Riding high on the bullish trend in the secondary market, four companies are set to raise ₹4,200 crore through initial public offer next week.

The IPOs will hit the market even as the Reserve Bank of India has called for an additional meeting of the Monetary Policy Committee on Thursday as it failed to maintain the inflation target within the 2-6 per cent band for the past three consecutive quarters.

The first to go off the block will be Bengaluru-based DCX Systems, electronic sub-systems and cable harnesses manufacturer. The company’s issue which opens on Monday, plans to raise ₹500 crore through fresh shares worth ₹400 crore and an offer for sale of ₹100 crore by selling shareholders.

Ahead of the public issue, DCX Systems has mopped up ₹225 crore through its anchor book on October 28.

The Fusion Micro Finance issue will open on Wednesday. The company plans to raise about ₹1,100 crore through the set price band of ₹350-368 a share.

Lighthouse-funded Bikaji Foods plans to raise ₹900 crore through an offer for sale by the existing investors. The issue will hit the market on Thursday.

The IPO of Global Health, which operates and manages hospitals under the Medanta brand, will also open for subscription on Thursday. With a price band of ₹319-336 a share, the company plans to raise about ₹2,200 crore.

Vinod Nair, Head of Research at Geojit Financial Services, said volatility in the equity market has led to a weak primary market this year and is expected to remain subdued going ahead. However, investors’ response to the previous IPOs was decent because of the opportunity to invest in new companies at attractive prices and search for listing gains by high net-worth investors.

Weak start for IPOs this year

Fundraising from the primary market took off on a weak note, with just three companies hitting the market in the first three months of this year.

However, post-March, about 19 companies tapped the IPO market, adding up to a total fundraising of ₹44,085 crore so far this year. In 2021, 63 IPOs had raised over ₹1.19 lakh crore.

Currently, 64 IPOs worth over ₹94,000 crore have got the market regulator Securities Exchange Board of India’s approval to raise funds. About 45 firms have filed draft papers to raise ₹65,000 crore since last year and are awaiting SEBI approval.

While uncertainty prevailed on economic growth globally, the bellwether Sensex revisited the 60,000 mark last week for a brief period betting high on India’s growth story. It has gained 3,171 points so far this month.

During the week, FIIs bought equities worth of ₹3,986 crore while domestic institutional investors sold equities worth ₹1,240 crore.

Published on October 29, 2022