India’s IPO market becomes active again

Companies come up with IPOs in a situation where the stock market shows a sign of resurgence. In the eight months until August 2020, only three companies issued IPOs. However, the market has seen a strong jump from its low level in March. So far, three companies have issued IPOs in September.

SBI Cards & Payment Services, Rosary Biotech and Mindspace Business Park Rite have issued IPOs for the first eight months of 2020. SBI Cards raised Rs.10,000 crore through a public issue in March. In July, Rosary Biotech raised Rs.500 crore and Mindspace Business Park raised Rs.4,500 crore through a public issue.

The IPO market was not active in the first few months of this year compared to last year. Of the public issues released in the first few months, only the IPO of SBI Card was attractive. The IPO market remained inactive as listed companies rallied on a large scale through QIPs and rights issues. At the same time, the situation changed in September. It is known that at least six companies will go public in the coming months of this year. Investments of between Rs.10,000 crore and Rs.28,000 crore are likely to reach the primary market through a public issue.

The IPO market was revived last week through a public issue of CAMS, Kemcon Specialty Chemicals and Angel Broking. NSE-backed computer age management services is abbreviated as CAMS. CAMS is the largest registrar and transfer agent in India. The company has a market share of 69 per cent in this sector. Kemcon Specialty Chemicals is a company that manufactures chemicals for the pharma industry. In general, the response to these IPOs has been overwhelming.

This is followed by IPOs of companies such as Likhitha Infrastructure Limited, UTI Asset Management Company and Mazagon Dock Shipbuilders this week. The IPO can be applied for from September 29 to October 1.

Companies such as Root Mobile, IRFC, Equitas Small Finance Bank, National Stock Exchange and Gland Pharma are also preparing for a public issue this year. The market is watching out for NSE’s IPO issue with much interest. NSE, the country’s largest stock exchange, intends to raise around Rs 10,000 crore through a public issue. BSE, another stock exchange, has already been listed.