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Business Standard
16-07-2025
- Business
- Business Standard
QIP fundraising revives in June after a tepid first five months of 2025
Fundraising through qualified institutional placements (QIPs) saw a revival in June after a tepid first five months of 2025, and is set for a robust second half, as a market rebound has brought back favourable valuations and liquidity support for big-ticket issuances by corporates. In the first five months of 2025, 13 firms raised ₹15,408 crore through QIPs, compared to 30 firms that raised ₹29,518 crore in the same period in 2024. But in June 2025 alone, seven companies raised ₹14,085 crore. In June 2024, seven companies had cumulatively raised ₹3,009 crore through QIPs. So far in 2025, 22 firms have raised ₹30,535 crore. The biggest QIP so far this year was by Biocon, worth ₹4,500 crore, followed by CG Power and Industrial Solutions, which raised 3,000 crore, and Hitachi Energy India (₹2,521 crore). Indian Renewable Energy Development Agency raised ₹2,006 crore. Uco Bank and Capri Global Capital, which raised ₹2,000 crore each, were the other large issuances. 'QIPs are gaining traction as corporates look to pursue capital expenditure (capex) for growth, especially in financials, industrials, and infrastructure. We believe that QIPs will continue to be the most efficient way to raise fresh capital for listed companies. The Securities and Exchange Board of India's pricing formula, along with the relative flexibility it offers — especially the ability to issue various types of instruments — makes the QIP route one of the most attractive ways of raising fresh capital,' said Ranvir Davda, co-head of investment banking at HSBC India. Davda added that these capital raises are being undertaken for capex, mergers and acquisitions, and to strengthen balance sheets as the Indian macroeconomic environment improves. Bankers attributed the slowdown in QIP issuances in January and February to the broader selloff in the equity market, and in April and May to the updating of the January–March quarter numbers. 'Paperwork takes time, so does gauging demand. Investors will wait and see the March numbers before committing to any price for the QIP, which would have come out by April and May,' said Pranjal Srivastava, partner–investment banking at Centrum Capital. QIP is a fundraising mechanism where a company issues new shares to a select group of investors at a discount to the prevailing market rate. It is the preferred mode for raising follow-up capital as it is time-efficient and inexpensive. The QIP pipeline for the remainder of the year looks robust. So far in 2025, around 151 firms have received board approvals to come out with QIPs. Companies from more than a dozen sectors are looking to raise funds, though banks and financial services firms dominate the list. State Bank of India launched its ₹25,000 crore QIP on Wednesday — the largest issuance ever.
Economic Times
29-05-2025
- Business
- Economic Times
India's IPO momentum grows on strong fundamentals and investor confidence: Ranvir Davda, HSBC
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The resurgence in Indian equity capital market deals is being driven by a confluence of positive factors — stabilising geopolitical tensions, easing trade uncertainties, encouraging full-year corporate earnings, improving high-frequency macro indicators, renewed FII interest, and sustained retail inflows into domestic mutual funds, said Ranvir Davda, Co-Head of Investment Banking at HSBC he noted that investors want to focus on companies that have a differentiated story compared to already listed companies and are looking to deploy capital in size for long-term growth recent stabilisation in geopolitical tensions and the easing of trade uncertainties have resulted in reduced market volatility, reinforcing investor confidence and enabling recovery in deal activity. Emerging positive trends in full-year results and improving high-frequency macro indicators have further aided market buying in the secondary market to the tune of $2 billion-plus and continued retail inflows into domestic mutual funds have supported this resurgence. Against this stable backdrop, IPOs at optimal valuations, featuring superior governance, differentiated moats, and well-funded growth plans, have garnered strong interest from both local and international investors, offering long-term value and issuer conversations remain highly active, and the pipeline is expected to continue growing in 2025. There are several high-quality, mid-sized and large $1 billion-plus IPOs currently in progress and continue to garner the right investor attention. Given the macroeconomic factors supporting India's growth and the continued confidence of both global and local investors, we expect many of these IPOs to be successfully launched in the next few our view, given the numerous macroeconomic factors supporting India's growth, a regulatory landscape conducive to primary markets, as well as sustained capital inflows, we expect to continue seeing strong deal momentum in India. Despite a slow start for capital markets in 2025, aggregate fundraising currently stands at over $15 billion, led by secondary blocks at $11 billion, with large, upsized deals and IPOs receiving robust bodes well for the next wave of transactions. We believe that IPOs, blocks, and follow-on activity in the second half of calendar year 2025 will be significantly higher compared to