As the stock market sentiment turns positive with strong recovery seen from March lows by over 50%, we may once again see companies hitting the primary market to raise funds. So far in the calendar year 2020, only 3 companies tapped the market, namely SBI Cards and Payment Services (launched its public offer in March just before the corona crisis took over), followed by Rossari Biotech (with public issue in July after a long gap of over 3 months in the IPO market and the latest one by Mindspace Business Parks REIT.
And now there are 2 companies waiting to launch their IPO next week, namely Happiest Minds and Route Mobile. In comparison last year, during the same period 11 companies hit the IPO market including Metropolis Healthcare, Neogen Chemicals, Polycab India, Sterling & Wilson, Affle India and IndiaMart InterMesh.
But as things stand currently as per industry reports which reveal of some 34 companies having received approval for IPO totaling to Rs. 33500 crore, we may see IPO market once again gain momentum and in fact may notch a 2-year high in terms of amount mopped up. In accordance with the ruling, from the date of issuance of observations by the market watchdog, IPO or a rights issue needs to be floated within a timeline of 12 months. However, amid the pandemic crisis, SEBI has extended the validity period of IPO approval.
Experts viewing Happiest Minds' public issue worth Rs. 700 crore as the opener to an otherwise dull IPO market see at least six more companies to make it to the primary market and aggregate an amount in the range of Rs. 10000- 28000 crore by the year end.
Likely IPO Launches By Calendar Year 2020 End
Route Mobile ( Rs 600 crore IPO)
CAMS backed by NSE (Rs 1,500-2,000 crore)
Chemcon Speciality Chemicals (Rs 350 crore)
UTI AMC (Rs 3,000 crore)
Angel Broking ( 600 crore)
IRFC (Rs 4,000 crore)
Equitas Small Finance Bank (Rs 1,000 crore)
National Stock Exchange (Rs 10,000 crore)
Gland Pharma (Rs 5,000-6,000 crore)
This is as told to the leading online business portal by people familiar with the primary market.