IPO Gold Rush: 30 Firms Raise Rs 30,000 Crore In Last 12 Months; 28 Major IPOs Expected In 2021

Market experts revealed that the overall positive outlook and global liquidity in the domestic equity market has already helped the Indian companies in raising over Rs 31,000 crore through initial public offers in this fiscal year. 

Positive Outlook For IPOs

In the last three years, this is the highest fund-raising through IPOs. 

“The IPO pipeline remains strong with 28 companies holding Securities and Exchange Board of India’s approval for raising nearly Rs 28,710 crore through maiden share sales going forward,” informed by Sandeep Bhardwaj, the chief executive office – retail at IIFL Securities Ltd. 

This includes companies such as Life Insurance Corporation of India, HDB Financial Services, National Commodity & Derivatives Exchange Ltd., ESAF Small Finance Bank Ltd.

These companies are expected to come out with their IPOs in 2021-22, according to Rajendra Naik, the managing director – investment banking, Centrum Capital. 

Biggest IPOs Of FY2021

If we talk about the biggest IPOs Of FY21 then it would be Gland Pharma Ltd. with Rs 6,480 crore.

Followed by Indian Railway Finance Corp. with Rs 4,633, crore Computer Age Management Services Ltd. with Rs 2,240 crore UTI Asset Management Co. with Rs 2,160 crore.

During 2020-21, 30 firms raised Rs 31,277 crore through IPOs as per an analysis of data available with the stock exchanges.

The presented amount is significantly higher than Rs 20,352 crore mopped up through 13 initial share sales in the previous fiscal year. 

During this period, the companies from diverse sectors such as jewellery, technology, specialty chemicals, banking and financial services have made their way to the IPO space further adding depth to the IPO markets. 

How Did This Happen?

Naik said, “The biggest factor driving companies to fund-raising through IPO is the bull run in the stock market. Improved sentiments in the secondary market acted as a support for the primary market,”. 

Further added that ample liquidity, better than expected economic recovery uplifted the market sentiment and the same was visible in the primary market. 

Market experts said that new retail investors are actively and a bit irrationally applying for IPOs and suggested that such investors should be discrete in selecting IPOs.