The calendar year 2023 so far has just seen six companies tapping primary market to raise funds, of which, Nexus Select Trust is a REIT issue.
A scorecard of just an IPO a month on the mainboard appears poor given India’s resilient show. As secondary market fared poorly in the first three months, companies might have shelved the fund-raising plans for better timing amd market condition.
Besides, the performance of some of the IPOs of 2022, especially Life Insurance Corporation of India, post listing could have turned the sentiment sour. But that has never weaned away the zeal of SMEs that continue to throng capital markets for fund raising. As many as 56 companies have hit the SME-exchange of BSE and NSE in the last six months.
With big conglomerates charged up, the primary market on the mainboards of BSE and NSE is set to remain vibrant and regain its mojo. Among the big guns are Tata and TVS groups which plan to tap the capital market after several years.
Tata Play, Tata Tech
Tata group, which has not hit the primary market since 2004 (TCS was the last IPO), is set to launch two IPOs. Tata Play, widely known as Tata Sky earlier, recently received market regulator SEBI’s nod to launch an IPO. The company may look to raise ₹3,000 crore consisting of fresh issue and an offer-for-sale (OFS), according to market sources.
Another company from the Tata stable — Tata Technologies — has filed draft papers with Securities and Exchange Board of India and awaits its approval to launch IPO. It would be completely an offer-for-sale of up to 9.57 crore shares by promoter Tata Motors and selling shareholders Alpha TC Holdings Pte. Ltd and Tata Capital Growth Fund I. SEBI, in fact, sent its response on the DRHP on May 11.
TVS Supply Chain Solutions
Nearly after three decades, a company from TVS Group — TVS Supply Chain Solutions — will enter the capital market. Its last issue was that of TVS Electronics which came way back in 1994. Though last year itself it filed initial papers and got nod from SEBI, it was forced to defer the plans due to “volatile market condition”.
As the SEBI approval lapsed, TVS Supply Chain Solutions refiled the draft offer documents but with a reduced size. Per the revised DRHP, it plans to raise up to ₹750 crore through fresh issue of equity shares and an OFS through two crore shares. It had earlier planned to raise up to ₹2,000 crore through the fresh issue and had filed the draft papers in February 2022.
Much-awaited Jio Financial
Besides, India’s largest conglomerate Reliance Industries will also see one more stock getting listed on the bourses. RIL had received the approval of shareholders, secured creditors and non-secured creditors to demerge Reliance Strategic Investments (RSIL) from Reliance Industries (RIL), paving for the listing of Jio Financial Services.
Each Reliance shareholder will receive one share of Jio Financial.
Besides, a good number of companies such as National Stock Exchange, Go Digit Insurance, JSW Infrastructure, Fincare Small Finance Bank, Snapdeal, Oyo are also having plans to tap capital market. No doubt, these big names will keep the primary markets buzzing with activity. However, for that to happen, the secondary market has to sustain the recent gains till year end.