In its latest weekly update, the Securities and Exchange Board of India (SEBI) granted approval for several high-profile initial public offerings (IPOs), including those of Swiggy, Hyundai India, Vishal Mega Mart, Mamata Machinery, and ACME Solar Holdings. Each of these companies brings unique offerings and market positions that could attract significant interest from investors. Here is more on these latest IPO approvals Below is a detailed overview of each company, their business models, key statistics, and what makes their IPOs particularly compelling for the general public.
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#1 Swiggy
Swiggy, one of India’s leading food delivery platforms, has received SEBI’s approval for its IPO, targeting a valuation of approximately USD 15 billion. The company aims to raise between USD 1 billion and USD 1.25 billion through this offering. Founded in 2014, Swiggy has rapidly expanded its operations and now partners with over 150,000 restaurants across India.
In FY24, Swiggy reported a revenue of INR 11,247 crore, marking a 36% increase year-on-year. Notably, the company significantly reduced its losses by 43%, bringing them down to INR 2,350 crore. The growth in its food delivery segment and quick commerce has been robust, with a gross order value (GOV) reaching INR 35,000 crore supported by 14.3 million monthly transacting users.
The IPO proceeds are expected to be primarily allocated to expanding Swiggy Instamart, its grocery delivery service, to compete against rivals like Blinkit and Zepto. Given the increasing consumer preference for online food and grocery delivery services post-pandemic, Swiggy’s IPO is poised to attract attention from retail investors looking for growth opportunities in the e-commerce sector.
#2 Hyundai India – Biggest Among Latest IPO Approvals
Hyundai Motor India is set to launch what could be the largest IPO in Indian history, aiming to raise around INR 25,000 crore (approximately USD 3 billion). This IPO marks a significant moment as it would be the first public offering by an Indian carmaker in two decades since Maruti Suzuki’s IPO in 2003.
Hyundai India is currently the second-largest car manufacturer in the country and plans to use the funds raised from the IPO to enhance its visibility and brand image while expanding its SUV lineup and introducing electric vehicles tailored for the Indian market. The company has already invested USD 5 billion in India and plans to invest an additional USD 4 billion over the next decade.
With India’s automotive market rapidly evolving towards electric vehicles (EVs), Hyundai’s strategic focus on launching EVs could make this IPO particularly appealing to investors interested in sustainable transportation solutions. The company’s strong market position and future growth potential are likely to generate considerable interest among both institutional and retail investors.
#3 ACME Solar Holdings
ACME Solar Holdings is also among latest IPO approvals this week. The company had filed for an IPO aiming to raise INR 3,000 crore to finance its renewable energy projects. As one of India’s leading independent power producers (IPPs), ACME focuses on developing solar energy projects and has established a significant operational capacity of 1,320 MW as of March 2024.
The company plans to utilize approximately INR 1,500 crore of the proceeds for debt repayment and general corporate purposes. With a growing emphasis on renewable energy in India and global climate commitments pushing for cleaner energy sources, ACME’s focus on solar power positions it well within this expanding market.
Investors interested in sustainable energy solutions may find ACME’s IPO appealing due to its established track record in renewable projects and the increasing demand for clean energy solutions across the globe.
#4 Vishal Mega Mart
Vishal Mega Mart is a prominent retail chain in India specializing in providing a wide range of products from groceries to apparel at competitive prices. The company has received SEBI approval for its IPO as it seeks to enhance its operational capabilities and expand its footprint across India.
The retail sector in India is witnessing rapid growth driven by increasing disposable incomes and changing consumer preferences towards organized retail shopping. Vishal Mega Mart aims to leverage this trend by enhancing its supply chain efficiency and expanding its store network.
The upcoming IPO presents an opportunity for investors looking to tap into India’s burgeoning retail market. With increased consumer spending post-pandemic and a shift towards organized retail shopping experiences, Vishal Mega Mart’s offering could attract significant interest among retail investors seeking exposure in this sector.
#5 Mamata Machinery
Mamata Machinery specializes in manufacturing packaging equipment and has filed for an IPO primarily as an offer-for-sale (OFS) of shares held by promoters. The Gujarat-based company aims to enhance its brand visibility and provide liquidity for existing shareholders through this public offering.
With over 4,500 machines installed across 75 countries, Mamata Machinery serves a diverse range of industries within the packaging sector. Its extensive product line includes pouch-making machines and extrusion equipment that cater to various packaging needs.
As sustainability becomes increasingly important in manufacturing processes worldwide, Mamata Machinery’s focus on providing efficient packaging solutions could resonate well with investors interested in supporting companies that prioritize innovation and sustainability within their operations.
In conclusion, SEBI’s latest IPO approvals for these five companies highlight an exciting phase for the Indian capital markets. Each company represents unique opportunities across diverse sectors—from technology and automotive to renewable energy and retail—making their upcoming IPOs noteworthy events for both institutional and retail investors alike. Investors should consider their individual investment strategies while evaluating these offerings based on each company’s business model and growth potential.
