Latest news with #HNIs
&w=3840&q=100)
Business Standard
2 hours ago
- Business
- Business Standard
IPO fundraising in 2021-25 crosses that of 2001-20, marking a milestone
The Indian capital markets are witnessing an epochal moment: capital raised via IPOs in the last five years (2021 to 2025 year to date) has crossed that raised in the 20 years prior (2001–2020). The growth in fundraising through IPOs (₹4 trillion raised in the last 4.5 years) has been driven by growing investor participation—both retail and institutional. The heft of institutional investors has been driven by domestic institutional investors such as mutual funds (MFs), which are currently managing assets of over ₹74.4 trillion. Equity-oriented schemes account for over 60% of these total assets under management. What's more, ₹27,000 crore comes every month by way of Systematic Investment Plan (SIP) contributions, driving further demand for new investable ideas that IPOs bring. On the supply side, we have been witnessing very high-quality businesses from across the country and from varying sectors tapping the IPO market to fund investments in differentiated high-growth businesses or to monetise and list the companies to recycle capital to drive further economic growth and create wealth for investors. The IPOs of the past 4.5 years have been a value creation platform for all stakeholders—institutional investors, HNIs, retail investors, employee/management shareholders of the companies, private equity investors, and the promoters themselves. The proof point is simple: IPOs floated from January 2021 till date have provided an average return of over 63% (current market prices vs IPO price), showing that not just the pre-IPO shareholders but also new ones have benefited in a classic win-win situation. Based on the current trends and the overall macro story of India—growth, governance, regulations, and opportunity—I believe that the next three years (i.e., at least until 2028) will be the golden era of fundraising in the Indian capital markets. At Equirus, we estimate that the fundraising in the next three years will exceed that of the last five by over 50%. The ₹6 trillion of productive capital being raised over the next three years will set off a virtuous cycle of generating good returns for existing investors, attracting further investments from households and global capital chasing returns, and will democratise entrepreneurship, removing capital as a constraint for India Inc to prove its might on the global stage. Unlisted corporates must take advantage of this golden era of fundraising to raise risk capital to double down on growth. Those enterprises that fail to do so will risk getting left behind by well-funded competitors who can invest in innovation and attract talent by giving them stock options. This is not an empty hypothesis. One can draw parallels from the world's largest and deepest capital market, the US. In the USA, between 2016 and 2021, $350 billion was raised via IPOs. Of this, a peak sum of $138 billion was raised in calendar year 2021 through 381 IPOs. Thereafter, the golden period ended, and fundraising nosedived. Calendar years 2022–2023 combined saw a fund raise of just 196 IPOs, raising about $27 billion. Faced with unfavourable market conditions, many firms postponed staying private longer (e.g., CoreWeave, Klarna, StubHub) but at the cost of missing peak valuations and public funding access. Case in point: Affirm Holdings, which chose to make an IPO debut in January 2021. The company's valuation has more than doubled—from $12 billion to $30 billion now. On the contrary, Klarna, which hit a valuation of $45.6 billion, did not—or wasn't able to—do an IPO, and saw its valuation crash to $6.5 billion. Another example is Instacart, which hit a private valuation of $39 billion in March 2021. Instacart too postponed its 2022 filing, eventually going public in 2023 at a much lower $9.3 billion valuation. Post-listing, however, the company's valuation zoomed above $14 billion. DoorDash, which went public at a $39 billion IPO valuation in 2020, was valued 91% higher on listing at more than $72 billion. The cost of not doing an IPO, apart from the loss in valuations, is also losing out on the crucial equity funds that allow companies to grow. This hurts even more if competitors raise funds and get the equity needed to grow their businesses. Over-reliance on debt can skew the capital structure of the business, leading to more leverage and interest costs. Missed liquidity events diminish employee morale—stock options lose meaning. Early investors (PE/VC) pressured to exit within 7–10 years need a timely public path. Delays can lead to strained relationships, down rounds, or forced M&A. Competitors who list earlier gain brand visibility, access to capital, and higher valuations. Latecomers may face tougher valuations in stale markets—and heightened scrutiny. India is in the midst of a rare IPO prime-time—driven by economic stability, investor appetite, regulatory support, and huge foreign capital inflows. As history shows—from the U.S. IPO hangover post-2021—missing a public window can cripple growth and delay expansion by years. For India's next-generation unicorns, the 2025–2028 window is a once-in-a-decade opportunity. Companies should move now lest they risk being locked out of the bright future that beckons those who act now. The author is Managing Director & Head of Investment Banking, Equirus Capital Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper.
