...But IPOs around Diwali hold out a tale of hope
MUMBAI : More than half a dozen companies aim to raise as much as ₹6,000 crore via initial public offerings (IPOs) in the run-up to Diwali and the weeks following the festival, leveraging the current market liquidity and investor enthusiasm. Mamaearth, Cello World, Flair Writing Industries, ESAF Small Finance Bank, Blue Jet Healthcare, Protean eGov Technologies and ASK Automotive are all gearing up for public listings ahead of the Diwali, which starts on 10 November, three people with aware of the firms’ plans said. Blue Jet Healthcare’s IPO will open for subscription on 25 October, followed by Honasa Consumer Pvt.
Ltd (Mamaearth) later that week. Flair Writing Industries is likely to enter the market either in the last week of October or the first week of November. IPOs of Protean e-Gov Technologies and automotive components manufacturer Ask Automotive are expected to open between 6 November and 10 November, one of the three people said on condition of anonymity.
Among the larger IPOs, Tata Technologies, which is looking to raise as much as ₹4,000 crore, will likely open for subscription in the last week of November, after Diwali. “The market environment for capital raising via IPOs continues to be extremely robust. We expect this to continue for the remaining part of the year.
The street is witnessing a slew of companies making pre-filings ahead of a launch. We expect 6-8 IPOs over the next four weeks across sectors, immediately pre- and post-Diwali," said Pinak Bhattacharyya, senior vice president and head of corporate finance at IIFL Capital. National Stock Exchange of India Ltd’s Nifty 50 index has gained 7.9% year to date, attracting investors.
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