Rs 1 lakh crore of public issues are lined up in 2021

Mumbai: Year 2021 could be a record year for the primary market with fundraising through initial public offers (IPOs) expected to top Rs 1 lakh crore, according to bankers. They said this was excluding the issues from government-owned companies like the Life Insurance Corporation.So far this year, seven companies have raised about Rs 12,000 crore through IPOs while another 49 are planning to raise nearly Rs 90,000 crore.With stock markets at all-time highs and huge liquidity chasing stocks, companies are planning to capitalise on the strong fundraising momentum in the Indian markets, said bankers.“With huge liquidity driven by strong foreign institutional inflows and high demand from domestic investors, this year could see a record fundraising through IPOs,” said V Jayasankar, head of equity capital markets at Kotak Investment Banking. “The success of a recent IPO and its returns will prompt investors to put more money into the primary market.”The record IPO raise so far was in 2017 when 36 companies raised Rs 67,147 crore. Last year, 15 companies raised Rs 26,613 crore.Two big IPOs — National Stock Exchange and HDB Financial Services — which are stuck due to regulatory issues are likely to be launched later this year, according to bankers. These two issues if permitted by Sebi and RBI respectively can net more than Rs 20,000 crore.Private equity firm Blackstone-backed Aadhar Housing Finance has filed draft papers to raise up to Rs 7,300 crore last month.Logistics firm Delhivery is planning to raise about Rs 6,000 crore at a valuation of $3.2-4 billion. Hyderabad-based SembCorp Energy, earlier known as Thermal Powertech Corporation and Chennai-based Star Health Insurance, backed by Rakesh Jhunjhunwala and private equity firms Westbridge Capital and Madison Capital, are planning to raise Rs 5,000 crore each.“There is an exciting lineup of new-age companies which will be available for investors this year,” said Ravi Sardana, an investment banker. “Many companies are advancing their IPO plans as they are getting higher valuations now because of the rally in the secondary market.”Among the new-age companies, online food delivery platform Zomato, cosmetics e-tailer Nykaa and online insurance platform Policy Bazaar are planning to raise between Rs 3,500 crore and Rs 4,000 crore, said bankers.
Read More

Leave a Comment

Your email address will not be published. Required fields are marked *