LIC IPO on track, 10 companies to head for D-Street in May

Mumbai: With Life Insurance Corporation's initial public offering, India's biggest to date, on track, about ten companies are planning to hit the primary market this month to raise around ₹12,000 crore, according to investment bankers.

Most of these companies have been waiting for the LIC issue, which opens for subscription Wednesday, to get over.

While Delhivery and Prudent Corporate Advisory Services are planning to launch their public issues as early as next week, Paradeep Phosphate, Syrma SGS Technologies, Aether Industries, JK Files, Ethos, Hexagon Nutrition, E-Mudhra and Venus Pipes & Tubes are expected to hit the market over the next four weeks, said bankers.

India's largest integrated logistics company, Delhivery, is likely to launch its ₹5,235 crore public issue on May 11.

The company has reduced the offer size from Rs 7,460 crore due to adverse market conditions. According to bankers, private equity firm Carlyle, an existing investor in Delhivery, may now sell shares worth about Rs 500 crore through the IPO, compared with its earlier plan of Rs 920 crore, while SoftBank may reduce its portion in the offer to Rs 400 crore from Rs 750 crore. Delhivery's shareholders include Bennett, Coleman & Co Ltd, which publishes The Economic Times.

Fertiliser company Paradeep Phosphates is looking to raise around Rs 2,200 crore, including Rs 1,255 crore by issuing fresh shares. Its shareholders, Zuari Maroc Phosphates and the Government of India, plan to sell up to 120 million shares, accounting for the rest of the IPO.

The mood in the primary market is not generic; only selective companies will have demand, said bankers. "Liquidity is not an issue, but demand is only for selective companies with unique business and sold at decent valuations," said Dharmesh Mehta, MD of DAM Capital.

Prudent Corporate Advisory Services is likely to launch its IPO next week where existing shareholders including promoters are planning to raise around Rs 600 crore by selling 8.55 million shares, bankers said. Private equity firm TA Associates, which holds a nearly 40% stake in the company, will sell up to 8.28 million shares in the distributor of mutual funds and financial products.