IPO bonanza worth more than Rs 5,300 cr in June

June might be the best month for IPO mobilisation since September 2016

Five initial public offerings (IPO) worth more than Rs 5,300 crore will hit the market this month, giving investors a choice to invest in wide-ranging sectors including pharmaceutical, broadband and finance. If all the five issues go through successfully then June will be the best month for IPO mobilisation since September 2016. 

Tejas Networks, a data networking products company, saw its issue subscribed over 10% on Wednesday, first day of the issue. Pharmaceutical company Eris Lifesciences’ IPO will open on Thursday, where its existing shareholders will sell shares worth over Rs 1,700 crore. Central Depository Services (CDSL), a company that facilitates holding of securities in electronic format, launches its offering early next week. 

Cable and broadband company GTPL Hathway’s IPO, which have a mix of fresh and secondary equity component, will open June 21. Small Finance Bank license holder Au Financiers’ is also expected to hit the market before the end of this month. 

Investment bankers expect the momentum in the IPO market to continue as investor sentiment towards primary market continues to remain healthy.

IPOs in June	Issue size (Rs cr)	Issue date	Sector
Tejas Networks	777	June 14 to June 16	Networking products
Eris LifeSciences	1,741	June 16 to June 20	Pharmaceutical
CDSL	524	June 19 to June 21	Stock market infrastructure
GTPL Hathway	485	June 21 to June 23	Cable and broadband
AU Financiers*	1,800	June 28 to June 30	NBFC
Total	5,327

IPOs in recent months	No. of issues	Amt raised (Rs cr)
September-16	4	7,443
October-16	3	5,274
November-16	1	510
December-16	1	1,331
January-17	1	1,243
February-17	0	0
March-17	4	2,942
April-17	1	729
May-17	2	1,421
June-17	5	5,327
Source: Company announcements, Prime Database; *Announcement pending