India’s Biggest IPO : September has emerged to be the highest monthly tally of Initial Public Offerings in India as the country witnessed its busiest IPO season in over fourteen years, according to the Reserve Bank of India. While the month is almost ending, the momentum in the primary market is strong. More than half a dozen companies are in the queue to raise an estimated ₹60,000 crore in the coming sixty days, making October and November crucial for the IPO investors. Among the most anxiously awaited names on the list are Hyundai Motor India, Swiggy, and NTPC Green Energy-all set to hit Dalal Street with significant offerings.
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India’s Biggest IPO Rush: Hyundai, Swiggy, and NTPC Green Lead the Way!
Important IPOs: Hyundai, Swiggy, and NTPC Green Energy
Probably, Hyundai Motor India, Swiggy, and NTPC Green Energy are the three big-ticket players who are more likely to mop up a big slice of the IPO market in the coming months. These issues are awaited with bated breath by investors who are investing in automobiles, food tech, or renewable energy.
Hyundai Motor India
Hyundai Motor India, a subsidiary of South Korean automobile giant Hyundai Motor Company, is all set to write history by floating what could easily be India’s largest ever IPO. The company aims to mop up a whopping ₹25,000 crore from the market that leaves even the Life Insurance Corporation of India’s record ₹21,000 crore IPO this year way behind. Hyundai Hyundai is planning to carry out an offer for sale (OFS) of 14,21,94,700 shares by Hyundai Motor Company. Therefore, there is no fresh issue component in the process.
Swiggy Swiggy, one of the most popular online food aggregators, is also gearing up for a ₹10,414 crore IPO. The company’s IPO is going to be a combination of a fresh issue and an OFS. Swiggy will raise ₹3,750 cr through the fresh issue and ₹6,664 cr through OFS; it will be one of the largest tech IPOs ever in India. Swiggy was already making headlines in recent years with its innovative food delivery model and rapid expansion across India. Now, with this IPO, the brand aims to fund future growth and expansion plans.
NTPC Green Energy
NTPC Green Energy, the renewable energy arm of state-owned NTPC, will take its ₹10,000 crore IPO to market in the first week of November. The company has been a key player in India’s journey toward green energy. It would be using this IPO to fund its various renewable energy projects. According to sources, NTPC Green Energy is going to undertake roadshows in key locations such as Mumbai, London and the United States to drum up interest in the IPO.
Other Notable IPOs to Look out for in the Pipelines of October and November
While these three high-profile IPOs are in the fray, several other companies are lined up to approach the capital markets in the October-November period. Merchant bankers have reported that Afcons Infrastructure, Waaree Energies, Niva Bupa Health Insurance, One Mobikwik Systems, and Garuda Construction, among others, are getting ready for their maiden journeys. Representing everything from infrastructure and energy to health insurance and digital payments, the firms signal a diverse basket of segments.
IPO Frenzy to Continue Till the End
Market experts opine that the floodgates of IPOs would not close anytime soon. Munish Aggarwal, Managing Director and Head of Equity Capital Markets, Equirus, believes that it could be more than 30 IPOs hitting the Indian stock market by the December of next year. These listings would come from an array of sectors with deal sizes varying widely and a mix of fresh issues and OFS.
Drivers of the IPO Boom
There are various positive macro indicators that have encouraged investors to go easy. Several macro indicators mean that unless there are some gruesome numbers and uncontrollable unfavorable macro sentiments, the market is open to a greater extent for companies to issue an IPO. Another significant factor is strong inflow into domestic mutual funds; more investors are now keen on putting their money into high-growth companies.
According to Aggarwal, one major reason why the IPO momentum is currently in high gear is strong capital formation across corporate India. More and more companies are now lining up the opportunity to raise funds to pursue their plans for the expansion of their business operations, retire existing debt, or meet working capital requirements. Also, the exit avenue for existing shareholders can be a good reason to go for an IPO.
In India, the stock market is growing rapidly in recent times. Retail as well as institutional investors have increased scrutiny and interest in the market. Companies that seek capital raising through a public offering consider it a rather opportune time.
Hyundai Motor India: Breaking All Records
Hyundai Motor India is likely to rewrite the records with its IPO, that is set to be the biggest size-wise. If it is a success, it may surpass the ₹21,000 crore by the LIC launched during the earlier part of this year, thereby becoming the biggest in Indian history. The auto major would raise ₹25,000 crore from an OFS of 14,21,94,700 shares.
A lot of investors would be attracted to this massive issue, starting from institutional players to retail participants. The parent company of Hyundai Motor India, namely Hyundai Motor Company, is one of the world’s best-selling car manufacturers. Such an issue would open up for more high-profile listings in the Indian market, particularly from multinational corporations aiming to capitalize on the growth of the Indian economy.
The most other big news is Swiggy’s ₹10,414 crore IPO. The food delivery behemoth has indeed been a game-changer in India’s tech ecosystem. The way people order food has completely changed with the coming of this company. Now, Swiggy looks to raise ₹3,750 crore through a fresh issue of shares and ₹6,664 crore through the OFS component.
The IPO would also help Swiggy fund future growth and offer an exit to its early investors. Many investors are ready to wait for this IPO because the company has taken an extremely dominant position in the food delivery market.
NTPC Green Energy: Powering India’s Renewable Era
Another one that jumps to the fore in the IPO season is NTPC Green Energy’s ₹10,000 crore IPO. As a leader in India’s renewable energy segment, NTPC Green Energy is well-poised to leverage country’s efforts at clean energy focus. Funds raised from this IPO would most likely be used to fund different renewable energy projects to expand the footprint of NTPC Green Energy in the same.
The roadshows of the company in Mumbai, London, and the United States are likely to create high interest among investors from both the domestic and global markets.
Primary Market Outlook for IPO in 2025
However, despite the overwhelming demand for IPOs in the year 2024, a few analysts have predicted that investor appetite for the primary market might fade away in 2025. According to Director & Head of Equity Capital Markets at Anand Rathi Advisors, V Prashant Rao is not worried about it. He said he believes the IPO market will do well in 2025 also as the Sebi had already approved 22 IPOs in that year. This will raise some amount of ₹25,000 crores from those companies; therefore, the IPO frenzy will not dwindle out soon.
Conclusion
As more than 30 IPOs will be there by the end of 2024, the Indian stock market would be geared up for that kind of action. Major groups such as Hyundai Motor India, Swiggy, and NTPC Green Energy are leading the way; however, several other firms are also geared up to float their share offerings. The IPO boom is driven by positive macroeconomic conditions, strong inflows into mutual funds, and robust capital formation across corporate India. In anticipation of 2025, the outlook for the IPO market was generally optimistic, with many more companies preparing to go public.