Upcoming IPOs: This week, the IPO market is going to see full action. 13 IPOs are coming in the week starting from Monday. In which 13 companies plan to raise Rs 8,644 crore through IPO. This week, along with 4 issues of the mainboard segment, 9 IPOs of the SME segment are going to open. In such a situation, investors should keep their money in the bank and be ready because they are going to get a chance to earn. You can check all the details related to the new IPO here.
The IPOs of Bajaj Housing Finance, Kross and Tolins Tyres are opening for subscription from today. Through this IPO, all three companies have planned to raise about Rs 7,290 crore. Bajaj Housing Finance plans to raise about Rs 6,560 crore through this issue. Apart from this, PN Gadgil Jewelers is expected to raise Rs 1,100 crore, Cross Limited Rs 500 crore and Tolins Tyres Rs 230 crore. Of these, the IPOs of Bajaj Housing Finance, Kross Limited and Tolins Tyres will be open from September 9 to September 11. The issue of PN Gadgil Jewelers will open on September 10 and close on September 12. 9 SME IPOs are coming in the week starting today. SME companies plan to raise a total of Rs 254 crore through this IPO.
Munish Agarwal, Managing Director of Aquirus, said that the next two weeks will see a lot of activity in the IPO market. Currently, the market is very bullish. In such a situation, he believes that the companies bringing IPOs want to take advantage of the situation, which also have valid comments from SEBI and good attraction on the investor front. They are trying to use the financial data of FY 2023-24 to bring IPO. He said that as per SEBI rules, the financial data in the prospectus (RHP) at the time of IPO should be less than six months old. That is why, September is the last month when companies can use their financial data of FY 2023-24 to bring IPO.
Additionally, Arcade Developers may launch an IPO on September 16. While Western Carriers India will also launch its public issue soon. So far this year, more than 50 IPOs have been brought to be listed on the main stock exchanges. Vodafone Idea also brought a follow-on public offering (FPO). The public issue of Sri Tirupati Balaji Agro Trading Company is still open for application and the IPOs of Bazaar Style Retail and Gala Precision Engineering closed earlier this month. Earlier, IPOs of 10 companies including Ola Electric Mobility, Brainbees Solutions Ltd., the parent company of online e-commerce platform FirstCry, came in August. Agarwal said, “The amount raised through IPOs to be listed on the major stock exchanges was Rs 80,000 crore by the end of August. We believe that it will increase to more than Rs 1.25 lakh crore by the end of this year. Sunil Damania, Chief Investment Officer, Mojo PMS, said, “As long as the stock market remains strong, we can expect continued activity in the primary market for IPOs. However, if some IPOs start listing below their issue price, it may reduce this momentum. IPO activity may reduce.” Companies are using the primary market to raise capital for expansion plans, repay debt, meet working capital requirements and give existing shareholders a chance to exit the company. Apart from the IPOs to be listed on the main stock market, small and medium enterprises like Aditya Ultra Steel, Shubhshree Biofuels Energy, Share Samadhan, Gajanan International, SPP Polymers, Trafficsol ITS Technologies, Excellent Wires and Packaging, Innomet Advanced Materials and Envirotech Systems are bringing IPOs next week. These companies plan to raise between Rs 12 and Rs 45 crore through public issues. The IPOs of Aditya Ultra Steel, Shubhshree Biofuels Energy, Share Samadhan and Gajanand International will open on September 9. The IPOs of SPP Polymers and Trafficsol ITS Technologies will come on September 10. The IPOs of Utkrisht Wires and Packaging and Innomet Advanced Materials will come on September 11 and Envirotech Systems on September 13. Vaibhav Porwal, co-founder of Deserve, said that the main reason for the recent rise in SME stocks and strong listing gains in some companies is liquidity, fear of loss due to market misses and strong participation of retail investors. He said, “The fear of missing out on quick gains (FOMO effect) has prompted continued investment in SME IPOs.” Porwal said, “However, this trend may continue in the short term, but risks such as market correction and regulatory intervention may reduce the market boom. Investors should be cautious and focus on fundamentals, because if there is a change in sentiment, SME stocks can fall sharply. “VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that IPOs of SMEs without any strong financial position are getting oversubscribed many times. The reason for this is retail investors, who are investing in such IPOs. Recently, the regulator has expressed concern about the activities in SME IPOs. With this, experts have expressed the possibility of some slowdown in activities in that market.
