Latest news with #PriyeshJain
Economic Times
2 days ago
- Business
- Economic Times
As IPO frenzy cools, companies slash issue sizes to attract investors
Investor optimism cooled in 2025, leading numerous companies, including NSDL and JSW Cement, to reduce their IPO sizes. This adjustment comes amid a surge of new share sales, creating a competitive market where investors have ample choices. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A moderation in investor optimism in 2025 has forced various companies to scale down the sizes of their Initial Public Offerings (IPO) of January, at least 15 companies, such as NSDL Ather Energy , SK Finance, Bluestone, Schloss Bangalore (Leela Hotels), Swastika Infra, and MobiKwik, among others, have pared their offer values to ensure their issues sail through amid a deluge of share far in 2025, 48 companies have raised ₹64,135 crore through IPOs. In 2024, 90 IPOs raked in ₹1,59,535 crore."The supply of IPOs currently is too much, whether SME or main board, both have a very high supply of companies coming to list," said Priyesh Jain, founder and director at Socradamus Capital Pvt Ltd, a merchant banking firm. " So, investors have a lot of options and the liberty to choose where to invest."JSW Cement cut its offer value from ₹4,000 crore to ₹3,600 crore, Ather Energy from ₹3,100 crore to ₹2,626 crore, SK Finance from ₹2,200 crore to ₹1,600 crore, Bluestone from ₹1,000 crore to ₹820 crore, and Schloss Bangalore (Leela Hotels) from ₹5,000 crore to ₹3,500 crore. NSDL reduced the total number of shares in the offer from 5.73 crore shares to 5.01 cut its issue size three times from an initial ₹1,900 crore in 2021, to ₹700 crore in January this year, to ₹572 pushback on IPO valuations has also prompted companies to trim the offer sizes. "IPO sizes are being cut partly because valuations are not matching initial expectations, and investors are seeking a margin of safety," said Bhavesh Shah, managing director and head of Investment Banking at Equirus Capital. "This is prompting promoters to sell fewer shares than originally planned."Uncertain stock market conditions have crimped companies' ability to price IPOs aggressively, though valuations are still at a premium to long-term averages."Institutional investors are wary of such high valuations, as shares often decline significantly within a year of listing," said Deep Shah, senior manager at Unistone Capital Pvt Ltd, a Mumbai-based merchant banking firm. "With numerous IPOs coming up, new companies struggle to command high valuations without peer comparisons."Sebi rules allow companies to increase or reduce IPO size by up to 20% between the draft prospectus and the final offer document, giving issuers room to adjust to market conditions. Companies decide the proportion of the fresh share issue versus the offer for sale depending on these factors."Many now see IPOs not as an end game or a full monetisation event, but as the first step toward long-term value creation and partnership with new investors," said Shah of Equirus.
Time of India
2 days ago
- Business
- Time of India
As IPO frenzy cools, companies slash issue sizes to attract investors
A moderation in investor optimism in 2025 has forced various companies to scale down the sizes of their Initial Public Offerings (IPO) of late. Since January, at least 15 companies, such as NSDL , JSW Cement , Ather Energy , SK Finance, Bluestone, Schloss Bangalore (Leela Hotels), Swastika Infra, and MobiKwik, among others, have pared their offer values to ensure their issues sail through amid a deluge of share sales. So far in 2025, 48 companies have raised ₹64,135 crore through IPOs. In 2024, 90 IPOs raked in ₹1,59,535 crore. "The supply of IPOs currently is too much, whether SME or main board, both have a very high supply of companies coming to list," said Priyesh Jain, founder and director at Socradamus Capital Pvt Ltd, a merchant banking firm. " So, investors have a lot of options and the liberty to choose where to invest." JSW Cement cut its offer value from ₹4,000 crore to ₹3,600 crore, Ather Energy from ₹3,100 crore to ₹2,626 crore, SK Finance from ₹2,200 crore to ₹1,600 crore, Bluestone from ₹1,000 crore to ₹820 crore, and Schloss Bangalore (Leela Hotels) from ₹5,000 crore to ₹3,500 crore. NSDL reduced the total number of shares in the offer from 5.73 crore shares to 5.01 crore. Mobikwik cut its issue size three times from an initial ₹1,900 crore in 2021, to ₹700 crore in January this year, to ₹572 crore. THE ECONOMIC TIMES Investor pushback on IPO valuations has also prompted companies to trim the offer sizes. "IPO sizes are being cut partly because valuations are not matching initial expectations, and investors are seeking a margin of safety," said Bhavesh Shah, managing director and head of Investment Banking at Equirus Capital. "This is prompting promoters to sell fewer shares than originally planned." Uncertain stock market conditions have crimped companies' ability to price IPOs aggressively, though valuations are still at a premium to long-term averages. "Institutional investors are wary of such high valuations, as shares often decline significantly within a year of listing," said Deep Shah, senior manager at Unistone Capital Pvt Ltd, a Mumbai-based merchant banking firm. "With numerous IPOs coming up, new companies struggle to command high valuations without peer comparisons." Sebi rules allow companies to increase or reduce IPO size by up to 20% between the draft prospectus and the final offer document, giving issuers room to adjust to market conditions. Companies decide the proportion of the fresh share issue versus the offer for sale depending on these factors. "Many now see IPOs not as an end game or a full monetisation event, but as the first step toward long-term value creation and partnership with new investors," said Shah of Equirus.
