India’s stock market is buzzing with activity as 12 companies, including well-known names like Hero Motors and e-commerce giant Meesho, filed their initial public offering (IPO) papers with SEBI last week, signaling a strong pipeline for market listings.
A Flurry of Filings
This July is shaping up to be a busy month for India’s capital markets. Investment bankers had already predicted a significant inflow, with Indian firms expected to raise around $2.4 billion through IPOs this month. This recent wave of new filings certainly backs that projection, highlighting a robust appetite for public offerings.
Diverse Businesses Entering the Market
The companies looking to go public represent a wide array of sectors, from manufacturing and chemicals to logistics and financial services. This diversity reflects the broad growth and entrepreneurial spirit across the Indian economy, offering investors a wide range of opportunities.
Key Players Leading the Charge
Auto parts manufacturer **Hero Motors** is seeking to raise Rs 1,200 crore, combining a fresh issue of Rs 800 crore and an offer-for-sale (OFS) of Rs 400 crore by promoters. Meanwhile, Softbank-backed e-commerce platform **Meesho** aims to raise at least Rs 4,250 crore, filing its draft papers confidentially and indicating a significant upcoming listing.
Smart energy meter maker **Allied Engineering Works** plans to raise funds through a Rs 400 crore fresh issue and an OFS of 75 lakh shares from its promoter. Speciality chemicals firm **Safex Chemicals (India)** is also looking for approval to raise funds via a Rs 450 crore fresh issue and an OFS of over 3.57 crore shares.
**Tenneco Clean Air India**, part of the US-headquartered Tenneco Group, filed for a substantial Rs 3,000 crore IPO. Notably, this entire offering is an Offer for Sale by its promoter, meaning existing shares are being sold.
Logistics and Beyond
The logistics sector is also keen on public listings. **Skyways Air Services**, an air freight and logistics company, is proposing a mix of 32.92 million new equity shares and an OFS of 13.33 million shares. Similarly, **Shadowfax Technologies**, another logistics service provider, filed confidentially, aiming to raise between Rs 2,000-2,500 crore, potentially valuing the company around Rs 8,500 crore.
Manufacturing and Niche Industries
Automotive solutions provider **Fourfront** is seeking to raise funds entirely through a fresh issue of up to 65 lakh equity shares for listing on BSE’s SME platform. Industrial steam and gas supplier **Steamhouse India** filed confidentially, targeting Rs 500-700 crore through its IPO.
Gujarat-based **German Green Steel and Power**’s IPO combines a fresh issuance of equity shares worth up to Rs 450 crore and an offer for sale by its promoters. Eco-friendly paper manufacturer **Sillverton Industries** aims to raise Rs 300 crore through a fresh issue, along with an OFS of 3.22 crore equity shares.
Financial Services Joining the Fray
**Gaja Alternative Asset Management**, which operates under the brand Gaja Capital, has also filed confidential draft papers with SEBI for its proposed main board listing, signalling activity in the financial services sector as well.
Understanding IPO Structures
Many of these IPOs involve a combination of fresh issuance of shares and an ‘Offer for Sale’ (OFS). A fresh issue means the company issues new shares to raise capital directly for business expansion or debt repayment. In contrast, an OFS allows existing shareholders, such as promoters or early investors, to sell some of their shares to the public.
Both methods contribute to bringing shares to the public market, but they serve different purposes for the company and its existing stakeholders.
- 12 companies filed IPO papers last week, highlighting robust market activity across various sectors.
- The filings span diverse industries, from manufacturing and logistics to e-commerce and financial services.
- Many IPOs combine fresh share issues to raise new capital with offers for sale by existing shareholders.
- Investment bankers anticipate significant IPO fundraising in July, with these filings supporting that optimistic outlook.
This flurry of IPO filings underscores the confidence businesses have in India’s capital markets and points towards a dynamic period for investors looking for new opportunities across a wide range of industries.
