MD of Pantomath Capital Advisors Discusses IPO Trend and Factors Behind It

MD of Pantomath Capital Advisors Discusses IPO Trend and Factors Behind It

VoM News Desk | November 6, 2023 | 02:46 PM IST | Breaking News | Follow on Google News

MD of Pantomath Capital Advisors Discusses IPO Trend and Factors Behind It

MD of Pantomath Capital Advisors Discusses IPO Trend and Factors Behind It

Mahavir Lunawat, the Managing Director of Pantomath Capital Advisors, recently shared insights about the significant influx of Initial Public Offerings (IPOs) in India in 2023. He expressed his views on this IPO trend and what’s driving it in the country. Here are some key takeaways from his interview:

India’s Economic Resilience and Investment Attractiveness Lunawat pointed out that India is shining brightly as an attractive investment hub when compared to other major economies. The nation’s economic resilience has played a crucial role in drawing a strong influx of IPOs. He emphasized that domestic institutions have displayed increasing depth and maturity in the primary capital market. Additionally, India’s attractiveness and its strong economic fundamentals have led to a thriving IPO market. Investors, including first-timers, have been eager to participate in IPOs as they see it as an entry point for potential listing gains.

Diverse IPOs from Various Sectors In the past, a limited number of sectors dominated mainboard IPOs in India. However, in recent times, there has been a remarkable shift. The IPO landscape has witnessed offerings from a wide range of sectors, including small finance banks, biotechnology, supply chain management, apparel, jewelry, infrastructure, cable manufacturing, and more. This diversification reflects the changing dynamics of India’s IPO market and the growing interest from both investors and businesses.

Role of Tier II and Tier III Cities Lunawat also highlighted the significant role played by Tier II and Tier III cities in India’s economic activity. These smaller towns and cities are vital for the country’s agricultural production and have a growing presence in manufacturing. India’s demographic dividend, with its large population, positions the country favorably for industrial, logistics, and technological infrastructure development in locations beyond major cities. The rise of entrepreneurship and business creation across various sectors can be attributed, in part, to the active contribution of Tier II and Tier III cities.

Emerging High-Potential Regions Regions like Rajkot, Udaipur, Surat, and Nagpur, among others in Madhya Pradesh and the North, are emerging as core areas with high-potential companies. These regions are actively contributing to reshaping the Indian economy, particularly in sectors such as manufacturing, consumer electricals, and electric vehicles (EVs).

In summary, India’s economic resilience, the attractiveness of its investment landscape, and the active participation of Tier II and Tier III cities are key drivers behind the surge in IPOs. These factors have created a dynamic IPO market with offerings from diverse sectors and regions, fostering entrepreneurship and business growth across the country.

VoM News Desk

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