MUMBAI, Jan 3 (NNN-PTI) – India’s capital market is going to see continued frenetic activity, as over 23 companies have lined up for listing on its bourses, to raise 5.9 billion U.S. dollars in the Jan-Mar quarter, according to the red herring prospectus, filed with the Securities and Exchange Board of India (SEBI).
In 2021, 63 companies mopped up 16.1 billion dollars, through initial public offerings (IPOs), amid the pandemic-ravaged economy.
The new listings came after SEBI tightened the IPO rules last week, to tackle the extreme volatility in the stock prices on their listing day.
“Allotment of shares in IPOs on a lottery basis, to High Networth Individuals (HNI)/Non Institutional Investors (NII) and not on a proportionate basis (as was the practice earlier), will deter HNIs and NIIs from applying in large amounts, and thereby bring down the over-subscription rates of the IPOs going forward,” said Makarand Joshi, founding partner of Mumbai-based MMJC and Associates LLP, a corporate compliance firm, commenting on the recent amendments by the regulator.
Over-subscription rates, misguided retail investors with volatile stock prices on listing day.
Some of the companies that lined up for IPOs in the coming quarter include, hotel aggregator, OYO, and supply chain company, Delhivery, with issue size worth 1.1 billion dollars and 1.0 billion dollars, respectively.
Other key companies to tap the IPO market include, Adani Wilmar, Emcure Pharmaceuticals, Vedant Fashions, Paradeep Phosphates, Medanta and Ixigo, which are raising funds for their organic and inorganic growth initiatives, debt re-payments and offering an exit to the current shareholders, investment bankers said.– NNN-PTI
