October likely to be busy month as IPOs worth over Rs 20,000 crore likely to be launched
October likely to be busy month as IPOs worth over Rs 20,000 crore likely to be launched
The main market is expected to be quite busy in October 2021 because the initial public offering (IPO) worth more than Rs 20,000 Crore tends to be launched for a month, given the positive secondary market environment and extensive liquidity.
This is much larger, compared to almost Rs 6,700 Crore Mopped from the IPO in September. Ami Organics, Vijaya Diagnostic Center, Sansera Engineering, Paras Defense and Aditya Birla Sun Life AMC are five companies launching IPO last month.
The number of IPOs is likely to be launched in the second half of the FY22 very large, and fundraising can cross the Lakh-Crore Rs 1 sign, if the LIC also touches Dalal Street. The potential of the Fed Tapering is the only concern for time that can have an impact on the flow of fi, to a certain extent.
Economic recovery, income season to encourage IPO
Garuav Garg, Head of Research, Capitalvia Global Research, said the year was very profitable for the IPO because the market conditions were optimistic and the emergence of investors had first helped companies to increase capital.
Garg felt the main market performance for the rest of the section this year will depend on the secondary market too. “The main market may face problems because of factors such as Fed or inflation bond tapering that can capture momentum in the secondary market. However, the expected economic recovery and the beginning of the income season can provide filip for the company to go public.”
“Better economic recovery than expected, posting the second wave of Covid, followed by foreign portfolio investments (FPIS) and domestic inflows to the secondary market and increased retail participation Maintaining the overall optimistic sentiment,” said Prashanth Tapse, VP, Research, Equity Mehta .
“If we believe that this bull market will continue for the rest of the second half of FY22E and FY23E, we might see a big rush in the IPO room. This is a phase where the company that emerges / promoters is seen to knock on investor sentiment,” he said.
12 companies are preparing for IPOs
About 12 companies are expected to hit Dalal Street in October. They are Nykaa, Ixigo, North Capital Arc, Star Health and Allies insurance, Fincare Small Finance Bank, Small Ukrarsh Financial Bank, Arohan Financial Services, Medi Help Health Services, Pharmaceutical Emcure, Mobikwik, Seven Islands Shipping and Esaf.
These companies are expected to raise more than Rs 23,700 Crore.
From here, companies like the capital of North Bow, Fincare Small Finance Bank, Medi Health Services Help, Small Financial Bank Utkarsh, and Arohan’s Financial Services have received Agreement Sebi. In general, companies need to launch IPOs in one year after receiving approval.
“We expect a month away, full of action, from the point of view of IPO. We expect some digital players like Nykaa (Size IPO RS 4,000 Crore), Mobikwik (1,900 Crore) and Ixigo (Rs 1,600 Crore) to launch their IPOS on October 2021 . Star Health and Allied Insurance, Financial Pharmacy and many more are expected to come up with their IPOS, “said Yash Gupta, analyst at the Equity Research, Angel One.
The largest life insurance company in the country, LIC, is expected to submit IPO letters with SEBI in November. It is likely to launch an IPO in the current fiscal, the Ministry of Finance official said.
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