Paytm parent One97 Communications and PolicyBazaar parent PB Fintech have collectively planned their IPOs in the first half of November to raise over Rs 27,000 crore.
After a month-long hiatus, the primary market is heading towards a busy time, with five firms including Paytm parent One97 Communications and PolicyBazaar parent PB Fintech collectively raising over Rs 27,000 crore in their IPOs in the first half of November. has arranged.
The other three firms with initial share-sales opening are Sapphire Foods India, which operates KFC and Pizza Hut outlets, decorative aesthetics supplier SJS Enterprises and microcrystalline cellulose maker Sigachi Industries.
The IPOs of FSN E-Commerce Ventures Ltd, which runs the online marketplace for beauty and wellness products Nykaa, and Fino Payments Bank are currently open for public subscription.
The three-day initial share sale of Nykaa and Fino Payments Bank will end on November 1 and November 2, respectively. Nykaa is looking to raise ₹5,352 crore through its IPO, while fintech firm Fino Payments Bank is looking to raise ₹1,200 crore through an initial share-sale.
Together these seven companies will raise around Rs 33,500 crore through initial share-sale. A major part of this will be received by technology-based companies.
Prior to this, Aditya Birla Sun Life AMC made its ₹2,778 crore debut in an initial share-sale on 29 September.
Prateek Singh, Founder and CEO, LearnApp.com said, “Bull markets are the best times when any company enjoys a better premium and valuation than a publicly traded one.”
“Tech companies in particular get a better premium because their capacity is growing rapidly, which is why we are seeing many tech startups going for IPOs this time to raise cash,” he said.
He further added that the trend of technology-based companies going public would continue in the near future till the market calms down and turns downward. So if the market goes down in future then the IPO will also go down.
So far in 2021, 41 companies have floated their IPOs to raise ₹66,915 crore and Devina Mehra of First Global said the year should end with primary market fundraising of ₹1 lakh crore.
Besides these, PowerGrid InvIT, Infrastructure Investment Trust (InvIT) sponsored by Power Grid Corporation of India raised Rs 7,735 crore through its IPO and Brookfield India Real Estate Trust raised Rs 3,800 crore through its initial share-sale.
The funds raised so far this year are much higher than ₹26,611 crore collected by 15 companies through initial share-sales throughout 2020. Such impressive fund-raising through IPOs was last seen in 2017 when the firms raised ₹67,147 crore through 36 initial shares. -sales.
Ms. Mehra, Founder, First Global & Smallcase Portfolio Manager said, “Whenever any avenue of raising funds is available, everyone jumps in until it is in a frenzy phase. We have seen that in the past. It has happened many times. The IPO market also — happens every few years. IPOs will keep coming until the market is favourable.” He also advised investors to be cautious.
“Just because an IPO is too hypothetical or heavily oversubscribed, doesn’t mean it will perform well in the years to come. Many fancy consumer tech IPOs like Uber, Lyft, etc. globally have followed suit. The market has not performed well.” added.
Digital firm One97 Communications, which operates under the Paytm brand name, is set to launch an IPO of Rs 18,300 crore on November 8. The IPO consists of equity shares of Rs 8,300 crore and an offer of sale (OFS) of Rs 10,000 crore. ) by existing shareholders.
The company has fixed a price band of ₹2,080-2,150, which means that the valuation of the firm is ₹1.44 lakh crore – ₹1.48 lakh crore.
Nikhil Kamath said, “The biggest merit to Paytm’s IPO will be that they have a much more diverse regulatory reach under one roof. This focus on diversification means that they have a lot more than other major players in any particular business book. Not unlike depth, which tend to focus more on expertise.” True Beacon and co-founder of Zerodha said.
The ₹5,710-crore IPO of PB Fintech, which operates online insurance platform PolicyBazaar and credit comparison portal Paisabazaar, includes fresh issue of equity shares worth Rs 3,750 crore and offer for sale by existing shareholders for about Rs 1,960 crore.
The issue with a price band of ₹ 940-980 per share will open for public subscription during November 1-3. The initial share sale of Sapphire Foods India will open for public subscription on November 9 and end on November 11. The IPO will be an offer for sale of 1,75,69,941 equity shares entirely by the promoters and existing shareholders.
According to market sources, the IPO is expected to fetch Rs 1,500-2,000 crore.
The ₹800 crore IPO of SJS Enterprises is an offer for sale of shares entirely worth ₹710 crore by Evergraph Holdings Pte Ltd and ₹90 crore by KA Joseph.
The issue will open on November 1 with a price band of 531-542 per share and close on November 3. Sigachi Industries will issue 76.95 lakh equity shares through IPO and is planning to raise Rs 125.43 crore on the upper end. of the price band of ₹161-163 per share.
Going forward, Ms. Mehra said that new economy companies like e-commerce, fintech and technology startups will lead the next round of capital coming into the economy and we are seeing the beginning of that boom with IPOs. UP.
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