Mumbai: Godrej Group and the Mahindra Group will see their unlisted companies Godrej Agrovet Ltd and Mahindra Logistics Ltd hit the market with their initial public offerings (IPOs) in October, according to at least three people aware of the development.
Private equity-backed Indian Energy Exchange Ltd (IEX) is also planning to launch its public offering next month, they added.
“IEX, Godrej Agrovet and Mahindra Logistics are all targeting to launch their share sales in October. Collectively these companies will raise over Rs3,000 crore. All the companies are currently engaged in investor roadshows. They are eyeing a pre-Diwali launch,” said one of the persons cited above, requesting anonymity as he is not authorized to speak to reporters.
Strong liquidity in the market, the absence of major near-term headwinds, and the decent performance of the secondary market are the reasons why several companies are looking to launch their share sales this month and the next, he added.
This month has already seen the launch of IPOs of several companies such as Dixon Technologies Ltd, Matrimony.com Ltd, Bharat Road Network Ltd and Capacit’e Infraprojects. Insurance firms ICICI Lombard General Insurance Co. Ltd and SBI Life Insurance Co. Ltd will be launching their share sales in the coming days.
While the IPOs of IEX and Godrej Agrovet have already received the Securities and Exchange Board of India’s approval, Mahindra Logistics is still awaiting approval.
Emails sent on Wednesday evening to IEX, Godrej Agrovet and Mahindra Logistics did not elicit any response.
All three IPOs will see the private equity backers of these companies sell part of their stakes.
Godrej Agrovet, a seller of animal feed and crop protection solutions, plans to raise Rs300 crore through a fresh issue of shares, while Singapore-based investor Temasek Holdings will be selling part of its stake through the IPO.
Godrej Agrovet operates across five business verticals including animal feed—the largest segment—crop protection, oil palm, dairy and poultry and processed foods.
The Mahindra Logistics share sale is a pure secondary offering, which will see Mahindra and Mahindra Ltd and private equity firm Kedaara Capital selling 9.66 million shares each. The offer will see a total stake dilution of 27.49%.
In 2014, Kedaara Capital bought a 23% stake in Mahindra Logistics for Rs200 crore.
The initial share sale of IEX will see Aditya Birla Private Equity, Multiples Private Equity, Lightspeed Venture Partners, Madison India and Tata Power Co. Ltd pare their stakes in the firm.
IEX provides electronic trading of a range of electricity products such as electricity contracts in blocks of 15 minutes in the day-ahead market, electricity contracts for fixed terms in the future, and renewable energy certificates. The power exchange expects to commence trading of energy-saving certificates in financial year 2018.
Till August this year, 17 companies have raised Rs14,185.12 crore through the IPO route, data from primary market tracker Prime Database shows. In 2015-16, 47 companies raised Rs40,107 crore through the IPO route, the data shows.