MUMBAI: With stock market rallying over 6,000 points in the past three months, the action is back in the primary market. Companies have raised over Rs 10,000 crore from the primary market through Initial Public Offerings (IPO) in the past three months. Equity benchmark Sensex has risen from 58,991 at the start of April to 65,393 now, reflecting a rise of 6,400 points or 11%.
The number of IPOs hitting the market has also increased during this period. April saw two IPOs (Mankind Pharma was one of them) while just one company came launched its public issue in May. However, the tide turned in June when four companies launched IPOs. July is also going to be busy for the primary market as Senco Gold, Utkarsh Small Finance Bank and Netweb Technologies have lined up their IPOs in this month.
“We did not plan to launch an IPO in the rising stock market, it is just our good luck. We got approval from the Sebi for the IPO in July last year and after that, we had 12 months to launch the public issue. We wanted to complete the IPO process within the stipulated time. It is just a coincidence that the stock market is moving northwards when we launched our IPO,” Sanjay Banka, Chief Financial Officer, Senco Gold told TNIE. “The strong response from the investor reflects their trust in the company’s unique value proposition, robust business model and transparency.
While the company did not aim to time the market, launching an IPO during this time has helped to get a good response from the investors. Retail investors subscribed to the IPO 15.46 times, while non-institutional investors showed overwhelming interest with a subscription of 65 times. Other IPOs have received good responses from investors.