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India Inc Gears Up For the IPO Bandwagon

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Published Date: 31 Jul 2023Updated Date: 13 Sep 20246 mins readBy MOFSL
IPO Bandwagon

Introduction:

While the world may face the heat of an imminent recession and high inflation, India is in a sweet spot, especially regarding initial public offerings (IPOs). As many as 80 mainboard companies and Small and Medium-sized Enterprises (SMEs) have been listed on the BSE and NSE in the first half of 2023. 

The number of IPOs in the first half of 2023 has surged by 33% compared to 22% in 2022. The IPO juggernaut will likely continue for a while, with many more in the pipeline for the rest of 2023. As India Inc. awaits with bated breath for more IPOs, you can grow your wealth by participating in them.

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IPOs to Watch Out For

With a mix of established giants and promising startups vying for public attention, the IPO landscape in India promises to offer many investment opportunities for those looking to ride the wave of growth and profitability. Here are some of the IPOs that have generated a considerable amount of enthusiasm among India Inc. and investors: 

  • Tata Technologies

The first public offering from the prestigious Tata Group in nearly two decades has recently got approval from the Securities and Exchange Board of India (SEBI) to launch its IPO. Tata Technologies IPO will ultimately be an offer for sale where the company will offload nearly 23.60% of its paid-up share capital. Tata Technologies is an engineering services firm that offers digital engineering solutions and product development to firms in the manufacturing industry. 

While the IPO’s size is unknown yet, as per market insiders, it could be a staggering Rs. 4,000 crores. While 50% of the IPO will be for qualified institutional buyers (QIBs), retail and non-institutional investors (NIIs) will get 35% and 15% each. Tata Technologies IPO is among the most awaited IPOs of 2023.

  • SBFC Finance Limited

Another IPO that has generated considerable buzz among India Inc. and investors is that of SBFC Finance Limited, a non-banking financial company (NBFC). This IPO will open for subscription on August 3, 2023, aiming to raise Rs. 1,200 crores from the offering. The issue will close on August 7, 2023.

In the offer, there’s a fresh issuance of shares worth up to Rs. 750 crores and an offer of sale of up to Rs. 450 crores. The retail quote has been fixed at 35%, while the QIBs and NIIs will get 50% and 15%, respectively. One of India’s premier MSME-focussed NBFCs, the company’s assets under management (AUM) have grown at a CAGR of 40% from the 2019 fiscal to 2022. 

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  • Mukka Proteins

After filing its draft papers with SEBI in March 2022, Mukka Proteins filed its draft red herring prospectus again in 2023. The company’s IPO consists of a fresh issue of shares valued at Rs 8 crores with a face value of Rs. 1. With the proceeds received, the company plans to use up to Rs. 120 crores to meet its working capital needs and up to Rs. 10 crores to invest in its associate. 

While 50% of the IPO is available for qualified institutional investors, up to 15% is available to non-institutional bidders. 35% of the issue is available to retail individual bidders. One of the dominant players in India’s fish protein market, the company has received accolades from the Marine Products Export Development Authority for its top-notch export performance.

  • Fincare Small Finance Bank

Fincare Small Finance Bank has joined the growing list of small finance banks joining the IPO bandwagon. In its draft red herring prospectus filed with the SEBI, the bank plans to raise Rs. 625 crores as a fresh issue through its IPO. Offer for sale comprises 1.7 crores equity. The face value of equity share capital is Rs. 10 each. A digital-first small finance bank, the bank caters to the needs of underbanked and unbanked customers. 

In Conclusion

With India Inc. recovering strongly post-COVID, market sentiments are incredibly positive. The Sensex and Nifty have climbed record highs, and markets are bullish. Strong corporate growth, FPI inflows, and proactive measures from the RBI to tame inflation have created a positive atmosphere where companies look forward to scripting their success stories.

If you want to invest in any of these IPOs mentioned above, open a Demat account with Motilal Oswal today. Happy investing!

 

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