Upcoming IPOs: Lotus Developers to GSP Crop Science, 5 companies file draft papers with SEBI to raise ₹3,000 crore

Upcoming IPOs: Enthused by the flurry of successful initial public offerings (IPOs) in the year 2024, a fresh set of companies are ready to tap the primary markets in 2025.

Leading names from sectors as varied as real estate, agriculture and electric vehicles have filed their draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) this week to raise funds. As many as five companies have filed their draft papers this week to raise cumulatively around ₹3,000 crore.

Here’s a close look at these companies and some key details of their IPO plans as mentioned in the DRHP:

Lotus Developers

Mumbai-based real estate developer Sri Lotus Developers and Realty filed its preliminary papers with SEBI to raise ₹792 crore through an IPO on Tuesday, December 24. The company is mainly engaged in redevelopment projects in the luxury and ultra-luxury segments in the western suburbs.

It is backed by ace investor Ashish Kacholia and several popular names from the Indian film industry like Amitabh Bachchan, Shah Rukh Khan, Ektaa Kapoor, Tiger Shroff, Hrithik Roshan, Sajid Nadiadwala and Manoj Bajpayee, among others.

Lotus Developers IPO is solely a fresh issuance of shares with no offer-for-sale (OFS) component. The company has said in the DRHP that it plans to spend ₹550 crore of the IPO proceeds for part-funding development and construction costs of ongoing projects. Remainder funds will be used for general corporate purposes.

IndiQube Spaces

Bengaluru-based co-working space provider IndiQube Spaces filed its DRHP with SEBI on December 24 to raise ₹850 crore via an IPO. The managed workplace solutions company is backed by prominent venture capital firm WestBridge Capital.

Its IPO comprises fresh issuance of equity shares worth ₹750 crore and an OFS of shares worth ₹100 crore by promoters Rishi Das and Meghna Agarwal.

The company will spend ₹462.6 crore of the fresh issue proceeds for establishment of new centres. Further, ₹100 crore will be used for repaying debt, while the remaining funds will be utilised for general corporate purposes.

Mangal Electrical Industries

Mangal Electrical Industries, a Rajasthan-based transformer components manufacturer, also filed its DRHP on December 24 to raise ₹450 crore via an IPO.

The offer is completely made up of a fresh issuance of shares with no OFS component. The company plans to use the funds mainly for capacity expansion and working capital requirements.

According to the DRHP, it will utilise ₹96.03 crore out of fresh issue funds for repaying its debt. Further, ₹120 crore will be used for expanding the facility at Unit IV at Sikar, Rajasthan, and civil works at its existing head office, Jaipur, Rajasthan to optimise space usage and increase storage capacity. Another ₹122 crore will be utilised for working capital requirements and the remaining IPO money for general corporate purposes.

Greaves Electric Mobility

As part of the OFS, Greaves Cotton will sell 5.1 crore shares, while Abdul Latif Jameel Green Mobility Solutions DMCC will divest around 13.84 crore shares.

The proceeds from the fresh issue will be used by the company for product and technology development, enhancing capabilities at the company’s Technology Centre in Bengaluru, and developing in-house battery assembly capabilities.

GSP Crop Science

Ahmedabad-based agrochemical company GSP Crop Science filed its preliminary papers with SEBI on December 23 to raise funds through an IPO. The offer will include an OFS of 60 lakh shares and a fresh issue of up to ₹280 crore. The offer also includes a reservation of shares for the company’s employees.

Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah, and Kappa Trust are the promoters of GSP Crop Science who are offloading shares in the OFS.

The company will use ₹200 crore from the fresh proceeds for payment of debt, and a portion will be utilised for general corporate purposes.

Apart from these public offers, many big companies are gearing up to launch their IPOs in the next few months. The strong momentum in India's booming IPO market is expected to continue in 2025 with as many as 89 companies preparing to go public, according to reports.

The investors will keep a watch on the big-ticket IPOs of leading players like LG Electronics India, Zepto, Flipkart, Indira IVF, Hero FinCorp, HDFC Credila, NSDL, Hexware Technologies and Ather Energy next year.