IPO Rush: PhysicsWallah, Emmvee, Tenneco Eye Rs 10,000 Crore
The Indian primary market is gearing up for a blockbuster week with three major IPOs—edtech giant PhysicsWallah, solar leader Emmvee, and auto ancillary player Tenneco—aiming to raise over Rs 10,000 crore collectively. This surge highlights renewed investor confidence and a robust 2024 IPO pipeline.
1. PhysicsWallah IPO: Edtech Unicorn’s Big Test
Issue Size: Rs 6,000–6,500 crore
Dates: June 10–12 (Subscription) | June 18 (Listing)
Founded by Alakh Pandey in 2020, PhysicsWallah (PW) disrupted affordable test prep for JEE and NEET aspirants. Its IPO is poised to be one of India’s edtech milestones.
Key Details:
– Valuation: $8–9 billion, potentially the largest global edtech listing since Byju’s.
– Structure: Fresh issue (Rs 4,000 crore for expansion) + OFS (Rs 2,000–2,500 crore by investors).
– Financials: Profitable FY23 (Rs 2,900 crore revenue, Rs 980 crore profit)—a rarity in edtech.
Risks: Regulatory scrutiny on online education and competition from offline coaching centers.
2. Emmvee Solar IPO: Riding the Green Energy Wave
Issue Size: Rs 1,800 crore
Dates: June 12–14 (Subscription) | June 20 (Listing)
Bengaluru-based Emmvee, a top solar panel manufacturer, capitalizes on India’s 500 GW renewable energy target by 2030.
Key Highlights:
– Fund Use: Rs 1,200 crore (capacity expansion + debt) + Rs 600 crore (OFS by promoters).
– Clients: Supplies to Indian utilities, Europe, and the UAE.
Challenges: Competition from cheaper Chinese imports and silicon price volatility.
3. Tenneco Automotive India IPO: Auto Sector Play
Issue Size: Rs 2,200 crore (OFS only)
Dates: June 11–13 (Subscription) | June 19 (Listing)
Tenneco’s India arm, a supplier to Maruti and Tata Motors, debuts with a pure OFS (15% stake sale by parent Tenneco Inc.).
Snapshot:
– FY23 Revenue: Rs 5,200 crore | Profit: Rs 420 crore.
– Growth Linked To: EV adoption and auto sector recovery.
Risks: Supply chain disruptions and slowing auto demand.
Market Outlook & Expert Views
Nilesh Sharma, Motilal Oswal:
“This trio reflects India’s diverse growth—edtech, renewables, and manufacturing. PhysicsWallah’s profitability may draw retail frenzy.”
Subscription Forecasts:
– PhysicsWallah: 30–40x (brand appeal).
– Emmvee: Niche interest from ESG funds.
– Tenneco: Moderate demand (auto sector cyclicality).
Final Verdict
With Rs 10,000 crore at stake, this week is critical for IPO momentum. Key watchouts:
1. PhysicsWallah’s valuation vs. edtech volatility.
2. Emmvee’s execution in a competitive solar market.
3. Tenneco’s dependence on auto sector revival.
Pro Tip: Track grey market premiums (GMP) for real-time sentiment clues.
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