Five initial public offerings in the first half of November; try to collect over Rs 27,000 crore

After a one-month gap, the primary market is heading for a busy time. Five companies, including Paytm parent One97 Communications and Policybazaar parent PB Fintech, have planned their IPOs in the first half of November to collectively raise over 27,000 billion rupees.

The other three companies to open their first share sales are Sapphire Foods India, which operates KFC and Pizza Hut outlets, decorative aesthetics provider SJS Enterprises, and microcrystalline cellulose manufacturer Sigachi Industries.

The IPOs of FSN E-Commerce Ventures Ltd, which operates the online beauty and wellness products marketplace Nykaa, and Fino Payments Bank are currently open for public subscription.

The first three day sales of Nykaa and Fino Payments Bank will complete on November 1st and 2nd, respectively. Nykaa plans to raise Rs.5,352 billion through its IPO, while fintech firm Fino Payments Bank plans to mobilize Rs.1,200 billion through its first stock sale.

Together, these seven companies will raise nearly Rs 33,500 crore from initial stock sales. A large part of this is generated by technology-based companies. Previously, Aditya Birla had Sun Life AMC on Jan.

“Bull markets are the best times when a company IPO appears to generate better rewards and ratings for the business,” said Prateek Singh, Founder and CEO of LearnApp.com.

“Technology companies in particular get a better reward because of their ability to scale exponentially. Because of this, we see a lot of tech startups raising money this time by going public, â€he said.

He went on to say that the trend towards technology-based companies going public will continue in the immediate future until the market calms down and moves down. So if the markets should fall in the future, the IPOs will also decline. So far in 2021, up to 41 companies have launched their IPOs for $ 66,915 billion.

That being said, PowerGrid InvIT, the Infrastructure Investment Trust (InvIT) sponsored by the Power Grid Corporation of India, raised 7,735 billion through its IPO. Fundraising this year is far higher than Rs 26,611 crore from 15 companies through initial stock sales across the board In 2020.

Such impressive IPO fundraising was last seen in 2017, when companies raised Rs.67.147 billion through 36 initial stock sales. Mehra, Founder of First Global and Smallcase Portfolio Manager, said, “Every time a fundraising path is available, everyone steps in until it’s at the frenzy stage. We have experienced this several times in the past in the IPO market – happens every few years. The IPOs will come until the market stays cheap. â€She also advised investors to remain cautious.

“Just because an IPO is very popular or heavily oversubscribed does not mean that it will develop well in the years to come. Many of the popular consumer tech IPOs around the world such as Uber, Lyft, etc. have not done well in the aftermarket, â€she added. One97 Communications, a digital company operating under the Paytm brand, will go public on Nov. 8 for Rs 18,300 billion.

The IPO includes the re-issue of shares valued at Rs 8,300 crore and Rs 10,000 crore from the Offer for Sale (OFS) by existing shareholders.

The company has set a price range of Rs 2,080-2,150 apiece which means the valuation of the company is Rs 1.44 lakh crore-Rs 1.48 lakh crore.

“The biggest benefit to Paytm’s IPO would be that they have so much more diversified regulatory access under one roof. This focus on diversification means that none of their particular books of account have depth, unlike other big players who are more focused on specialization, â€said Nikhil Kamath, co-founder of True Beacon and Zerodha.

The IPO of PB Fintech, which operates the online insurance platform Policybazaar and the loan comparison portal Paisabazaar, valued at 5,710 billion, with a price range of Rs 940-980 per share, which will open for public subscription November 1-3.

Sapphire Foods India’s first share sale will open for public subscription on November 9th and close on November 11th. The IPO will be entirely an offer to sell of 1,75,69,941 shares by promoters and existing shareholders.

According to market sources, the IPO is expected to bring in Rs.1,500-2,000 billion. The initial public offering of Rs 800 crore of SJS Enterprises is an offer to sell shares valued at 710 crore rupees in Evergraph Holdings Pte Ltd and 90 crore rupee shares in KA Joseph.

The offering, priced at 531-542 rupees per share, will open on November 1st and close on November 3rd. Sigachi Industries will issue 76.95 lakh shares through IPO and plans to top Rs 125.43 billion at the high end from the price range of Rs 161-163 per share. Mehra said that the new economy companies like e-commerce, fintech and tech startups are the ones that will lead the next round of capital into the economy, and we are seeing that boom begin with the planned IPOs.