the first half, with multiple companies having already received Sebi approval and several other listed companies having announced plans for have been part of 3 of the top 5 largest IPOs so far in 2025. Based on our observations, investors are focusing on companies that have a differentiated story compared to already listed companies and are seeking to deploy capital in size for long-term growth opportunities. The approach is to identify winners and take larger positions rather than distributing ownership over multiple on valuation are also more nuanced and bottom-up, with a deep groundwork, discussions on operating and financial KPIs, and a focus on company strategy to achieve margin-accretive growth. Therefore, we believe this approach has also helped issuers receive more effective feedback to inform pricing discussions at the time of the initial public offering (IPO).While the pipeline is quite diverse, investor interest is high in sectors such as manufacturing , industrials, clean energy, and new economy tech. Tech continues to have a sizable pipeline across B2B, fintech, consumer tech, and health tech, all of which are commanding significant investor listing of scaled Indian subsidiaries of multinational corporations (MNCs), as well as of Indian conglomerates, continues to remain a key theme for IPOs in India. We believe these trends will persist and stay relevant over the next 12 to 24 believe that China+1 is one of the stronger themes that has been playing out over the last couple of years. However, the structural growth story in India, which encompasses manufacturing and participation in the global supply chain, is larger than the China+1 with favourable demographics, a strong local consumption economy, as well a significant presence in the tech-enabled start-up ecosystem, is uniquely positioned as a regional growth story combined with an export-driven seen the 'Make in India' theme playing out in multiple sectors like EMS, defence, clean energy, chemicals, and pharma, amongst others. We believe that these sectors are already experiencing local and outbound M&A, as well as an increase in private capital expenditure, which adds to possible fund-raising opportunities from both private and public markets.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
29-05-2025
- Business
- Time of India
India's IPO momentum grows on strong fundamentals and investor confidence: Ranvir Davda, HSBC
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The resurgence in Indian equity capital market deals is being driven by a confluence of positive factors — stabilising geopolitical tensions, easing trade uncertainties, encouraging full-year corporate earnings, improving high-frequency macro indicators, renewed FII interest, and sustained retail inflows into domestic mutual funds, said Ranvir Davda, Co-Head of Investment Banking at HSBC he noted that investors want to focus on companies that have a differentiated story compared to already listed companies and are looking to deploy capital in size for long-term growth recent stabilisation in geopolitical tensions and the easing of trade uncertainties have resulted in reduced market volatility, reinforcing investor confidence and enabling recovery in deal activity. Emerging positive trends in full-year results and improving high-frequency macro indicators have further aided market buying in the secondary market to the tune of $2 billion-plus and continued retail inflows into domestic mutual funds have supported this resurgence. Against this stable backdrop, IPOs at optimal valuations, featuring superior governance, differentiated moats, and well-funded growth plans, have garnered strong interest from both local and international investors, offering long-term value and issuer conversations remain highly active, and the pipeline is expected to continue growing in 2025. There are several high-quality, mid-sized and large $1 billion-plus IPOs currently in progress and continue to garner the right investor attention. Given the macroeconomic factors supporting India's growth and the continued confidence of both global and local investors, we expect many of these IPOs to be successfully launched in the next few our view, given the numerous macroeconomic factors supporting India's growth, a regulatory landscape conducive to primary markets, as well as sustained capital inflows, we expect to continue seeing strong deal momentum in India. Despite a slow start for capital markets in 2025, aggregate fundraising currently stands at over $15 billion, led by secondary blocks at $11 billion, with large, upsized deals and IPOs receiving robust bodes well for the next wave of transactions. We believe that IPOs, blocks, and follow-on activity in the second half of calendar year 2025 will be significantly higher compared to the first half, with multiple companies having already received Sebi approval and several other listed companies having announced plans for have been part of 3 of the top 5 largest IPOs so far in 2025. Based on our observations, investors are focusing on companies that have a differentiated story compared to already listed companies and are seeking to deploy capital in size for long-term growth opportunities. The approach is to identify winners and take larger positions rather than distributing ownership over multiple on valuation are also more nuanced and bottom-up, with a deep groundwork, discussions on operating and financial KPIs, and a focus on company strategy to achieve