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Economic Times
a day ago
- Business
- Economic Times
Big FOMO! Investors bring Rs 1.8 lakh crore to Rs 15,600 crore IPO party
The Indian IPO market experienced a robust week, with five IPOs collectively receiving bids exceeding ₹1.85 lakh crore. HDB Financial's IPO stood out, attracting significant institutional interest and becoming the largest NBFC public issue since Zomato. Improved market sentiment fuels this IPO surge, with numerous companies preparing to enter the primary market, anticipating favorable subscriptions and listing gains. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: One of the busiest weeks in the Indian market for initial public offerings ended on a strong note, with all five issues launched over the past five days witnessing robust investor demand, especially from IPOs of HDB Financial Services, Kalpataru, Ellenbarrie Industrial Gases, Sambhv Steel Tubes and Globe Civil Projects received bids totalling more than ₹1.85 lakh crore, nearly 12 times the ₹15,600 crore worth of shares they are offering to ₹12,500 crore HDB Financial IPO-the largest public issue by a non-banking financial company-closed Friday with investors bidding for 16.69 times the shares the company is offering. It received bids worth ₹1.52 lakh crore, the highest among billion-dollar Indian IPOs since Zomato's issue four years ago. The company is offering to sell 130.4 million shares, while the demand is for 2.18 billion institutional buyers (QIBs) put in bids for 55.47 times the shares reserved for them. Retail investors bid for 1.41 times their portion, while the non-institutional, or HNI, category received subscriptions for 9.99 Steel Tubes' ₹540 crore IPO, which also closed on Friday, was subscribed 28.46 times. The QIB category was subscribed 62.32 times, non-institutional category by 31.82 times and the retail investor portion by 7.99 ₹1,590 crore IPO of Kalpataru received bids for 2.26 times, while Ellenbarrie Industrial Gases' ₹852-crore issue got 22.19 times and Globe's ₹119 crore issue received 86 three issues closed bankers said institutional investors, mainly mutual funds and foreign investment vehicles, were among those most actively bidding for the IPOs."Domestic institutions such as mutual funds are flush with liquidity and are finding IPOs an additional avenue to invest currently, apart from investing significantly in the secondary market. Even the FPIs are actively investing in good quality IPOs," said Kotak Investment Banking MD V Jaya dozen companies have raised close to ₹45,300 crore through IPOs so far in 2025, according to The improved stock market sentiment is encouraging more companies to hit the primary market."As the primary market moves in tandem with the secondary market, this may translate into more launches with better subscriptions and listing gains in the current bullish environment," Prime Database Group MD Pranav Haldea said. "The retail interest in upcoming issues will likely hinge on the prospect of listing gains."Haldea said IPOs worth ₹2.5-3.0 lakh crore are in the pipeline, including those that have received regulatory approval, those awaiting the regulator's green signal, and those set to file the IPO documents in the coming weeks. As per data from at least 73 companies have received approval from the Securities and Exchange Board of India to launch IPOs, with the total amount to be raised estimated at ₹1.2 lakh crore. Another 70 companies have filed draft red herring prospectus with Sebi and may raise another ₹99,500 crore.
