IPO Market: 28 for securing Sebi clearance to issue Rs 45,000 worth of IPOs in April-July FY23

Among the companies that have secured regulatory clearance include retail brand Lifestyle FabIndia; Bharat FIH, a subsidiary of FIH Mobiles and Foxconn Technology Group;

Supply chain solutions; Blackstone-backed Aadhar Housing Finance; Macleods Pharmaceuticals and Kids Clinic India, the company that runs the Cloudnine super-special maternal and newborn care chain.

These companies have yet to announce their IPO launch dates and are waiting for the right time to resolve their issues as current market conditions are challenging, commercial bankers said. “The current environment is challenging and companies with approvals in hand are waiting for the right moment to make an initial share sale. In fact, many of them have already finished roadshows and waiting for the right moment,” said Prashant Rao, Director and Equity Markets, Anand Rathi . Investment Bankspeak.

Goes by Securities and Exchange Commission of India (Sebi) data, a total of 28 companies received regulatory permission to exploit the IPO route to raise funds between April and July 2022-23. Together, these companies are expected to rake in Rs 45,000 crore.

So far, in the current financial year, 11 companies have listed shares with a turnover of Rs 33,254. Of these, a lion’s share (Rs 20,557 crore) was given by the public issue of

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All of these companies launched in the primary market between April and May, and none of these public launches were launched after May, which indicates a dry period in the market. IPO market.

This comes after as many as 52 primary market miners for a record increase of Rs 1.11 lakh crore during the entire 2021-22 period. The impressive fundraising can be attributed to a series of public issues from loss-making new-age tech startups, strong retail engagement, and massive listing revenues.

The lack of interest in IPOs in the current financial year can be attributed to the sharp correction in the secondary market, the disastrous performance of new digital companies, such as

VK Vijayakumar, Investment Strategy Manager at VK Vijayakumar, Investment Strategy Director of VK Vijayakumar, said.

Anand Rathi Investment Banking’s Rao also said that due to volatility in the market and certain issues facing valuation performance, investors have been wary of new issuances.

However, Abhijit Tare, MD and CEO, Motilal Oswal Investment Advisorthere is a view that the market has just recovered from the mathematical lows and more importantly the sentiment lows seen last quarter and there will be very few companies trying to enter the market.

A few of the IPOs will be successful in the next 2-3 months based on the merits of their proposals, Tare said, adding that a large amount of fundraising is expected to happen over the rest of the year. financial year.

“Given good quarter results and some favorable economic data, we feel the second half of this financial year could provide some room for problems and could provide opportunities for companies.” good quality priced right to launch their IPO,” Rao said.

Interestingly, companies have suddenly rushed to file preliminary IPOs with Sebi in the past two months. During June-July, a total of 15 companies, including Sula Vineyards, Allied Blenders and Distillers, Utkarsh Small Finance Bank and Sai Silk Kalamandir, approached Sebi with their draft papers to raise money through the initial share sale.

“There’s a lot of discussion going on in the private sphere. Many promoters from small towns and cities who have done a great job growing their businesses but never have. thinking of monetizing their efforts is now preparing for the move. Therefore, we see more applications being filled by the regulator,”

Tare of Investment Advisor said.