Indian companies are testing investors appetite for bigger initial public offerings after recent debuts raked in multifold gains. At least three IPOs of more than $1 billion each are in the pipeline, with SoftBank-backed food-delivery platform Swiggy Ltd., as well as Indian units of LG Electronics Inc. and Hyundai Motor Co. planning to tap the market.
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Amid a booming initial public offering (IPO) market, banks are pursuing short-term gains. A recent report from markets regulator Sebi has revealed that nearly 80% of banks offload their allotted shares within the first week of listing. Banks’ strategy of quickly selling shares appears to be profit-driven, taking advantage of immediate post-listing price surges, experts said.
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Digital companies Unicommerce eSolutions, Zaggle Prepaid Ocean Services, and Easy Trip Planners paid higher IPO fees to merchant bankers, ranging from 4.1% to 4.7% of the issue size, compared to traditional companies and public sector undertakings, which paid lower fees averaging 3.93% and 1.3%, respectively.
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