The fate of 29 IPOs with SEBI’s extended September deadline to raise ₹37,580 crore from primary market hangs in balance with ₹30,000 crore IPO of NSE set to hit the markets this month. This apart, SEBI has also cleared Jio Platforms offer and will hit the market soon.
While some of the smaller issues are rushing to the primary market to beat the deadline, a few large companies have tapped other sources of funding to meet their immediate capital expenditure.
Some of the IPO approvals that will expire in September includes Credila Financial Services ( ₹5,000 crore), Dorf-Ketal Chemicals India ( ₹5,000 crore), Innovatiview India ( ₹2,000 crore), Mouri Tech ( ₹1,500 crore), Imagine Marketing ( ₹1,500 crore), Continuum Green Energy ( ₹1,000 crore) and Greaves Electric Mobility ( ₹1,000 crore), according to data sourced from primedatabase.
Busy pipeline
The rush for IPOs can be gauged from the fact that about 14 mainboard IPOs plans to raise ₹7,765 crore in the first half of September itself while the second half could see NSE mopping up about ₹30,000 crore taking the identified pipeline to about ₹37,765 crore.
Narinder Wadhwa, MD & CEO SKI Capital Services, said that for the 29 issuers under extended approvals, a crowded calendar certainly creates execution pressure, with mega IPOs absorbing institutional allocations and investor attention, while overlapping subscriptions temporarily tie up application funds.
Some smaller issuers with aggressive valuations or insufficient institutional demand may choose to defer and seek fresh clearance, he added.
Manish Bhandari, CEO and Portfolio Manager, Vallum Capital, said SEBI approvals lapse after 12 months as the financials in the offer document go “stale”.
The NSE listing would mean fresh paperwork with updated financials for smaller companies rather than a market breakdown, he said.
Rajesh Singla, CEO & Fund Manager, Alpha AMC, said the 29 companies sitting on extended SEBI approvals face a real deadline pressure, but the bigger risk to their listings is more to do with the timing and investor risk appetite.
September will turn out to be the strongest IPO month since January 1997, driven in part by the urgency of approaching deadlines and buoyant sentiment, he added.
“The muted post-listing performance has been a major concern leading to slowing of new issuances. The BSE IPO index is up 35 per cent in FY27 while the SME IPO index increased 55 per cent, which means the bar for what qualifies as a good listing has risen,” he added.