The primary market is to be back in action with nine new initial public offerings (IPO) set to open for subscription next week. Apart from new public issues, the market will also witness six new listings in the upcoming week.
What Is An IPO?
An IPO, or Initial Public Offering, is the process by which a private company offers shares to the public for the first time. This allows the company to raise capital, enhance its reputation, and increase its visibility.
There are two types of IPO:-
Mainboard IPOs, which are listed on the BSE and NSE, and SME IPOs, which are listed only on the BSE or NSE SME exchange.
In the mainboard segment, Ajax Engineering IPO, Hexaware Technologies IPO, and Quality Power IPO are set to open for subscription this week. Meanwhile, in the SME segment, six new offerings will be available for bidding over the next five days.
“2024 saw a record-breaking capital raise through initial public offerings (IPOs), and 2025 is expected to be even more exciting. India has emerged as one of the world’s major IPO hubs for domestic and international companies alike. The momentum anticipated in the next two years in the capital market is thrice what it has achieved in the last 5 years.
There have been 851 initial public offerings (IPOs) in the last 5 years, and estimates suggest that there will be over 1,000 IPOs in the next two years. Market confidence is continuing to rise as India’s market capitalization has topped US$5 trillion, ranking it fourth in the world after the US, China (including Hong Kong), and Japan,” said Mr. Mahavir Lunawat, Group Founder & Managing Director, Pantomath Financial Services Group.
Ajax Engineering IPO will open for subscription on February 10 and close on February 12. The IPO is a book-built issue of ₹1,269.35 crore and is entirely an offer for sale of 2.02 crore shares.
The price band of the upcoming IPO has been set at ₹599 to ₹629 per share. ICICI Securities Limited, Citigroup Global Markets India Private Limited, Jm Financial Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are the book-running lead managers of the Ajax Engineering IPO, while Link Intime India Private Ltd is the registrar for the issue.