October 2021 is likely to be busy for the primary market as initial public offerings (IPOs) worth more than Rs. 20,000 cr are anticipated to be launched. This is significantly larger than the nearly Rs. 6,700 cr raised through IPOs in September 2021. There were five companies that went public last month: Aditya Birla Sun Life AMC, Ami Organics, Paras Defence, Sansera Engineering, and Vijaya Diagnostic Centre.
The number of IPOs expected to be launched in the second half of FY 2022 is very large, and the fund-raising could exceed Rs. 1 lakh cr if LIC also goes public. The country’s largest life insurance company, LIC, is likely to file its IPO papers with SEBI in November.
According to Gaurav Garg, Head of Research, CapitalVia Global Research, the year 2021 has been highly favourable for IPOs since market conditions are hopeful. He believes that the primary market’s performance for the remaining part of the year will be influenced by the secondary market as well.
In October 2021, about 12 enterprises are expected to open on Dalal Street. A few companies are Ixigo, Nykaa, Northern Arc Capital, and MobiKwik. More than Rs. 27,700 cr is estimated to be raised by these 12 companies.
In the current fiscal year, 26 firms issued public offerings, raising Rs. 59,716 cr, which is more than double Rs. 27,125 cr raised during the same time previous year. A total of 43 firms closed their public offerings in FY 2021, raising Rs. 78,520 cr, breaking the FY 2017 record of Rs. 75,278 cr.
This year also set a new high for subscription and listing gains. The public offering of Paras Defence and Space Technologies received 304.26 times subscription in September. Its shares began and closed with 185% gains on listing day, making it the biggest gainer among IPOs filed since 2011.