margin-accretive growth. Therefore, we believe this approach has also helped issuers receive more effective feedback to inform pricing discussions at the time of the initial public offering (IPO).While the pipeline is quite diverse, investor interest is high in sectors such as manufacturing , industrials, clean energy, and new economy tech. Tech continues to have a sizable pipeline across B2B, fintech, consumer tech, and health tech, all of which are commanding significant investor listing of scaled Indian subsidiaries of multinational corporations (MNCs), as well as of Indian conglomerates, continues to remain a key theme for IPOs in India. We believe these trends will persist and stay relevant over the next 12 to 24 believe that China+1 is one of the stronger themes that has been playing out over the last couple of years. However, the structural growth story in India, which encompasses manufacturing and participation in the global supply chain, is larger than the China+1 with favourable demographics, a strong local consumption economy, as well a significant presence in the tech-enabled start-up ecosystem, is uniquely positioned as a regional growth story combined with an export-driven seen the 'Make in India' theme playing out in multiple sectors like EMS, defence, clean energy, chemicals, and pharma, amongst others. We believe that these sectors are already experiencing local and outbound M&A, as well as an increase in private capital expenditure, which adds to possible fund-raising opportunities from both private and public markets.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
23-05-2025
- Business
- Economic Times
Indian IPO market gains momentum with 7 cos launching offerings in May
After a three-month lull, India's primary equity market is rebounding, with seven companies launching IPOs in May and more planned for June. This resurgence is fueled by a stabilizing secondary market, easing geopolitical tensions, and successful block deals. Investor confidence is returning, and the market favors companies with strong fundamentals and realistic valuations, signaling sustained growth. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: After a three-month pause, the Indian equity capital primary market is showing signs of revival. Seven companies are launching initial public offerings (IPOs) in May, and another 10-12 plan to enter the market in June. On Wednesday, Schloss Bangalore, operator of The Leela luxury hotels, announced the start date of its ₹3,500-crore IPO. Aegis Vopak Terminals, which owns and operates storage facilities for liquefied petroleum gas and other liquid commodities, also unveiled the schedule for its ₹2,800-crore share open for public subscription on May 26 and close on May 28. Belrise Industries and Borana Weaves have already launched Info Systems will kick off its offering on May 27. Two more companies-ArisInfra Solutions and Scoda Tubes-are expected to announce their public offering schedule this to bankers, several firms that had postponed their IPO plans are now gearing up for roadshows, buoyed by a stabilising secondary market, easing geopolitical tensions, and the successful execution of several large block deals in the last two in the primary market, they added, is now back to the levels seen during September-October last year, but most have reduced valuations."The recent stabilisation in geopolitical issues and easing trade uncertainties have reinforced international investor confidence, enabling a robust recovery in IPO activity," said Ranvir Davda, co-head of investment banking at HSBC India. "With strong domestic liquidity, improving macroeconomic indicators, and a renewed appetite from dual pockets-local and international institutional investors-India's equity capital market deal momentum across IPOs and follow-ons remains well-positioned for sustained growth."According to bankers, several others, including Continuum Green Energy, IndiQube, CIEL HR, Paramesu Biotech, Solarworld, Brigade Hotel Ventures, All Time Plastics, Regreen Excel, Smartworks and NSDL are also gearing up to hit the market as early as June."The IPO revival isn't occurring in isolation as India's benchmark indices have outperformed most global peers in 2025, driven by strong domestic flows, improving macro indicators and a resilient services sector," said Neha Agarwal, managing director and head, equity capital markets, at JM Financial Institutional Securities. "Also, IPOs are no longer being driven by speculative euphoria. The market is rewarding real businesses with strong fundamentals, steady earnings and realistic valuations."The likes of Tata Capital, LG Electronics India, HDB Financials, ICICI Prudential AMC, Lenskart, Manipal Hospital and PhonePe, among others, are planning $1 billion-plus public offerings this fiscal 60 companies have received approval from the Securities and Exchange Board of India (Sebi), while another 75 have filed draft revival of the primary market was preceded by a series of large secondary block deals executed in the first half of May. On May 16, Singapore Telecommunications (Singtel) sold shares worth ₹13,180 crore in Bharti Airtel via a block this month, US private equity firm Carlyle Group exited its 10.44% in PNB Housing Finance, raising ₹2,700 crore. Similarly, General Atlantic offloaded 10% in financial services company KFin Technologies for Rs 1,790 crore. Ant Financial, the fintech arm of Alibaba Group, sold a 4% stake in One97 Communications , raising ₹2,100 crore.
