IPO 2021 outlook surpasses 2020

By Bharati Kumari

The year introduced out badly for the IPO markets due to pandemic. However, IPOs have delivered record-breaking performances, after healing.

India witnessed four initial public offerings worth USD 2.08 million in the three months ended June as the coronavirus pandemic impacted economic activities, according to Ernst & Young Global Limited India report. 

Indian stock exchanges (BSE The Bombay Stock Exchange and NSE The National Stock Exchange including SMEs Small and Medium Enterprises.) ranked seventh in the world in terms of a number of IPOs Initial Public Offering in Q2 2020. There were no cross-border deals and there were no IPOs Initial Public Offering in the main markets,” the report said.

The following startups are planning to go ahead for IPOs in 2021— Zomato, PolicyBazaar, Droom, Flipkart, Grofers and Delivery.

The holding period for startups is asked to be reduced from two years at present to one year by (SEBI) The Securities and Exchange Board of India. Also, in a consultation paper, The Securities and Exchange Board of India (SEBI) has proposed nine changes to its Innovators Growth Platform (IGP) framework based on inputs from startups and other market participants and has sought open consultation on the same by January 11, 2021.

The Union Cabinet had given its nod for doing away with the dual listing requirement for Indian startups, in October. As per the earlier rules, only Indian listed companies were permitted to list abroad. However, the rules in the new policy are expected to allow companies to directly list overseas in certain jurisdictions.

The year 2021 tends to be even better as the Initial Public offering IPO in India has raised to Re.31,000 crore by 16 firms by 2020.

Mindspace Business Parks Real estate investment trusts (REIT) came in July, In September and October the following companies launched their IPOs, Happiest Minds Technologies, Route Mobile, CAMS (Computer Age Management Services), Chemcon Speciality Chemicals, Angel Broking, UTI AMC (Unit Trust of India) mutual fund company, Mazagon Dock Shipbuilders, Likhitha Infrastructure and Equitas Small Finance Bank.

Then, in a row came Gland Pharma in November followed by Burger King India, Mrs Bectors Food Specialities and Antony Waste Handling Cell IPOs in December.

Biscuit Maker Mrs Bectors’ shares Double in India Market, witnessing the highest subscription among IPOs Initial Public Offering in 2020’s calendar.

With regards to this Aditya Kalra tweeted, 

The majority of IPOs got a great call back from investors, given the niche businesses, strong market share and expected economic recovery. 

“I believe the IPO pipeline will continue to remain strong in 2021 as there are quality issues plenty in the line-up. Over the past three years, there have been many quality companies hitting the market and rewarding investors big way,” V Jayasankar, senior executive director and head of equity capital markets at Kotak Investment Banking, told PTI.  

India has marked its name as one of the fastest-growing consumer economies and given that many companies are growing in size and both foreign and domestic investors for consumer-focused firms, said Jayasankar.

What do you think?

Written by Shailly Agarwal

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