Despite market volatility, ₹7,000 crore IPO to hit D-Street next month

Warburg Pincus-backed pharmacy chain MedPlus Health Services Ltd and Healthium MedTech Ltd, a maker of surgical instruments controlled by buyout firm Apex Partners, are among the list of candidates aiming to sell shares next month, according to people with knowledge of the matter.

Developer Shriram Properties Ltd is looking to launch its offering before the end of the year, the people said. According to one of the people, wedding apparel maker Vedanta Fashion Ltd may also start its share sale in December. If they all succeed, it could become the busiest December on record for an Indian IPO, surpassing the $972 million raised in the same month of 2012, data compiled by Bloomberg shows.

The next few weeks will show whether Mumbai IPO investors will be more receptive to listings outside the technology industry, whose eye-popping valuations triggered an uproar for fintech giant Paytm, formally known as One97 Communications Ltd. Known in So far, those lining up said listings for December are sticking with their fundraising goals.

MedPlus was approved for an IPO of $219 million in mid-November, while Shriram Properties applied for permission to sell shares worth up to $107 million in April. One of the people said that Healthium has been approved and about $350 million is likely to be sought.

Vedanta, which is known for its clothing brand Manyavar, can raise around $300 million from a single listing, the person said. The company is awaiting the approval of the market regulator to sell the shares for the first time.

medical insurer Star Health and Allied Insurance Company., backed by billionaire investor Rakesh Jhunjhunwala, will begin taking orders for an IPO this week, seeking to raise up to $975 million. In total, the December listing would increase by more than $1 billion.

An external representative for Healthium, MedPlus, Shriram Properties and Star Health said they have received approval from the regulator and are planning to launch their IPOs soon. A representative for Vedanta did not respond to requests for comment.

Things are looking less juicy for the country’s digital startups, which were hit by fintech giant Paytm’s 37% drop in the first two trading days. Rival payments provider MobiKwik plans to postpone its listing to next year, people with knowledge of the matter said. Logistics company Delhi Ltd and Oyo Hotels and operators of online pharmacy PharmEasy have filed draft prospectus and are awaiting regulatory approval.

A MobiKwik spokesperson said the company has a clear path to profit and will be listed at the right time.

Indian firms have already crossed a record IPO volume this year, with $15.5 billion raised so far. However, analysts have expressed concerns that the reaction to Paytm’s offer could affect the valuation of Indian stocks.