Even though the IPO market is in full swing, November is all set to witness regulatory approvals to float public offers ending for 8 companies this month, according to IPO Central’s IPO Tracker. Out of these 8 companies, only one is going ahead with IPO while the remaining companies are set to miss their IPO deadlines, having either arranged alternative sources of funding or aren’t interested in launching their IPOs this time. In any case, these companies will need to file fresh draft prospectus with the market regulator SEBI should they wish to tap the primary markets in future after missing the IPO deadline.
IPO deadlines in November 2022
|IPO Company||Lead Manager||Issue Type||Filing Date||Approval Date|
|Inspira Enterprise India||Axis Capital||Fresh+OFS||8/17/2021||11/1/2021|
|Fusion Micro Finance||ICICI Securities||Fresh+OFS||8/11/2021||11/16/2021|
|Puranik Builders||Elara Capital||Fresh+OFS||9/21/2021||11/18/2021|
|Gemini Edibles & Fats India||Axis Capital||OFS||8/9/2021||11/23/2021|
|India1 Payments||JM Financial||Fresh+OFS||9/7/2021||11/24/2021|
|Healthium Medtech||ICICI Securities||Fresh+OFS||9/7/2021||11/24/2021|
|VLCC Healthcare||ICICI Securities||Fresh+OFS||8/14/2021||11/25/2021|
|Godavari Biorefineries||Equirus Capital||Fresh+OFS||9/27/2021||11/26/2021|
This month has started with one active IPO from last month in the form of DCX Systems while shadow lender Fusion Microfinance IPO is opening tomorrow for subscription. These IPOs will be closely followed by the public offers of Indian snacks specialist Bikaji Foods and hospital chain operator Global Health – the company behind Medanta brand. Another lender Five Star Business Finance is likely to launch its maiden public offer next week.
Fusion microfinance made its application in August 2021 and received market regulators observations on 16November 2021. Accordingly, 16 November 2022 is the last date when the shadow Lander can bring its IPO. As stated above, it is the only company from the lot which is going ahead with its public offer.
Meanwhile, companies like Inspira Enterprise India, Puranik Builders, Gemini Edibles & Fats India, India1 Payments, Healthium Medtech, VLCC Healthcare and Godavari Biorefineries have abandoned their public offer plans for a variety of reasons. For example, VLCC Healthcare raised funds via a share sale late last year which might be a reason for going slow on the public offer. Puranik Builders, on the other hand, seems to be on track to lose its IPO deadline for third time. The real estate developer has a window until 18 November to launch its IPO. Similarly, Inspira Enterprise’s IPO approval is valid till today only and there is no activity from the company.
It is important to highlight that these companies may still bring their public offers in the coming days before the validity of their approvals expire. It usually takes a month to update the financial statements, file the same with regulator and coordinate with other stakeholders in the IPO process which means that the companies will need to hurry if they wish to meet the IPO deadline.
Even though broader markets have staged a sustained recovery in the last month or so, the time frame prior to last month has been quite tumultuous for public investors and stock markets. Several uncertainties including the Ukraine Russia conflict, hawkish stance by central banks in the US and Europe, concerns regarding a major slow down or even recession in major economies have been holding back companies from committing to list themselves on stock markets.
IPO deadlines expiring but others gearing up
Nevertheless, a spate of public offers lined up in November indicates that better times are ahead for investors in stock markets as far as IPOs are concerned. Improving sentiments in the secondary markets also indicate that investors are willing to pay a premium for solid growth plays, something that company promoters look forward to. Investors’ increasing risk appetite is also underlined in the heavily subscribed SME IPOs.