The drought in the IPO (initial public offering) market is likely to end in the next few weeks as an Economic Times (ET) report suggests as many as nine companies could hit the primary market in March to bid more than €1,000,000 collect €17,000 crores.
“Companies planning to enter the primary market in the next 4-6 weeks include Avalon Technologies, Capillary Technologies, Cogent Systems, Divgi TorqTransfer Systems, Mankind Pharma, Nexus Malls REIT, Signature Global, TVS Logistics and Utkarsh, according to bankers Small Finance Bank,” reported ET.
With high stock market volatility and poor performance from some IPOs in December, investors and companies became cautious about IPOs. There were no public issues in January and February.
The ET report, which cites figures from the Prime Database, mentions that 33 companies with IPO plans were worth in the past eight months €49,300 crore have had their regulatory permits lapsed. Last year, 40 companies rose €59,302 crore from the primary market through IPOs compared to 63 companies that raised €1.19 lakhcrore in 2021.
“Slacking investor appetite and an uncertain market outlook had forced many to delay fundraising plans. But even in a volatile market like this, there is a demand for selective smaller to mid-cap IPOs at reasonable prices,” quoted ET Dharmesh Mehta, CEO of DAM Capital Advisors.
MintGenie previously reported that the fourth quarter (Q4) of 2022 (CY) saw the highest number of initial public offerings (IPO) compared to the other three quarters of the year, according to EY.
According to the report, more than 10 companies submitted their Draft Red Herring Prospectus (DRHPs) in the fourth quarter of 2022, signaling a potentially better 2023.
Indian bourses (major markets) launched 18 IPOs in Q4 CY22 compared to just four in the previous quarter, an increase of 350 percent.
Disclaimer: The views and recommendations contained in this article are those of individual analysts and brokerage firms. These do not represent the views of MintGenie.
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