MARKET UPDATES: The primary market seems to be muted, with entities raising only Rs 478 crore through a dozen initial public offerings (IPOs) in January. Of the 12 offerings, only two were of the main board that garnered Rs 323 crore, while 10 small and medium enterprises (SME) mobilised Rs 155 crore through the initial share-sales, as per the latest data with the Securities and Exchange Board of India (Sebi) showed.
In comparison, companies mopped-up funds to the tune of Rs 5,120 crore through IPOs in December. "With the Nifty down by around 10 per cent from the peak and underperforming other markets in 2023, the sentiments have turned negative. This is not a favourable time for IPOs, however, attractively priced IPOs will attract investors," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
Overall, a total of 38 companies collected over Rs 57,000 crore in 2022, way lower than the Rs 1.2 lakh crore raised by 63 companies in 2021, which was the best IPO year in two decades. The overall collection in 2022 would have been much lower had it not been for the Rs 20,557- crore LIC public offer, which constituted as much as 35 per cent of the total amount raised during the year. Apart from fundraising through IPOs, funds were mobilised through other modes of equity issuances in January 2023.
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