Tsunami of IPO will come in share market, 15 companies submitted draft papers in one day
New Delhi (Uttam Hindu News): India’s primary market continues to be bullish amid global fluctuations. On the last day of September, a record 15 companies have submitted draft papers to the Securities Exchange Board of India (SEBI) to launch an Initial Public Offer (IPO).
Last month, 41 companies have submitted draft papers for launching IPO. This is the largest number of draft papers submitted to the market regulator in a single month. According to market experts, the reason for a large number of draft red herring prospectuses (DRHPs) being submitted by companies was the expiry of the audited financials till March 31 on September 30.
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, said, we estimate that this year more than Rs 1.5 lakh crore capital will be raised through IPO, because public issues of many multinational companies are going to come in the market in the coming time.
Experts say that the Indian stock market remains close to all-time high. This is due to the US Fed cutting interest rates by 50 basis points in mid-September, due to which the flow of money in the market has increased. Continuous buying by domestic investors is also a major reason for the rise in the stock market.
Apart from this, India was included in the bond index by JP Morgan in June, due to which foreign investment of $ 18 billion has come into the country in the last one year. Now after the cut in interest rates in America, it is likely to increase further. Analysts believe that India’s debt market is becoming attractive for foreign investors due to low bond yields and reduction in borrowing costs. In such a situation, foreign investment worth 2 to 3 billion dollars can come to India every month.
