The largest of these IPOs, that of Tata Technologies, attracted more than 7.36 million applications, the highest in Indian primary market history. This overtook the previous record held by state-owned Life Insurance Corporation of India, which received 7.34 million applications last year.
The primary market will see several companies launch thier public offer in the week ahead. One mainboard IPO of IRM Energy and two SME issues WomenCart Ltd and Rajgor Castor Derivatives will tap the public markets to raise funds in the upcoming week.
According to the red herrring prospectus (RHP) filed recently, the total size of the IPO is up to Rs 730 crore, comprising fresh issue os shares up to Rs 603 crore and offer for sale (OFS) of up to Rs 127 crore. The bulk of the proceeds will be used to reduce debt.
The exceptionally huge interest in SME IPOs comes even as mainboard offers are doing well and also despite the inherent risks associated with this segment, such as limited disclosure and lack of liquidity.