The Indian stock market has been on a roll this year, smashing records one after another to touch historic highs. Even in terms of new investors, this has been a record year with almost every month seeing an addition of more than 1 million new investors.
But while the secondary market is in the limelight, the primary market is not lagging far behind. For initial public offers (IPOs), the going has never been so good.
In the current calendar year till date, more than 50 companies have tapped the stock markets to raise a cumulative amount of more than Rs 1 trillion or Rs 1.03 lakh crore to be precise.
This is the first time ever that total fund raising through IPOs in a single calendar year has breached the Rs 1 trillion mark. The previous high was registered in 2017 when a total of Rs 67,147.44 crore was raised by 36 companies, as per data from Prime Database, a primary market tracker.
Meanwhile in the current year, a total of 43 issuances raised a cumulative amount of Rs 73,523.82 crore till October while the current month has already seen as many as eight issues that raised a total of nearly Rs 29,600 crore.
Incidentally, only March saw a higher number of IPOs when a total of nine firms launched their public issues.
The current month also saw the high-profile public issue of One97 Communications, the parent entity of digital payment and ecommerce major Paytm, which raised around Rs 18,300 crore.
November also saw another digital major Policybazaar launching its IPO to raise Rs 5,625 crore. Other companies that tapped the market in the current month include Sigachi Industries, Sapphire Foods India, Latent View Analytics, Tarsons Products and Go Fashion (India).
The IPO of Star Health and Allied Insurance Company, which will raise around Rs 7,250 crore will be opening next week.
Market participants attribute the buoyancy in the primary market to a combination of factors, including a strong rally in the secondary markets – Indian benchmark indices are among the best-performing globally this year – entry of new investors looking to actively invest in stocks, falling interest rates of bank deposits and also the flood of start-ups coming to the markets.
While online majors like Nykaa, Policybazaar, Zomato and Paytm are already listed, the coming days would see ventures like Oyo, Pharmeasy, Delhivery, MobiKwik and Ixigo launching their public issues to get listed on the bourses.
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