India’s hot primary market, the company raised a record 1.18 trillion rupees in 2021, and it is expected that there will be frenetic activities in the coming year, although it depends largely on the performance of the secondary market.
The channel for IPOs in 2022 is strong. More than 15 companies have submitted a draft Red Herring Prospectus (DRHP) in the main markets in the fourth quarter of 2021, and plan to IPO in the first quarter of 2022. Investors are preparing for a listing. The Indian Life Insurance Company (LIC) plans an IPO in the first half of 2022, which is the largest IPO in the history of the Indian capital market. In 2022, this impact may also affect public offerings.
Ernst & Young’s head of Emerging Markets, Technology Media and Telecommunications (TMT) Prashant Singhal said that low interest rates and listing-day returns are attracting more retail investors and high-net-worth individual investors into the stock market.
“In addition, we are likely to see some companies driven by the first generation of entrepreneurs, these companies are also supported by large investors. Traditional investment channels continue to remain strong,” Singhal said.
However, in addition to traditional investment, due to the covid-19 environment (through the increase in the opening of new stock brokerage accounts) and families seeking to profit from the bull market, we are seeing increased retail participation in the stock market in the Indian equity capital market. Changes in liquidity and changes in investment methods have made the stock market more attractive. Similar to the global market, investors are willing to invest in companies with attractive business models, good corporate governance and quality management teams,” he added.
Pranav Haldea, managing director of Prime Database Group, pointed out that the next year may see a strong primary market, and pointed out a healthy channel for IPO aspirants.
“Approximately 32 companies have obtained approval from the Securities and Exchange Commission of India (Sebi) and hope to raise 47,000 crore. Another 33 companies have applied for Sebi’s approval and hope to raise a total of 60,000 crore. In addition, the LIC IPO and NSE IPOs are the two most concerned issues in the coming year,” Haldea said.
Complete News Source : mint
