Flood of IPOs: 13 cos file draft papers with Sebi in a single day

New Delhi: A wave of initial public offerings (IPOs) is set to hit Dalal Street with over a dozen companies, including Vikram Solar, Aditya Infotech, and Varindera Constructions, filing preliminary papers with markets regulator Sebi in a single day.

These firms are expected to collectively garner at least Rs 8,000 crore, according to the draft papers filed by them on Monday.

These IPOs are across sectors, deal size and combination of fresh issues and offer for sale (OFS).

The filing comes at a time when the primary market is experiencing strong interest from both issuers and investors across various sectors.

Moreover, 62 companies have already mobilised around Rs 64,000 crore collectively via mainboard, marking a 29 per cent increase from Rs 49,436 crore collected by 57 firms through the route in the entire 2023.

The strong momentum in IPO markets is driven by several key macroeconomic, sector-specific factors and willingness of funds to look at new ideas, partially led by strong inflows into domestic mutual funds as well as the robust capital formation happening across corporate India, Munish Aggarwal, Managing Director Head - Equity Capital Markets at Equirus, said.

"Unless there is a major black swan event which disrupts global economy and markets, we expect the markets to continue with the momentum in 2025 with both number of transactions and issuance amount going up further," he added.

Apart from Vikram Solar, Aditya Infotech, and Varindera Constructions, other companies that filed draft papers on Monday are Ajax Engineering, Rahee Infratech, Vikran Engineering, Midwest, Viney Corporation, Sambhv Steel Tubes, Jaro Institute of Technology Management and Research, All Time Plastics Ltd, Scoda Tubes, and Dev Accelerator.

The companies are tapping the primary market to raise funds for expansion plans, retire debt, support working capital requirements and provide exit routes to existing shareholders.

Solar module maker Vikram Solar's proposed IPO is a combination of fresh issues of equities worth up to Rs 1,500 crore and an offer for sale (OFS) of up to 1.74 crore shares by its promoters.

Aditya Infotech is looking to raise Rs 1,300 crore through an IPO comprising a fresh issue of equity shares worth Rs 500 crore and an OFS of shares valued Rs 800 crore by promoters.

The Rs 1,200-crore IPO of Varindera Constructions is a mix of fresh issue of equity shares valued at Rs 900 crore and an OFS of shares worth Rs 300 crore by promoters.

Infrastructure EPC company Vikran Engineering's proposed IPO comprises fresh issue of shares up to Rs 900 crore and an OFS of up to Rs 100 crore by the promoter.

Further, more than half a dozen companies, including Hyundai Motor India, Swiggy, and NTPC Green Energy, lined up their IPOs over the next two months to raise a combined Rs 60,000 crore, merchant bankers said.