NEW DELHI: The year 2020 has been unglamourous for the IPO market so far. While the previous year saw about 16 companies going public, raising over Rs 12,000 crore, this year has been a complete washout due to the pandemic-led disruptions. Several companies had postponed IPOs for until things turned better. Now, however, with the sharp turnaround in secondary markets investor appetite is reviving.
Post the SBI Cards IPO at the start of 2020, there was a lull in the primary market till the month of July. In July, two companies—Rossari Biotech and Mindspace Business Parks REIT—finally decided to hit the market and successfully closed IPOs. “They together raised Rs 5,000 crore from investors amid heavy demand. Rossari Biotech was subscribed 80 times and surged more than 60 per cent on market debut. Even Mindspace REIT saw a 13x subscription and listed with 11 per cent premium.
The stellar debut by these two companies in July instilled faith in the investors,” said Hemang Jani, Head—Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services Ltd. This month they have been followed by two more companies—Happiest Minds Technologies Ltd and Route Mobile Ltd—that also saw stellar demand for their scrips. Happiest Minds was oversubscribed 151 times while Route Mobile was oversubscribed 73 times.
Furthermore, a slew of more IPOs such as CAMS, UTI AMC, Angel Broking, Chemcon Speciality Chemicals, etc. are also likely to open in September. Besides these companies, Kalyan Jewellers, NCDEX, Barbeque Nation, Burger King, Bajaj Energy, Lodha Developers are some of the other big names that are likely to hit the stock market in the second half of this year. “The increase in liquidity flows is also helping the promoters cause now,” Jani pointed out.