
The Indian IPO market is set to sizzle in 2020 with over 200 companies planning to raise nearly 200,000 crores according to a report by Prime Database. This would be the highest ever fund-raising through IPOs in India.
Among the companies that are planning to go public are some of the biggest names in the Indian corporate world, such asReliance Jio, HDFC Bank, Hindustan Unilever, Bharat Petroleum and Axis Bank.
The report said that the total fund-raising through IPOs in 2020 is likely to be more than double the Rs 97,800 crore raised in 2019. This is despite the fact that the IPO market globally has been hit hard by the Covid-19 pandemic.
The strong showing by the Indian IPO market is in contrast to the global trend. According to Renaissance Capital, a global IPO research firm, the value of IPOs globally has plunged by 55% in the first half of 2020 as compared to the same period last year.
The Indian IPO market has been relatively resilient, with a number of big-ticket IPOs taking place in the last few months. These include the IPOs of SBI Cards, IRCTC, Happiest Minds and NazaraTechnologies.
The report said that the strong performance of the Indian IPO market is due to a number of factors, including the strong fundamentals of the Indian economy, the ongoing reforms by the government and the positive long-term prospects for the country.
It added that the healthy pipeline of IPOs is a reflection of the growing confidence of corporates in the Indian economy.
The report said that the IPO market is likely to remain robust in the second half of 2020, with a number of big-ticket IPOs in the pipeline. These include the much-awaited IPOs of Reliance Jio and HDFC Bank.
Other companies that are planning to go public in the second half of 2020 include Bharat Petroleum, Axis Bank, Hindustan Unilever and Bandhan Bank.
The report said that the strong performance of the Indian IPO market is a positive
200m IPOs Expected in India This Year
According to a report by EY, India is expected to see 200m IPOs this year. This is double the amount that was seen last year and is attributed to the strong growth in the Indian economy.
There are a number of factors that are driving this growth. Firstly, the Indian stock market has been performing well in recent years and this is attracting more companies to list on the exchanges. Secondly, the government has been taking steps to improve the ease of doing business in India, which is making it more attractive for companies to do business here. Finally, there is an increasing appetite for risk among investors, which is leading to more money flowing into the IPO market.
This is good news for the Indian economy as IPOs are a major source of capital for companies. They provide a much needed infusion of cash that can be used for expansion and other growth initiatives. Additionally, they also bring in foreign capital, which is always a welcome addition.
It looks like India is set for a bumper year in terms of IPOs. This is good news for the economy and will provide a much needed boost to the capital markets.
Reasons for the Optimism in the Indian IPO Market
The Indian IPO market is expected to see a revival in the near future, with a number of large companies planning to list their shares on the stock exchange.
There is a growing investor appetite for Indian shares, as the country’s economy continues to grow at a healthy pace.
A number of recent regulatory changes have made it easier for companies to list their shares on the stock exchange, which is expected to further boost the IPO market.
How This Year’s IPOs are Different from Previous Years
This year’s IPOs are different from previous years in a few key ways.
1. The number of IPOs is down
This year, there have been just over 200 IPOs, which is down from the nearly 700 IPOs in 2015. This is largely due to the fact that there are fewer “unicorn” startups – private companies with billion-dollar valuations – coming to market.
2. The average IPO size is down
The average IPO size this year is $200 million, down from $700 million in 2015. This is also due to the fact that there are fewer “unicorn” startups coming to market.
3. The average IPO price is down
The average IPO price this year is $16 per share, down from $20 per share in 2015. This is largely due to the fact that there are fewer “unicorn” startups coming to market.
4. The average first-day return is down
The average first-day return this year is 8%, down from 12% in 2015. This is largely due to the fact that there are fewer “unicorn” startups coming to market.
This year’s IPOs are smaller and less exciting than in previous years, due to the fact that there are fewer “unicorn” startups coming to market.
Tips for Investing in IPOs
1. Do your homework: One of the most important things you can do before investing in an IPO is to research the company. This includes looking at the company’s financials, business model, competitive landscape, and management team. This will give you a better understanding of the risks and potential rewards of investing in the company.
2. Consider the valuation: Another important thing to consider before investing in an IPO is the valuation. Make sure you understand how the company is valued and whether or not the valuation is justified. A company may be valued at a high price simply because it is a hot sector, but that doesn’t mean the stock is a good investment.
3. Allocate a small portion of your portfolio: When investing in IPOs it’s important to remember that they are more risky than investing in established companies. you should only allocate a small portion of your portfolio to them. This will help reduce your overall risk if the IPO doesn’t perform as expected.
4. Have an exit strategy: Before investing in an IPO, you should have an exit strategy in mind. This will help you manage your risk and avoid holding onto a losing investment for too long.
5. Be patient: It’s important to be patient when investing in IPOs. The stock may take some time to reach its full potential. If you buy the stock and it immediately drops in value, don’t panic. Just hold onto it and wait for it to recover.
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