NEW DELHI: The Indian IPO market continues to remain active with a number of new firms registering applications to go public. Many are also receiving the market regulator—Securities and Exchange Board of India ‘s (Sebi)—nod.
In the last week alone, fast food chain Burger King India has filed draft papers with Sebi to raise Rs 542 crore through an IPO, while Biscuit maker Mrs Bectors Food Specialities has done the same to raise Rs 550 crore. Pharmaceutical firm Gland Pharma has received approval from regulator to launch a Rs 6,000 crore worth IPO. Similarly, Kerala-based Kalyan Jewellers has got green signal to raise an estimated Rs 1,750 crore.
Despite the Covid-19 pandemic and the resulting economic crisis, IPOs worth Rs 17,980 crore have hit the market in the past ten months, compared to Rs 12,687 crore worth IPOs in 2019. According to industry estimates, nearly 80 companies have approached the market regulator in the current financial year in order to obtain the necessary approvals for IPOs.
Burger King’s upcoming IPO comprises a fresh issue of equity shares and an offer for sale of up to 6 crore equity shares by its promoter QSR Asia. The company said that funds raised from the fresh issue will be used to launch the new company-owned Burger King Restaurants chain and for other general corporate purposes.
Bectors’ IPO comprises fresh issuance of shares worth Rs 50 crore and offer of sale to the tune of Rs 500 crore by existing shareholders. Funds raised would be utilised for financing the project cost towards expansion of the Rajpura manufacturing facility and general corporate purposes. Gland Pharma’s proposed issue is reported to be a mixture of primary and secondary issue of equity shares with both China’s Fosun group and the founders of Gland Pharma.