The activity in the primary market has picked up of late boosted by the rebound in equities since July. Go Digit General Insurance, Concord Biotech, an Ahmedabad-based firm backed by RARE Enterprises, and Kolkata-based Balaji Solutions have filed their draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI), on Tuesday to launch initial public offerings. These three companies could collectively raise around ₹7,500 crore through IPOs, a report by Economic Times stated.
While Prem Watsa's Fairfax-backed Go Digit General Insurance's IPO is expected to raise around ₹5,000 crore, Concord Biotech and Balaji Solutions are likely to raise ₹2,000 crore and ₹400 crore, respectively, it added.
"So far in 2022, about 63 companies have filed draft papers with Sebi, while 17 companies, including LIC, have raised about ₹41,140 crore from the IPOs. About 71 companies which have received Sebi approval are waiting for a better time to launch IPOs," the report said.
The public issue of Go Digit General Insurance, a digital full-stack non-life insurance company, consists of a fresh issue of shares worth up to ₹1,250 crore and an offer-for-sale (OFS) of up to 10.94 crore shares by the promoter and shareholders, noted ET.
The proceeds from its fresh issuance will be utilized for augmentation of the company's capital base and maintenance of solvency levels, and general corporate purposes said ET.
Meanwhile, as per the report, the IPO of Concord Biotech, a developer and manufacturer of select fermentation-based APIs across immunosuppressants and oncology, is an offer for sale of 2.09 crore shares by Helix Investment Holdings. Rakesh Jhunjhunwala's family-owned around a 24 percent stake in the company.
Kolkata-based Balaji Solutions, an IT hardware and mobile accessories company engaged in manufacturing, branding, and distribution of products under the brand "Foxin," has also filed its DRHP with Sebi to raise funds through an IPO. The offering consists of a fresh issue of equity shares worth up to ₹120 crore and an offer-for-sale of up to 75 lakh shares by the promoter and shareholders, the report informed.
The renewed buzz in the IPO market comes after almost a three-month gap of no activity, pointed out ET. Due to a weak secondary market, no IPO was launched between May 26 and August 12, it added.