IPO Market Slowdown: Two New Issues Aim for Rs 365 Cr Next Week

Following a surge of initial public offerings (IPOs) in recent weeks, the primary market is expected to slow down temporarily, with only two new public issues planned for the upcoming week, aiming to raise Rs 365 crore.

In September, there were 12 IPOs in the mainboard segment and 40 in the SME (small and medium enterprise) sector.

Scheduled for the week starting October 7, Garuda Construction and Engineering will launch its IPO on the main board, while Shiv Texchem will present its issue in the SME segment. Garuda Construction is looking to raise Rs 264 crore, and Shiv Texchem aims to secure over Rs 101 crore through their respective public offerings, which will be open for subscription from October 8 to 10.

The stock market has faced a notable correction since the beginning of October, largely due to escalating tensions between Israel and Iran.

Despite this temporary slowdown, the overall outlook for the IPO market remains positive, with 26 firms currently holding Sebi’s approval to raise Rs 72,000 crore. Additionally, another 55 companies are awaiting regulatory clearance to secure approximately Rs 89,000 crore, according to Primedatabase.

This month, Hyundai Motor India Ltd, the Indian subsidiary of the South Korean automaker, is set to enter the primary market with plans to raise around Rs 25,000 crore. Sources indicate that the company’s IPO is likely to be launched on October 14.