IPO market
India’s initial public offering (IPO) has touched a record Rs 1.77 lakh crore as companies move quickly to meet rising investor demand for new shares. According to Bloomberg data, this amount has crossed last year’s highest of Rs 1.73 lakh crore. Five more IPOs are scheduled to close on or before December 16, including ICICI Prudential Asset Management Company’s $1.2 billion offer, which may increase this amount further.
This growth shows how India’s stock market has now become a major fund raising center. this is due to. Increasing number of small investors, and continued interest from big investors, while other stock markets are witnessing a decline. India is making it easier for companies to list on the market, and the big deals show that companies are trying to raise as much money as possible before global conditions turn tough.
Due to better growth prospects and stable government policies, foreign big investors remain active in IPOs, while they are selling large amounts of shares in the general stock market. This has also helped medium-sized manufacturing and technology businesses to raise money at higher valuations. Hiren Dasani, Chief Investment Officer, Emerging Markets, Ashoka Whiteoak Capital Private Limited, said that in the last one year, the earnings from the general stock market have been less, but the activity in the new shares market has been very strong and this shows the strength of the market.
But this speed also brings some dangers. Due to very high prices of some companies, their performance after listing has been weak. According to Bloomberg, almost half of the more than 300 companies listed this year are trading below their target price. These also include Tata Capital Limited, JSW Cement Limited and WeWork India Management Limited.