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India Today
01-07-2025
- Business
- India Today
July turns hot for IPOs as firms race to raise $2.4 billion
The primary market is ready for yet another month of action in the primary market as firms are gearing up to raise around $2.4 billion through initial public offerings (IPOs) in this target is reached, it will mark the strongest IPO month since December 2023, following a solid $2 billion raised in June, most of which came from HDB Financial renewed activity comes after a slow start to the year due to the impact of the U.S. trade war and rising geopolitical tensions in regions like the Middle East. However, with stock markets recovering and investor sentiment improving, companies are once again turning to the primary market to raise the firms expected to go public this month are Credila Financial Services, National Securities Depository Ltd (NSDL), Aditya Infotech, and M&B four companies are currently conducting roadshows, according to investment bankers, reported Reuters. The companies themselves have not publicly confirmed their IPO timelines or details. India had a record-breaking year for IPOs in 2024, raising $20.5 billion and ranking second globally after the United States. This performance was driven by strong inflows from domestic investors who gained from the country's rapid economic growth. This year, the momentum was expected to continue, but events such as U.S. President Donald Trump's trade policies and rising tensions in South Asia delayed several such delayed IPO was that of LG Electronics' India arm, which had planned a $1.8 billion listing. Other firms also held back on launching their public issues due to uncertainty in the things are now looking more positive. Benchmark indices like the Nifty 50 and Sensex have recovered and are trading just about 3% below their peak levels. This recovery has brought confidence back into the IPO market."The IPO market has come back.... The absence of most of the negatives is driving the market more than anything else," Suraj Krishnaswamy, Managing Director of Investment Banking at Axis Capital, told Reuters. So far this year, India remains the world's second-largest IPO market, raising $5.86 billion. This accounts for 12% of all IPO proceeds globally, according to LSEG data.A STRONG LINE-UP AHEADAmong the IPOs expected in July, Credila's offering is set to be the largest at $584 million. NSDL is also planning to raise about $400 million. Though NSDL received approval to list as early as September 2023, its plans were delayed due to concerns about slowing economic and corporate growth. Bankers now say that both firms could soon announce final dates and ahead, LG Electronics India is expected to go ahead with its $1.8 billion IPO, while JSW Cement and defence equipment maker SMPP are also planning to raise close to $470 million each. JSW Cement's IPO could arrive as early as late July or early August, while the timeline for the other two remains to data from PRIME Database, there are 143 IPOs in the pipeline from Indian companies, with a total estimated value of $26 billion. Of these, 73 have already received approval from the Shah, Managing Director and Head of Investment Banking at Equirus, told Reuters, 'We expect the upcoming months to be the best for Indian IPO market as compared to what we have seen so far this year.'However, some market watchers are taking a more cautious view. Umesh Agrawal, a fund manager at 360 ONE Asset, said that investor behaviour has changed."Investors have become far more selective and are now much more mindful about where they see higher potential for returns," he said.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends advertisement
Time of India
01-07-2025
- Business
- Time of India
From LG to NSDL: India IPO market gears up for $2.4 billion in offerings in July as confidence rebounds
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian firms could raise some $2.4 billion through IPOs in July, investment bankers said, raising hopes of a sustained revival in primary offerings after demand was dented by the U.S. trade war and global geopolitical tensions earlier this amount would mark the strongest month since December and would follow a robust $2 billion raised in June, though most of that was raised by one company, HDB Financial loan provider Credila Financial Services, National Securities Depository Ltd (NSDL), surveillance firm Aditya Infotech and power-transmission-goods maker M&B Engineering are conducting roadshows and are expected to go public this month, bankers spoke on condition of anonymity as the companies have yet to make the timing of their IPOs and other details public. The companies did not respond to Reuters requests for IPO market had its best-ever year in 2024, with $20.5 billion raised, second only to the U.S., riding high on money inflows from domestic investors who have become wealthier on growth in the world's fifth-largest economy and were optimistic about more economic year was widely expected to be another record year but U.S. President Donald Trump's trade war, tensions with Pakistan and in the Middle East took much wind out of those IPO sails. South Korean conglomerate LG Electronics' India unit and other companies ended up delaying their capital raising now look to be getting back on track, particularly with the Nifty 50 and Sensex having regained lost ground to trade about 3% off from their peaks."The IPO market has come back.... The absence of most of the negatives is driving the market more than anything else," said Suraj Krishnaswamy, the managing director of investment banking at Axis Capital So far this year, India continues to the world's No. 2 IPO market with $5.86 billion raised, accounting for the 12% of total proceeds globally, LSEG data largest offering this month is likely to be Credila, which has said it is seeking $584 India's largest stock depository, is looking to raise $400 million, according to a received its regulatory nod for a listing as far back as September but market sentiment trended lower not long after on concerns about slower growth for the economy and corporate about the two firms' valuations and IPO dates could be announced soon, bankers major offerings in the pipeline are LG Electronics India's $1.8 billion IPO, and issues from JSW Cement and defence equipment maker SMPP worth around $470 million each, they offering could come in late July or early August, according to one banker. The timing of the other two was less to PRIME Database, there are 143 Indian IPOs being planned worth a potential $26 billion. Of those, 73 have been approved by regulators."We expect the upcoming months to be the best for Indian IPO market as compared to what we have seen so far this year," Bhavesh Shah, the managing director and head of investment banking at however, were more cautious in their optimism, saying that participation from high net worth individuals and ordinary retail investors is unlikely to be as strong as it was last year."Investors have become far more selective and are now much more mindful about where they see higher potential for returns," said Umesh Agrawal, fund manager at 360 ONE Asset.
