12 firms raise ₹27,000 cr via IPO route between April-June in FY 22

A total of 12 Indian companies have raised ₹27,000 crore through the IPO route between April and July of the current fiscal year, so far.

Of the total ₹27,000 crore mopped up during the period under review, the digital food delivery platform contributed immensely. A total of ₹9,375 crore raised by Zomato claims almost 35% of the total funds garnered.

Apart from these, PowerGrid InvIT, the infrastructure investment trust (InvIT) sponsored by the Power Grid Corporation of India, mopped up ₹7,735 crore through its IPO.

Other big-ticket IPOs were -- Sona BLW Precision Forgings, which collected ₹5,550 crore, Macrotech Developers ( ₹2,500 crore) and Krishna Institute of Medical Sciences ( ₹2,144 crore).

Amid the season of IPO, four other companies are to go public this week. The initial share sales of four other companies Devyani International, Windlas Biotech, Krsnna Diagnostics and Exxaro Tiles are schedule to open on August 4.

In addition to this, Paytm and Nykaa would be among the list of highly-buzzed IPOs that are in the queue.

Further, a lot of retail investors associated brands are going to list on the Indian bourses. According to Kaushlendra Singh Sengar, founder and CEO at INVEST19, the IPOs of Paytm, Mobikwik, Policy Bazaar, CarTrade Tech, Delhivery and Nykaa will keep investors busy in the FY22.

Sengar of INVEST19 believes that investors have started considering IPOs as an asset class that generate bumper returns on listing if they are lucky enough to get allotment.

Therefore, initial share sales are receiving tremendous applications from the investors and IPOs have been subscribing multifold times. This has pushed companies to raise funds through IPO, he added.

Hemang Kapasi, Head of Equities at Sanctum Wealth Management told PTI news agency that 40 initial public offers (IPOs) are lined up for the rest of the year looking to raise ₹70,000 crore.

Explaining the IPO buzz, Sandeep Matta, founder, TRADEIT Investment Advisor, said "exuberant equity bull run, higher participation of first-time investors, expectation of quick money, rewarding exit for existing investors, access to unconditional money are the major reasons behind companies going public".

Companies like Tatva Chintan Pharma Chem, Rolex Rings, G R Infraprojects, Clean Science and Technology, Shyam Metalics and Energy, India Pesticides, Dodla Dairy, Glenmark Life Sciences and Zomato subscribed in the range of 29 times to 180 times.

Interestingly, the ongoing financial year saw most of the IPOs opening with a premium over the issue price suggesting strong investors appetite.

In fact, all the companies, which got listed in the current fiscal, are trading above their issue price, giving smart returns in the range of 14 to 110%, since listing, to investors.

In 2019-20, a total of 13 companies collected ₹20,352 crore through IPOs, while 14 firms had floated IPOs in 2018-19 to raise ₹14,719 crore. FY 2017-18 saw 45 main-board IPOs collectively mobilising ₹82,109 crore.

(With PTI inputs)