Season of IPOs: Here is the lineup for the second half of 2021

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The first half of 2021 was action-packed for primary markets as two dozen initial public offers (IPOs) raised Rs 38,961 crore, compared to just 16 IPOs raising Rs 31,128 crore through IPOs in the entire 2020. Fundraising via IPOs in H1CY21 (first half of the calendar year 2021) was highest in over a decade thanks to a flood of funds from FIIs, DIIs and unprecedented participation from retail investors as well.

Six of the 24 IPOs were subscribed over 100 times. While 19 IPOs delivered positive returns at the end of H1CY21, of which eight rallied over 50%. On the other hand, 4 issues Suryoday Small Finance Bank, Kalyan Jewellers, Indian Railway Finance Corporation and Brookfield India Real Estate Trust REIT gave negative returns in H1CY21.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the performance of the IPO market usually has a strong correlation to the performance of the secondary market.

“If the stock market is bullish, it attracts a large number of investors into IPOs. Particularly, new investors lured by high potential profits, get attracted to new offers and the IPO market has always done well during market booms,” added Vijayakumar.

IPO lineup

With ample liquidity in the system, higher retail participation, and investors chasing listing gains more and more; companies are lining up their IPOs to raise funds keeping the primary markets even more active during the second half of 2021. It is estimated that at least 20-30 companies likely raise over Rs 45,000 crore over the next six months.

In fact, if all goes well the month of July alone could see a dozen of IPOs hitting the street to raise over Rs 12,000 crore. Out of these two companies have already IPOs dates, here is the tentative list

GR Infraprojects: GR Infraprojects’ initial public offering (IPO) will open for subscription on 7 July, Wednesday. The public issue comprises an offer for sale (OFS) of up to 11.5 million shares by promoters and shareholders.

Clean Science Technology: Clean Science and Technology Rs 1,546.62 crore initial public offering is set to hit the streets on July 07.

Zomato: The food delivery giant after listing will be $8.7 billion as the demand for food delivery services sky-rockets in the pandemic. Zomato is still waiting for the IPO approval from Sebi and plans to make the launch by mid-July, according to various reports.

Glenmark Life Sciences: The company recently got approval from the market regulator Securities and Exchange Board of India (Sebi) to raise funds via IPO. The IPO consists of a fresh issue of shares worth Rs 1,160 crore and an offer for sale of up to 7.31 million shares by parent Glenmark Pharmaceuticals.

Seven Islands Shipping: Seven Islands Shipping IPO comprises of fresh issue amounting to Rs 400 crore and an offer for sale up to Rs 200 crore by FIH Mauritius Investments.

Utkarsh Small Finance Bank: Utkarsh Small Finance plans to raise nearly Rs 1,350 crore through its public offering. The IPO comprises a fresh issue of Rs 750 crore and an offer for sale by Utkarsh Coreinvest of up to Rs 600 crore.

Nuvoco Vistas Corp: The cement company owned by Nirma Group is planning to launch an IPO of Rs 5000 crore. The offering will have a fresh issue of Rs 1,500 crore and a sale offer of Rs 3,500 crore.

Shriram Properties: Shriram Properties also got SEBI’s nod to raise funds via IPO. It aims to raise Rs 800 crore via IPO. The issue comprises a fresh issue of Rs 250 crore and an offer for sale of up to Rs 550 crore by current shareholders and promoters.

Arohan Financial Services: The microfinance lender Arohan Financial Services may come into the market this month. The Rs 1,800 crore worth offer consists of a fresh issue worth Rs 850 crore and an OFS.

Aadhar Housing Finance: The company will issue fresh shares worth Rs 1,500 crore through the IPO, while Blackstone will sell existing shares worth Rs 5,800 crore, Aadhar’s draft red herring prospectus showed.

Vijaya Diagnostics: The Hyderabad-based company is expected to bring its public issue worth Rs 2,000 crore this month. The IPO will see the investor and promoters collectively dilute a 35% stake in the company.

Ami Organics: The chemical-maker is expected to bring its IPO worth Rs 650 crore in July. It includes a fresh issue of Rs 300 crore and an offer for sale of up to 6.06 million shares.

Other companies that are likely to launch their IPO include Sansera Engineering, Devyani International, Cartrade Tech, Penna Cement Industries, Fincare Small Finance Bank. Apart from these, several other startups and businesses like LIC, Nykaa, PolicyBazaar, Paytm, and Lava Mobiles are said to be readying to approach the capital markets regulator to file their DRHP in preparation for IPO launch.

Market pundits are of the opinion that investors should not be greedy for listing gains and look at every IPO in its individuality. Investors should also check the background of promoters as well as the business model of the company and if its fits their risk appetite then only they should subscribe to the IPO.