Mint
01-07-2025
- Business
- Mint
Promoters stake sales surge almost 7-fold in Q1 as they cash in on high market valuations
Promoters of companies are cashing in their shares on high valuations. The value of promoter holdings in listed companies that were sold in the April-to-June period surged almost sevenfold from the previous quarter as higher market valuations offered them a better price. Shares sold by promoters on the country's top two exchanges increased 6.69 times on a quarterly basis and 1.54 times from a year earlier to ₹2.61 trillion, according to PRIME Database, which cited insider trading disclosures in the first quarter of FY26. The highest-selling promoter was the government, which sold shares worth ₹29,963 crore in ITI Ltd. Among the others, Pastel, a subsidiary of Singapore-based Singtel, sold shares worth ₹12,880 crore in Bharti Airtel, and the Chinkerpoo Family Trust set up by Rakesh Gangwal, co-founder of IndiGo, sold shares worth ₹10,408 crore in InterGlobe Aviation. Promoter stake sales in Vishal Mega Mart and Wipro were among the top five. In the first six months of 2025, promoters have already sold 65% of the stake worth ₹4.61 trillion that they offloaded in 2024. Promoters are seizing the current favourable market conditions to dilute their stakes in companies as valuations are currently significantly higher than their intrinsic worth, said Siddarth Bhamre, head of institutional research at Asit C Mehta Investment Intermediaries Ltd. Many promoters believe that their businesses are valued far above their actual worth and this valuation gap has prompted them to capitalise on the opportunity, resulting in a surge in stake sales, Bhamre added. The Nifty 50's current PE is 22.8x compared with 19.8x on 28 March, while its 12-month forward PE is 19.9x. The index has jumped 8.49% from April 1 to June 30. The PE of InterGlobe Aviation when the stake was sold on 25 May was 28.29x compared with an average of 18.35x in Q1 a year earlier. The PE of Vishal Mega Mart when Samayat Services LLP sold ₹10,221 crore of shares on 18 June was 90.42x compared with an average of 22.81x in the January-March quarter of 2024. Investment avenues Apart from rising valuations, promoters may sell shares to meet minimum public shareholding norms, repay debt or raise funds to invest elsewhere. 'Individual promoters are selling stakes either to deleverage the balance sheet at a personal level or to book profit and diversify into other investment avenues, while continuing to hold a majority stake in the company," said Sunny Agrawal, head of fundamental equity research at SBI Securities. The same promoters may later invest in the business and again increase their stakes through warrants, rights issues, or preferential allotments, he added. Of the ₹2.61 trillion worth of shares sold by promoters, offers-for-sale (OFS) made up ₹8,284 crore, while shares sold in block or bulk deals added up to ₹60,900 crore, as per PRIME Database. OFS, block and bulk deals are a part of the insider trading filings but do not make up all stake sales by promoters. Promoters selling stakes via bulk or block deals increased 64% YoY and 17 times sequentially in Q1. Promoters who sold shares via OFS increased 25 times YoY and 69% sequentially. The markets seem to remain elevated on the back of falling interest rates, which may keep promoter stake sale activity higher in the coming quarters, said Vinit Bolinjker, head of research at Ventura Securities. Agrawal of SBI Securities added that if market sentiment remains buoyant, promoter stake sales will continue. 'The market sentiment looks positive as global uncertainties have receded of late. And a rate cut and tax cut may boost consumption. Plus, private capex is picking up and earnings growth is likely to go back to two-digit numbers in Q2 of FY26," Agrawal added.
