NEW DELHI: The much hyped Initial Public Offering (IPO) of RailTel Corporation of India is now closed for retail subscriptions as on February 18. And as per the NSE, the IPO allotment will be done on February 23 while shares will be credited to the demat accounts on February 24.
RailTel shares on NSE and BSE will be listed on February 26. While many may have missed the opportunity to participate, the Indian capital markets are likely to play host to several more this year. At least a dozen major IPOs are reportedly lined up for this year, including that of Kerala-based Kalyan Jewellers, Bajaj Energy, Flipkart, Paytm, Ola, and fashion startup Nykaa.
According to market experts, while at least 15 companies went public in 2020 and more than Rs 25,000 crore was raised from IPOs, around 30 companies are planning to raise more than Rs 30,000 crore from the markets this year.
“Despite the Corona disruption, the market had performed very well in 2020. Some of the IPOs like Happiest Minds, Mazagon Dock Shipbuilders, Burger King and Mrs Bectors’ were subscribed more than 149 times. This year too, going by the mood of the market, some interesting IPOs which are worth the wait are lined up. Infact, there are many exciting start-ups in the list and investors can really benefit if they are priced attractively,” said Sameeran Anand, a stock analyst based in Mumbai.
Apart from those on the list, even companies such as Flipkart, Byjus, Paytm, and Oyo are some start-ups which may be planning to go public this year. Experts note that IPOs are a good way for first time investors to enter the market and to get a taste of it. However, they caution that not all the IPOs do well and that investors must look at the growth potential of the company before investing.
“Not all IPOs have done well. So, investors must pay attention to the fundamentals of the company and its performance vis-a-vis the industry performance. Apart from that, how it is priced also matters. One has to watch for over-valuation, else the returns gets riskier. And here, some professional guidance helps,” Anand added.
