IT'S IPO' CLOCK AGAIN
Business Today India|October 29, 2023
AFTER A SUBDUED BEGINNING TO 2023, THE IPO MARKET HAS SEEN HEIGHTENED ACTIVITY IN THE PAST COUPLE OF MONTHS. CONSIDERING THE STRONG PIPELINE, THERE'S HOPE THIS MAY CONTINUE FOR SOME TIME YET
ASHISH RUKHAIYAR & RAHUL OBEROI
IT'S IPO' CLOCK AGAIN

PUBLIC SURGE

  • AROUND ₹17,500 CRORE HAS BEEN RAISED TILL AUGUST THROUGH MAINBOARD AND SME IPOS
  • HOWEVER, THERE IS A STRONG PIPELINE WITH ISSUES WORTH OVER ₹80,000 CRORE
  • MOST OF THE NEW LISTINGS OF 2023 HAVE DONE WELL AND ARE TRADING ABOVE THEIR ISSUE PRICE
  • SIGNIFICANT FALL IN IPO FUNDRAISING IN 2023 COMPARED TO THE PAST TWO YEARS

GOOD, BUT CAN do better.” This clichéd response is a ritual at parent-teacher meetings in schools. Now, though, it has also become a constant refrain in one unlikely place: the primary market.

Ask any market participant now about the primary market, and pat comes the reply: It’s doing fine, but it can definitely do better in the months ahead.

This is because there has been a notable increase in primary market activity, led by small and medium enterprises (SMEs), coming after two roller-coaster years when market participants first experienced exhilarating highs in 2021 before activity tapered and then plunged by the end of 2022. But there is a glimmer of hope that the strong pipeline of initial public offerings (IPOs)—or public issues in local parlance— could spark a repeat of 2021. IPOs worth over ₹80,000 crore are waiting to be launched.

This cautious optimism, to use a staple of market-speak, has taken a while to build because 2023 began with a visible lull in the primary market—the section of the market where new or unlisted companies get listed on the stock exchanges through IPOs. Then in March, a slow trickle of IPOs began—just two to three a month—that has gained volume and momentum to the extent that there were around 20 IPOs—including mainboard and SME issues—in September. This included public issues of well-known companies like JSW Infrastructure and Yatra Online.

This story is from the October 29, 2023 edition of Business Today India.

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This story is from the October 29, 2023 edition of Business Today India.

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