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regular-article-logo Wednesday, 29 May 2024

Eye on Hyundai, other IPOs as markets set to see more foreign inflows in coming months

According to primedatabase.com, 76 domestic companies raised Rs 61,915 crore through main board IPOs in 2023-24 against Rs 52,116 crore by 37 companies a year ago, an increase of 19 per cent

Our Special Correspondent Mumbai Published 30.03.24, 11:48 AM
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India’s buzzing primary market is set to see more foreign inflows in the coming months with floats of Hyundai Motor India and others jostling for investor attention.

According to primedatabase.com, 76 domestic companies raised Rs 61,915 crore through main board IPOs in 2023-24 against Rs 52,116 crore by 37 companies a year ago, an increase of 19 per cent.

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Pranav Haldea, managing director, Prime Database Group, said the overall public equity fundraising — through QIPs, follow-on public offerings and InvITs/ ReITs — rose 142 per cent to Rs 1,86,108 crore in 2023-24 from Rs 76,911 crore in 2022-23.

The pipeline remains strong with 19 companies proposing to raise nearly Rs 25,000 crore holding the market regulator’s approval.

Another 37 companies looking to raise about Rs 45,000 crore are awaiting the green signal from the Securities and Exchange Board of India (Sebi).

Out of these 56 companies, nine are new-age technology companies which are looking to raise almost Rs 21,000 crore.

Haldea pointed out that despite the upcoming general elections, the next couple of months should still see a few IPOs.

A paucity of deals elsewhere in Asia will add to the impetus for capital flows into India, a Reuters report, quoting bankers, said.

Higher global interest rates, geopolitical tensions, as well as China’s economic slowdown and its move to restrict initial public offerings (IPOs) to support its secondary
markets, have led to a slump in equity dealmaking across Asia.

India, on the other hand, has emerged as the second busiest market in the world for equity capital market deals after the United States.

In 2023-24, the largest mainboard IPO was from Mankind Pharma at Rs 4,326 crore. It was followed by Tata Technologies at Rs 3,043 crore and JSW Infrastructure, at Rs 2,800 crore).

Haldea observed that while companies across multiple sectors tapped the IPO market in 2023-24, the BFSI sector had a limited presence.

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