Watch Our Live Call Update: Capitalstars| Share tips Expert| Rs 67,141 crore raised through IPOs in 2017: Will 2018 offer a better deal? :- 23 Dec, 2017

Saturday 23 December 2017

Capitalstars| Share tips Expert| Rs 67,141 crore raised through IPOs in 2017: Will 2018 offer a better deal? :- 23 Dec, 2017


Calendar 2017 saw a flurry of IPOs supported by liquidity, which pushed the benchmark indices to record highs. The surging stock market on the back of return of foreign institutional investors, and strong investor sentiment, creating a bullish investment climate and historically low volatility as the government's economic reform initiatives have led to a rush of new issues and stellar performance by the newly-listed stocks. 

With various government policies going in favour of faci .. 

Moreover, the IPO market got a boost on the back of government plan to divest its holdings in some of the public sector undertakings. 

Also, a surge in the secondary market has encouraged many companies to go to public in search of better valuations. Actually, weak performance of gold, real estate, or bank fixed deposits has forced investors to shift to equities as the preferred source of investment. A total of 36 companies from the various sectors -- namely insurance, financial services, FMCG, hospitals and logistics -- have raised nearly Rs 67,141 crore during CY2017, which is also a record at least in last 10 years. 

To note, insurance companies namely ICICI Lombard General Insurance, SBI Life Insurance, HDFC Standard Life Insurance, General Insurance Corp and New India AssuranceBSE -0.64 % have hit the market to raise close to Rs 45,000 crore. The contribution through new listing to Indian market-cap is at a seven-year high of 3 per cent. 

Beyond getting listed, a favourable IPO market has helped several promoters to raise much-needed capital for business expansion and working capital needs. 

On the flip side, current market valuations have offered a great opportunity to existing investors. PE investors that wanted to exit companies garnered huge money through the offer for sale route. 

IPOs are attractive investments. The current upsurge is expected to last as long as the upswing in the secondary market continues. Some companies such as ICICI Securities, ACME Solar Holdings, HG Infra, Indiamart and Krishna Institute of Medical Sciences -- to name a few -- are expected hit the market in CY2018. 

Undoubtedly, the IPO market has rewarded investors with good returns and it is expected that it would continue to perform in 2018 as well. The performance of the recently-listed companies will determine the future course for the IPO market. 

CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

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