Mumbai: Analysts said India’s primary market is set to see a “healthy but cautious” response from investors in 2022.
Accordingly, several Initial Public Offerings (IPOs) are expected to hit the market. These can include people from LIC and NSE. In addition, new-age companies may go for IPOs in 2022, including Pharmeasy, Delhivery, MobiKwik and Ixigo.
This year, a total of 63 companies raised Rs 1.19 lakh crore through IPOs, making it the highest ever fundraising in a particular year.
In 2017, the firms raised Rs 67,147 crore through 36 IPOs. “Huge liquidity inflows and good listings by multiple IPOs instilled confidence among investors for IPOs. The momentum is likely to continue as many IPOs are still lined up for the next year. This includes one of the biggest IPOs in India – LIC, followed by NSE, is expected early next year,” said Sneha Podar, AVP Research, Broking & Distribution, MoFSL.
Many more new age companies may launch IPOs in the coming months, including Oyo, Pharmeasy, Delhivery, MobiKwik and Ixigo.
Notably, this year many new age digital players have been listed including Paytm, Nykaa, Policy Bazaar, Zomato among others.
In fact, this segment – new-age digital firms – raised the most fresh capital in 2021, with companies like Paytm raising Rs 18,300 crore and Zomato raising Rs 9,375 crore.
Also, Paytm has been the biggest IPO ever, surpassing Coal India, which raised Rs 15,200 crore in 2010.
Vinod Nair, Head of Research, Geojit Financial, said, “The IPO market will be supported by the government’s disinvestment plan, startups and fresh growth in the economy. However, the ongoing consolidation and the recent weak listing will have an impact in the short term.” Services.
“Declining secondary market trends and declining world liquidity will also have an impact on 2022. Going forward, investors are expected to be selective in terms of quality and pricing of IPO offerings.”
According to Sunil Nyati, Managing Director, Swastik Investmart: “There are many big names like LIC, NSE, Bajaj Energy, Ola, Delhivery, Go Air, etc., which are likely to come up with their IPOs next year.”
“It is difficult to say how much amount will be raised through all the IPOs next year, but it will be much bigger than last year as the IPO of LIC itself should be more than Rs 70,000 crore.
Lately, there has been caution with regard to IPO pricing. In particular, first-time investors have become more cautious before participating in the offering process.
Gaurav Garg, Head of Research, Capitalvia Global Research, said, “Over the past two months, investors have been evaluating IPO valuations and business models before investing, resulting in reduced IPO subscriptions and discounted listings. “
Further, Deepak Jasani, Head of Retail Research, HDFC Securities said: “Despite the fact that LIC IPO is going to hit in 2022, we feel it will be difficult to break the IPO collection figure in 2021 to 2022, unless The IPO price is more reasonable and the market sentiment does not deteriorate significantly.”
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