The drought in the IPO (initial public offerings) market is likely to end in the next coming weeks as an Economic Times' (ET) report suggested that as many as nine companies may hit the primary market in March to raise more than ₹17,000 crore.
"Companies planning to enter the primary market in the next 4-6 weeks, according to bankers, include Avalon Technologies, Capillary Technologies, Cogent Systems, Divgi TorqTransfer Systems, Mankind Pharma, Nexus Malls REIT, Signature Global, TVS Logistics, and Utkarsh Small Finance Bank," reported ET.
Amid high volatility in the equity market and the poor show of some IPOs in December, investors and companies turned cautious about IPOs. January and February did not see any public issues.
The ET report, quoting Prime Database numbers, mentioned that in the past eight months, 33 companies with IPO plans worth ₹49,300 crore have allowed their regulatory approvals to lapse. Last year, 40 companies raised ₹59,302 crore from the primary market through IPOs compared to 63 companies that have raised ₹1.19 lakh crore in 2021.
“Diminished investor appetite and an uncertain market outlook had forced many to defer fundraising plans. However, even in a volatile market like this, there is a demand for selective smaller to mid-size IPOs that are reasonably priced," ET quoted Dharmesh Mehta, CEO of DAM Capital Advisors, saying so.
MintGenie had earlier reported the fourth quarter (Q4) of 2022 (CY) saw the highest number of initial public offer (IPO) deals compared to the other three quarters of the year, according to EY.
As per the report, more than 10 companies filed their Draft Red Herring Prospectus (DRHPs) in Q4 of 2022, signalling a potentially brighter 2023.
While, 18 IPOs were launched in Q4 CY22 compared to only four in the previous quarter, a rise of 350 percent, in the Indian stock exchanges (main markets).
Disclaimer: The views and recommendations given in this article are those of individual analysts and broking firms. These do not represent the views of MintGenie.