Time of India
27-06-2025
- Business
- Time of India
Stock market rally under threat! Rs 1 lakh crore shares dumped by promoters, private equity firms & strategic investors; what's happening
Promoters offloaded approximately Rs 61,000 crore in shares, while PE/VC firms exited nearly Rs 28,000 crore. (AI image) Promoters, private equity firms, and other large strategic investors disposed of shares worth over Rs 1 lakh crore within two months, exerting supply-side pressure on India's stock market indices Sensex and Nifty, which pursued new record highs. Promoters offloaded approximately Rs 61,000 crore in shares, while PE/VC firms exited nearly Rs 28,000 crore. Additionally, Reliance Industries sold shares worth Rs 9,580 crore in Asian Paints, alongside various block deals by other strategic investors, bringing the total to over Rs 1 lakh crore, according to data from PRIME Database and the NSE data quoted in an ET report. The share sale trend began in May with several significant transactions. On May 16, Singapore Telecommunications sold Bharti Airtel shares valued at Rs 12,880 crore. Subsequently, on May 27, Rakesh Gangwal, co-founder of IndiGo, sold shares exceeding Rs 11,560 crore as part of a stake reduction in InterGlobe Aviation. The following day, British American Tobacco (BAT) offloaded a 2.5% stake in ITC through its subsidiary for approximately Rs 12,900 crore, marking one of the largest single-day exits recorded. In June, Vishal Mega Mart's promoter sold a 19.6% stake to mutual funds in a bulk deal worth Rs 10,220 crore. Earlier in the month, Bajaj Finserv's promoter offloaded around Rs 5,500 crore worth of shares. These figures are expected to increase with additional block deals in PB Fintech, Mobikwik, Coforge, and Delhivery executed on Thursday. Market dynamics are seeing a dual effect due to supply-side pressures. "Selling by promoters/PE is being witnessed in few stocks and in those companies, in the short term, upside can be capped as most of the demand from institutions have been fulfilled and support in the secondary market is likely to reduce," warned SBI Securities' Sunny Agrawal according to the ET report. The surge in block/bulk deals stems from increased market liquidity, with domestic investors and mutual funds having substantial capital, alongside renewed FII participation, according to PRIME Database MD Pranav Haldea in his discussion with ETMarkets, highlighting the key factors behind the current selling trend. Addressing market dynamics, he offered a balanced perspective on current conditions. "Some promoters and investors have sold because valuations were attractive for them while others have their own strategic reasons. It's not necessarily a sign of a market peak, which no one can predict." Regarding PE/VC exits, Haldea views this as positive market development. The trend of private equity and venture capital firms divesting through IPOs and block deals indicates a more sophisticated capital market structure and increased depth. This pattern aligns with established western markets, enabling these firms to generate returns for investors and secure fresh capital for new investments. Investment experts note that understanding the scale and circumstances of divestment is more crucial than focusing on raw numbers. "Promoter selling isn't inherently bearish; its signal depends on why the shares are being offloaded and what ownership remains afterward," said Arvind Kothari, smallcase manager and Founder of Niveshaay. According to Kothari, there are several legitimate reasons for promoters to reduce holdings: "In many cases, promoters trim stakes to meet minimum-public-shareholding rules, unlock liquidity for estate or philanthropic planning, onboard marquee strategic or long-only investors, optimize taxes near fiscal year-end, or fund expansion in privately held group businesses — none of which imply deteriorating prospects for the listed entity. " Kothari's essential assessment criteria states: "If the promoter still retains a commanding stake, the sale occurs at only a modest discount, and company fundamentals remain intact, the transaction is simply a liquidity event that can broaden free-float and deepen institutional ownership." Warning signs become apparent "when divestments coincide with slipping earnings, heavy pledge unwinds, or a steady slide toward loss of control," he advised. The substantial increase in supply has been effectively managed by institutional buyers who have absorbed the market pressure. "Some supply pressure is inevitable when markets rally — and to an extent, it's healthy. It improves free float and brings price discovery in names that were tightly held," said Mihir Vora, CIO at TRUST Mutual Fund. "In many cases, we've seen these sales met with strong institutional demand, especially from domestic mutual funds and insurers," Vora added, emphasising the significant role of domestic investors who have become crucial market participants. The investment strategy at his fund prioritises understanding motivations: "We look at the intent behind the sale. If promoters are monetizing to invest back into the business, or if PE/VC funds are exiting after long holding periods, it's not a concern. What we avoid are situations where exits are paired with governance red flags or signs of operational stress." The current phase of insider selling in Indian markets presents a significant challenge. The sustainability of this trend depends on whether domestic institutional investors can maintain their absorption capacity whilst foreign investors sustain their renewed interest in Indian equities. This period could indicate either market maturation or signal the zenith of the present upward trend. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
