28 firms given nod to go public this fiscal year

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28 firms given nod to go public this fiscal year

SEBI has given permission to 28 companies to raise funds totalling Rs 45,000 crore through initial public offerings IPOs in the April-July period of 2022 -- 23. 11 debutantes have raised over 33,000 crore.

Among the firms that have secured regulatory clearance are Lifestyle Retail brand FabIndia, Bharat FIH, a subsidiary of FIH Mobiles and a Foxconn Technology Group, TVS Supply Chain Solutions, Blackstone-backed Aadhar Housing Finance, Macleods Pharmaceuticals and Kids Clinic India, which operates super-specialty mother and babycare chain Cloudnine.

The firms are waiting for the right time to float their issues because current market conditions are challenging, and are not yet to announce the launch date of their IPOs, according to merchant bankers. The current environment is challenging and companies with approvals in hand are waiting for the right window to launch the initial share-sales. Many of them have finished the roadshows and are waiting for the right time, Prashant Rao, Director and Head Equity Capital Markets, Anand Rathi Investment Banking said.

According to the Securities and Exchange Board of India SEBI data, total of 28 companies were given permission to tap the IPO route for fundraising during April-July 2022 -- 23. Together, these firms are expected to mop up to 45,000 crore.

So far in the current fiscal year, 11 companies have gone public to garner 33,254 crore. A lion's share of Rs 20,557 crore was raised by the public issue of Life Insurance Corporation of India LIC All these companies hit the primary market during April-May and not a single public issue was launched after May, suggesting a dry spell in the IPO market.

As many as 52 companies had tapped the primary market to raise a record Rs 1.11 lakh crore in the entire 2021 -- 22. There are a lot of public issues that are new age loss-making technology startups, strong retail participation and huge listing gains that could cause a lot of impressive fundraising.

The lack of appetite for the IPO in the current fiscal year could be due to a correction in the secondary market, a disastrous performance of new digital companies, like Paytm and Zomato, and a poor post listing performance of LIC, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

According to Anand Rathi Investment Banking's Rao, investors were wary of new issuances due to the volatility in the markets and certain issues facing pricing performance.

Motilal Oswal Investment Advisors, MD and CEO, Abhijit Tare, believes that markets have just recovered from a mathematical low and more importantly a sentimental low in the last quarter, and few companies will try to approach markets.

A number of the IPOs will get through in the next 2 -- 3 months based on the merit of their proposals, according to Tare. A good amount of fundraising is expected to happen in the remaining part of the fiscal year.

There has been a rush among companies for filing preliminary IPO papers with SEBI in the last two months. During the month of June-July, 15 companies including Sula Vineyards, Allied Blenders and Distillers, Utkarsh Small Finance Bank and Sai Silk Kalamandir approached SEBI with their draft papers.

There are a lot of discussions happening in the private domain. Many promoters from small towns and cities who have done a great job of growing their business but have never thought of monetising their efforts are gearing up for the move. There are many applications that are being filled with the regulator, according to Motilal Oswal Investment Advisors' Tare.