Mint
a day ago
- Business
- Mint
Blackstone-backed Knowledge Realty Trust's ₹4,800-crore IPO to open on 5 August
Next Story Madhurima Nandy The Sattva Group and Blackstone-backed real estate investment trust will announce the price band on 30 July. Some of the marquee assets owned by Knowledge Realty Trust include One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad and Cessna Business Park and Sattva Softzone in Bengaluru. Gift this article BENGALURU :Knowledge Realty Trust (KRT), a real estate investment trust (Reit) sponsored by Bengaluru-based developer Sattva Group and asset manager Blackstone, is set to launch its initial public offering (IPO) on 5 August, said two persons close to the development. Knowledge Realty Trust (KRT), a real estate investment trust (Reit) sponsored by Bengaluru-based developer Sattva Group and asset manager Blackstone, is set to launch its initial public offering (IPO) on 5 August, said two persons close to the development. The proposed ₹ 4,800-crore IPO secured approval from the Securities and Exchange Board of India (Sebi) on Friday. The offer will be open from 5 to 8 August. This will be Asia's second-largest Reit by size and India's largest by gross asset value (around ₹ 62,000 crore) and net operating income, owning over 46 million square feet of office space across 29 assets in six cities, mainly Mumbai, Bengaluru, and Hyderabad. 'The price band will be announced on 30 July. The Reit will be listed in mid-August," said one of the two persons cited above, on the condition of anonymity. In June, KRT became the first ever Reit to conclude a pre-IPO fundraising exercise. It raised ₹ 1,400 crore from investors, including JM Financial, Radhakishan Damani (promoter of DMart), and 360 One Wam Ltd, in a pre-IPO placement. The round was fully subscribed by domestic high-net-worth individuals (HNIs) and family offices, signalling investor confidence ahead of the public issue. 'A substantial amount of the total ₹ 6,200 crore primary raise will be used for debt repayment. There will be no secondary sale," said the second person. A KRT spokesperson didn't respond to Mint's queries. The KRT IPO KRT filed its IPO draft papers with Sebi in March. Blackstone—sponsor of three of the four listed Reits in India—will own 55% of the Reit, while the Sattva Group will hold the rest. The KRT Reit has a 'brand neutral' strategy. It aims to acquire assets inorganically and give opportunities to other developers to contribute their assets to the Reit while maintaining their brand identity. Shirish Godbole, former managing director of Morgan Stanley Real Estate Funds in India, is the trust's chief executive officer; Quaiser Parvez, former CEO of Blackstone-owned Nucleus Office Parks, is its chief operating officer. Reits have faced their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around, they are gaining more acceptance. Around 90% of the Sattva-Blackstone Reit is leased to marquee tenants, split between multi-national corporations and global capability centres (GCCs). Also Read | KKR-backed Leap India appoints bankers for IPO Some of the marquee assets owned by the Trust include One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad and Cessna Business Park and Sattva Softzone in Bengaluru. Topics You May Be Interested In Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Mint
a day ago
- Business
- Mint
Knowledge Realty Trust's Rs4,800-crore IPO to open on 5 August
BENGALURU : Knowledge Realty Trust (KRT), a real estate investment trust (Reit) sponsored by Bengaluru-based developer Sattva Group and asset manager Blackstone, is set to launch its initial public offering (IPO) on 5 August, said two persons close to the development. The proposed ₹4,800-crore IPO secured approval from the Securities and Exchange Board of India (Sebi) on Friday. The offer will be open from 5 to 8 August. This will be Asia's second-largest Reit by size and India's largest by gross asset value (around ₹62,000 crore) and net operating income, owning over 46 million square feet of office space across 29 assets in six cities, mainly Mumbai, Bengaluru, and Hyderabad. 