IPOs fundraise tops Rs 27,000 cr in April-July

As many as 12 firms have raised a staggering Rs 27,000 crore through IPO route in the first four months of the ongoing fiscal, and the pipeline is pretty strong for the remaining part of the year too.

Further to this, initial share sales of four other companies Devyani International, Windlas Biotech, Krsnna Diagnostics and Exxaro Tiles are scheduled to open on August 4.

Hemang Kapasi, Head of Equities at Sanctum Wealth Management, said that as many as 40 initial public offers (IPOs) are lined up for the rest of the year looking to raise Rs 70,000 crore.

Further, a lot of retail investors associated brands are going to list on the Indian bourses. The initial share sales of Paytm, Mobikwik, Policy Bazaar, CarTrade Tech, Delhivery and Nykaa will keep investors busy in the current fiscal, Kaushlendra Singh Sengar, founder and CEO at INVEST19, said.

He further said the main reason for opting the IPO route is the recent bull run in the Indian markets. The bull market has facilitated companies to raise funds from equity market at high valuations.

The companies are diluting their stakes at higher valuations which pushed promoters to file their preliminary papers with capital markets regulator Sebi, he added.

Sandeep Matta, founder, TRADEIT Investment Advisor, said exuberant equity bull run, higher participation of first-time investors, expectation of quick money, rewarding exit for existing investors, access to unconditional money are the major reasons behind companies going public.

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