IPO boom: 2016’s IPO kitty highest in six years

A combination of smart pricing, introduction of companies from newer sectors to stock market investors and the push by private equity investors to exit investments helped 27 companies together raise nearly Rs 26,500 crore through initial public offers (IPOs) in 2016.

The total fund raised from IPOs during the past 12 months was nearly double the 2015’s figure. Also, it was close to what was raised during the previous five years put together. Merchant bankers now expect the strong IPO trend to continue in 2017.

Positive market sentiment and investors’ bullishness about India’s growth story also helped. Exits by private equity investors also helped this strong surge in IPOs this year.

Capital-raising requirements from corporates, private equity exits, broadly positive IPO returns and strong demand from domestic investors would be the main drivers of IPO activity next year.

In 2017, based on the IPO pipeline, some of the companies that are expected to hit the markets include NSE, BSE, SBI Life, UTI Mutual Fund, SIS, Continental Warehousing and CDSL. Telecom major Vodafone is also contemplating to go public. In addition, a large number of SMEs and OFS are also expected to come to the market in the next 12 months.

Source: Times of India


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