Hectic fundraising through IPOs will continue next week, with three firms -- One97 Communications, owner of Paytm; Sapphire Foods India, which operates KFC and Pizza Hut outlets; and Latent View Analytics -- are set to launch their initial share-sales to collectively mop up about Rs 21,000 crore.
This comes after five companies successfully concluded their public offerings (IPOs) this week.
Those five firms are — FSN E-Commerce Ventures, which runs online marketplace for beauty and wellness products Nykaa; Fino Payments Bank; Policybazaar parent entity PB Fintech; decorative aesthetics supplier SJS Enterprises; and microcrystalline cellulose maker Sigachi Industries.
The three-day IPOs of Paytm, Sapphire Foods India and Latent View Analytics are scheduled to open on November 8, November 9 and November 10, respectively.
So far in 2021, as many as 46 companies have floated their IPOs to raise Rs 80,102 crore and market experts believe that the year should close with the Rs 1-lakh crore primary market fundraising.
Apart from these, PowerGrid InvIT, the infrastructure investment trust (InvIT) sponsored by the Power Grid Corporation of India, mopped up Rs 7,735 crore through its IPO, and Brookfield India Real Estate Trust raised Rs 3,800 crore via its initial share-sale.
The fundraising so far this year is way higher than Rs 26,611 crore collected by 15 companies through initial share-sales in the entire 2020.
Such impressive fundraising through IPOs was last seen in 2017 when firms mobilised Rs 67,147 crore through 36 initial share-sales. Digital firm One97 Communications, which operates under the Paytm brand name, is set to come out with its Rs 18,300-crore IPO on November 8.
The IPO comprises fresh issuance of equity shares worth Rs 8,300 crore and Rs 10,000 crore from an offer for sale (OFS) by existing shareholders.
The company has fixed a price band of Rs 2,080-2,150 apiece, implying a valuation of around Rs 1.48 lakh crore.
The Rs 18,300-crore offer, if successful, will be the biggest in the country after Coal India's IPO in 2010, wherein the state-owned company had garnered Rs 15,200 crore.
"The biggest merit for Paytm's IPO would be that they have so much more diversified regulatory access under one roof.
"This focus on diversification means that none of their particular business books has depth, unlike other major players who focus more on specialising," Nikhil Kamath, co-founder of True Beacon and Zerodha, said.
On Wednesday, Paytm raised Rs 8,235 crore from anchor investors.
