After record-breaking fundraising via the initial public offering (IPO) route in September, the primary market is expected to see momentum continuing this month as many companies are lined up to launch their issues. From Zomato rival Swiggy to Niva Bupa Health Insurance to Acme Solar and Mobikwik, as many as seven companies are gearing up to launch their IPOs in November, as per reports. The list includes NTPC Green Energy, Sagility India, and Zinka Logistics, which are slated to hit Dalal Street this month. Barring NTPC Green Energy, all other companies have received green signal from capital market regulator SEBI to launch their public offering by listing their shares on domestic bourses.
Here’s all you need to know about upcoming IPOs:
Swiggy
The online food delivery platform is expected to launch its IPO in the first week of November. The exact dates are yet to be announced by the company, but the issue is likely to open for subscription on November 6 and close on November 8. Swiggy filed its IPO in April this year after its shareholders' approved a proposal to raise $1.25 billion via listing of shares on stock exchanges.
The Bengaluru-based firm, in its regulatory filing with the finance ministry's Registrar of Companies, said it passed a special resolution to raise ₹3,750 crore by way of a fresh issue of equity shares and up to ₹6,664 crore via an offer for sale (OFS) by existing shareholders. The offer also includes a green shoe option, if required, and the board may also invite existing shareholders to take part in the offer. Further, the company may also raise about ₹750 crore via a pre-placement offer from anchor investors.
Niva Bupa Health Insurance Company
The health insurer, formerly known as Max Bupa, looks to raise ₹3,000 crore via IPO. The global private equity firm True North-backed firm had filed its Draft Red Herring Prospectus (DRHP) with the SEBI on June 29 this year, while it received final observation from the SEBI early this month.
The IPO of Niva Bupa is a mix of fresh equity issuance of ₹800 crore and an offer for sale of ₹2,200 crore by existing shareholders. Under the OFS, Bupa Singapore Holdings Pte. Ltd plans to offload shares worth up to ₹320 crore, while Fettle Tone LLP. to sell shares worth up to ₹1,880 crore.
The company intends to utilise the net proceeds from the fresh issuance to the extent of ₹625 crore towards augmentation of its capital base to strengthen solvency levels and for general corporate purposes.
NTPC Green Energy
The renewable energy arm of state-owned National Thermal Power Corporation (NTPC) filed its IPO document with the SEBI last month to raise ₹10,000 crore via IPO route. The highly-anticipated IPO is completely a fresh issue of equity shares, with no offer for sale component.
NTPC Green Energy, a 'Maharatna' central public sector enterprise, intends to use IPO proceeds to invest in its wholly owned subsidiary, NTPC Renewable Energy, to repay its certain debts. A part of the fund will be used to meet general corporate purposes.
As per the DRHP, the company will use 75% of the raised capital (₹7,500 crore) to clear debts availed by NTPC Renewable Energy Limited (NREL). As per the IPO document, NREL has entered into various borrowing arrangements, including borrowings in the form of term loans and various fund-based and non-fund based working capital facilities. As on July 31, 2024, the company had outstanding borrowings (fund based) of ₹16,235 crore on a consolidated basis.
One Mobikwik Systems
The Gurugram-based payment platform received final observation from the SEBI in September this year, to raise ₹700 crore by public listing of shares on the domestic bourses. The fintech company, which had refiled its IPO papers with SEBI on January 4, 2024, is expected to launch its IPO next month.
The IPO, having a face value of ₹2, is entirely a fresh issue of equity shares with no offer for sale component. The proceeds from the fresh issue, to the extent of ₹250 crore will be used for funding growth in the financial services business; ₹135 crore for funding growth in the payment services business; ₹135 crore for investment in data, ML and AI and product and technology; ₹70.28 crore for Capital expenditure for the payment devices business, and general corporate purposes.
Acme Solar Holdings
The Gurugram-based renewable energy producer is set to launch its ₹3,000 crore IPO in November. The IPO is a mix of fresh issue of shares up to ₹2,000 crore and an offer for sale (OFS) of up to ₹1,000 crore by ACME Cleantech Solutions Private Limited. The company intends to utilise the net proceeds from the fresh issuance to the extent of ₹1,500 crore towards repayment of certain outstanding borrowings availed by the subsidiaries and for general corporate purposes.
Sagility India
The healthcare-focused technology service provider is also gearing up to launch its IPO next month. The issue is entirely an offer for sale of up to 98.45 crore equity shares by Sagility B.V, the promoter selling shareholder.
Established in 2021, the Bengaluru based company provides technology-driven services to both payers and providers, covering core benefits administration and clinical services. These include claims management, payment integrity, clinical management, and more. Sagility delivers these services through its tools and platforms, utilising its skilled workforce from five global service delivery centers in India, the Philippines, the U.S., Jamaica, and Colombia.
Zinka Logistics Solutions
The Bengaluru-based online trucking platform got SEBI nod for its IPO early this month. The company had filed its IPO papers with SEBI on July 5, 2024. The issue is a combination of fresh issuance of ₹550 crore and an offer for sale of up to 2.16 crore equity shares by promoters and investor selling shareholders. The proceeds from its fresh issuance to the extent of ₹200 crore will be utilised for funding towards sales and marketing costs; ₹140 crore for investment in Blackbuck Finserve Private Limited for financing the augmentation of its capital base to meet its future capital requirements; and ₹75 crore for funding of expenditure in relation to product development and general corporate purposes.
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