Notwithstanding the turbulence in the equity market triggered by the ongoing conflict between Israel and Hamas, two companies are braving it out to raise ₹3,601 crore from the primary market in the coming week.
Cello World, which will hit the IPO market on Monday, has already raised ₹567 crore from anchor investors before the subscription opens for retail bidding.
The company has fixed a price band of ₹617-648 per equity share. It is a complete offer-for-sale, where promoters and other shareholders will sell shares of ₹5 face value totalling ₹1,900 crore.
Similarly, Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, has set the price band for its IPO at ₹308-324 per share. This translates to an issue size of ₹1,701 crore at the upper end of the band.
Despite the volatile secondary market, five companies have raised ₹2,647 crore so far in October with the Blue Jet Healthcare IPO which closed on Friday, getting oversubscribed 7.94 times. The Maharashtra-based pharma and healthcare ingredient firm had raised ₹840 crore through the offer-for-sale by the Arora family. The trading in this company’s shares will commence on the BSE and NSE from November 6.
The company had already raised ₹252 crore from several anchor investors, including HSBC Global, Societe Generale, Government Pension Fund Global, HDFC Mutual Fund, Troo Capital, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Insurance Company and BNP Paribas Arbitrage.
Besides, the IPO pipeline for the next one month appears promising with about 12 companies looking to raise ₹13,000 crore. Some of the major corporates that will be tapping into the primary markets include Tata Technologies, ASK Automotive, Protean eGov Technologies, Fedbank Financial Services, ESAF Small Finance Bank, Flair Writing Industries and Credo Brands Marketing.
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, said though secondary market was subdued last week leading to a bearish trend, a significant momentum is expected in the IPO market in coming months.
In all, 16 companies have filed draft red herring prospectus with SEBI in October and this showcases immense potential in the primary market issuances, he said.
Interestingly, he added that smaller companies from Tier-II and -III cities have raised ₹10,680 crore growth capital from primary issuances and accounted for 40 per cent of funds raised so far in this year.