Six IPOs to raise Rs 30,000 crore in 15 days.  Has the IPO market regained its mojo?

Six IPOs to raise Rs 30,000 crore in 15 days. Has the IPO market regained its mojo? – Mail Bonus

New Delhi: By giving a cold shoulder to the turmoil in the secondary markets, there is an ongoing fundraising festival in the main markets, which recently got its mojo back.

In just two weeks, domestic stock markets would see half a dozen companies raise close to 30,000 million rupees from investors through their IPOs.

Interestingly, these cases are mixed as some of them are quite large – LIC and Delhivery, (increase more than Rs 5,000 million), two are medium – Rainbow Children’s and Campus Activewear (increase more than Rs 1,000 million) and two are relatively smaller , Prudent Corporate and Venus Pipes (increase less than Rs 1,000 crore).

However, analysts are divided on the revival of the primary market. Some of them say that IPO Mart has regained its charm, while others say that it is a hoax for the investor at the moment.

Among the six issues mentioned, Campus Activewear launched its strong debut on Monday and LIC’s IPO will also block subscriptions on the same day, followed by the registration of Rainbow Children’s Medicare on Tuesday.

This week’s IPOs pipeline includes tech-based logistics startup Delhivery, retail wealth management player Prudent Corporate Advisory Services and steel pipe maker Venus Pipes & Tubes will unveil their releases this week.

Deepak Shenoy, Capitalmind’s founder, founder and CEO, said there was no real revival in the primary markets.

The LIC auction is just an attempt by the government to get something out of a long-term securities offering, he said.

“Given the movements of the market, it seems that the market could not see more IPOs in the near future until there is a revival of attitudes,” Shenoy added.

On the contrary, Vijay Singhania, chairman of TradeSmart, said that although the secondary market had witnessed sales pressure in line with international markets, India’s main markets had recovered.

“The success of LIC and the lost startup of Delhivery IPOs will determine the attitudes and appetites of the main market in the near future,” he added.

In 2021, home-grown companies raised 1.19 million rupees through initial share sales, a record for any given year. For this, India Inc accumulated about 26.613 million rupees through 15 IPOs by 2020.

Over the past 18-20 months, Indian major markets have seen several companies hit Dalat Street with their initial offer, get historic feedback and bumper listings, and then drop significantly in the correction phase.

Banerjee, small business director, founder and CEO, Lotus Dew said that IPOs opened up capital that creates a speed of investment where cash is available.

“On the other hand, the RBI raised the repatriation rate by 40 basis points, which is actually taking money from the credit markets by increasing the CRR. he added.

Significant adjustments in the secondary markets have recently reduced attitudes in the primary markets as well. With the exception of a few names, the company has not been able to attract investors in general by publishing them in recent history.

The reason behind this could be multifaceted factors such as expensive valuation, loss-making operations, silenced fundamentals of the company and profit recognition.

The Indian main market has now reached the level that it can be maintained at a certain threshold, even if volatile developments and short-term shocks continue, said Varun Sridhar, CEO,

Money.

While investing in IPOs, investors should focus on the long-term history and understand the fundamentals of the company, their willingness to take risks and the risks associated with the company and its business, he added.

Market analysts expect that the correction will continue in the near future and that primary markets will remain under pressure for some time. They suggest that investors look for value among many names in broader markets.

“We believe that listed stocks have a better chance now and that investors should look at already listed stocks rather than IPOs to spread their money,” Shenoy from CapitalMind points out.

However, TradeSmart’s Singhania is not gung ho over the IPO space. “Recent interest rate hikes have dampened attitudes towards IPOs, but beyond that, SEBI’s pressure on IPO financing has affected subscriptions,” he said.

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