NEW DELHI: With the equity benchmarks hitting record highs and a couple of
IPOsseeing massive response from QIBs and high-net worth individuals, several companies have joined the queue to hit the primary market in the year ahead.
Analysts said at least 40-50 new offerings are likely to hit the market in coming year, as global liquidity helps support valuations of domestic stocks.
As per the Sebi website, offer documents for some 12 IPOs were under process till December 27.
UTI Asset Management Company and Rossari Biotech filed their draft prospectuses on December 18.
Equitas Small Finance Bank filed its draft prospectus on December 16. Online travel company
EasyTripPlanners filed its papers on December 13.
Home First Finance, a mortgage financier backed by True North and Singapore's
sovereign wealth fundGIC, filed papers for a Rs 1,500 crore IPO, on November 29. SBI Cards and Payment Services, an SBI subsidiary, filed its papers with the market regulator on November 27.
“There was a string of IPOs towards the fag end of the year, as the market picked up pace in the last 3-4 months,” said Ajit Mishra of Religare Securities.
On Thursday, December 20, Sensex hit a fresh record high of 41,809.96.
“The rally was triggered largely by government measures to rejuvenate the economy and capital markets. Moreover, successful listings of IPOs like CSB Bank and IRCTC boosted confidence of the corporates, and hence, we can expect a large number of issues in 2020,” he said.
Data from PRIME Database showed 21 companies already have Sebi approval to float IPOs. State-run Mazagon Dock received Sebi approvals for IPO last month. The issue is part of the government's target to raise Rs 1.05 lakh crore through stake sale in state-owned companies in the year ending March 31, 2020. One may, thus, expect this IPO to hit the market soon.
SAMHI Hotels has already received the market regulator ‘s go ahead for an IPO to raise an estimated Rs 1,800-2,000 crore.
Meanwhile, Equitas Small Finance Bank is expected to list by March 2020, as soon as it gets Sebi approval. The bank in September failed to comply with RBI licence guidelines to dilute stake within the stipulated time. The recent strong listing of peer Ujjivan SFB has now prompted the company to go for it.
Mishra said that if market conditions remain favourable, there could be 40-50 mainboard IPOs in the coming year.
“We expect a lot of private equity investors to take their companies public, while a lot of corporate action may take place in terms of OFS, share buybacks and the like. Calendar 2020 promises to bring a wide range of new industries to Indian investors," said Vikaas Sachdeva, CEO, Emkay Investment Managers.
Rusmik Oza, Head of Fundamental Research at Kotak Securities, expects many IPOs in the coming months. “Based on the draft prospectuses filed with Sebi, more than 20 companies can potentially come out with IPOs in the months ahead,” he noted.
IPO
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January 1, 2020 at 05:28AM by , Khareem Sudlow