27-06-2025
- Business
- Economic Times
Rs 1 lakh crore selloff tsunami threatens Nifty rally as promoters, strategic investors exit
A staggering Rs 1 lakh crore worth of shares have been dumped by promoters, private equity firms and other large strategic investors in just two months, creating supply-side pressure as India's stock market indices Sensex and Nifty are once again aiming for new record highs. ADVERTISEMENT Promoters alone have offloaded shares worth about Rs 61,000 crore, while PE/VC firms have exited nearly Rs 28,000 crore. Add to that the Reliance Industries' Rs 9,580 crore offloading in Asian Paints and a smattering of block deals by other strategic investors, and the tally breaches the Rs 1 lakh crore mark, according to data compiled from PRIME Database and the NSE. The exodus began in earnest in May with a series of blockbuster deals. Rakesh Gangwal, co-founder of IndiGo, sold shares worth over Rs 11,560 crore on May 27 in a fresh round of stake trimming in InterGlobe Aviation. A day later, British American Tobacco (BAT) offloaded a 2.5% stake in ITC through its subsidiary for around Rs 12,900 crore in one of the largest single-day exits ever recorded. Singapore Telecommunications wasn't far behind, selling Bharti Airtel shares worth Rs 12,880 crore on May 16. June has maintained a frenzied pace. Vishal Mega Mart's promoter sold a 19.6% stake to mutual funds in a Rs 10,220 crore bulk deal, while Bajaj Finserv's promoter offloaded approximately Rs 5,500 crore worth of shares earlier in the month. The figures will surge higher when accounting for block deals in PB Fintech, Mobikwik, Coforge and Delhivery executed on Thursday. The supply pressure is creating a bifurcated impact across the market. "Selling by promoters/PE is being witnessed in few stocks and in those companies, in the short term, upside can be capped as most of the demand from institutions have been fulfilled and support in the secondary market is likely to reduce," warned SBI Securities' Sunny Agrawal. ADVERTISEMENT Also Read | Promoter, PE & VC selling crosses Rs 40,000 crore in 2 weeks: Red flag for Nifty bulls? "Block/bulk deals are happening as domestic investors and mutual funds are flush with money and now FIIs too have come back which has resulted in greater liquidity in the market," PRIME Database MD Pranav Haldea told ETMarkets, noting the confluence of factors driving the selling spree. ADVERTISEMENT The veteran market observer struck a measured tone on whether this represents a market peak. "Some promoters and investors have sold because valuations were attractive for them while others have their own strategic reasons. It's not necessarily a sign of a market peak, which no one can predict."Haldea sees the PE/VC exodus as a sign of maturation rather than distress. "PE/VC selling through IPOs and then further through blocks is a sign of maturing of the capital market ecosystem and a deepening of the market. This is similar to what we find in the western markets as well. Through such exits, they are able to return money to their investors and then raise money to invest in the next set of companies." ADVERTISEMENT Market veterans emphasize that the quantum and context of selling matters more than the absolute numbers. "Promoter selling isn't inherently bearish; its signal depends on why the shares are being offloaded and what ownership remains afterward," said Arvind Kothari, smallcase manager and Founder of outlined multiple benign reasons for promoter exits: "In many cases, promoters trim stakes to meet minimum-public-shareholding rules, unlock liquidity for estate or philanthropic planning, onboard marquee strategic or long-only investors, optimize taxes near fiscal year-end, or fund expansion in privately held group businesses — none of which imply deteriorating prospects for the listed entity." ADVERTISEMENT The key litmus test, according to Kothari: "If the promoter still retains a commanding stake, the sale occurs at only a modest discount, and company fundamentals remain intact, the transaction is simply a liquidity event that can broaden free-float and deepen institutional ownership."Red flags only emerge "when divestments coincide with slipping earnings, heavy pledge unwinds, or a steady slide toward loss of control," he the supply deluge, institutional demand has largely absorbed the selling pressure. "Some supply pressure is inevitable when markets rally — and to an extent, it's healthy. It improves free float and brings price discovery in names that were tightly held," said Mihir Vora, CIO at TRUST Mutual Fund."In many cases, we've seen these sales met with strong institutional demand, especially from domestic mutual funds and insurers," Vora added, highlighting the robust domestic investor base that has emerged as the market's fund's approach focuses on intent: "We look at the intent behind the sale. If promoters are monetizing to invest back into the business, or if PE/VC funds are exiting after long holding periods, it's not a concern. What we avoid are situations where exits are paired with governance red flags or signs of operational stress."As Indian markets navigate this wave of insider selling, the ultimate test will be whether domestic institutional investors can continue absorbing the supply while foreign investors maintain their renewed interest in Indian equities. The answer may well determine whether this selling spree marks the peak of the current rally or simply the growing pains of a maturing market ecosystem. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
