Upcoming IPOs: HDFC Mutual Fund, 6 others to raise ₹ 14,000 crore

New Delhi: Seven initial public offerings (IPOs), including those of Lodha Developers and HDFC Mutual Fund, are expected to hit the markets in the coming week to raise more than ₹ 14,000 crore. The first among them would be TCNS Clothing, which sells its products under W, Aurelia and Wishful brands, that will launch its ₹ 1,125 crore IPO. Lodha Developers, HDFC Mutual Fund, Nekkanti Sea Foods, Flemingo Travel Retail, Patel Infrastructure and Genius Consultants are expected to launch their respective IPOs in the coming week, according to people familiar with their plans.

The seven IPOs are aimed funding business expansion, working capital requirements and repayment of loans. They will also provide partial exits to shareholders, including private equity and venture capital investors.

“These companies have already secured Sebi’s approval to float IPO and now they are expected to launch their initial public offers next month,” a merchant banker said, requesting anonymity.

Lodha Developers plans to raise an estimated ₹ 5,500 crore through its IPO, which will include a fresh issue of shares worth ₹ 3,750 crore and an offer for sale of 1.8 crore shares by the promoters. Lodha Developers aims to raise about ₹ 750 crore through a pre-offer placement of 95 lakh fresh shares, its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (Sebi) showed.

The IPO HDFC Asset Management Co. Ltd, India’s largest mutual fund, may garner ₹ 3,500 crore. According to its DRHP, the HDFC Mutual Fund IPO offers up to 2.54 crore equity shares through an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 crore shares by Standard Life.

Leading duty-free and travel retail operator Flemingo will issue fresh shares worth ₹ 2,423 crore besides an offer for sale of 1,129,500 shares by subsidiary Flemingo Duty Free Shop Mumbai Pvt. Ltd. According to people familiar with the company’s plans, Flemingo aims to raise ₹ 2,600 crore via the IPO.

Nekkanti Sea Foods’ ₹ 750-crore IPO comprises fresh issue of shares worth ₹ 250 crore and an offer for sale of up to 80 lakh equity shares by existing shareholders.

The Patel Infra IPO will see sale of equity shares worth ₹ 400 crore. Genius Consultants’ IPO comprises fresh equity worth ₹ 170 crore. One million shares of promoter Rajendra Prasad Yadav will also be put on the block.

“The IPO market is buoyant for good quality company issues which are priced cautiously. There is investor appetite for companies which price their IPOs keeping money-on-table for investors,” said J. Kalyaniwala, vice president (investment banking) at brokerage Prabhudas Lilladher.

The proactive regulatory environment, coupled with uplifted investor sentiment, has helped the IPO market. Further, Sebi, in its board meeting last month, had decided to reduce the timeline for announcement of IPO price band, which is further going to aid the market. According to the new rules, the timeline for announcing IPO price band will be reduced to two days from the current five days.

Eighteen companies have already raised ₹ 23,670 crore through their respective IPOs in January-June 2018 as compared to ₹ 12,000 crore garnered by 13 IPOs in the first six months of 2017.