12 companies raised Rs 25,000 crore from IPO, will get good chance of earning in December too
The companies have raised around Rs 25,000 crore through Initial Public Offering (IPO) so far this year due to better liquidity position and encouraging investor response. Experts say the IPO market is expected to remain strong in 2021 as well. The IPO market has deepened in the period under review and companies from diverse sectors have entered the market. Now companies in the pharma, telecom, IT and financial services sectors are also entering the IPO market.
12 IPOs so far in 2020: An analysis of the data available with the stock markets shows that around Rs 25,000 crore has been raised in 2020 through 12 IPOs. In the entire year of 2019, Rs 12,362 crore was raised through 16 IPOs. In 2018, 24 companies raised Rs 30,959 crore from the IPO. So far this year, in 2020, companies have raised Rs 25,000 crore from the IPO. This figure will increase further as Burger King’s IPO of Rs 810 crore is going to open on December 2.
More funds raised this year: Vinod Nair, head of research at Geojit Financial Services, said that more funds have been raised through IPOs this year than in the previous year. The main reason is that despite the slowdown in the economy, companies and retail investors are showing interest in the primary market. Apart from this, companies also want to raise capital for their further needs due to uncertainties.
SBI Cards raised the most money: As per the data, SBI Cards & Payment Services Ltd. has raised Rs 10,355 crore from the IPO in 2020. Gland Pharma has raised Rs 6,480 crore, CAMS has raised Rs 2,240 crore and UTI Asset Management Company has raised Rs 2,160 crore. Apart from these, Rosari Biotech, Happiest Minds Technologies, Root Mobile, Chemcon Specialty Chemicals, Angel Broking, Equitas Small Finance Bank, Likhita Infrastructure and Mazgaon Dock Shipbuilders have raised funds through the IPO route. Apart from these 12 companies, Mindspace Business Parks Reit has raised Rs 4,500 crore from its IPO in July.
These IPOs will come in December: Kalyan Jewelers will launch its IPO in December this year. According to the Draft Red Herring Prospectus (DRHP) submitted to SEBI, the company aims to raise Rs 1750 crore through an IPO. In this, the company will issue fresh shares worth 1000 crores and will give an offer for sale of Rs 750 crores. Apart from this, ESAF Small Finance Bank will also bring its IPO of Rs 1000 crore in December. In this, the company’s existing shareholders PI Venture and Bajaj Allianz Life Insurance will sell shares worth Rs 200 crore and the company will issue fresh shares worth Rs 800 crore. At the same time, Burger King will launch an IPO of Rs 810 crore, in which fresh shares worth Rs 400 crore will be issued. Apart from these, Mrs. Bectors Food’s IPO of Rs 550 crore can also be launched in December.
In the IPO pipeline of these companies: Among the companies preparing to launch their IPO are Mrs. Bectors Food, LIC, ESAF Small Finance Bank (ESAF Small Finance Bank), Nazara Technologies, Burger King, Companies such as RailTel, Kalyan Jewelers, National Stock Exchange (NSE) and Zomato.
