The revival that started in the second half of 2020 with the revival in the economy and recovery in the secondary market continued this year and it has proved to be a great year so far from the point of view of raising funds through IPO.
So far this year, 38 companies have raised Rs 71,833.37 crore through IPOs, whereas in 2020, 16 IPOs have come and through this companies have raised Rs 31,128 crore.
The market is showing enthusiasm due to factors like strong availability of liquidity, recovery in the economy, good results of companies and gradual lifting of lockdown by the states. Apart from this, the steps taken by the government and RBI to boost growth have also given a boost to the market sentiment. Due to which there has been a strong boom in the secondary market, whose effect has been seen in the primary market as well.
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Santosh Meena of Swastika Investmart It says that the momentum of the IPO market will depend on the behavior of the secondary market. It is expected that the uptrend will continue in the market going forward with minor corrections in between. Given that the overall trend of the market will remain bullish, we can expect the primary market activity to remain bullish in 2021.
How will the IPO market go ahead?
In the remaining part of 2021, 25-30 companies can bring their IPO. In which companies related to food delivery, digital services, payment banks, analytics, chemical, trading and service platforms sectors will be included. Chemical sector companies do not want to miss this opportunity to bring IPO to raise funds, expand their business and give exit route to big investors, so that we can see more IPOs coming from this sector.
It is to be noted that most of these companies listed in 2020-21 are trading above their offer price. This is another reason that is supporting the IPO market. Market experts say that the fund raising through IPO in 2021 may even break the record of Rs 75,000 crore in 2017.
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Calendar year 2021 has been very good for investors. Most of the companies listed during this period are trading in the green and most of these listings were done at a premium. Gaurav Garg of CapitalVia Global Research says that this is the reason why the IPO market is showing enthusiasm.
He further said that after the strong IPO listing of the first half of FY 2021, now the second half is expected to be more ruckus. Around 25 companies can launch their IPOs during this period. He also said that due to favorable steps taken by the government and better than expected economic recovery, the primary market is getting support.
If LIC’s IPO of Rs 60,000-70,000 crore comes in the same period, then we can see IPO of more than Rs 1 lakh crore in the second half of calendar year 2021.
बचे हुए 2021 के संभावित आईपीओ में Vijaya Diagnostic Centre, Penna Cement Industries, Fincare Small Finance Bank, Paradeep Phosphates, VLCC Health Care, Adani Wilmar, One 97 Communications (Paytm), FSN E-Commerce Ventures (Nykaa), PB Fintech (PolicyBazaar), Aadhar Housing Finance, Aditya Birla Sun Life AMC, Ami Organics, Bajaj Energy, One MobiKwik Systems, Star Health and Allied Insurance Company, PharmEasy और ESAF Small Finance Bank के नाम शामिल हैं।
In view of these conditions, market experts say that investors must look at the fundamentals and valuation of the company while investing in an IPO.
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