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The Indian IPO market has hit a new record 

The Indian IPO market has hit a new record 

With Nykaa’s forthcoming public issue slated to mop up over Rs 5,350 crore, the cumulative fund raising would cross the Rs 70,000 crore mark for the first time ever in a calendar year.

New all-time high record in terms of the total money raised through IPOs New all-time high record in terms of the total money raised through IPOs

The fact that the Indian primary market is on a roll this year is pretty much well known by now. But what has happened is that the segment has just hit a new all-time high record in terms of the total money raised through initial public offers (IPOs) this year.

With the forthcoming IPO of beauty and fashion major Nykaa slated to raise over Rs 5,350 crore, the cumulative quantum of fundraising would cross the Rs 70,000 crore mark for the first time ever in any single calendar year.

Data from Prime Database shows that the cumulative amount would be pegged around Rs 72,324 crore after factoring in the proceeds of the Nykaa IPO, which opens on October 28.

The previous high was registered in the year 2017 when a total of Rs 67,147.44 crore was raised through 36 issues. Further, the current year record is also a huge jump from previous year’s Rs 26,613 crore raised through 15 IPOs.

Meanwhile, the first nine months of the current calendar year have seen a total of 41 IPOs hitting the market. The maximum number of IPOs this year was seen in March when nine companies launched their IPOs. It was followed by August when eight firms came to the public markets to list.

Interestingly, it is believed that the current calendar year could see the cumulative fund raise hit the Rs 1 lakh crore mark as many big-ticket issuances are in the pipeline. 

Last week, capital markets regulator the Securities and Exchange Board of India (SEBI) cleared at least seven more IPOs, including that of Policybazaar, PayTM and ESAF Small Finance Bank among others. The IPO size of PayTM is expected to be around Rs 17,000 crore while Policybazaar is likely to raise over Rs 6,000 crore.

Meanwhile, the IPO of Nykaa will be followed by those of Fino Payments Bank and Sigachi Industries with the two issues combined expected to raise a little over Rs 1,300 crore.

Data from Prime Database further shows more than 20 companies have filed their documents with SEBI and are waiting for the regulatory approval. The cumulative size of the offerings of these companies is well over Rs 34,000 crore though some of these issues could spill over to the next year as well.

Also read: Nykaa aims to raise over Rs 5,350 crore through IPO