India Inc Prepares for the IPO Boom

Introduction:

India is in a favourable position, especially in terms of initial public offers (IPOs), while the rest of the world feels the sting of an impending recession and soaring inflation. Eighty enterprises, including both large corporations and smaller businesses, have been listed on the BSE and NSE thus far in 2023. 

The number of initial public offerings (IPOs) in 2023’s first half increased by 33% compared to the same period in 2022. There are expected to be many more initial public offerings (IPOs) throughout the remainder of 2023, so this trend is likely to continue. You can increase your wealth by taking part in the next IPO market as India Inc. eagerly awaits new offerings.

IPOs to Watch Out For

With a mixture of established giants and promising startups vying for public attention, India’s IPO landscape promises to provide numerous investment opportunities for those seeking to ride the tide of growth and profitability. The following initial public offerings (IPOs) have generated considerable excitement among India Inc. and investors:

• Tata Technologies

The Securities and Exchange Board of India (SEBI) recently gave the green light to the first initial public offering (IPO) from the illustrious Tata Group in nearly two decades. When everything is said and done, the initial public offering (IPO) of Tata Technologies would involve the sale of almost 23.60 percent of the company’s paid-up share capital. Tata Technologies is a technology services provider that specialises in providing digital engineering solutions and product development to manufacturers. 

Market experts speculate that the IPO’s size could be as high as Rs. 4,000 crores, albeit this is still uncertain. Half of the initial public offering (IPO) will go to QIBs, with the remaining 50% split between retail and non-institutional investors (NIIs, or “small investors”). One of 2023’s most anticipated IPOs is Tata Technologies.

• SBFC Finance Limited

SBFC Finance Limited is a non-banking financial company (NBFC) whose first public offering (IPO) has also received a lot of attention from India Inc. and investors. On August 3, 2023, investors will be able to put money into an initial public offering with the goal of raising Rs. 1,200 crores. The last day to purchase shares is August 7, 2023.

There will be a new issuance of shares worth up to Rs. 750 crores and a sale of shares for up to Rs. The wholesale price has been set at 35%, with QIBs receiving 50% and NIIs receiving 15%. The company’s assets under management (AUM) have expanded at a CAGR of 40% from the 2019 fiscal to 2022, making it one of the leading NBFCs in India with a concentration on micro, small, and medium enterprises. 

• Mukka Proteins

Mukka Proteins initially submitted its red herring prospectus draught to SEBI in March 2022. The initial public offering (IPO) of the company consists of a new issue of shares having a face value of Rs. 1. The business intends to invest up to Rs. 10 crores in its partner using the proceeds and use the remaining Rs. 120 crores to cover its working capital needs. 

Qualified institutional investors can purchase up to 50% of the IPO, while retail investors can purchase up to 15%. Retail investors can bid on 35% of the issue. The Marine Products Export Development Authority has recognised the company as a leader in the export of fish proteins from India..

• Fincare Small Finance Bank

Fincare Small Finance Bank is the latest small finance bank to go public. The bank has filed a draught red herring prospectus with the SEBI, indicating that it intends to raise Rs. 625 crores through its initial public offering (IPO). Included in the transaction price is equity worth Rs. 1.7 crores. Each equity share capital has a face value of Rs. 10. As a small financing bank that prioritises digital services, the bank meets the needs of underbanked and unbanked consumers.

Also Read : Industrialist Ratan Tata to get Maharashtra govt’s first ‘Udyog Ratna’ award

In Conclusion

Positive market attitudes have been sustained by India Inc.’s rapid recovery since the COVID outbreak. Market sentiment is optimistic as the Sensex and Nifty both hit all-time highs. Companies have a hopeful outlook on the future because of the favourable environment produced by the strong economic development, foreign direct investment (FPI), and aggressive steps taken by the RBI to control inflation.