOs be successful?
Not all IPOs succeed; it depends on various factors like investor interest, Market conditions, and the company’s performance.
 "Government privatizes Ferro Scrap Nigam Ltd, selling it to Japan’s Konoike Transport for Rs 320 crore, exceeding reserve price.")
