Despite the ongoing Lok Sabha elections causing market volatility, the demand for initial public offerings (IPOs) is expected to remain robust. The primary markets have shown strong momentum this year, defying global market sentiments affected by geopolitical tensions and inflationary pressures.
Investors appear undeterred by the election-related uncertainty, as there is confidence in the outcome. Ajay Saraf, head of investment banking and institutional equity at ICICI Securities, noted that robust inflows from both domestic and foreign sources have shielded the primary market from election volatility, geopolitical issues, and inflation concerns. Investors continue to show a significant appetite for quality issuances regardless of market conditions.
The IPO rush in India is expected to persist in the coming months. According to a report by Prime Database, the amount raised through IPOs in the past six months exceeds the total raised in the past four general election cycles combined. Several IPOs are scheduled to raise significant funds in May, including Indegene, Aadhar Housing Finance, TBO Tek, and Go Digit, collectively aiming to raise up to Rs 10,000 crore.
Indegene, a health tech firm backed by Carlyle, plans to raise Rs 1,842 crore through its IPO, with subscriptions opening on May 6. TBO Tek, an online travel distribution platform supported by General Atlantic, is set to launch its IPO after Indegene, with subscriptions running from May 8 to May 10. Aadhar Housing Finance is also expected to launch its Rs 3,000 crore IPO this month. Additionally, Go Digit General Insurance, backed by Fairfax Group, will introduce its IPO in May.
Furthermore, several SME IPOs are slated for launch this month, including Slone Infosystems, Winsol Engineers, Refractory Shapes, and Finelistings Technologies. Overall, the IPO market in India continues to witness strong activity, indicating investor confidence and interest in new issuances despite prevailing market conditions.
