FY23 to set a new IPO fundraising record

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2021 has been an impressive year for the Indian primary markets, with the highest fundraising ever recorded in a calendar year. And the momentum could well continue in FY23.

According to a note from Prime Database, 54 companies plan to raise Rs 1.4 trillion in the next fiscal year, including the highly anticipated LIC IPO.



These 54 companies already have approval from the market regulator Securities and Exchange Board of India (Sebi) to raise funds.

Another 43 companies, according to the memo, are seeking to raise around Rs 81,000 crore where Sebi’s approval is still awaited.

The amount raised in FY22, according to Pranav Haldea, Managing Director of PRIME Database Group, was more than 3.5 times Rs 31,268 crore raised through 30 IPOs in 2020-21. The previous best year was 2017-18 (FY18) when Rs 81,553 crore was raised.

Pranav Haldea, Managing Director of PRIME Database, said IPOs of loss-making new-era tech startups, strong retail participation and listing gains were other highlights of 2021-22. But, public fundraising fell to 1.7 trillion rupees from 1.9 trillion rupees the previous year.

The biggest IPO in 2021-2022, which was also the biggest Indian IPO ever, was that of One 97 Communications (PayTM) for Rs 18,300 crore.

Other prominent companies include Zomato, Star Health, PB Fintech, Sona BLW and FSN E-Commerce, the parent company of Nykaa.

And retail investors were a force to be reckoned with.

The average number of applications from the retail category was 14.05 lakh, according to the Prime Database report, down from 12.73 lakh in 2020-21 and 6.88 lakh in 2019-20.

The highest number of applications from retail in 2021-22 were Glenmark Life Sciences, Devyani International and Latent View.

Going forward, analysts expect the secondary market to remain choppy due to the geopolitical crisis between Russia and Ukraine. According to them, this will also have repercussions on the activity of the primary market.

G Chokkalingam, founder and chief investment officer at Equinomics Research, for example, expects the Sensex to remain in the 56,000 to 57,000 range until a solution is found for the Ukraine-Russia war.

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