Mop-up via pre-IPO placements hits at least 6-year high, shows data

Amount close to Rs 1,000 crore in 2023; bankers say deals now happening closer to IPO price

Companies have raised nearly Rs 1,000 crore via pre-initial public offering (IPO) placements so far  this year — the highest amount since 2017, since when the data is available. 

Pre-IPO placements, typically conducted months before a maiden share sale, help establish a valuation base for an IPO and also instil confidence into investors about the company.

In the first nine months of 2023, 11 companies raised Rs 960 crore from pre-IPO placements, according to the data from Prime Database, a primary market data tracker. Some of the companies that sold shares through such placements this year include SBFC Finance (Rs 150 crore),