Indian IPO Market in Its Golden Age: What You Need to Know About the Surge in New Listings and Sanstar’s Entry | Stock Market News
The Indian IPO market is experiencing a golden age, driven by a strong domestic economy and high investor confidence. This period has become a launchpad for ambitious companies and a lucrative opportunity for eager investors.
The IPO market has seen a significant increase in the number of companies listing their shares on the stock exchange, along with a rise in capital raised. This trend shows a period of strength and dynamism in the Indian financial landscape.
In the first half of this year, 35 mainboard companies raised around ₹32,000 crore and were subscribed on average 61 times. These companies come from diverse sectors like co-working spaces, furniture retailing, and online ticket booking.
Tech Startups Making Headlines
The IPO market has been particularly active for new-age tech startups. Companies like Go Digit, Awfis, and TBO Tek have made headlines with their stock market debuts. This trend is expected to continue with major tech IPOs from Swiggy, Ola Electric, FirstCry, Ola Cabs, PayU, and MobiKwik.
Retail Investors Driving the Boom
Retail investors, encouraged by a strong secondary market and easy access through online platforms, are actively subscribing to IPOs, often leading to significant oversubscription. This trend shows that domestic investors are optimistic about India’s growth story, supported by policy continuity, pro-growth government measures, low inflation, and the start of the interest rate cut cycle.
Global Corporations Eyeing Indian Market
The Indian capital market is becoming a top destination for global corporations seeking public listings. Hyundai India plans to raise $3 billion through its IPO, which could become India’s largest, valued up to $30 billion. LG and several other international companies are also preparing for public listings in India.
Outlook for the Future
The recent elections are expected to boost market activity in the second half of the year. Improved market sentiment and a stable economic environment are encouraging companies to launch their public offerings. The success of several IPOs in the first half of the year could further drive momentum.
ACMIIL, a brokerage firm, anticipates a stronger market for IPOs in the second half of the year, with increased activity, potentially larger deals, and new listings across various sectors. They emphasize the importance of analyzing individual company fundamentals and future prospects before making investment decisions.
India’s primary market will be busy over the next few months, with 55 companies planning to raise over ₹68,000 crore through IPOs.
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