Indian IPOs Pick up After Four-Month Break
Initial public offerings in India are picking up again after a four-month hiatus with two new deals.
(Bloomberg) -- Initial public offerings in India are picking up again after a four-month hiatus, during which the market was dominated by follow-on share sales and block trades.
Rossari Biotech Ltd., a Mumbai-based specialty chemicals maker, is looking to raise as much as $66 million and last week received orders for 79.4 times the shares offered in a sign of strong demand. Meanwhile, a Blackstone Group Inc.-backed real estate investment trust, Mindspace Business Parks REIT, plans to raise as much as about $600 million in what would be the country’s second REIT IPO.
The two deals come after first-time share sales largely dried up in the South Asian country. The last big IPO was the $1.44 billion listing of SBI Cards & Payment Services Ltd. in March. Following that, there have been a number of tiny deals with only one raising more than $1 million, data compiled by Bloomberg show.
India’s equity markets have recovered significantly since they hit a trough in March, along with many of the region’s other indexes. The S&P BSE Sensex is up 44% from March 23, as is the the NSE Nifty 50.
While IPOs were quiet, India’s equity capital markets were nevertheless busy with follow-on offerings as companies sought funds to weather the coronavirus-induced lockdown and shareholders sold stakes. In May, some $5.44 billion worth of existing and new shares were sold in a record month for equity offerings. June saw 10 follow-on offerings raise $2.43 billion, the most in terms of deal count in a year, data compiled by Bloomberg show.
Investors may still have to wait a while for India’s unicorns -- such as Ola, Flipkart and Paytm -- to go public though. Softbank-backed online insurance platform Policybazaar aims to list in 2021, potentially becoming the first of the mega-startups to debut.
UPCOMING LISTINGS:
- Li Auto
- Nasdaq
- Size $1b
- Filed July 10
- Goldman Sachs, Morgan Stanley, UBS, CICC
- Hangzhou Tigermed Consulting
- Hong Kong stock exchange
- Size $1b
- Pre-marketing July 20-24
- BofA, Haitong, CLSA, CICC
- Gland Pharma
- India stock exchanges
- Filed July 10
- Citi, Haitong, Nomura, Kotak
- Mindspace REIT
- India stock exchanges
- Size up to $598m
- Anchor books open July 24, listing around Aug. 12
- Morgan Stanley, BofA, Axis Capital, Citi, JM Financial, Kotak Mahindra, CLSA, Nomura, UBS, Ambit Capital, HDFC Bank, IDFC Bank, ICICI Securities
- AREIT
- Philippines stock exchange
- Size up to $272m
- Pricing July 22, trading Aug. 13
- BPI Capital, UBS
More ECM situations we are following:
- Online insurance platform Policybazaar aims to go public in 2021 at a valuation north of $3.5 billion, potentially becoming the first of India’s mega-startups to debut as its digital economy booms.
- Everest Medicines Ltd. filed an application to list shares in Hong Kong.
- Hangzhou Tigermed Consulting Co. will gauge investor demand for its Hong Kong listing from July 20-24, according to the terms of the deal obtained by Bloomberg News.
See also:
- Asia ECM Weekly Agenda
- IPO data
- U.S. ECM Watch
- EU ECM Watch
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