The IPO market is set for a short slump, with only 2 issues this week at Rs. 365 crore is set to be collected

After a flurry of initial public offerings (IPOs) in recent weeks, the primary market will experience a brief lull, with only two new public issues scheduled for next week, targeting Rs. 365 crore to be collected. In September, there were 12 IPOs in the Mainboard segment and 40 in the SME (Small and Medium Enterprise) segment.

Next week, the IPO starting on October 7 has Garuda Construction & Engineering on the main board and Shiv Techchem in the SME segment.

Garuda Construction Rs. 264 crore, and Shiv Techchem through their respective IPOs available for public subscription from October 8-10 will raise Rs. 101 crores is targeted.

The stock market has seen a significant correction in the equity market since the beginning of October amid the intense conflict between Israel and Iran.

Despite the temporary slowdown, overall, the outlook for the IPO market is promising, with 26 companies currently receiving SEBI approvals worth Rs. 72,000 crore, while 55 other companies have proposed to raise around Rs. 89,000 crore, which is awaiting regulatory approval, according to PrimeDatabase.

This month, Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, made around Rs. 25,000 crore will enter the primary market to raise Rs. According to sources, the company’s IPO is likely to be launched on October 14.

If the offer goes ahead as planned, it will cost Life Insurance Corporation (LIC) Rs. 21,000 crore will surpass the public offering, making it the largest IPO in India’s history.

Moreover, 63 companies through Mainboard have received about Rs. 64,000 crore has been raised, which in 2023 was raised by 57 companies through the route of Rs. 49,436 crore showing an increase of 29 percent.

The strong momentum in the IPO markets is driven by several key macroeconomic, sector-specific factors and the willingness of funds to look at new ideas. In particular, strong inflows into domestic mutual funds and robust capital formation across corporate India are playing a key role, experts said.

Garud Construction and Engineering’s IPO is a combination of a fresh issue of 1.83 crore equity shares and an offer of sale (OFS) of 95 lakh equity shares by promoter PKH Ventures. The price band has been fixed at Rs 92 to Rs 95 per share.

From its fresh issue proceeds of around Rs. 100 crore will be used for working capital requirements and the balance for general corporate purposes, including undisclosed inorganic acquisitions.

Shiv TechChem’s IPO is an all-new offering of over 61 lakh shares and is priced at Rs. 101.35 crore is a book-built issue. For the IPO, it raised Rs. 158 to Rs. 166 price band has been fixed.

Additionally, Khyati Global Ventures’ SME IPO, which opened for public subscription on October 4, will close on October 8.

Additionally, a list of six companies from the SME segment has been prepared in the coming week. HVAX Technologies and Saj Hotels will debut on October 7, followed by Subam Papers and Paramount Dye Tec on October 8.

Neopolitan Pizza and Foods will start trading on October 9, followed by Khyati Global Ventures on October 11.