IPOs hit four-year low
Listed firms rely on qualified institutional placements to raise capital
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Prefer us on GoogleLast Updated: Dec 16, 2019, 12:51 IST1 min
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This year’s largest IPO was led by Sterling and Wilson Solar Ltd which raised ₹2,849.64 crore. In May-end, it sold its shares at ₹780 apiece during its IPO they now trade at ₹288.9 per share, a drop of 62.9 percent. Other companies which listed during 2019 such as IRCTC Ltd and IndiaMart InterMesh Ltd have provided returns of over 100 percent to its investors since their IPO. "In the next two quarters starting the calendar year, we expect IPOs to pick up,” says Sourav Mallik, joint managing director at Kotak Investment Banking.
Listed firms depended heavily on qualified institutional placements (QIPs) to raise capital. Since January, companies raised ₹35,238.14 crore compared to ₹16,587.43 crore during the corresponding period last year, a two-fold increase. The activity picked up significantly since September. The fund raise has largely been led by Axis Bank Ltd which raised ₹12,500 crore followed by Bajaj Finance Ltd (₹8,500 crore). “Next year I again expect QIPs to be dominated by banks as they need to shore up capital," says Pranav Haldea of Prime Database.
First Published: Dec 16, 2019, 12:51
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