Four initial public offers (IPOs) totaling more than Rs 11,850 crore were completed in the first week of August, demonstrating that the volatility in global equities hasn’t dulled the shine on the primary market.
This pattern will probably continue as 25 companies that have received approval from the Securities and Exchange Board of India (Sebi) are about to go public to raise about Rs 22,000 crore. Several well-known companies have received permission from the market regulator, including Premier Energies, Bajaj Housing Finance, Asirwad Micro Finance, Arkade Developers, and Northern Arc Capital.
The largest initial public offering (IPO) of the year, Ola Electric Mobility, with an issue size of Rs 6,146 crore, helped the primary market in August. Investment bankers interpret this as evidence of market confidence.
The Ola Electric initial public offering (IPO) coincides with periods of severe selling pressure seen by global equity markets last week as a result of worries about a possible US recession, the unwinding of yen carry trades, and geopolitical unrest in West Asia.
As the benchmarks, the Sensex and Nifty 50, dropped by roughly 1.5% apiece last week to record their second consecutive week of losses, even domestic shares were under pressure.
August’s primary market issuances have exceeded the total amount of issuances recorded in the preceding two months. If one were to take away Vodafone Idea’s follow-on public offer in April, this month has also seen the biggest primary market fundraises of 2024 in less than a week.
