IPO flood to continue in September as nearly a dozen firms get ready for share sales

India’s primary markets are already set for a record year with a large number of companies floating initial public offerings (IPO) to take advantage of the bullish investor sentiment. And after a busy August, almost a dozen companies are preparing to hit the market with their share sales in September.

Banking and financial services companies will likely lead the IPO bandwagon in the coming month while a handful of healthcare, chemicals and industrials companies will also launch their offerings to raise more than Rs 12,000 crore.

Sensex and Nifty at New Highs

These IPOs come even as India’s benchmark stock market indexes climb to record highs, with the BSE Sensex racing past the 57,000-mark on Tuesday and the Nifty 50 crossing 17,000.

Vijaya Diagnostics and Ami Organics will start the month with their IPOs opening on September 1. The pathology chain’s IPO aims to raise as much as Rs 1,895 crore while the size of Ami Organics’ share sale is Rs 570 crore.

The banking and financial services companies that have lined up their IPOs include Aditya Birla Sunlife Asset Management Company, Utkarsh Small Finance Bank, Fincare Small Finance Bank, Jana Small Finance Bank, ESAF Small Finance Bank and Arohan Financial. Another company is mortgage lender Aadhar Housing Finance, which had filed draft documents for its IPO in January but has yet to receive regulatory approval.

Other companies that have already received approval from the Securities and Exchange Board of India are low-cost airline Go First (earlier known as GoAir), Shree Bajrang Power &Ispat, Seven Islands Shipping and Shriram Properties.

These apart, Sansera Engineering, Penna Cement, Paras Defense, SupriyaLifescience and Bajaj Energy are also waiting for hit the market with their IPOs.

The bullish sentiment aside, some market watchers paint a picture of caution especially after some companies listed on the bourses in August at a discount. As many as 10 companies listed their sharesin August. However, CarTrade, Aptus Value Housing, ChemplastSanmar and Windlas Biotech made weak trading debuts. This, along with global cues, could introduce slight nervousness in the market despite the gush of liquidity.
 

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