The major markets have all but eclipsed the amazing rally in the secondary markets in 2020 with providers obtaining raised a whopping Rs 1.77 lakh crore. That’s a 116% boost more than final year’s Rs 82,241 crore and topped the Rs 1.6 lakh crore raised in 2017, information from Prime Database show.
Moreover, the typical listing gains from the top rated 15 IPOs (initial public offerings) have been a rewarding 35.5%, way above the 22.3% that investors got in 2017.
In all, providers mopped up Rs 26,611 crore by way of IPOs, 115% more than the Rs 12,362 crore that providers had raised in 2019 but smaller sized than the Rs 33,246 crore raised in 2018.
PEs and VCs cashed in on the superior sentiment and have been in a position to sell equity worth Rs 8,026 crore.
As Pranav Haldea, managing director, Prime Database, pointed out, the improved worldwide liquidity designed by the accommodative stance of central banks, low interest prices and positive outlook on emerging markets like India had facilitated the substantial fund-raising.
“The good quality paper at attractive valuations has also resulted in the record fund-raising,” Haldea mentioned.
Siddhartha Khemka,head (retail study), Motilal Oswal Financial Services, observed that with bigger providers becoming relatively valued and powerful liquidity in the market place, investors have shown an interest in mid-cap and tiny-cap stocks.
“The appetite for newer securities has also increased and several companies have tapped the markets to raise capital at a good valuation,” Khemka mentioned.
Typically, the sentiment in the major markets has been buoyed by a bull rally and improved liquidity, assisting firms to command a far better valuation for their firms.