IPO Watch: Mainboard IPO market quiet in new fiscal year; analysts dissect reasons behind waning interest

IPO Watch: Mainboard IPO market quiet in new fiscal year; analysts dissect reasons behind waning interest/Pixabay

VoM News Desk | April 9, 2024 | 02:37 PM IST | Breaking News | Follow on Google News

IPO Watch: Mainboard IPO market quiet in new fiscal year; analysts dissect reasons behind waning interest

IPO Watch: Mainboard IPO market quiet in new fiscal year; analysts dissect reasons behind waning interest

The mainboard IPO market seems to be experiencing a lull, with no IPOs currently scheduled for April through June. This slowdown contrasts with the IPO frenzy witnessed in 2023 and the promising start to 2024. Various factors such as market volatility, the upcoming election season, and other uncertainties may be contributing to this trend.

The lone IPO scheduled for the new fiscal year, Bharti Hexacom, is set to be listed by April 12, bringing the total IPO count for 2024 to around 24. However, despite SEBI’s approval for several companies to launch their offerings, no mainboard IPOs are set to start in April.

In fiscal year 2023-24, 76 companies entered the public markets through mainboard IPOs, raising over ₹62,000 crore. However, the banking sector, which typically dominates IPO activity, saw limited participation, with less than 5% of the total capital raised.

Market professionals have varying opinions on the current slowdown in the mainboard IPO space. Some believe that the market will pick up momentum in the second fortnight of April, with several companies planning roadshows after April 15. However, others anticipate a quiet IPO market until the first week of June, citing market volatility and investor caution.

Factors such as the quality of IPO listings and limited alpha potential in large-cap IPOs are also influencing investor sentiment. Despite the slowdown, experts remain optimistic about the IPO landscape in the long term, expecting a dynamic market with opportunities for both firms and investors.

Source: Mint

VoM News Desk

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