Indian IPO market poised for strong growth as dust settles on election results
₹68,000 crore through initial public offers (IPOs), according to data from primedatabase.com. In the current fiscal year so far, seven issues have mopped up ₹19,455 crore, while another five are set to hit the markets in June. This follows a robust 2023-24 when 76 companies went public, raising ₹61,922 crore.
However, a record ₹1.1 trillion was garnered by 53 companies in FY22. "There was a lot of volatility around the exit polls and eventual election outcome. However, not only has it stabilised, a lot of buoyancy has also returned, which bodes well for the primary market, " said Pranav Haldea, managing director, Prime Database Group.
“Domestic investor liquidity remains abundant and signals from the government regarding policy continuity have bolstered market confidence as a result of which we shall hopefully see some major deals in the coming months across a range of sectors," he added. The market regulator has already granted approvals to 17 companies to raise nearly ₹ 11,946 crore, with an additional 38 companies awaiting approval for a combined amount of around ₹56,405 crore. "The quality of management is paramount when considering an IPO investment," said Anand Rathi, co-founder of Mira Money.
He advises investors to focus on a company's management history, financial performance, and compliance record before making an investment decision. Rathi expects e-commerce, manufacturing, and NBFC companies to be particularly active in the upcoming IPO wave. Off late, public offers have garnered an impressive response from investors.
Read more on livemint.com
