IPO News: Amidst the ongoing boom in the stock market, companies are racing to launch IPOs to raise funds. A total of 13 companies have filed documents related to IPO approval in a single day with market regulator SEBI. If all these applications get the approval of the Securities and Exchange Board of India (SEBI), then these companies will be successful in raising at least Rs 8,000 crore through IPO.
These companies that filed the draft documents belong to different sectors. In many of these IPOs, along with the new issue, the promoters of the existing shares have also proposed to launch OFS. Vikram Solar, Aditya Infotech and Varindra Constructions are among the companies that have filed draft documents regarding IPO approval with SEBI.
Other companies that have filed the draft document include Ajax Engineering, Rahi Infratech, Vikran Engineering, Midwest, Vini Corporation, Sambhav Steel Tubes, Jarrow Institute of Technology Management and Research, All Time Plastics Ltd, Skoda Tubes and Dave Accelerator.
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Increased confidence of companies towards Indian market
13 companies applying for IPO approval in a single day shows the increasing confidence of companies towards the Indian market. So far this year, 62 companies have raised a total of Rs 64,000 crore through their IPOs. This is 29 percent more than the Rs 49,436 crore raised through 57 IPOs in the entire year 2023.
The boom phase is expected to continue in the year 2025 also
Munish Aggarwal, head of equity capital markets at financial services firm Equiras, said that if there is no major shock in the global economy due to any major event, then the bullish phase in the domestic market is expected to continue in the year 2025.
According to merchant bankers, in the next two months, more than half a dozen companies like Hyundai Motor India, Swiggy and NTPC Green Energy are also preparing to jointly raise Rs 60,000 crore by launching IPOs.
Who is bringing IPO for how much?
According to the application filed with SEBI, Vikram Solar’s proposed IPO is a combination of fresh shares worth up to Rs 1,500 crore and an offer for sale (OFS) of up to 1.74 crore shares by promoters.
Aditya Infotech plans to raise Rs 1,300 crore through IPO. This will include fresh issue of equity shares worth Rs 500 crore and offer for sale of shares worth Rs 800 crore by promoters. Varindra Construction’s Rs 1,200 crore IPO is a mix of fresh issue of equity shares worth Rs 900 crore and OFS of shares worth Rs 300 crore by promoters.
Vikran Engineering’s proposed IPO includes an offer for sale of shares worth up to Rs 100 crore along with fresh shares worth up to Rs 900 crore. Kolkata-based Rahi Infratech plans to raise Rs 420 crore through IPO. Apart from the new shares, the issue will also include an offer for sale of 27 lakh shares by the promoters.
The Sambhav Steel Tubes IPO proposes to offer for sale shares worth Rs 100 crore by the promoters along with fresh shares worth Rs 440 crore. In Jarrow Institute’s Rs 570 crore IPO, apart from new shares worth up to Rs 170 crore, promoter Sanjay Salunkhe will also offer shares worth Rs 400 crore for sale.
The proposed IPO of Mumbai-based All Time Plastics is a combination of a fresh issue of Rs 350 crore and an offer for sale of 52.5 lakh shares by the promoters. At the same time, the IPO of Skoda Tubes will include completely new shares worth Rs 275 crore. Dev Accelerator’s initial share sale will also see a new issue of 2.47 crore shares.
