InvestorQ : How has the IPO market been like during the first 8 months of the year? Has COVID actually impacted the IPO market in a big way?
Anu Biswas made post

How has the IPO market been like during the first 8 months of the year? Has COVID actually impacted the IPO market in a big way?

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Ria Jain answered.
3 months ago
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It may appear that the COVID year would have been challenging for the IPO market. In fact the IPO market started with a bang in the early part with SBI Cards. However, COVID resulted in the IPO markets almost silent for four months before a slew of issues hit the market.

The first eight months of the current fiscal have seen a smart bounce in the IPO markets, especially after the COVID pandemic. In fact, the liquidity infusion by the government and the prevailing low interest rates meant that companies raised Rs.25,000 crore through IPOs, making it one of the better years for IPOs. This is despite the lost months due to COVID.

The year 2020 saw IPOs from a cross section of sectors like pharma, telecom, IT and financial services. The funds of Rs.25,000 crore raised during the month was more than double the amount of Rs.12,362 crore that was mopped up via 16 IPOs in the full previous year 2019.

There is another story at play. Companies are increasingly opting for the IPO route to build a solid war-chest in the midst of all these uncertainties. This will not only strengthen their balance sheets but also give them enough room and firepower to grow in the coming months. This is very true for financials.

Some of the big IPOs during the year included SBI Cards, Gland Pharma, CAMS and UTI-AMC. In fact, SBI Cards raised over Rs.10,500 crore while Gland Pharma raised over Rs.6,800 crore while CAMS and UTI raised over Rs.2500 crore via their IPOs. Burger King is the slated to be the next big IPO to hit the market and is scheduled to be worth Rs.810 crore.

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