IPO Financial News

MUMBAI : Venture capitalists, who had turned cautious amid last year’s high interest-rate regime and frothy valuations of startups not backed by fundamentals, are likely to return in 2024, betting on early-to growth-stage entities in their pursuit of the next set of winners. The new year will likely see a flurry of investors coming in to back companies, and funding rounds of Series A and beyond are likely to gain traction, industry experts and investors said. “There is adequate capital available, at least for the India opportunity.

index touched a 33-year high, Hong Kong rounded out its fourth straight year of decline and India emerged as a leader in IPOs, Nikkei reported. One of the biggest drivers behind this divergence was disappointment in China's post-Covid recovery. Hong Kong's flagship Hang Seng Index (HSI), which tracks 80 blue chip stocks, has dropped 13.8 per cent this year, its first four-year losing streak since its launch in 1969, Nikkei reported. As investors shift away from greater China, their attention is moving to Japan, India and the tech hubs of Taiwan and South Korea. The major indexes in these markets rose by more than double digits in 2023, with Japan's Nikkei 225 leading the pack at nearly 30 per cent, Nikkei reported. The comeback of Japanese shares was a result of multiple factors, including improved corporate governance, something the country's regulators have been working on for over a decade in hopes of stimulating investment from abroad. BlackRock this month reaffirmed its «overweight» position on Japanese equities for the next six to 12 months.

₹1,816 crore as well as an offer for sale by existing shareholders and promoters. Existing investors, including Mahindra & Mahindra (M&M), private equity firm TPG, NewQuest Asia, and SoftBank, are planning to collectively sell 5.44 crore shares in Brainbees through an Offer for Sale (OFS) alongside the primary issue.

Also Read: Five assets that could beat inflation in 2024 This is a noteworthy turnaround from 2022, when Bitcoin witnessed a significant 65% dip amid tightening monetary policy and a series of blowups that exposed high counterparty risk. Bitcoin price has jumped $25,506 in 2023, reaching $42,208, according to CoinDesk prices.

₹45-50 crore, now mostly hovered at around ₹25 crore. This recalibration wasn’t merely numerical but strategic–a pivot towards robust business models, away from the regulatory quagmires. Venture debt, traditionally a side actor, took centrestage, offering critical support to startups, especially in sectors ripe with innovation such as electric vehicles and companies heavy on research and development.

₹3,910 crore and have garnered subscriptions between 12 and 173 times. 2023 has been the year of initial public offerings (IPOs), with 173 small and medium-sized enterprises (SMEs) and 52 mainboard listings to date, along with some outstanding debuts and subscriptions from both. “I believe that 2024 will continue to see a great number of IPOs—possibly even better than 2023—given the expectation of GDP growth, the India manufacturing story, and the feeling that the current ruling dispensation will return to power based on the recent state elections’ performance," said Venkatraghavan S., Managing Director, Investment Banking, at Equirus.

₹49,437 crore as compared to 40 IPOs launched in 2022 raising ₹59,939 crore. Remarkably, the proportion of newly raised capital in IPOs for this year has surged to an eight-year high. These offerings experienced substantial gains upon listing, capitalizing on strong involvement from retail investors.

There have been 46 IPOs in 2023, raising a cumulative Rs 41095.36 crore. This marks a 30% decline from Rs 59301.7 crore raised through 40 IPOs in 2022. The record-breaking blockbuster year of 2021, with 63 IPOs raising a whopping Rs 1,18,723.17 crore, set a high benchmark.

Irfan Razack, CMD, Prestige Estate, says “momentum will continue in the next financial year also. But again, it all depends on your location, the type of product, the type of pricing that you have on the product – that is what will give you success. Of course, the players who have delivered in the past, they have benefited, including our company and we have consistently focussed on delivery and that is what has given confidence to buyers to come to us to get their housing needs. Let us just talk about the overall demand environment and how it really has shaped up as we step into 2024. Do you believe that it is only likely to sustain? Give us an on-ground picture. Irfan Razack: Yes, the last three years have been pretty robust.

