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IPO Market Remains Lacklustre In 2019; High Market Volatility Keeps Companies And Investors Away


In a sharp contrast to 2018, wherein a total of 24 companies raised funds to the tune of Rs. 30,959 crore by hitting the primary market, only 11 firms so far in the ongoing year resorted to the route and mopped as much as Rs. 10,000 crore via share sales. Given the scenario, marketmen held the view that the IPO market in India will remain lacklustre on account of the sharp volatility in benchmark indices due to a host of global and domestic factors.


IPO Market Remains Lacklustre In 2019 With Just 11 Issues For Far

As per the data available with the stock exchanges, 11 companies who came up with their IPO issues in 2019 on an aggregate collected an amount of Rs. 10,3000 crore
"The IPO market will continue to remain tough during the year. There has been steep correction in valuation of mid and small cap stocks, which deters the primary market," Naveen Kulkarni. Head of Research, Reliance Securities is cited as saying in a report.

Companies that have hit the IPO market in 2019 are:

1. Sterling & Wilson Solar
2. Spandana Sphoorty Financial
3. Affle India
4. Chalet Hotels
5. Rail Vikas Nigam
6. Metropolis Healthcare
7. Polycab India
8. Xelpmoc Design & Tech
10. Neogen Chemicals
11. IndiaMart Intermesh

Notably, shares of most companies that made their debut on stock exchanges this year are trading above their IPO issue price and adequate pricing is what is being attributed for the surge in these shares.

A number of reasons that have made companies to avoid the route for fund raising as cited by market experts include poor sentiment that is not conducive for IPO market, weakness in Indian rupee and the ongoing rift between the US and China.

On a more recent basis, SBI has also shelved off its plan to come up with an IPO for its general insurance and card business and announced its likely launch in first quarter of next year.

Read more about: ipo stock market rupee
Story first published: Monday, September 16, 2019, 11:56 [IST]
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