IPOs in May: Aadhar Housing Finance, TBO Tek, Indegene set to hit D-Street

The dry spell in the initial public offering (IPO) market is soon to be over as a slew of companies are set to launch their issues this month despite volatility in the equity market amid election season. The list includes confirmed participants such as Indegene, Aadhar Housing Finance, and TBO Tek, while Awfis Space Solutions, Go Digit, and others are also setting slight for IPO launch in May.

As many as 24 companies have gone public so far this year, raising nearly ₹18,000 crore via the IPO route. In the first month of this calendar year 2024, 5 companies launched their IPOs and garnered ₹3,265 crore, followed by ₹7,499 crore by 11 companies in February, ₹2,357 crore by 6 companies in March, and ₹4,924 crore by 2 firms in April. The latest ones that made debut on the stock exchanges are Bharti Hexacom, a subsidiary of telecom major Bharti Airtel, and JNK India, the manufacturer of process heating equipment.

Here’s all you need to know about upcoming IPOs:

Indegene

Healthcare tech firm Indegene will launch its IPO on May 6, with its anchor book slated to open for a day on May 3, 2024, one day prior to bid opening. The tentative date for the listing of shares of Indegene on the BSE and NSE is May 13.

Last week, the Bengaluru-based firm unveiled the price band for its initial public offering (IPO) at ₹430-452 per share, looking to raise ₹1,842 crore at the upper end of the issue price. The offer comprises a fresh issue of equity shares worth up to ₹760 crore and an offer for sale (OFS) of up to 23,932,732 shares worth ₹1,082 crore by existing shareholders and investors. Investors can bid for a minimum of 33 shares and in multiples thereafter. The minimum application amount for a retail investor is ₹14,916 for 33 shares or 1 lot, while the maximum is ₹193,908 for 13 lots or 429 shares.

Aadhar Housing Finance

Backed by private equity giant Blackstone, Aadhar Housing Finance is all set to launch its ₹3,000 crore public offerings on May 8 and the issue will close on May 10. The mortgage lender is scheduled to announce the price band for its IPO on May 2.   

As per the document filed with the SEBI, the issue of the company comprises a fresh issuance of equity shares valued at ₹1,000 crore and OFS of ₹2,000 crore by BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc., the promoter. As of now, BCP Topco holds a majority stake of 98.72% in Aadhar Housing Finance, while ICICI Bank owns a 1.18% stake. 

TBO Tek

The travel distribution platform looks to raise ₹400 crore by issuance of fresh equities and OFS of 1.25 crore equity shares by promoters and investors. The company is set to announce its price band for the issue this week or early next week.

The company proposes to utilise the net proceeds from the fresh issue for growth and strengthening of the platform by adding new buyers and suppliers, unidentified inorganic acquisitions, and general corporate purposes. Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited and JM Financial Limited. The company had filed its draft red herring prospectus (DRHP) with the SEBI in November last year, while it received approval last month.

Founded in 2006, TBO Tek is one of the leading players in the global travel and tourism industry, providing services to buyers and suppliers in over 100 countries (as of June 30, 2023), offering 7,500+ destinations and facilitates 33,000 bookings per day through their platform. The company operates in the global travel and tourism market that stood at $1.7 trillion in 2017.

Awfis Space Solutions

The IPO of the co-working space startup comprises a fresh issue of up to ₹160 crore and an OFS of equity shares of up to 10,023,172 by existing shareholders. The price band and total issue size is yet to be announced by the company.

As per the document filed with the SEBI, Awfis, a provider of a tech-enabled workspace solutions platform, proposes to utilise the net proceeds from the fresh equities for funding capital expenditure for the establishment of new centres, funding for the working capital requirements, and general corporate purposes.

The company is among the top 5 benchmarked players in the flexible workspace segment and has presence in 16 cities across India. With 136 total centers in 16 cities, Awfis is providing total of 81,433 seats, covering a chargeable area of 4.12 million square feet. Among these, 15 centers with 11,191 seats are currently under fit-out, with a chargeable area aggregating to 0.53 million sq. ft, as per CBRE Report.

Go Digit General Insurance

New age insurer Go Digit, backed by Canada's Fairfax Group, received final observation from the capital markets regulator in March this year. The insurer, which counts cricketer Virat Kohli and his actress wife Anushka Sharma as investors, had filed the preliminary IPO papers with the SEBI in April 2023.

The IPO of Go Digit comprises fresh issuance of shares worth ₹1,250 crore and an offer for sale (OFS) of 10.94 crore shares by promoter Go Digit Infoworks Services and existing shareholders. The company may consider raising up to Rs. 250 crore in a pre-IPO round. If such placement is completed, the fresh issue size will be reduced.

The company intends to use capital raised from fresh issuance of equity shares for the augmentation of its capital base and maintenance of solvency levels and general corporate purposes.

Outlook for 2024

The pipeline continues to remain strong as 19 companies proposing to raise nearly ₹25,000 crore are presently holding SEBI approval while another 37 companies looking to raise about ₹45,000 crore are awaiting SEBI approval, as per Prime Database, one of India's leading providers of data on the capital market.