India Inc is expected to raise more than Rs 50k crore from IPOs

CIOReviewIndia Team | Friday, 18 September 2020, 04:20 IST

India Inc is expected to raise more than Rs 50k crore from IPOs

By way of initial public offerings (IPOs), India Inc is rushing for the primary market.   As the rush for IPOs comes amidst the time when the GDP growth is badly hit and economic activity is muted. But however on the other hand, capital markets are going strong.

 

To get the necessary approvals for tapping the primary market through the rest of the current fiscal, as many as 80 firms have approached the regulator Securities and Exchange Board of India (Sebi), as per the data made available by Geojit Financial Services. 

"The year 2019 has been the worst year from a primary market perspective as IPO offerings tumbled to a four year low - Rs 12,600 crore raised by16 companies - due to economic slowdown and elevated global trade tensions,” said Vinod Nair, Head - Research, Geojit Financial Services. 

However, a trend reversal is happening with the benchmark indices witnessing a sharp run up in recent months led by improved market sentiments on the back of gradual opening up of the economy since June. Around Rs 40,000 crore to Rs 55,000 crore is expected to be raised through the IPO route in the near future. IPOs are expected to be on track from H2FY20 onwards led by a robust pipeline going by DRHPs filed with Sebi," he added.  

"Market sentiments have certainly improved in recent months as reflected in the performance of benchmark index Sensex which gained over 50 per cent from its March lows. Besides, investors' interest in the primary market has increased in recent times after strong listings of recent IPOs. Further, two more IPOs launched recently received a good amount of subscription from retail investors,” said Ajit Mishra, Vice President - Research, Religare Broking. 

“Moreover, the upcoming IPOs are well known names in their respective verticals and have healthy ongoing business and decent future growth prospects, Thus we do believe that the primary market would continue to gain attention from investors of all classes in the future," he added.

 
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