Companies planning to enter the primary market in the next 4-6 weeks, according to bankers, include Avalon Technologies, Capillary Technologies, Cogent Systems, Divgi TorqTransfer Systems, Mankind Pharma, Nexus Malls REIT, Signature Global, TVS Logistics, and Utkarsh Small Finance Bank.
Eight of the nine companies did not respond to ET’s queries, while the spokesperson of Avalon Technologies said they would have more clarity on the issue’s timeline in 10 days.
January and February did not see any public issues. The high-profile ₹20,000-crore follow-on public offering of Adani Enterprises was called off after a rout in its share price following a Hindenburg report accusing the conglomerate of stock price ‘manipulation’ and accounting ‘fraud’.
The Nifty 50 index fell more than 4% since January 1, while Nifty Midcap 150 and Nifty Smallcap 150 indices declined by 5% and 6%, respectively, as foreign portfolio investors sold shares worth ₹28,104 crore during this period.
In the past eight months, 33 companies with IPO plans worth ₹49,300 crore have allowed their regulatory approvals to lapse, according to Prime Database numbers.
“Diminished investor appetite and an uncertain market outlook had forced many to defer fundraising plans,” said Dharmesh Mehta, CEO of DAM Capital Advisors. “However, even in a volatile market like this, there is a demand for selective smaller to mid-size IPOs that are reasonably priced.”Automotive component firm Divgi TorqTransfer Systems is the first company to launch its mainboard maiden public issue in 2023. The IPO will open for subscription on March 1 and close on March 3. The ₹500-crore IPO comprises a fresh issue of ₹180 crore and an offer for sale (OFS) of 3.93 million shares.
The public issue of Mankind Pharma, the drug maker known for Manforce Condoms and Prega News, may hit the market at the end of March or the first half of April to raise up to ₹5,000 crore, according to banking sources. The ChrysCapital-backed consortium of GIC of Singapore and CPP Investments owns 10% of Mankind, while Capital International owns another 11% stake. The IPO comprises a fresh issue of up to ₹1,600 crore, according to the draft prospectus.
TVS Supply Chain Solutions, a part of Chennai-based conglomerate TVS group, is also exploring launching its public issue in the next 5-6 weeks, bankers told ET. The company plans to mop up at least ₹4,000 crore from the market. The IPO consists of a fresh issue of shares worth ₹2,000 crore and an offer-for-sale of up to 59.5 million shares.
Chennai-based Avalon Technologies, an IT services and solutions company, and Gurugram-based real estate company Signature Global are also planning to respectively raise ₹850 crore and ₹1,000 crore each in March.
Last year, 40 companies raised ₹59,302 crore from the primary market through IPOs compared to 63 companies that have raised ₹1.19 lakh crore in 2021, according to Prime Database.
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