The dry spell is set to end as 10-15 companies are likely to raise upwards of Rs20,000 crore. Experts say companies' capital requirement and valuations getting reasonable have accelerated the change
According to experts, a mix of multiple factors may lead to a new deluge of IPOs. Capital requirement for companies and valuations gradually getting reasonable have accelerated the primary markets’ activities again
Illustration: Chaitanya Dinesh Surpur
Following a lull in the primary markets, fund raising through initial public offerings (IPO) is once again picking pace even as stock market investors continue to remain jittery on concerns of recessionary pressures and higher interest rates amid surging inflation. Weak economy and downturn in equities have begun to spark fears of a longer period of slowdown in overall global growth adding to the uncertainties and nervousness in markets.
However, the second half of fiscal 2023 is expected to break the dry spell of IPOs in India with a fresh bout of enthusiasm and fervour. According to industry estimates, around 10-15 companies are likely to raise upwards of Rs20,000 crore via IPOs in the second half of FY23.