IPO
The decline in the stock market has faded the shine of the IPO market. No company’s IPO has come for the last three weeks amid the decline in stock markets. In IPO activities it is seen in softening figures. Only five companies were listed in January and four companies in February, compared to 16 companies in December last year. The year of 2024 was quite good for the initial public issue (IPO), but now it seems to be lethargic.
Many companies postpone IPO
The IPO of Quality Power Electrical Equipment Limited came recently, which was opened for a three -day bid on 14 February. However, the trend of slow activities is clear, as at least three companies – Advanced System -Tech, SFC Environmental Technologies and Winnie Corporation withdrew their IPO plans in January and February. This change came after a remarkable performance of 2024, in which 91 was collectively raised through public issue of Rs 1.6 lakh crore. Last year IPO activities were inspired by strong retail participation, strong economy and rapidly growing private capital expenditure.
The mood in the market deteriorated
Ecuerus managing director and head of investment banking Bhavesh Shah said that softening is mainly due to ‘correction’ in the secondary market, especially in January and February, which has negatively affected the share values of many listed companies. As a result, investors have focused on their existing portfolio instead of looking for a new listing. Shah emphasized that the market activities have come down due to the low focus of investors on the new IPO. Despite this precaution, V. Prashant Rao, director of Anand Rathi Advisors and head of ECM investment banking, said the long -term approach with a strong IPO pipeline remains positive.
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