Time of India
22-05-2025
- Business
- Time of India
Indian IPO market gains momentum with 7 cos launching offerings in May
After a three-month pause, the Indian equity capital primary market is showing signs of revival. Seven companies are launching initial public offerings (IPOs) in May, and another 10-12 plan to enter the market in June. On Wednesday, Schloss Bangalore, operator of The Leela luxury hotels, announced the start date of its Rs 3,500-crore IPO. Aegis Vopak Terminals, which owns and operates storage facilities for liquefied petroleum gas and other liquid commodities, also unveiled the schedule for its Rs 2,800-crore share sale. Both open for public subscription on May 26 and close on May 28. Belrise Industries and Borana Weaves have already launched IPOs. Stabilising Secondary Market Prostarm Info Systems will kick off its offering on May 27. Two more companies-ArisInfra Solutions and Scoda Tubes-are expected to announce their public offering schedule this week. According to bankers, several firms that had postponed their IPO plans are now gearing up for roadshows, buoyed by a stabilising secondary market, easing geopolitical tensions, and the successful execution of several large block deals in the last two weeks. Activity in the primary market, they added, is now back to the levels seen during September-October last year, but most have reduced valuations. "The recent stabilisation in geopolitical issues and easing trade uncertainties have reinforced international investor confidence, enabling a robust recovery in IPO activity," said Ranvir Davda, co-head of investment banking at HSBC India. "With strong domestic liquidity, improving macroeconomic indicators, and a renewed appetite from dual pockets-local and international institutional investors-India's equity capital market deal momentum across IPOs and follow-ons remains well-positioned for sustained growth." According to bankers, several others, including Continuum Green Energy, IndiQube, CIEL HR, Paramesu Biotech, Solarworld, Brigade Hotel Ventures, All Time Plastics, Regreen Excel, Smartworks and NSDL are also gearing up to hit the market as early as June. "The IPO revival isn't occurring in isolation as India's benchmark indices have outperformed most global peers in 2025, driven by strong domestic flows, improving macro indicators and a resilient services sector," said Neha Agarwal, managing director and head, equity capital markets, at JM Financial Institutional Securities. "Also, IPOs are no longer being driven by speculative euphoria. The market is rewarding real businesses with strong fundamentals, steady earnings and realistic valuations." The likes of Tata Capital, LG Electronics India, HDB Financials, ICICI Prudential AMC, Lenskart, Manipal Hospital and PhonePe, among others, are planning $1 billion-plus public offerings this fiscal year. About 60 companies have received approval from the Securities and Exchange Board of India (Sebi), while another 75 have filed draft papers. The revival of the primary market was preceded by a series of large secondary block deals executed in the first half of May. On May 16, Singapore Telecommunications (Singtel) sold shares worth Rs 13,180 crore in Bharti Airtel via a block trade. Earlier this month, US private equity firm Carlyle Group exited its 10.44 per cent in PNB Housing Finance, raising Rs 2,700 crore. Similarly, General Atlantic offloaded 10 per cent in financial services company KFin Technologies for Rs 1,790 crore. Ant Financial, the fintech arm of Alibaba Group, sold a 4 per cent stake in One97 Communications , raising Rs 2,100 crore.
