IPO Craze: LG, Nayara Energy, Samsung, ArcelorMittal, and Toyota Preparing for Listing
In the coming months, investors in India will have the opportunity to buy shares from several multinational companies, including Hyundai’s Indian unit, LG, Nayara Energy, Samsung India Electronics, ArcelorMittal Nippon, and Toyota Kirloskar Motor.
This wave of IPOs is driven by Hyundai’s market listing plans, inspiring other MNCs to follow suit. The strong equity market is expected to see 30-35 companies launching IPOs within the next three to four months, aiming to raise approximately ₹55,000 crore from the market.
MNCs Set to List Indian Units in Stock Market
Investment banking firms report that around six multinational companies plan to list their Indian units in the stock market. Hyundai Motor India has recently submitted a draft prospectus to market regulator SEBI for an IPO, aiming to sell a 17.5% stake worth approximately ₹25,000 crore.
This would mark the largest IPO in Indian stock market history. The move by Hyundai is expected to pave the way for other MNCs such as LG, Nayara Energy, Samsung India Electronics, ArcelorMittal Nippon, and Toyota Kirloskar Motor to follow suit.
Reasons for Bringing IPOs in India
There are three main reasons multinational companies plan to bring IPOs in India:
- Higher Valuation: The Indian stock market offers higher valuations, providing more capital for business expansion.
- Diverse Investor Base: Listing in India allows companies to attract a wide range of investors, enhancing future reach.
- Market Testing: Hyundai Motor India’s upcoming IPO will serve as an indicator of market reception, helping other companies gauge the potential success of their listings.
Excitement for New Shares in the Market
Dharmesh Mehta, MD and CEO of DAM Capital Advisors, highlights that the Indian stock market currently has ample liquidity, which fuels excitement for new shares. This environment is encouraging multinational companies to plan listings on the Indian stock market.
The availability of cash for investments means there is a strong interest in new IPOs, making it an opportune time for companies to go public in India.
Stanley Lifestyle’s IPO Price Band Set
Stanley Lifestyle Limited, a leading super-premium and luxury furniture brand based in Bengaluru, has set its IPO price band between ₹351 and ₹369 per equity share with a face value of ₹2 each.
The IPO will open on June 21 and close on June 25. Investors can bid for a minimum of 40 equity shares and in multiples of 40 thereafter.