Time of India
a day ago
- Business
- Time of India
Big FOMO! Investors bring Rs 1.8 lakh crore to Rs 15,600 crore IPO party
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: One of the busiest weeks in the Indian market for initial public offerings ended on a strong note, with all five issues launched over the past five days witnessing robust investor demand, especially from IPOs of HDB Financial Services, Kalpataru, Ellenbarrie Industrial Gases, Sambhv Steel Tubes and Globe Civil Projects received bids totalling more than ₹1.85 lakh crore, nearly 12 times the ₹15,600 crore worth of shares they are offering to ₹12,500 crore HDB Financial IPO-the largest public issue by a non-banking financial company-closed Friday with investors bidding for 16.69 times the shares the company is offering. It received bids worth ₹1.52 lakh crore, the highest among billion-dollar Indian IPOs since Zomato's issue four years ago. The company is offering to sell 130.4 million shares, while the demand is for 2.18 billion institutional buyers (QIBs) put in bids for 55.47 times the shares reserved for them. Retail investors bid for 1.41 times their portion, while the non-institutional, or HNI, category received subscriptions for 9.99 Steel Tubes' ₹540 crore IPO, which also closed on Friday, was subscribed 28.46 times. The QIB category was subscribed 62.32 times, non-institutional category by 31.82 times and the retail investor portion by 7.99 ₹1,590 crore IPO of Kalpataru received bids for 2.26 times, while Ellenbarrie Industrial Gases' ₹852-crore issue got 22.19 times and Globe's ₹119 crore issue received 86 three issues closed bankers said institutional investors, mainly mutual funds and foreign investment vehicles, were among those most actively bidding for the IPOs."Domestic institutions such as mutual funds are flush with liquidity and are finding IPOs an additional avenue to invest currently, apart from investing significantly in the secondary market. Even the FPIs are actively investing in good quality IPOs," said Kotak Investment Banking MD V Jaya dozen companies have raised close to ₹45,300 crore through IPOs so far in 2025, according to The improved stock market sentiment is encouraging more companies to hit the primary market."As the primary market moves in tandem with the secondary market, this may translate into more launches with better subscriptions and listing gains in the current bullish environment," Prime Database Group MD Pranav Haldea said. "The retail interest in upcoming issues will likely hinge on the prospect of listing gains."Haldea said IPOs worth ₹2.5-3.0 lakh crore are in the pipeline, including those that have received regulatory approval, those awaiting the regulator's green signal, and those set to file the IPO documents in the coming weeks. As per data from at least 73 companies have received approval from the Securities and Exchange Board of India to launch IPOs, with the total amount to be raised estimated at ₹1.2 lakh crore. Another 70 companies have filed draft red herring prospectus with Sebi and may raise another ₹99,500 crore.
The Hindu
2 days ago
- Business
- The Hindu
Tax, securities regulations make buybacks unattractive for shareholders
A combination of taxation and regulatory changes have led to Indian listed companies losing interest in buyback of shares. According to PrimeDatabase, there were only four share buy back offers, amounting to a total of ₹186 crore as of June 26, 2025 . Last calendar year, this amounted to 38 offers with a total value of over ₹8,000 crore. 'As the data show, buybacks have completely dried up ever since the taxation rule change as per which has shifted the burden from companies to shareholders with effect from October 1, 2024 to bring it on a par with dividends,' said Pranav Haldea, MD of Prime Database Group. 'Buybacks have been negligible despite the bearish market which we had from October till March, during which buybacks typically thrive,' he said. 'Companies who might have wanted to buyback shares may have already completed it in September 2024 after the Budget announcement,' Mr. Haldea added. 'Companies which were considering a buyback may have accelerated their plans to launch before the new taxation rules came into effect,' he said. The Union government had announced that with effect from October 2024, income from buyback of shares would be taxed on a par with income from dividend. Earlier, companies were paying a 20% buyback tax. If the income that shareholders receive is considered as dividend, then shareholders will have to pay capital gains. This, according to experts, may have made buybacks less attractive for shareholders and hence may not have led to such a demand even during a bear market. Besides the North Block regulation, the markets watchdog might have also contributed to the trend. 'The reduction is primarily a consequence of SEBI's regulatory changes. SEBI had been progressively reducing the option for companies to buy back their shares through the open market, and starting this FY, it has eliminated. Companies are now restricted to undertaking a buyback only through the tender offer route,' said Arindam Ghosh, partner at Khaitan & Co. Merchant bankers, who were earlier advising companies on buyback offers, may have now lost their stream of income. 'It is possible that merchant bankers previously active in share buyback deals are facing challenges, given the recent regulatory changes by SEBI phasing out the open market buyback route. They may need to shift their focus to other areas where they are mandatorily required to be involved as an intermediary,' Mr. Ghosh said.