'The price band will be announced on 30 July. The Reit will be listed in mid-August," said one of the two persons cited above, on the condition of anonymity. In June, KRT became the first ever Reit to conclude a pre-IPO fundraising exercise. It raised ₹1,400 crore from investors, including JM Financial, Radhakishan Damani (promoter of DMart), and 360 One Wam Ltd, in a pre-IPO placement. The round was fully subscribed by domestic high-net-worth individuals (HNIs) and family offices, signalling investor confidence ahead of the public issue. 'A substantial amount of the total ₹6,200 crore primary raise will be used for debt repayment. There will be no secondary sale," said the second person. A KRT spokesperson didn't respond to Mint's queries. The KRT IPO KRT filed its IPO draft papers with Sebi in March. Blackstone—sponsor of three of the four listed Reits in India—will own 55% of the Reit, while the Sattva Group will hold the rest. The KRT Reit has a 'brand neutral' strategy. It aims to acquire assets inorganically and give opportunities to other developers to contribute their assets to the Reit while maintaining their brand identity. Shirish Godbole, former managing director of Morgan Stanley Real Estate Funds in India, is the trust's chief executive officer; Quaiser Parvez, former CEO of Blackstone-owned Nucleus Office Parks, is its chief operating officer. Reits have faced their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around, they are gaining more acceptance. Around 90% of the Sattva-Blackstone Reit is leased to marquee tenants, split between multi-national corporations and global capability centres (GCCs). Some of the marquee assets owned by the Trust include One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad and Cessna Business Park and Sattva Softzone in Bengaluru.
Time of India
2 days ago
- Business
- Time of India
Savy Infra IPO set for debut today. GMP hints at healthy listing pop
After drawing remarkable investor interest across categories, Savy Infra and Logistics is set to list on the NSE SME platform on July 28. The company's Rs 69.98 crore IPO closed with an overall subscription of 114.5 times, led by massive bids from HNIs and strong support from retail and institutional investors. Adding to the buzz is a grey market premium (GMP) of Rs 26, or 22%, over the issue price of Rs 120 per share, suggesting a possible listing around Rs 146. While GMPs are not always indicative of listing performance, the premium reflects strong demand in the unlisted market ahead of debut. Explore courses from Top Institutes in Please select course: Select a Course Category Product Management Healthcare Management Degree Cybersecurity Finance MCA healthcare Project Management Artificial Intelligence Technology PGDM Others Data Science Data Science Leadership Design Thinking MBA CXO Data Analytics others Digital Marketing Public Policy Operations Management Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: Unsold Sofas at Bargain Prices (Prices May Surprise You) Sofas | Search Ads Search Now Undo Subscription breakdown The IPO, which ran from July 21 to July 23, saw NII (HNI) bids overshoot by 196.44 times, followed by QIBs at 93.02 times and retail investors at 91.62 times. About the Company Savy Infra and Logistics is an EPC contractor involved in large-scale infrastructure groundwork—particularly earthmoving, foundation preparation, and demolition—as well as associated logistics and equipment rental services. The company operates on an asset-light model, offering scalability and capital efficiency. Live Events With operations across eight states, Savy Infra has handled major government and private sector contracts and currently boasts order flows worth Rs 430 crore. As of April 2025, it employed 33 full-time workers across sites, reflecting lean operational management. Financials and Valuation The company has posted explosive financial growth in FY25. Revenue rose 179% YoY to Rs 283.77 crore, while PAT surged 142% to Rs 23.88 crore. The IPO proceeds will go primarily toward working capital needs (Rs 49 crore), with the rest for general corporate purposes. Listing Outlook Backed by strong financials, sector tailwinds, and robust investor response, Savy Infra appears well-positioned for a solid debut. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Indian Express
