IPO market warms up for a busy December

Mumbai: The holy trinity of a bull market — liquidity, investor interest, and plunging debt returns — is drawing promoters to list: At last count, more than half a dozen unlisted companies are set to take the leap of faith in the Christmas month, having firmed up plans to go public.Suryoday Small Finance Bank, ESAF Small Finance Bank, Nazara Technologies, RailTel, Burger King, Kalyan Jewellers and Antony Waste Management are among those that are conducting road shows and planning initial public offers (IPOs) in December, bankers told ET.So far in 2020, 12 companies collectively raised Rs 24,963 crore through IPOs, compared with Rs 12,363 crore raised by 16 companies in 2019. The majority of this year's issues yielded handsome returns. Route Mobile is trading at a premium of 179 per cent over the issue price; Premiums to offer price for Happiest Mind Technologies are at 92 per cent, Rossari Biotech at 86 per cent, Gland Pharma at 40 per cent and Mazagon Dock at 25 per cent.79380030Private equity major Warburg Pincus-backed Kalyan Jewellers is likely to launch its Rs 1,750-crore maiden IPO in December. The IPO comprises Rs 1,000 crore of fresh issue and Rs 750 crore offer for sale by promoter T S Kalyanaraman and Highdell Investment, a Warburg Pincus firm, according to its draft prospectus.Suryoday SFB and ESAF SFB are likely to raise Rs 1,000 crore each in December. The Suryoday IPO comprises fresh issuance of 11.6 million equity shares and an offer for sale of up to 8.5 million shares by International Financial Corporation (IFC), Gaja Capital, and HDFC Holdings among others. ESAF IPO is 800 crore of fresh issue and 200 crore of offer for sale by the existing shareholders Bajaj Allianz Life Insurance and PI Venture.Rakesh Jhunjhunwala-backed Nazara Technologies is planning to hit the primary market to raise about 950 crore. Besides Jhunjhunwala, Westbridge Ventures, Turtle Entertainment, IIFL Special Opportunity Fund and Emerging Investments are other key shareholders of the Mumbai-based mobile gaming company.“As of now, companies that have been Covid winners or leaders in their sectors have got listed. However, IPO activity in the next 3-6 months would be dominated by resilient sectors such as tech, healthcare and consumer and also from recovering sectors like hospitality and BFSI,” said V Jayasankar, head of equity capital markets, Kotak Investment Banking.State-owned RailTel Corporation of India is likely to hit the primary market in the first week of December to raise about Rs 700 crore. The IPO is entirely an offer-for-sale through which the government will offload 86.6 million equity shares.Some of the companies that had deferred their IPO plans are also now ready to tap the market again on robust investor appetite, said bankers.Burger King India is expected to launch its maiden IPO mid-December to raise Rs 542 crore through fresh issue and Rs 400 through offer for sale of up to 60 million equity shares by QSR Asia, the promoter.Antony Waste Handling Cell, which cancelled its IPO in March, will also likely try again in December, according to bankers.

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