Sonia Dasgupta, managing director & CEO of investment banking at JM Financial Limited spoke to ET about the trends in private equity markets in 2023. Excerpts of the interview: Can you elaborate on three significant trends in the private equity market in 2023? Increasing focus on Buyouts- Funds committed by private equity investors for control/buyout deals have doubled in 2023 (Rs 77,000 crore) as compared to 2022 (Rs 37,000 cr). There is increased comfort from private equity funds to cut larger cheques for control deals in India, given the opening up of diverse exit avenues such as secondary market sales, strategic sales, and IPO exits among others. (Select large buyouts in 2023 include Manipal Hospitals, HDFC Credila, CARE Hospitals / KIMS Health). b) Emergence of the Healthcare sector: India has seen an increase in investments in the hospitals/healthcare sector (Rs 39,000 crore)in 2023 as compared to Rs 6,500 cr in 2022), with 2023 seeing large investments in Manipal Hospitals, CARE Hospitals, Indira IVF, Maxivision Eye Hospitals among others. Life sciences has become a key investment theme for global funds and these funds are looking to bring global scale and operating expertise to the space.

AIK Pipes And Polymers IPO: Allotment status of the initial public offering (IPO) of AIK Pipes And Polymers Limited has been declared. Those who have applied for the BSE SME IPO can check AIK Pipes And Polymers IPO allotment status online by logging in at the BSE website or at the website of its official registrar — Skyline Financial Services Private Ltd.

In 2024, the investment scene is transforming with India’s economic prospects shining brighter than the global average. Anticipated to grow at a rate of 6.5-7%, thanks to government policies aimed at transparency and stability, India is becoming an attractive investment hub.

₹1.21 lakh crore in 2022, foreign portfolio investors (FPIs) returned as buyers in 2023, buying Indian equities worth ₹1.65 lakh crore. This was the highest FPI inflow since 2020 when buying stood at ₹1.7 lakh crore. This came on the back of improving macros, markets on a record-high streak, declining inflation, hopes of a rate cut in 2024, and the possibility of the incumbent government returning for a third term in the general elections next year.

Mid-cap and smallcap investors saw an even faster rise in wealth. Many IPOs delivered outstanding returns as investors rushed to new offerings amid a dearth of reasonably valued stocks in secondary market.

Sunny Agrawal, Head of Fundamental Equity Research, SBI Securities, said. In an interview with ETMarkets, Agrawal said: “BFSI, Real Estate, Auto, Cement, Engineering/Cap Goods, Infra, Railways, Defence, Renewables, IT, Biofuels etc are the preferred picks for next 12 months,” Edited excerpts: Sensex touched 70K while Nifty50 was above 21K – we got a Fed boost towards the close of the week. What is your view on the market? From the next 6 to 12 months perspective, we expect the domestic equity market to remain buoyant and have room to further go up by 8-10%.

Waaree Energies, on Friday, filed its draft red herring prospectus (DRHP) with market regulator Sebi to raise ₹3,000 crore. The company will issue 3.2 million shares, with major shareholder Waaree Sustainable Finance (formerly known as Mahavir Thermoequip) selling up to 2.7 million shares.

The IPO market limped ahead in 2023 and analysts expect a steadier recovery ahead

five ideas you might want to consider before investing in this bull run. The surge in markets in the middle of the year was primarily led by small and midcap (smids) stocks. This rally was exciting, yet tenacious — as is the case with any smids stock.

₹9.57 crore. The issue opened for subscription on December 27, 2023 and closed on December 29, 2023. The issue witnessed a good response from investors and was subscribed 66.29 times on the final day of bidding on December 29.

₹52 to ₹55 per share. The issue witnessed a stellar response from investors and was subscribed 117.39 times on the final day of bidding on December 29. It had received bids for 38,97,20,000 shares as against 33,20,000 on offer.

Innova Captab made a tepid debut on the exchanges on Friday, listing just 2% above the issue price. The lackluster debut performance fell way short of expectations, which highlights the potential risks associated with the highly competitive market, regulatory environment, and currency fluctuations. However, the stock jumped 20% post the listing to hit the upper circuit. Innova Captab has some core strengths, including a strong market position, robust financials, and strategic growth initiatives. «Given the uncertain outlook, a cautious approach is warranted, and investors may exit their position; however, those who want to hold it should maintain a stop loss at the issue price,» said Shivani Nayti, Head of Wealth, Swastika Investmart. The IPO of Innova Captab received tremendous response from investors with 55.26 times subscription at close. The issue received bids of 50,16,58,245 shares against the offered 90,78,010 shares. Innova Captab is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution, and marketing and exports. Its business includes CDMO business providing research, product development and manufacturing services to Indian pharmaceutical companies, a domestic branded generics business and an international branded generics business. The number of CDMO products sold by the company has grown by 131.43% from 1,066 in FY21 to 2,467 in FY23.