After a month long gap, the primary market is heading for a busy time, with five firms including Paytm parent One97 Communications and policybazaar parent PB Fintech have lined up their IPOs in the first half of November to raise over Rs 27,000 crore collectively.
The other three firms whose initial share-sales are set to open are Sapphire Foods India, which operates KFC and Pizza Hut outlets, decorative aesthetics supplier SJS Enterprises and microcrystalline cellulose manufacturer Sigachi Industries.
Here are details of upcoming IPOs:
Paytm: Digital firm One97 Communications, which operates under Paytm brand name, is set to come out with it Rs 18,300-crore IPO on November 8. The IPO comprises fresh issuance of equity shares worth Rs 8,300 crore and Rs 10,000 crore from offer for sale (OFS) by existing shareholders.
The company has fixed a price band of Rs 2,080-2,150 apiece, which implies that the firm's valuation stands at Rs 1.44 lakh crore-Rs 1.48 lakh crore.
Policybazaar’s parent PB Fintech: The Rs 5,710-crore IPO of PB Fintech, which operates online insurance platform Policybazaar and credit comparison portal Paisabazaar, comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of about Rs 1,960 crore by existing shareholders.
The issue, with a price band of Rs 940-980 a share, will open for public subscription during November 1-3.
Sapphire Foods: The initial share-sale of Sapphire Foods India will open for public subscription on November 9 and conclude on November 11. The IPO will be entirely an offer of sale of 1,75,69,941 equity shares by promoters and existing shareholders.
According to market sources, the IPO is expected to fetch Rs 1,500-2,000 crore.
SJS Enterprises: The Company's Rs 800-crore IPO is entirely an offer for the sale of shares worth Rs 710 crore by Evergraph Holdings Pte Ltd and shares to the tune of Rs 90 crore by KA Joseph.
The issue, with a price band of Rs 531-542 a share, will open on November 1 and conclude on November 3.
Sigachi Industries: The firm will issue 76.95 lakh equity shares through IPO and is planning to mop up Rs 125.43 crore at the upper-end of the price band of Rs 161-163 per share.
The IPOs of FSN E-Commerce Ventures Ltd, which runs an online marketplace for beauty and wellness products Nykaa, and Fino Payments Bank are currently open for public subscription.
Together, these seven companies will raise nearly Rs 33,500 crore through initial share-sales. Of these, a major chunk will be garnered by technology based companies.
What industry experts are saying:
Prateek Singh, Founder and CEO, LearnApp
Bull markets are the best times when any company going public seems to get better premiums and valuations on the business. Tech companies, in particular, get a better premium because of their ability to scale exponentially, which is why we are seeing many tech startups raise cash by going for an IPO this time," he said.
He, further, said that the trend of technology based companies going public to continue in the immediate future until the market calms down and moves downward. So if the markets fall in the future, the IPOs will also reduce.
Devina Mehra, founder of First Global
Anytime any route for raising funds is available, everyone jumps in till it is at the stage of a frenzy. We have seen that happen several times in the past in the IPO market as well - happens every few years. The IPOs will keep coming till the market remains favourable.
She advised investors to remain cautious. Just because an IPO is a very fancied one or is very heavily oversubscribed doesn't mean that it will do well in the coming years. Many fancied consumer tech IPOs globally like Uber, Lyft, etc have not done well in the aftermarket.
(With PTI Inputs)