Upcoming IPO – List of Upcoming IPOs in India 2024

The year 2021 was a prosperous one for initial public offerings in India. In 2021, a record number of enterprises went public on the market. This has been made feasible by the government’s pro-business policies and fast digitalization. There has also been a consistent growth in the number of participating investors.

Experts predict that the IPO market will experience a similar surge in 2024. Let’s examine several upcoming IPOs in India in 2024 that investors are eagerly anticipating.

What does IPO stand for?

The IPO is an initial public offering in which privately owned corporations offer their own privately held shares to the public for sale. The firms must file a DRHP with SEBI for an Initial Public Offering (IPO) in order to transition from Private Limited to Limited status. IPO requires the filing of a DRHP (draft red herring prospectus) and a final RHP (red herring prospectus). After SEBI authorizes a company’s Initial Public Offering, the company proceeds with the IPO. After the RHP, the firm determines the price bracket and application deadline for the IPO via UPI or ASBA.

Brief Information Regarding Upcoming IPOs in India 2024

Here is an introduction to all the firms that are planning upcoming IPOs in India in 2024.

1. JK Files & Engineering

As a subsidiary of Raymond Limited, the firm manufactures hand tools, power tool accessories, and power tool machines. Additionally, the firm manufactures automotive and technical components such as ring gears, flexplates, and water pump bearings.

This anticipated IPO in June 2024 will consist only of Raymond selling shares.

According to the draft prospectus, the company’s revenues dropped in each of the three fiscal years before FY2021, although profitability were somewhat better.

Why should you keep it in mind?

• RONW: 24.8 percent
• ratio of net debt to equity: 0.09
• Declining leverage
• aggressive distribution network expansion

2. Hexagon Nutrition

Hexagon Nutrition is a fully integrated company that focuses on food fortification, therapeutic nutrition, clinical nutrition, and malnutrition relief. After beginning in 1993 as a manufacturer of micronutrient formulations, the firm has advanced up the value chain by creating the brands PENTASURE, OBESIGO, and PEDIA GOLD.

Currently, its product range focuses on Branded nutrition goods (B2C segment), Premix formulations (B2B2C segment), Ready-to-use meals (RUFs), and Micronutrient Powder (MNPs) (ESG segment).

The amount of the impending public offering is anticipated to be over INR600 billion, including a fresh share issue of INR100 billion. These monies will be utilized for debt reduction, payment of working capital requirements, and capital expenditures at facilities in Nashik (Maharashtra) and Thoothukudi (Tamil Nadu).

Why should you keep it in mind?

• India’s market leader in customized premix formulas
• enduring ties with prominent clientele
• Recurring sales and orders in the B2C sector
• 15 debt-equity ratio

3. Waaree Energies

Waaree Energies, India’s largest maker of solar photovoltaic (PV) modules, is planning an IPO in June 2024. At its operations in Surat and Umbergaon, Gujarat, the company has a production capacity of 2 GW and expects to increase that to 4 GW in the future years.

The business intends to raise up to INR1,500 crore via a combination of a new offering and an Offer For Sale (OFS) by current investors. In Chikhli, Gujarat, a 2 GW per annum solar cell manufacturing plant and a 1 GW per annum solar PV module manufacturing facility would be financed primarily by a new issuance of 1,350 crore rupees.

Given the government’s emphasis on renewable energy and on minimizing the cost of importing fossil fuels, solar is an emerging industry with a robust development pattern over the next several years. Among the planned IPOs in June 2024, this stock may be suitable for long-term portfolios.

What makes Waaree Energies IPO interesting?

• Market leader in a sector with significant tailwinds
• Deep presence in the rooftop market via our pan-India franchisee network Prominent clientele, including ReNew Power, ACME, Hero Solar, Mahindra Susten, Essel Infra, AMP Energy, Sukhbir Agro Energy, Solarworld Energy, and Rays Power Infra.
• RONW: 14.3 percent
• Strong revenue expansion

4. Aadhar Housing Finance – Biggest among the upcoming IPOs in June 2024

Aadhar Housing Finance is expected to be the largest of the June 2024 IPOs at INR7,300 crore. A large part (INR5,800 crore) of the IPO would be earmarked for the OFS. The firm is supported by private equity giant Blackstone. The remaining 1,500 crores will be utilized to increase its capital base in order to meet future capital requirements.

Aptus Value Housing Finance is the most recent company in the housing finance industry to reach primary markets. The housing finance business is inherently good, and companies from this sector have routinely accessed primary markets. In terms of AUM, the business is the largest affordable housing financing player in India, about 1.5 times larger than the second-largest player.

What makes the IPO of Aadhar Housing Finance intriguing?

• Strong and sustained profit and revenue expansion
• Long growth runway in the next years
• Declining leverage

5. Radiant Cash Management

In June 2024, a Chennai-based cash management business will also be offering an initial public offering. The company’s initial public offering, which will be backed by the private equity firm Ascent Capital, is anticipated to be around INR160 crore, including a sale by current investors totaling INR100 crore. The company’s promoter, Colonel David Devasahayam, and Ascent Capital are among the sellers.

In FY2021, when its operations were severely damaged by the COVID-19 epidemic, the corporation generated a total of INR 224.1 billion in sales, according to the draft documents. The firm achieved a profit of INR 32.5 crore throughout the year. Even though its revenue has been relatively stable over the past three years (numbers for FY2024 are pending), the firm was able to report a respectable profit rise throughout this period.

Following the successful IPOs of CMS Infosystems, AGS Transact, and SIS Limited, the Radiant Cash IPO will bring a fourth cash management player to the bourses. CMS Infosystems is the only company on this list that specializes only in cash management, and it has reported solid operating performance in recent quarters.

Why should you keep it in mind?

• RONW: 25.5 percent
• ratio of net debt to equity: 0.11
• Declining leverage

As one might expect, this list of forthcoming IPOs in June 2024 is only suggestive and is subject to change. As our local markets have lost a great deal of weight, more firms might enter if global markets recover.

FAQs – about impending IPOs