IPO Updates : Swiggy, Hyundai Motor India, Acme Solar Holdings, Vishal Mega Mart, and Mamata Machinery are the prominent firms which have been issued an “observation letter” from the Securities and Exchange Board of India (SEBI) for the dispensation for their IPO. Issuance of an “observation letter” by SEBI defines that the stakes sought to be issued by them would now be allowed to proceed with their IPOs.
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IPO Updates : SEBI’s Approval
Till date, the latest observations received by these companies include that SEBI has issued an observation letter to Swiggy and Hyundai Motor India on September 24, 2024. While Vishal Mega Mart marked the date of September 25, the same for Acme Solar Holdings and Mamata Machinery got cleared on September 27. These letters indicate that all the five companies are now clear on the regulatory front for launching their IPOs – a green signal that lets them start with the final step before being listed in the stock markets.
Hyundai Motor India Mega IPO
Hyundai Motor India Ltd is one such IPO that is promising. Hyundai Motor Company of South Korea’s Indian arm is said to raise ₹25,000 crore – a figure that works out to be the largest-ever IPO in India. Hyundai’s IPO will be hitting the markets before Diwali and is expected to create a noise among investors.
Currently Hyundai Motor India is the second-largest carmaker in the country, ranking only second after Maruti Suzuki India. In the past few years, Hyundai has gained much reputation in India owing to a diversified range of cars available in various segments in the market, which include hatchbacks, sedans, and SUVs. The prospect of the IPO will turn out to be a starting point for improving Hyundai’s financial situation; however, the company has announced that it will not use income from the IPO for direct provision of operations.
What is unique about Hyundai Motor India’s IPO is the company’s financial performance. In FY23, Hyundai recorded the highest RoNW in its peer group at ₹ 23.48 per cent. This means that the RoNW for FY23 stood at 23.48 per cent and is nothing but the ability of the company to generate profits from the amount of capital invested by its shareholders.
From FY19 to FY23, the Indian PV industry has displayed high growth at 11% CAGR on the industry value side, driven by an 8% CAGR in average vehicle prices and a 3% CAGR in total sales volumes. Hyundai, with a very broad portfolio of offerings across all major segments, remains best placed to capitalize on this growth. Because of this, the company like Maruti Suzuki and Tata Motors is considered to be a stronger competitor in the market. The listing would further fortify its financial situation, making any future fundraising operations easier. Also, the Hyundai IPO would allow investors to acquire shares in what is now a developing Indian automobile industry, still in its early stages when compared to more mature markets.
Swiggy’s IPO: Growth and Expansion
Another landmark entry is Swiggy, the number one food ordering platform in India, which is about to embark on the long-awaited IPO. The company had been one of the pioneers at the forefront of revolutionizing the food ordering service within the country. It has over time been able to diversify and expand its offerings from purely food ordering to delivering groceries through its Instamart platform.
The outcome IPO for Swiggy will help this company to take its expansion plan one step ahead and will also project its further growth as a market leader. Now with the approval of SEBI, the company is just a step ahead of an actual public issue and hence, the IPO will also be bound to garner humongous interest from retail and institutional investors alike.
Acme Solar Holdings: A Green Energy Boost
Acme Solar Holdings, the other largest player in the Indian market headquartered in Gurugram, also gets SEBI’s nod to move ahead with its IPO. The company plans to raise ₹3,000 crore through a mix of fresh issue of shares worth ₹2,000 crore and OFS worth ₹1,000 crore offered by ACME Cleantech Solutions.
In India, the renewable energy sector has been booming in the past few years. This has been due to an attempt by governments to increase the percentage of clean energy in the country’s energy mix. Acme Solar Holdings has been one of the major players in this particular sector. The company specializes in solar energy projects. Thus, interest for its IPO from investors looking to capitalise on the steadily increasing demand for the product may be anticipated.
The proceeds of the fresh issue of the IPO of Acme Solar would mainly be utilized in reimbursement of present debt and for general corporate purposes of the company, positioning itself to reduce its financial liabilities and enhance the balance sheet.
Mamata Machinery: A Family-Owned Business
Mamata Machinery, a Gujarat-based manufacturing company of packaging machinery, is to float the IPO. The Gujarat-based manufacturer of packaging machinery, Mamata Machinery will float its initial public offer with an offer for sale. The promoters are expected to sell 73.82 lakh equity shares, as per DRHP. The shareholders selling the stakes include Patel family members—Mahendra Patel, Nayana Patel, Bhagvati Patel. These members along with Mamata Group Corporate Services LLP and Mamta Management Services LLP will sell stakes.
Mamata Machinery is a name to rely on and has a strong domestic presence as well as an international market share. The IPO will help the promoters unlock the value of their holding as well as would provide an opportunity to new investors to invest in one of the well-established players in packaging machinery.
Vishal Mega Mart: The Retailing Giant in Making
Another retailer is going to file for an IPO. One of the popular retail chains Vishal Mega Mart has a huge presence across India. It has gained enormous growth with the availability of lots of products, like apparel, home essentials, and grocery items at affordable prices. Now, with an observation letter from SEBI, Vishal Mega Mart is ready to take the next level for the public issue.
Huge change within the retailing industry in India owing to competition by brick-and-mortar stores and e-commerce sites. Vishal Mega Mart has carved out its niche through price affordability and accessibility so that the same customers have been going to this store as a steady source. This IPO will help the company raise enough funds for expansion purposes, which includes opening new stores and enhancing online presence.
The growing IPO market in India
India’s IPO market has been roaring in 2024, with mainboard IPOs of 62 firms raising around ₹64,000 crore so far this year. That is 29% more than the ₹49,436 crore 57 companies raised last year. Among the big-ticket ones already tapping into the IPO this year are Bajaj Housing Finance, Ola Electric Mobility, and Brainbees Solutions, the parent of FirstCry.
Reports said the IPO market is still reflecting some very good performances that indicate growing investor confidence and a favorable economic environment. Now, with more companies looking to go public, the Indian stock market is fast emerging as a very attractive destination for both domestic and international investors.
Conclusion
As many as five companies, including food delivery major Swiggy, Hyundai Motor India, Acme Solar Holdings, Vishal Mega Mart, and Mamata Machinery, have made their initial public offerings squeak through. Promising a very busy period ahead for the Indian stock market, each of these companies presents a different sector-one being automotive and renewable energy, while the other represents retail and food delivery-and hence, offers investors a wide opportunity to participate in the India story.
Then comes the big-ticket IPO of Hyundai Motor India, which is expected to raise ₹25,000 crore-which will probably be the biggest IPO in the country. Other players that are expected to make a mark include Swiggy and Acme Solar Holdings. Having seen quite consistent momentum in the Indian IPO market, the upcoming public offers are expected to take investor interest even higher and contribute positively to the economic growth of the country.