The Securities and Exchange Board of India (SEBI) has given the go-ahead to seven companies for their Initial Public Offerings (IPOs), collectively valued at approximately ₹7,700 crore. This approval marks a significant development in India's primary market.

Key Highlights

• Seven companies received SEBI observations between October 14-31
• Total estimated value of approved IPOs: ₹7,700 crore
• Notable approvals include SoftBank-backed Meesho and Temasek-backed Shiprocket

Approved Companies and Their Offerings

Meesho's IPO Plans

Meesho, the SoftBank-backed e-commerce platform, stands out with its substantial IPO plans:

• Fresh issue: Up to ₹4,250 crore
• Offer for Sale (OFS): 17.57 crore shares from existing shareholders
• Participating shareholders in OFS: Elevation, Peak XV, Venture Highway, and Y Combinator

Intended Use of Proceeds

Meesho has outlined its plans for the IPO proceeds:

1. Investment in cloud infrastructure
2. Salaries for AI and technology teams
3. Marketing initiatives
4. Potential acquisitions
5. General corporate purposes

Market Context

The approval of these IPOs comes during a period of heightened activity in India's primary market. This trend signifies strong investor appetite and a robust pipeline of companies seeking to go public.

Conclusion

The SEBI approvals for these seven IPOs, particularly those of tech-enabled businesses like Meesho and Shiprocket, reflect the growing interest in India's digital economy. As these companies prepare to enter the public market, investors will be keenly watching their performance and the broader impact on the Indian stock market landscape.

The Securities and Exchange Board of India (Sebi) has given the go-ahead for initial public offerings (IPOs) to five companies, signaling continued robust primary market activity. The approvals, granted between October 14-24, cover a diverse range of sectors from dairy to cement.

Companies Receiving IPO Approvals

Key Highlights

• The companies filed their preliminary papers between May and July 2023.
• Steamhouse India and Gaja Alternative Asset Management utilized the confidential pre-filing route for their IPO applications.
• Milky Mist Dairy Food's ₹2,035.00 crore IPO is the largest among the approved offerings.
• Curefoods India, known for operating cloud kitchens, aims to capitalize on the growing food-tech sector.
• Kanodia Cement's IPO stands out as it consists entirely of an offer for sale by promoters, with no fresh issue component.

Market Context

The approval of these five IPOs comes amid a bustling primary market. The current year has already witnessed 84 companies successfully completing their mainboard IPOs, indicating strong investor appetite and favorable market conditions for new listings.

These recent approvals suggest a continued trend of companies from various sectors seeking to tap into public markets for growth capital or providing exit opportunities for existing investors. The diversity in the approved IPOs—ranging from traditional sectors like dairy and cement to modern business models like cloud kitchens—reflects the evolving landscape of the Indian economy and capital markets.

Investors and market watchers will be keenly observing how these upcoming IPOs perform, especially given the current market dynamics and sector-specific trends. As always, potential investors are advised to carefully review the offer documents and consider their risk appetite before participating in these public offerings.