IPO filings head for record score
IPO pipeline is showing no signs of drying up with ten companies filing their draft red herring prospectuses (DRHP) with the capital markets regulator on the last day of September.
This brought the total number of filings for the month to 22, the second-highest monthly count in nearly two decades.
September 30 was the last date to file the DRHP with March 2023 financials.
Ten companies including Polymatech Electronics, Indo Farm Equipment, Popular Vehicles and Services, Exicon Tele-Systems, Vibhor Steel Tubes, Azad Engineering, Saraswat Saree Depot, Capital Small Finance Bank, Juniper Hotels, Agilius Diagnostics have filed their DRHP on September 29.
The highest number of DRHP filings was in August 2021 when 27 companies filed their draft IPO documents with the regulator, according to data from Prime Database. Since 2004, there have been four occasions — February 2006, December 2006, September 2010, and September 2021 — when 22 companies filed draft IPO papers in a month.
Bankers said buoyant secondary markets and strong investor appetite are encouraging more companies to offer shares to the public.
«The fund flows into primary markets are very robust from the domestic investors as well as foreign institutional investors.
Companies and sponsors wish to take this opportunity to launch issuances in the next six months,» said Raghwendra Pande, executive vice president of investment banking at ICICI Securities. «The surge in DRHP filings on the final day of September can also be attributed to the fact that the audited financial numbers for the quarter ending March 31 are valid only until September 30, and the IPO can happen potentially before March 31, 2024.»
A total of 73 companies have filed DRHP in the first nine
