InvestorQ : Is it true that the IPOs are again getting the interest of the Indian investors in the last few weeks?
Ria Jain made post

Is it true that the IPOs are again getting the interest of the Indian investors in the last few weeks?

Answer
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1 month ago


If I describe the overall scenario, you can surely say that the IPO Fever appears to be coming back, especially if you look at the extent of oversubscription, the kind of listing day gains as well as the number of demat accounts being opened in the last few months.

Just look at the recent story of IPOs. We just concluded 2 IPOs in the previous week and 3 big IPOs slated to hit the primary markets in the week starting September 21. It does look like, despite the pandemic, the interest is back in the IPOs.

The first six months of the year 2020 were like an IPO drought of sorts. That was also attributable to the uncertainty created in the market by the COVID pandemic. In the first half of the year, there was just one IPO; that of SBI Cards.

Post July, we did get to see the successful IPO of Rossari Biotech followed by the Mindspace REITS IPO. But the real change happened in the last few weeks with the IPOs of Happiest Minds and Route Mobile getting an absolutely stellar response from investors.

Happiest Minds got subscribed by 151 times while Route Mobile was subscribed 72 times. In both cases, the demand was buoyant across categories. Happiest Minds had a super duper listing at 111% premium to the issue price and Route Mobile IPO could do something similar.

The coming week will see IPOs of CAMS, Chemcon and Angel Broking hitting the markets in quick succession. In all the issues, a decent oversubscription is expected. Even excluding the LIC issue, the Indian markets should see IPOs worth a whopping Rs.50,000 crore in FY21.

The good news is that this will be the finest performance by the IPO market since 2017. In that single year, India saw IPOs worth Rs.75,000 crore hitting the markets. If the markets manage Rs.50,000 crore without support from LIC, it would be a great bounce back.