Fractal, Hero FinCorp among firms positioning for February-March window as markets stabilise; investors may have plenty to choose from if deals come through
Investors hunting for fresh opportunities in India’s equity markets may soon find themselves spoiled for choice.
At least nine companies are preparing to raise a combined Rs 24,000 crore ($2.8 billion) through initial public offerings in February and March, according to media reports. If even a majority of these deals make it to market as expected, it would give both institutional and retail investors an unusually wide menu of options across sectors, business models, and risk profiles — from the steady cash flows of a dairy business to the growth potential of an artificial intelligence firm, from the infrastructure play of a steel pipe maker to the clean energy transition bet of a solar developer.
The diversity on offer is striking. On India’s infrastructure buildout one can watch out for SMPP, a steel pipe manufacturer targeting ₹4,000 crore, or Skyways Group, an aviation services firm eyeing Rs 650 crore. Energy transition afficionads have pure plays in CleanMax (Rs 3,600 crore) and Omeo Solar Tech (Rs 800 crore). Consumption and the rising middle class folks have Milky Mist’s Rs 1,500 crore dairy offering or Prestige Group’s Rs 2,700 crore hospitality spinoff. And those wanting a piece of India’s digital economy have Fractal (Rs 4,700 crore) and Shiprocket (₹2,300 crore) to choose from.
For retail investors who have shown an insatiable appetite for IPOs in recent years, there will be no shortage of application forms to fill. For institutional investors looking to deploy significant capital, the spread of ticket sizes means opportunities at multiple scales.
The question, as always, is whether the market conditions will cooperate.
The lineup
The pipeline is headlined by Fractal, the analytics and artificial intelligence firm backed by private equity giant TPG, which is targeting the largest offering at around Rs 4,700 crore. The company, which counts blue-chip multinationals among its clients, has been on the IPO radar for some time and appears to have found its moment. In an era where every business is scrambling to integrate AI into its operations, Fractal’s timing to the market may just be right.
Close behind is SMPP at Rs 4,000 crore. The steel pipe manufacturer is riding the wave of India’s massive infrastructure spending push, with demand driven by everything from water pipelines to oil and gas transmission networks. It’s the kind of old-economy business that may lack the glamour of tech but offers tangible assets and visible cash flows.
Hero FinCorp, the financial services arm of the Hero Group, is looking at Rs 3,700 crore in what would be one of the more closely watched listings given the pedigree of its parent company. The non-banking finance sector, battered in years past by credit events and regulatory tightening, has staged a quiet comeback. Hero FinCorp’s IPO will be a test of just how far investor sentiment has recovered — and whether the market is ready to reward NBFCs with premium valuations again.
Renewable energy is well represented in the pipeline. CleanMax, a developer of solar and wind projects that counts Warburg Pincus among its backers, is targeting around Rs 3,600 crore. The offering comes at a time when clean energy companies globally are facing a more challenging funding environment, but India’s aggressive decarbonization targets and supportive policy framework have kept domestic players in favor. Omeo Solar Tech, a smaller player focused on solar equipment, is also in the queue with an Rs 800 crore offering, giving investors another entry point into the energy transition theme.
Prestige Group, one of South India’s largest real estate developers, is looking to list its hospitality business in a deal worth around Rs 2,700 crore. The spinoff would give investors a pure-play bet on India’s booming travel and tourism sector, which has seen a sharp rebound since the pandemic. Hotel occupancy rates across major cities have returned to pre-Covid levels, and average room rates have in many cases exceeded them, making it an opportune time to take a hospitality asset public.
The startup ecosystem is hoping to make its mark as well. Shiprocket, the logistics and e-commerce enablement platform, is eyeing around Rs 2,300 crore in what would be another test of investor appetite for new-age technology companies. The firm, which provides shipping and fulfillment services to online sellers, has carved out a niche in India’s sprawling e-commerce infrastructure. Its IPO comes after a difficult couple of years for tech listings, with several high-profile debuts from 2021 still trading below their issue prices. Shiprocket’s reception will be watched closely as a barometer for whether the market is ready to give tech another chance.
Rounding out the roster are Milky Mist, a Tamil Nadu-based dairy company targeting Rs 1,500 crore, and Skyways Group at ₹650 crore. Milky Mist has built a strong regional brand in South India and is looking to expand nationally — a playbook that has worked well for other consumer companies that have gone public in recent years. Skyways operates in the often-overlooked but essential business of ground handling and cargo services at airports, a sector that has benefited from the surge in air travel.
A feast of options
For investors, the coming weeks could present a rare opportunity — and a pleasant dilemma.
The spread of sectors means that regardless of one’s investment thesis, there’s likely something in the pipeline that fits.
For investors, it also means one can pick your spots based on your conviction and risk appetite. That’s the beauty of a deep primary market.
The spread of ticket sizes also means there’s something for everyone. Large institutional investors looking to deploy significant capital can focus on the bigger offerings like Fractal, SMPP, and Hero FinCorp. Smaller funds and high-net-worth individuals might find the mid-sized deals — CleanMax, Shiprocket, Prestige’s hospitality arm — more manageable. And retail investors will have no shortage of options to apply for.
For those who typically struggle with IPO allotments, a busy calendar may actually improve odds. When there’s only one big IPO in a month, everyone piles in and the allotment ratios become absurd. When there are five or six hitting the market in quick succession, the demand gets distributed more evenly
The discipline test
Of course, abundance comes with its own challenges. Just because there’s a lot on offer doesn’t mean investors should participate in everything.
The key will be selectivity – and pricing. The smart money as always will focus on businesses with clear competitive advantages, reasonable valuations, and management teams with a track record of execution. Not every IPO is a winner, and not every IPO is right for every portfolio.
There’s also the question of allocation. In a scenario where multiple large IPOs hit the market simultaneously, institutional investors may have to make hard choices about where to concentrate their bets.
Additionally, there’s always this fear of missing out when you see a big IPO pipeline. But do your homework, be selective, and don’t get swept up in the hype. The companies will still be there in the secondary market if you miss the IPO.
