IPO Update: The primary market has been witnessing higher activities for the past few months. During the week between October 28 and November 3, three mainboard IPOs — Cello World, Honasa Consumer and ESAF Small Finance Bank — opened to raise Rs 4,064 crore. The next week also looks promising, the focus is on Protean eGov Technologies and ASK Automotive, which are expected to raise Rs 1,324 crore through the offers.
Mahavir Lunawat, managing director of Pantomath Capital Advisors, said, “In the primary market during the week October 28-November 3, mainboard IPOs of Cello World, Honasa Consumer and ESAF Small Finance Bank opened to raise Rs 4,064 crore.”
In terms of the number of IPOs, India’s share in the global pie has increased sharply. In 2021, the country’s share in the total number of IPOs globally stood at 6 per cent. It surged to 11 per cent in 2022. In the first half of 2023, India’s share in the number of global IPOs has rose to 13 per cent, he said.
India’s IPO sector is booming with the country emerging as the global leader in the number of public offers this year. The stampede to market is expected to keep going well into 2024 with investors encouraged by strong listing gains and a robust economy. This month alone, there are 14 IPOs slated.
“Next week looks promising, the focus is on Protean eGov Technologies and ASK Automotive are opening to raise Rs 1,324 crores of funds. So far, during 2023 YTD, 39 IPOs hit the street and raised Rs 35,131.96 crore ($4.22 billion),” Lunawat said.
ESAF Small Finance Bank IPO
The initial public offer of ESAF Small Finance Bank got subscribed by 1.74 times on the first day of subscription on Friday. The Rs 463-crore initial share sale received bids for 10,02,26,500 shares against 5,77,28,408 shares on offer, as per NSE data.
The category for non-institutional investors got subscribed 2.44 times while the quota for Retail Individual Investors (RIIs) received 1.97 times subscription. The portion for Qualified Institutional Buyers (QIBs) was subscribed 90 per cent. The Initial Public Offering (IPO) has a fresh issue aggregating up to Rs 390.7 crore and offer for sale (OFS) of up to Rs 72.3 crore.