With increasing blood of entrepreneurship and rising competition among the existing firms is actually helping not only INDIAN GDP and economic condition take new face, but even the financial markets are flourishing with new listing of IPOs.
Listing of IPO has rocketed to reach mountainous height in the FY2018.
In the year 2017-18 , funds being raised through equity market touched an all time high of approximately Rs1.8 lakh crores. This amount is almost 3.5 times higher than being the fund mobilised in the yare 2016-17.the last highest level seen was in the year 2009-2010, when in total almost Rs 86,710 crore were raised during the year 2009-10.
The largest IPO being issue in the year FY2017-18, is the IPO of GENRAL insurance corporation (GIC) which mobilised a total of Rs11, 257crores. On an average deals were valued at as high of Rs1825crores.Insurance sector had nice list of IPO, with SBI Life Insurance and ICICI Lombard General Insurance raising Rs 8,400 crore and Rs 5,700 crore, respectively, through offer for sale, as all the amount went to the existing share holders and not to the company.
Of the total amount raised, capital raised through fresh issue of equity share is Rs 91,205 crore (51%) and the remaining amount of Rs 85,911 crore through offers for sale (OFS).
In total 38 IPOs were issue in the FY2017-18, most of them received overwhelming response. As per the data complied by PRIME Database, which specialised in compiling data of primary capital market stated almost 50% of the IPO received huge response, with subscription extending upto10 times. To top the list SALASAR TECHNO ENGINEERING FIRM, an engineering firm , which was subscribed to the extent of 270 times, followed by Astron and Paper Mills, receiving a subscription of whopping 241 times. On the third, fourth and fifth position stands Apollo Micro Systems, Capacit’e Infraprojects and CDSL, with subscription extending to 176times, 130times and 119times, respectively.
In terms of return, out of 38 IPOs, 17 IPO gave good listing return with return up to 10% and more, in a single day. Alone Salasar technology gave return of 152%, followed by Astron and Paper Mills and CDSL, with listing gains of 139% and 76%, respectively. Even the most unexpected one BANDHAN Bank, also gave a return of whopping 30% on the listing day, itself.
In coming year, we can expect more IPO’s coming up as a load of companies are awaiting SEBI nod’s to launch their public issue. Higher valuation couple with positivity in the economy, will attract investors towards IPO even in the coming year.