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    India Inc seeks Rs 20,000 crore more in IPO season

    Synopsis

    Companies usually time their IPO launches based on the market sentiment and investor appetite for these share sales. Bankers said if the mood turns adverse, companies could postpone their plans.

    IPOThinkStock Photos
    So far in July, four companies have raised ₹12,385 crore through IPOs. Glenmark Life and Rolex Rings are expected to raise ₹2,245 crore.
    Mumbai: Companies are rushing to tap the primary market on the heels of strong investor response to the Initial Public Offering of Zomato and the subsequent stellar listing. At least nine companies are planning to raise over ₹20,000 crore through IPOs over the next two weeks, according to bankers in the know.

    While Rolex Rings has announced the opening of its IPO on 28 July, three companies — Devyani International, CarTrade, and Windlas Biotech — are expected to launch their issues early in August.

    Companies usually time their IPO launches based on the market sentiment and investor appetite for these share sales. Bankers said if the mood turns adverse, companies could postpone their plans.

    Other companies that plan to launch their IPOs in early August include Nuvoco Vistas, Krsnaa Diagnostics, and Aptus Value Housing. Ruchi Soya, owned by Patanjali Ayurved, is also expected to launch its follow-on offer (FPO) early in August, said multiple banking sources.

    The flood of share sales comes after the success of Zomato’s listing. Shares of the food delivery technology company have risen almost 82% from their issue price of ₹76 since listing on July 23. The stock closed at ₹138.05 on Monday.

    Email queries to Windlas Biotech, Divyani, CarTrade, Novoco, Aptus Value, Ruchi Soya, Krsnaa Diagnostics, and Arohan Financial went unanswered till press time Monday.

    So far in July, four companies have raised ₹12,385 crore through IPOs. Glenmark Life and Rolex Rings are expected to raise ₹2,245 crore.
    Quick service restaurant (QSR) company Devyani International, which owns franchisees of Pizza Hut, KFC, and Costa Coffee in India, is planning to raise about ₹1,400 crore in the first week of August. The IPO comprises a new issue of ₹400 crore and an offer for sale of up to 12.53 crore shares by its promoter RJ Corp and investor Temasek Holdings.

    Online auto classifieds platform CarTrade, backed by private equity giants Warburg Pincus and Temasek, plans a ₹2,000 crore offer-for-sale of 1.24 crore shares by the existing shareholders.

    Nuvoco Vistas, a cement venture from Nirma Group, is expected to hit the primary market in the second week of August, according to market sources. The ₹5,000 crore IPO of Novoco consists of a new issue of ₹1,500 crore and an offer for sale of ₹3,500 crore.

    Chennai-based Aptus Value Housing Finance IPO will also hit the market in the second week to raise ₹3,000 crore. The fundraise comprises a fresh issue of ₹500 crore and an offer for sale of up to 6.46 crore shares by the promoter and shareholders.

    Recently, CarTrade Tech, Aptus Value Housing Finance, Supriya Lifescience, Krsnaa Diagnostics, Vijaya Diagnostic, and Ami Organics received market regulator Sebi’s approval to float IPOs. So far in 2021, 26 companies have raised ₹38,802 crore through IPOs, the second-highest in the Indian capital market history after ₹67,167 crore was raised by 36 companies in 2017.

    Edible oil firm Ruchi Soya, owned by Baba Ramdev-led Patanjali Ayurved, is also said to be planning an FPO to meet the minimum public holding norm of 25% in a listed firm.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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