IPO Market Prepares for a Slowdown: Two New Offerings Set to Raise ₹365 Crore Next Week!

The stock market has experienced a notable downturn in the equity sector since early October, largely influenced by escalating tensions between Israel and Iran.

Upcoming IPOs Amid Market Fluctuations

Following a surge of initial public offerings (IPOs) in recent weeks, the primary market is set for a temporary pause, with only two new public issues anticipated next week that aim to raise approximately Rs 365 crore. In September alone, there were 12 IPOs on the mainboard and an impressive 40 within the small and medium enterprise (SME) segment.

Scheduled for launch starting October 7 are Garuda Construction and Engineering on the mainboard alongside Shiv Texchem in the SME category. Garuda Construction plans to raise Rs 264 crore while Shiv Texchem targets over Rs 101 crore through their respective IPOs available for subscription from October 8 to October 10.

Promising Outlook Despite Temporary Slowdown

Despite this brief slowdown, the overall outlook for upcoming IPOs remains optimistic. Currently, there are about 26 companies approved by Sebi looking to raise around Rs 72,000 crore. Additionally, another group of approximately 55 firms is seeking regulatory approval to gather about Rs 89,000 crore according to data from Primedatabase.

Hyundai Motor India Ltd., part of South Korea’s Hyundai conglomerate, is preparing to enter the primary market with an ambitious plan to secure around Rs 25,000 crore through its IPO expected on October 14. If successful as projected, this offering would surpass Life Insurance Corporation’s (LIC) previous record of Rs 21,000 crore—making it potentially India’s largest IPO ever.

Record-Breaking Trends in Fundraising

So far this year, a total of 63 companies have successfully raised around Rs 64,000 crore via mainboard listings—a significant increase compared to Rs49 ,436 crores collected by 57 firms during all of last year—a rise of nearly 29%.

This robust activity in the IPO landscape can be attributed to several macroeconomic factors along with sector-specific dynamics that encourage investment into fresh ventures. Notably strong inflows into domestic mutual funds coupled with vigorous capital formation across corporate India have been pivotal drivers behind this momentum.

Details on Upcoming Offerings

Garuda Construction’s offering consists of both a fresh issue comprising 18.3 million equity shares, along with an offer-for-sale (OFS) totaling 9.5 million shares from promoter PKH Ventures; they have set their price band between Rs92 and Rs95 per share. Approximately Rs100 crores from these proceeds will be allocated towards working capital needs while remaining funds will support general corporate purposes including potential acquisitions yet unspecified.

On another front is Shiv Texchem’s entirely new issuance exceeding 6.1 million shares, aiming for a total collection close to ₹101 crores at a price range established between ₹158 and ₹166 per share during its book-building process.

Additionally noteworthy is Khyati Global Ventures’ SME-focused IPO which opened for subscriptions on October4th and will conclude on October8th .

In terms of upcoming listings within SMEs next week: HVAX Technologies and Saj Hotels are slated for debut trading on October7th , followed closely by Subam Papers and Paramount Dye Tec launching their trades onOctober8th . NeoPolitan Pizza & Foods will commence trading operations startingOctober9th , while Khyati Global Ventures follows suitonOctober11th .

This dynamic environment reflects not just resilience but also adaptability within India’s financial markets as they navigate external pressures while continuing efforts toward growth through innovative fundraising strategies.