India’s IPO market surges with five companies set to raise Rs 7,300 crore

NEW DELHI – India’s initial public offering (IPO) landscape is bustling with activity as five companies, including Tata Technologies and the Indian Renewable Energy Development Agency (IREDA), are set to collectively raise over Rs 7,300 crore. This move comes amid a spike in IPOs, with recent offerings from other companies such as ASK Automotive and Honasa Consumer, which features the Mamaearth brand.

The subscription period for IREDA is scheduled to open from Tuesday to Thursday, with a price band of Rs 30-32 per share. Meanwhile, Tata Technologies is preparing for its first group IPO since Tata Consultancy Services (NS:) in 2004, with a price band of Rs 475-500 per share. The public offerings from Fedbank Financial Services, Flair Writing Industries, and Gandhar Oil Refinery India will commence shortly thereafter.

V Prashant Rao from Anand Rathi Advisors highlighted the robust market conditions as a driving force behind the active IPO scene, despite a decline in funds raised during the first half of FY24 compared to the same period in FY23. He noted that sensibly valued quality company listings are likely to attract investors in the second half of the fiscal year.

Key stakeholders like Tata Motors (NYSE:) and Alpha TC Holdings are participating in Tata Technologies’ offer for sale (OFS), aiming to divest an estimated 11.4% and 2.4% stakes respectively. The Government of India is also offering shares worth Rs 860 crore in IREDA’s OFS.

The flurry of IPOs is underpinned by substantial market fundamentals and an average post-listing return of around 30%, according to Rao. With this positive outlook, the upcoming IPOs are poised to draw significant investor interest:

• IREDA targets raising ₹2,150 crore at ₹30–₹32 per share.
• Tata Technologies aims for ₹3,042 crore within ₹475–₹500 per share.
• Fedbank Financial Services seeks ₹1,092 crore at ₹133–₹140 each.
• Flair Writing Industries eyes ₹593 crore within ₹288–₹304 per share.
• Gandhar Oil Refinery estimates its share value between ₹160–₹169.

This wave of IPOs represents a notable moment for India’s capital markets as companies across various industries seek to capitalize on favorable conditions ahead of the upcoming elections.

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