IPO Pipeline for December 2024: Rs 20,000 Crore Expected in Fresh Offerings

As ten businesses planning to sell for an incredible Rs 20,000 crore in December 2024 as part of their initial public offerings, the main market is a buzz of activity.  Be it goliaths in retail or new players looking at healthcare and education, here is the diverse-looking pipeline that promises to keep the investors guessing.

With several companies now looking to raise funds for expansion, the retirement of debt, and support for working capital needs, the upcoming IPOs offer a host of opportunities for investors. According to merchant bankers, the list includes Vishal Mega Mart, International Gemological Institute (IGI India), Avanse Financial Services, Sai Life Sciences, and Paras Healthcare, among others.

Most Expected IPOs of December 2024

Vishal Mega Mart IPO

The well-known superstore chain Vishal Mega Mart aims to use an entirely offer-for-sale (OFS) process to raise nearly Rs 8,000 cr. Samayat Services LLP, the IPO's promoter, will offer shares; no fresh shares of equity will be issued. This is one of the largest IPOs in the retail sector this year and indicates market interest in consumer-facing businesses.

International Gemmological Institute (IGI India) IPO

IGI India will raise Rs 4,000 crore through a fresh issue and an OFS by Blackstone. The fresh issue will be for Rs 1,250 crore; the company's parent, BCP Asia II TopCo Pte Ltd, will raise Rs 2,750 crore through the OFS. There is likely to be an aggressive infusion of buying from institutional and retail investors into the name of IGI India, which is the biggest player in diamond grading services.

Avanse Financial Services IPO

Avanse Financial Services is a focused education NBFC. The company plans to raise Rs 3,500 crore in its IPO. Out of this, Rs 1,000 crore would be fresh money and Rs 2,500 crore would be OFS. The company intends to utilize the funds to strengthen its capital base, thereby helping grow further in its education financing business.

Sai Life Sciences IPO

The TPG Capital-backed Sai Life Sciences is another significant biotech player that is planning to list on the public market. The IPO is likely to garner quite significant interest owing to the current rapidly growing demand in healthcare and life sciences investments.

Paras Healthcare IPO

Paras Healthcare will soon come out with an IPO. One of India's leading private healthcare providers, it plans to raise funds for further expansions and enhancing healthcare. One of the top priority sectors for any investor is healthcare. Hence, the IPO from the company should see a handsome subscription.

Other IPOs on the Horizon

In December alone, there will be several other companies that have scheduled their IPOs. These companies include Suraksha Diagnostics, Mamata Machinery, and Transrail Lighting, targeting various sectors like healthcare, manufacturing, and infrastructure.

A Strong Year for IPOs in 2024

2024 has been a blockbuster year for IPOs, with more than 75 companies raising approximately Rs 1.3 lakh crore. This is an enormous jump from the Rs 49,436 crore raised by 57 companies in 2023, which portrays the rising investor confidence in the Indian stock market. Big-name successes can be seen amongst the list for this year, including Swiggy, NTPC Green Energy, Bajaj Housing Finance, and FirstCry's parent company, Brainbees Solutions.

What is Driving the IPO Surge?

A host of factors are driving the strong IPO activity in December and beyond. Favorable market sentiment has been built on the back of the state election results, more than enhancing the viability of running the gauntlet in the new issue market. Resurgent grey market activity and investor appetite for fresh stocks have provided more impetus to this momentum.

According to Trivesh D, COO of Tradejini: “The market has again regained momentum after a brief lull. With IPOs continuing to deliver strong listing gains, investors are getting in on the listing gains action.”

Will the IPO pipeline strain liquidity?

This is despite an exciting pipeline of IPOs. However, Saurabh Patwa, Head of Research at Quest Investment Advisors, notes that the sheer number of IPOs slated for launch may put too much of a strain on the market's ability to absorb them if foreign investors continue pulling out funds, which could potentially even impact the secondary market.

If you have been following the IPO market, you would be delighted to know that it has been a great ride for retail investors over the last couple of years. Between FY21 and FY25, the average listing gains that the IPO investors had seen were roughly 27%. But here is the exciting part—by October 31, 2024, the retail investors have managed to sit pretty with a massive 105% gain on average! This is just one more instance of how strong the Indian IPO market truly is.

Things are still great for the last few months of 2024 about the IPO scene, so there's nothing but a lot to catch your share of. Whether you're new to IPOs or an old pro, this is the best and most diverse kind of portfolio across sectors. It's definitely exciting to be around the market and with appropriate strategies in place, it's no wonder to get some rewarding returns.

We at IPO Ji also ensure that you are getting the latest news on IPOs along with detailed information on all upcoming IPOs and provide allotment status tracking for you. Give your investment a boost with our user-friendly platform.