IPO frenzy returns as equity markets bounce back – ₹52,000 crore worth IPOs lined up in 2022 so far
- Primary markets are expected to revive after a brief pause as the bulls are gradually returning.
- After volatility and a major selloff in June, 25 companies have filed their papers for an
- In August alone, 7 new DRHPs were filed with SEBI.
AdvertisementIPOs are coming back as markets have staged a rebound, giving companies enough confidence to go public. In FY23 so far, 46 companies have filed their draft red herring prospectus with the market regulator SEBI – and seven of those filings have come in the first half of August.
According to an analysis by Business Insider India and data from SEBI and Angel One, IPOs worth ₹52,000 crore are already lined up for 2022 so far.
Indian markets plunged on June 17, with the benchmark Nifty 50 index down 13.5% between January 1 to June 17. Since then, the markets have staged a big recovery, rebounding nearly 17%.
This explains why there has been a flurry of new IPO filings, according to Yash Gupta, an equity research analyst at Angel One. Since June 17, 25 companies have filed their papers for an IPO.
So far in 2022, there have been 17 IPOs, raising ₹41,783 crore. This pales in comparison to 2021, which witnessed 63 IPOs and ₹1.2 lakh crore in fundraising. However, Gupta says that 2021 was an anomaly and cannot be compared to other years.
The LIC IPO earlier in May also forced several companies to rush to the market earlier than expected, since analysts believed this would suck out the liquidity and investors wouldn’t be able to plough money into other IPOs.
With the LIC IPO done and dusted and markets showing another round of confidence, companies are coming back to the markets.
Tentatively, there are IPOs worth ₹52,000 crore lined up, according to data from Angel One. This includes companies like Oyo, PharmEasy, Go Air, Droom, Mobikwik, among others. Some of these IPOs have been speculated for a long time now, and some had filed their prospectus back in 2021.
Gupta also said that with the Nasdaq 100 index gaining strength now, we could see more new-age internet startups take to the markets. Nasdaq is considered as the benchmark for the tech industry, and its performance has an impact on tech companies in India, too.
AdvertisementApart from this, markets also seem to have an appetite for absorbing large stake sales, giving companies the confidence to launch new issues. Private equity firm KKR recently offloaded its entire stake in Max Healthcare amounting to ₹9,000 crore, while Blackstone offloaded its stake in Sona BLW worth ₹4,000 crore earlier today.
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