BOOMTIME FOR IPOs

AS THE BSE SENSEX CROSSES 67,000 POINTS, 42 FIRMS LINE UP TO RAISE OVER Rs 54,000 CRORE THROUGH INITIAL PUBLIC OFFERINGS. HOW SUSTAINABLE IS THE TREND?

- M.G. Arun

HEAVY RAINS AND FLOODS MAY have hit the headlines of late, but it’s a deluge of a different sort that’s creating waves in the Indian stock markets. Indian bourses, which saw millions dabble in online stock trading after the Covid pandemic struck in early 2020, are scaling a new peak. And it has prompted several companies to announce their initial public offering (IPO) plans to raise funds at higher valuations and offer safer exits to their investors. Notwithstanding a dry spell in the first two months of calendar year 2023, 13 firms have already raised over Rs 10,000 crore through IPOs since March. Another 42 firms have received market regulator Sebi’s approval and are set to tap the markets for funds worth more than Rs 54,000 crore. The stock markets are anticipating an action-packed streak for the rest of the year. Another 30 IPO proposals are awaiting Sebi’s approval, with plans to raise close to Rs 40,000 crore. In 2022, 40 IPOs had raised a total of Rs 59,302 crore.

Among the big IPOs lined up this year are those of financial services company Ebixcash, which is looking to raise Rs 6,000 crore, logistics firm TVS Supply Chain Solutions (Rs 4,200 crore) and engineering company Tata Technologies (Rs 4,000 crore). IPOs that have opened since March include that of Mankind Pharma (Rs 4,326 crore), engineering firm Avalon Technologies (Rs 865 crore), Yatharth Hospital & Trauma Care Services (Rs 676 crore), IT hardware firm Netweb Technologies (Rs 631 crore) and electric lamps and accessories company IKIO Lighting (Rs 606 crore).