Next week, Dalal Street is set to be even more festive after Diwali, with four firms aiming to raise around Rs 6,600 crore through their individual initial public offers (IPOs). In terms of money raised, this week will be the busiest of the 2023 calendar year.

Tata Technologies, a division of Tata Motors with the capacity to generate over Rs 2,900 crore through an initial public offering (IPO), may spearhead it. The Tata Group is about to embark on its first initial public offering (IPO) in almost twenty years. The most valued firm in this group’s prior IPO was Tata Consultancy Services, which debuted in 2004.

The Indian Renewable Energy Development Agency, which finances the state-owned power plant, will also have an initial public offering (IPO) valued at about Rs 2,100 crore. The other two offerings are from consumer oil manufacturer Gandhar Oil Refinery (India) and Fed Bank’s retail-focused NBFC division, FedBank Financial Services (FedFina).

Regarding this, industry players stated that firms are eager to generate money by selling shares before to state elections and the end-of-year holiday season for FPIs, even with the difficult market circumstances. He predicts that investor interest in selling shares in the primary market for these four IPOs will return following the storm in October.

FPIs may continue to be net sellers for a third straight month at the time of these IPOs. FPIs have sold domestic equities valued at Rs 40,000 crore (about $5 billion) since September.

Bankers said that strong demand will be ensured by local funds supporting liquidity. Twenty years ago, FPIs controlled the IPO market, while HNIs and retail investors trailed in their footsteps. Domestic institutional investors now control a large portion of the market. Regarding the Indian market, FPIs have been hesitant over the past three years. However, local investors never stop purchasing. Shares of solid firms at attractive prices will find buyers thanks to strong domestic investment.

In November, around Rs 8,500 crore will be raised through initial public offerings (IPOs) if all four of them are successful. This will be the second-highest amount after September when Rs 12,000 crore was raised. Market participants stated that the maturation of the local market is demonstrated by the ongoing inflows into transactions notwithstanding FPI selling.

Indian markets have mostly escaped global challenges, such as geopolitical unrest or the possibility of interest rate hikes. The market has not seen any long-term effects from global disruptions in the previous several years. The local currency is the cause of this. The Indian markets have been generally bolstered by the influx of local capital and the rise in the number of investors.

However, other firms had to scale back their initial public offerings (IPOs) in order to stay up with the difficult market circumstances. Tata Tech had to, for instance, scale back the IPO by more than a third. The business stated its plan to sell 9.57 crore shares, or 23.6% of the equity, in the draft prospectus (DRHP) it submitted to the market regulator in March.

In Tata Tech’s IPO, 6.08 crore shares would be offered, according to the most recent prospectus. For Rs 1,613.7 crore, Tata Motors sold investors led by the massive private equity firm TPG a 9.99% share in Tata Tech in October.