Reform Hopes Power IPOs with Market Optimism Around GST Reforms The Indian IPO market is on an uptick mainly due to positive sentiment, strengthened by expectations of reform announcements ahead of Diwali, reinforcing the ongoing relief rally, with analysts highlighting that the market's gap-up opening earlier in the week signaled strong investor confidence in the uptrend.

The Indian IPO market is on an uptick mainly due to positive sentiment, strengthened by expectations of reform announcements ahead of Diwali, reinforcing the ongoing relief rally, with analysts highlighting that the market's gap-up opening earlier in the week signaled strong investor confidence in the uptrend.

Chandan Tapria, Head Derivatives and Technicals, Wealth Management, Motilal Oswal Financial Services, said that earlier in the week, Nifty opened gap-up on account of positive sentiment around GST reforms and managed to hold on to those gains, further reinforcing the uptrend.

Several Initial Public Offerings (IPOs) are also poised to capitalize, with sectors such as renewable energy set for a major IPO surge.

Among many companies in the sector are Emmvee Photovoltaic and Juniper Green Energy, both aiming to raise INR 3,000 crore each, along with Prozeal Green Energy, which has filed for an INR 700 crore IPO.

Meanwhile, Regreen-Excel EPC India, an ethanol plant manufacturer, has already secured SEBI's nod for its INR 500 crore IPO, as has Saatvik Green Energy, which received clearance for an INR 1,150 crore issue. These developments follow the blockbuster INR 10,000 crore listing of NTPC Green Energy in November 2024, which set the momentum for the sector.

The Emmvee Photovoltaic IPO will comprise a fresh issue of equity shares worth INR 2,143.86 crore and an offer-for-sale (OFS) of INR 856.14 crore by promoters Manjunatha Donthi Venkatarathnaiah and Shubha Manjunatha Donthi, who will each sell shares worth INR 428.07 crore. The company may also explore a pre-IPO placement of up to INR 428.77 crore, which, if undertaken, will reduce the fresh issue size.

Proceeds from the fresh issue will be primarily utilized for repayment or prepayment of certain borrowings and accrued interest of Emmvee Photovoltaic Power and its material subsidiary.

For Juniper Green Energy, the company may raise up to INR 600 crore through a pre-IPO placement, which would reduce the IPO size accordingly. The funds from the IPO are planned to be used mainly for debt reduction and business expansion. A substantial portion will go toward repaying loans availed from banks and financial institutions. Additionally, part of the proceeds will be directed toward supporting key subsidiaries, Juniper Green Gamma One, Juniper Green Three, Juniper Green Field, and Juniper Green Beam, by helping them service their borrowings.

Bajaj Broking in a market commentary from earlier this week, said that benchmark indices extended their bullish trajectory on Wednesday, buoyed by sustained investor optimism surrounding the Centre's anticipated rationalisation of the Goods and Services Tax (GST) structure.

"Market sentiment was further bolstered by expectations of GST reform announcements ahead of Diwali, alongside a thaw in India-China geopolitical tensions, both acting as key catalysts for the ongoing relief rally," said Bajaj Broking in its statement.

Eager to ride the Indian IPO wave, Fractal Analytics, India's first enterprise artificial intelligence company backed by private equity players TPG and Apax, is set to raise INR 4,900 crore through a combination of fresh issue and offer-for-sale (OFS). The IPO, expected in the September–December quarter, is likely to value the company at over USD 2 billion, according to reports. Fractal will also become the first Data Analytics and Artificial Intelligence (DAAI) company to list in India.

Ahead of filing the Red Herring Prospectus, the company plans a pre-IPO placement of INR 255.80 crore, which will help determine its valuation. This amount will be adjusted against the INR 1,279.30 crore fresh issue planned as part of the IPO.