From Swiggy to Hyundai: Five hot picks for upcoming IPOs

Q4 2024 loaded with key listings from automobiles to green energy

Business

October 7, 2024

/ By / New Delhi

From Swiggy to Hyundai: Five hot picks for upcoming IPOs

Many big names have filed DRHPs, seeking clearance from SEBI to launch their IPOs (MIG Photos)

The boom in India’s primary market is set to continue its blazing pace in the last quarter of the year as key companies prepare to hit the Dalal Street in weeks to come.

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Even after the Reserve Bank of India declared September 2024 as the busiest month for Initial Public Offerings (IPOs) in 14 years, with listings of 11 mainboard and 41 small and medium companies, the stock markets growth, especially the IPO fever is set to continue for the remainder of the year as well.

The festive season is traditionally one of the favourite periods for a lot of markets, including the stock markets, due to the buying rush as people turn to buy almost everything that is up for sale. And this year, in the stock markets, it is not just the secondary market, but even the primary market is looking forward to a happy season as it gears up for a fresh slew of IPOs.

Many big names have already filed their Draft Red Herring Prospectuses (DRHPs), seeking clearance from the capital market regulator Securities and Exchange Board of India (SEBI) to launch their IPOs to raise capital from the primary market.

Many of the DHRPs have already been approved by the market regulator, here is a list of the top five upcoming IPOs expected within this year.

Swiggy: INR 104.14 billion, Date Q4 2024

After the first version draft red herring of the Indian food tech giant Swiggy was approved by SEBI offering a combination of fresh equity shares worth INR 37.5 billion, the company has now received shareholders’ approval to increase the fresh issue size to INR 50 billion.

While the offer for sale component will continue to be worth 66.64 billion, the clearance to increase the fresh issue size would mean that Swiggy can now raise additional INR 12.5 billion.

If the fresh issue gets approved by the market regulator, the total size of the IPO could be INR 116. 64 billion, the current clearance for the food delivery company stands at INR 104.14 billion. The open and close dates of the IPO are yet to be announced.

Hyundai Motors India: INR 249 billion, Opens October 14

Hyundai Motors India, South Korean auto giant Hyundai Motor’s Indian arm is set open for subscription for its initial public offering on October 14, 2024 after receiving approval from the Securities and Exchange Board of India to go ahead with the issue.

The IPO, a pure offer by sale promotor of about 144.4 million shares, with no fresh issue component is said to be the largest share sale in the country so far, the company plans to raise INR 249 billion through the issue. Once completed, the shares offered will represent the 17.05 pc of the total equity shares of Hyundai Motors India.

NTPC Green Energy: INR 100 billion, Date Q4 2024

A subsidiary of state-owned National Thermal Power Corporation Limited (NTPC), NTPC Green Energy, focussing on renewable energy is planning an IPO in November to raise INR 100 billion, said to be one of the largest initial public offerings after Hyundai. The opening dates of the issue and price band are yet to be announced.

The issue will comprise purely fresh equity shares and no offer by sale promoter. About 10 pc of the IPO will be reserved for the current shareholders of NTPC. The company is said organise roadshows in Mumbai, London and other key locations before the IPO.

One Mobikwik Systems: INR 7 billion, Date Q4 2024

One Mobikwik Systems, a Gurugram-based company which operates a platform business with two-sided payments network received a go ahead from SEBI to launch its initial public offering, aiming to raise INR 7 billion.

The IPO is entirely a fresh issue of equity shares with no offer for sale included. The company plans to use the funds raised for technolofy investments, capital expenditure and growth in the finance and payments sector.

Mobikwik had refiled its IPO documents with SEBI in January 2024.

Midwest: INR 6.5 billion, Date Q 4 2024

The largest producer and exporter of black galaxy granite, Midwest, also filed preliminary papers with market regulator SEBI for its IPO launch. The company aims to raise INR 6.5 billion through the capital markets.

The IPO consists of a fresh issue of INR 2.5 billion and offer for sale of INR 4 billion by promoter selling shareholders.

Eligible employees of Midwest have a portion reserved for them; with a discount for those bidding from the employee reservation portion. The company may reduce the amount allocated for its fresh issue if it manages to raise funds via pre-IPO statement expected to be worth INR 500 million.

Several other companies gearing up for IPOs include Niva Bupa Health Insurance, Afcons Infrastructure and Waaree Energies.

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