IPO Review: 72 IPOs hit the primary market this year so far; experts expect the trend to continue
Head of Research at Equinomics Research. Experts and market participants expect the IPO boom to be sustained in the short term. In September alone over 40 IPOs are planned out of which some 28 have already hit the market.
Experts pointed out that retail investors are adding to the IPO boom as the market sentiment is upbeat. Shrey Jain, Founder and CEO of SAS Online underscored that the surging market, fueled by abundant liquidity and a robust secondary market, stands as the primary driving force behind the surge in India Inc.'s fund mobilisation through IPOs. "As the market gains momentum, retail investors are flooding in, adding to the hype.
With this surge in interest, there's a growing belief that we're in the midst of an IPO boom," said Jain. "People are beginning to expect that every IPO that hits the market will perform exceptionally well. The optimism is so high that there's a strong likelihood of India Inc.
mobilising a whopping ₹1 lakh crore through IPOs," Jain said. While the boom is expected to continue in the coming months too, experts also warn investors should not get carried away and invest only in the IPOs of the companies that have good governance, solid financials, and sustainable business models. "It is imperative to tread with caution.
Financial booms are often followed by corrections, and the Indian market will likely be no exception. As history has shown, market corrections have the potential to separate the grain from the chaff, emphasising the importance of value-driven and quality-oriented business models," warns Manick Wadhwa, Director of Strategy, SKI Capital Services. "Investors are expected to become more discerning over time, prioritizing good governance, solid financials, and sustainable
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