IPO in 2022As we approach the new year, the IPO rush on Dalal Street seems to be over, as new issues are coming to the market every other day. As per reports, the primary markets will remain busy with activity as around two dozen companies look to launch their initial public offerings or IPOs in the March 2022 quarter. The report quoted merchant bankers as saying that the IPOs are collectively going to raise Rs 44,000 crore this quarter. Last year has been an exceptional year, and this year too, it looks set to continue.
In 2021, 63 companies had raised a record total amount of Rs 1.2 lakh crore through IPOs even during the pandemic. This year’s rush comes in response to the same. A major chunk of the total money this year will be collected by companies driven by technology.
Apart from these firms, POWERGRID InvIT (Infrastructure Investment Trust) raised Rs 7,735 crore through its IPO, while Brookfield India Real Estate Trust raised Rs 3,800 crore through REIT (Real Estate Investment Trust).
Excess liquidity, huge listing gains and increased participation from retail investors have created continued excitement in the IPO market in 2021.
Merchant bankers said firms that are expected to raise funds through their IPOs during the March quarter include hotel aggregator OYO (Rs 8,430 crore) and supply chain company Delhivery (Rs 7,460 crore).
In addition, Adani Wilmar (Rs 4,500 crore), Emcure Pharmaceuticals (Rs 4,000 crore), Vedanta Fashion (Rs 2,500 crore), Paradip Phosphates (Rs 2,200 crore), Medanta (Rs 2,000 crore) and Ixigo (Rs 1,800 crore) are expected. Is. He asked to start his initial share-sale.
Merchant bankers said Scanray Technologies, Healthium Medtech and Sahajanand Medical Technologies may also bring their IPOs during the period under review.
These companies are raising funds for organic and inorganic growth initiatives, debt payments and exits to existing shareholders.
Eklavya, Founder, Recour Club, said, “Initial public listings by companies are done through the public to raise capital thereby increasing the liquidity of the stock as well as helping in finding valuations.”
LearnApp.com founder and CEO Prateek Singh said tech companies now want to expand globally and will need capital to do so; And this capital is being raised through IPO.
Besides, anchor investors in these companies are waiting for exit to get reward, this exit is being given to anchor investors through IPO route, he said.
The ongoing activity in the primary market comes at a time when SEBI has decided to tighten IPO norms to deal with extreme volatility in stock prices on the day of listing.
These measures include imposing a cap on the amount of issue proceeds a company can use for undisclosed inorganic growth, as well as limiting the number of shares that can be offered by selling to shareholders and locking of shares subscribed by anchor investors. -Includes boosting up.
Yash Ashar, Partner and Head (Capital Markets) at Cyril Amarchand Mangaldas, said: “The inability to raise funds for future undisclosed acquisitions will impact some of Unicorn’s capital-raising plans, particularly, where such companies have no other access to capital.” and where the existing shareholders are not willing to sell.”
These amendments are primarily a response to several IPOs in 2021, he added.
“These proposed changes to the law may have long-term implications. These changes may affect the plans of issuers planning to list on Indian stock exchanges,” he said.
(with PTI inputs)
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