Election season, so what? IPO floodgates to stay open in May
public offerings (IPOs) is set to be launched in May as companies, buoyed by market vibrancy, set aside concerns over heightened volatility historically associated with the general election season. Indegene, Aadhar Housing Finance, TBO Tek, Go Digit, Awfis Space Solutions, Kronox and others are expected to raise over ₹10,000 crore from public offerings this month, according to bankers. So far in 2024, 24 companies have raised about ₹18,000 crore from IPOs. The national polls are being held in phases until June 1.
Carlyle-backed health tech firm Indegene has already announced its schedule for raising ₹1,842 crore and has fixed a price band of ₹430-452 per share. The IPO will open for public subscription on May 6. The issue comprises a fresh issue of ₹760 crore and an offer for sale (OFS) of 23.9 million shares.
The ₹3,000 crore public issue of Blackstone-owned Aadhar Housing Finance is likely to enter the primary market in the second or third week of May. The IPO consists of a fresh issue of shares of up to ₹1,000 crore and an OFS component of about ₹2,000 crore. The affordable home financier has reduced its OFS size from the earlier plan of ₹4,000 crore.
«With a robust inflow from both domestic and foreign sources, elections, geopolitical issues, or inflation haven't had much impact on the primary market,» said Ajay Saraf, head of investment banking and institutional equity at ICICI Securities. «Amid positivity towards India, investors exhibit a substantial appetite for quality issuances, irrespective of market