Time of India
2 days ago
- Business
- Time of India
Big FOMO! Investors Bring ₹1.8 lakh cr to ₹15,600 cr IPO Party
One of the busiest weeks in the Indian market for initial public offerings ended on a strong note, with all five issues launched over the past five days witnessing robust investor demand, especially from institutions. The IPOs of HDB Financial Services, Kalpataru, Ellenbarrie Industrial Gases, Sambhv Steel Tubes and Globe Civil Projects received bids totalling more than ₹1.85 lakh crore, nearly 12 times the ₹15,600 crore worth of shares they are offering to sell. The ₹12,500 crore HDB Financial IPO—the largest public issue by a non-banking financial company—closed Friday with investors bidding for 16.69 times the shares the company is offering. It received bids worth ₹1.52 lakh crore, the highest among billion-dollar Indian IPOs since Zomato's issue four years ago. The company is offering to sell 130.4 million shares, while the demand is for 2.18 billion shares. Qualified institutional buyers (QIBs) put in bids for 55.47 times the shares reserved for them. Retail investors bid for 1.41 times their portion, while the non-institutional, or HNI, category received subscriptions for 9.99 times. Sambhv Steel Tubes' ₹540 crore IPO, which also closed on Friday, was subscribed 28.46 times. The QIB category was subscribed 62.32 times, non-institutional category by 31.82 times and the retail investor portion by 7.99 times. The ₹1,590 crore IPO of Kalpataru received bids for 2.26 times, while Ellenbarrie Industrial Gases' ₹852-crore issue got 22.19 times and Globe's ₹119 crore issue received 86 times. These three issues closed Thursday. Investment bankers said institutional investors, mainly mutual funds and foreign investment vehicles, were among those most actively bidding for the IPOs. "Domestic institutions such as mutual funds are flush with liquidity and are finding IPOs an additional avenue to invest currently, apart from investing significantly in the secondary market. Even the FPIs are actively investing in good quality IPOs,' said Kotak Investment Banking MD V Jaya Sankar. Two dozen companies have raised close to ₹45,300 crore through IPOs so far in 2025, according to The improved stock market sentiment is encouraging more companies to hit the primary market. 'As the primary market moves in tandem with the secondary market, this may translate into more launches with better subscriptions and listing gains in the current bullish environment,' Prime Database Group MD Pranav Haldea said. 'The retail interest in upcoming issues will likely hinge on the prospect of listing gains.' Haldea said IPOs worth ₹2.5-3.0 lakh crore are in the pipeline, including those that have received regulatory approval, those awaiting the regulator's green signal, and those set to file the IPO documents in the coming weeks. As per data from at least 73 companies have received approval from the Securities and Exchange Board of India to launch IPOs, with the total amount to be raised estimated at ₹1.2 lakh crore. Another 70 companies have filed draft red herring prospectus with Sebi and may raise another ₹99,500 crore.
Mint
5 days ago
- Business
- Mint
Mutual funds turn out to be aggressive buyers via bulk and block deals: Report
Mutual funds are turning out to be aggressive buyers in the bulk and block deal space over the past three to four months, capitalising on discounted valuations and growing market volatility, reported Business Line. This strategic shift allows them to acquire large quantities of shares without triggering price distortions. Among the top 20 bulk and block deals so far this year, mutual funds have participated in four, with SBI MF, ICICI MF and HDFC MF leading the charge. An analysis of deals since January shows domestic funds accounted for 20 percent of the top transactions, primarily where promoters or private equity players were offloading stakes. SBI Mutual Fund invested ₹ 12,303 crore while ICICI MF pumped in ₹ 4,232 crore, followed by Kotak MF and Motilal Oswal at ₹ 2,578 crore and ₹ 2,156 crore respectively, according to Prime Database. That all the four fund houses restricted their investments to 10 deals shows their selective approach to entering these deals. Pranav Haldea, MD, Prime Database Group, said the steady rise in bulk and block deals points to sufficient liquidity in the hands of investors even as it boosts foreign investors' confidence in Indian markets in terms of ease of exit (and entry). Typically, large institutional investors find it convenient to take the block deal route as they can take a position in a stock at a known price without the fear of impact cost. The MF industry has been requesting SEBI to increase the cap on discount over the previous day's closing price that can be offered under block deals, said Haldea. Swapnil Aggarwal, Director, VSRK Capital, said MFs prefer bulk and block deals 'to strategically accumulate quality stocks with less volatility and better pricing control'. Anil Rego, Founder and Fund Manager, Right Horizons PMS, said block deals — executed during special trading windows at predetermined prices — help MFs avoid market volatility and price slippage when making large investments. Passive funds also stand to benefit as SEBI's proposed third block deal window during the closing auction session could help them reduce tracking errors, he said. For all personal finance updates, visit here
