The boom in the IPO market that created ripples in Samvat 2073 is likely to continue in the next year as well.
As many as 12 IPOs with a cumulative value of above Rs 162 billion (estimate) have already been approved by Sebi and will hit the markets soon, while 14 others with a cumulative issue size of Rs 156 billion (estimate) have filed the draft papers and are awaiting SEBI’s approval to list on the stock exchanges.
Since April 1, 2016 43 IPOs with cumulative issue size of Rs 542 billion have been listed on the bourses.
The rush in the secondary market is also encouraging. On October 16, both the key Indian equity indices Sensex and Nifty touched record highs at 32,666.74 and 10,238.50 points, respectively.
Owing to the upbeat economic sentiment, continuing regulatory and tax reforms, this boom is likely to continue till the end of this fiscal.
“Globally too the IPO market is doing well with record deals and proceeds. That is reflected in the fact that the prices have not witnessed a huge dip post listing. In India, the government has played an important role by giving the market credibility. Global investors are keen in investing in India and China, the two fastest growing economies in the world right now. Public appetite is good and that will ensure that the IPO market flourishes even in the next Samvat. However, we still have a long way to go to reach the market size in China and Australia who lead in the IPO market,” said Lakshmi Nambiar, partner at Anthill Ventures.
In a first in the IPO market, the government divested stake at General Insurance Corporation which was oversubscribed 1.37 times on the last day.
IPO of ICICI Prudential Life Insurance came to the markets in 2016. It was the first ever insurance company to be listed on the stock exchange.
The shares of ICICI Lombard General Insurance Co. were listed on the bourses in September 2017, making it the first non-life insurance company to list on the stock exchange.
IRB Infrastructure-backed IRB InvIT Fund came out with an IPO this year which made it the first real investment trust (ReIT) to list on stock exchange.
BSE Ltd, the oldest bourse in Asia, came out with its IPO in 2017 making it the first ever stock exchange to be listed in India. The issue was oversubscribed 51 times.
CDSL became the first depository in India to get its shares listed on the stock exchange. The issue had a 170 times subscription.
For financial year 18E, the government has set an ambitious disinvestment target of Rs725 billion, up 58% from Rs 462.5 billion garnered in FY17. It plans to raise Rs 465 billion from disinvestment in PSUs, Rs 150 billion from strategic disinvestment and Rs 110 billion from the listing of general insurers this year. So far this year, the Centre has garnered Rs 191.6 billion in disinvestment receipts.