3 days ago
- Business
- Indian Express
‘Insurance industry on track to more than double, set to hit Rs 25 lakh crore by 2030'
India's insurance sector is projected to witness robust expansion, with gross underwritten premiums (GWP) expected to more than double — rising by 123 per cent to Rs 25 lakh crore by 2030 from Rs 11.2 lakh crore in 2024, according to a report by the Insurance Brokers Association of India (IBAI) and McKinsey & Company. This surge is likely to lift insurance penetration from the current 3.7 per cent to 5 per cent, bringing India closer to the global average of 6.8 per cent recorded in 2023. Between FY 2020 and FY 2024, the industry saw strong double-digit growth, with total premiums across life and non-life segments increasing from Rs 7.8 lakh crore to Rs 11.2 lakh crore, the report said. 'India's insurance sector is entering a new era of opportunity, with the potential to more than double by 2030,' said Narendra Bharindwal, President, IBAI. The report said the retail segment could attain GWP of around Rs 21 lakh crore by 2030, of which over 90 percent is driven by the life segment. 'Around 65 per cent of the retail opportunity is present at the extreme ends of the customer pyramid-the ultra-high-net-worth individuals (UHNI) and high-net-worth individuals (HNI) at one end, and the mass-market customers at the other end,' it said. The intent to buy insurance is missing, despite awareness, the report said. In the retail segment, among affluent and ultra-high-net-worth and high-net-worth customers (UHNI and HNIs are individuals with household personal financial assets over Rs 8.5 crore), 60 per cent customers believe that their ideal life insurance cover should be 10 times their salary, yet only 30 per cent have this cover. Similarly, in the institutional segment, 70 percent micro and small enterprises purchase insurance because of regulatory or client mandates. 'By 2030, UHNI and HNI customers could account for around 20 per cent of the total projected retail insurance value pool, while the mass-market segment is expected to account for nearly 45 per cent,' the report said. While nearly 70 per cent of affluent and UHNI / HNI retail customers purchase insurance on the recommendations of trusted advisors, 45 per cent of mass market customers rely on the recommendations of friends and family, it said. The claims experience is a key differentiator in the insurance journey. As many as 50 per cent of affluent and HNI+ customers considered switching their insurers or channel of purchase and nearly half of them switched due to dissatisfaction with the claims process. Similarly, over 55 per cent of SMEs have had their claims rejected, and over 75 per cent seek assistance with documentation and paperwork in the claims process, the report said. 'These segment-specific insights are derived from the IBAI Insurance Insights Survey, which reveals the behaviour and pain points of 2,500 retail customers,' the report said. GWP for the institutional segment, largely in non-life insurance, is expected to grow nearly three times to reach Rs 2.8 lakh crore by 2030. 'While the SME segment currently has a contribution of only close to 10 percent, it is expected to grow the fastest. Around half of the total SME opportunity lies in clusters across 17 Indian cities, in nearly 10 leading, capital-intensive industries such as textiles, automotives, pharmaceuticals, and industrial goods,' the IBAI-McKinsey report said. This segment lacks the intent to buy insurance, often because the enterprises do not entirely believe it is critical, and because lack of guidance and handholding, as well as persistent margin pressure cause them to deprioritize it, it said. The IBAI survey revealed that when SMEs do buy insurance, it is driven by the need to comply with regulatory and client mandates. 'They lack internal risk-management expertise, seeking advisory and guidance, products tailored to their needs, and support on documentation and claims processes. Equipping them to foresee their risks and empowering them through products customized at the sector level could draw them into the fold of insurance protection,' it said.
