scorecardresearch
IPO fundraising falls 32% YoY during April-September 2022; what's next?

IPO fundraising falls 32% YoY during April-September 2022; what's next?

The amount raised is 32 per cent lower than Rs 51,979 crore raised through 25 IPOs in the corresponding period of 2021-22.

  Around 58 per cent of the amount, or Rs 20,557 crore, was alone raised by Life Insurance Corporation (LIC) earlier this year. It was followed by Delhivery (Rs 5,235 crore) and Rainbow Children's (Rs 1,581 crore). Around 58 per cent of the amount, or Rs 20,557 crore, was alone raised by Life Insurance Corporation (LIC) earlier this year. It was followed by Delhivery (Rs 5,235 crore) and Rainbow Children's (Rs 1,581 crore).

As many as 14 companies raised Rs 35,456 crore through main board initial public offerings (IPOs) during the first half of the ongoing financial year 2022-23 (April-September), according to Prime Database. The amount raised is 32 per cent lower than Rs 51,979 crore raised through 25 IPOs in the corresponding period of 2021-22.

Around 58 per cent of the amount, or Rs 20,557 crore, was alone raised by Life Insurance Corporation (LIC) earlier this year. It was followed by Delhivery (Rs 5,235 crore) and Rainbow Children's (Rs 1,581 crore).

The overall response from the public, according to primedatabase.com, was moderate. Of the 14 IPOs, 4 IPOs received mega response of more than 10 times (of which 1 IPO more than 50 times) while 3 IPOs were subscribed by over 3 times. The balance 7 IPOs were subscribed between 1 to 3 times. The new HNI segment (Rs 2- Rs 10 lakh) saw an encouraging response with 5 IPOs receiving a response of more than 10 times.

ALSO READ: Electronics Mart IPO to open next week, price band fixed at Rs 56-59

Overall, public equity fundraising by India Inc through IPOs, FPOs, OFS, QIP, InvITs or REITs also declined 55 per cent to Rs 41,919 crore from Rs 92,191 crore in the corresponding period of the previous year, the data showed. The figure stood at Rs 1.16 lakh crore in FY21.

The first half of the current financial year 2022-23 saw 41 companies filing their offer document with the market regulator Sebi for approval, in comparison to 87 last year.

Outlook for second half of 2022-23

The pipeline continues to remain strong. As many as 71 companies proposing to raise a huge Rs 1.05 lakh crore are presently holding Sebi approval. Another 43 companies looking to raise about Rs 70,000 crore are awaiting the regulator's approval.

ALSO READ: Harsha Engineers shares make stellar debut, list at 36% premium to issue price

However, Pranav Haldea, Managing Director, Prime Database said, "IPO activity will be impacted by the volatility in the secondary market, mainly because of recessionary fears and rising interest rates. IPO is a once-in-a-lifetime event for a company and, as seen several times in the past, companies would prefer to let their approval lapse rather than launching their IPO in a volatile market."

Published on: Sep 29, 2022, 2:10 PM IST
Posted by: Aseem Thapliyal, Sep 29, 2022, 1:35 PM IST