IPO Will Dominate In The New Year, Set To Spark A Buzz

IPO will dominate in the new year too, companies can raise Rs 1.5 lakh crore: New Year 2022.

Initial Public Offerings (IPOs) are all set to spark a buzz in the new year as well. The companies expect to raise up to Rs 1.5 lakh crore from IPOs in 2022 as well, after the spurt in 2021.

Notably, 2021 was the best year for IPOs in the last two decades in the Indian market.

Excess liquidity and increased participation from retail investors continued to fuel the IPO enthusiasm, with companies raising over Rs 1.2 lakh crore this year amid the gloom of the pandemic.

In the year 2022, massive fundraising through the primary market will start with a big IPO of the public sector company Life Insurance Corporation (LIC).

Apart from this, many new-age digital players are ready to enter the IPO market.

Venkataraghavan S, managing director and head of equity capital markets at Equirus, said there may be some moderation in the current swing with interest rates rising.

But it will remain at significant levels. However, some concerns remain regarding the pandemic.

Sandeep Bhardwaj, CEO, Retail, IIFL Securities said that in 2022, a new record in raising capital through IPO can be set and LIC’s IPO will also attract the attention of global investors.

According to a report by global advisory firm EY, 2021 was the best IPO year for India in two decades.

However, some believe that the enthusiasm will be a bit low in 2022.

Piyush Nagda, Head of Investment Products, Prabhudas Lilladher said that the market sentiment next year will be affected due to the new nature of Covid-19 and in such a situation the uncertainty is taking a toll on the markets and the economy.

Ricky Kriplani, the lead sponsor of First Water Capital Fund (AIF), predicts that the 2022 IPO will not be as encouraging as 2021 for the markets, especially considering that some of the big public issues like Paytm did not perform well after listing recently.