IPO and deal-making activities are likely to be vigorous this year i.e. 2024. Kotak Investment Banking says that this level can even exceed the record of about $ 50 billion (about Rs 4.15 lakh crore) raised through equity issuances and deals in the year 2021. Kotak Investment Banking MD and CEO S Ramesh said that led by new generation technology companies, the primary market is likely to see strong activity this year. According to Livemint news, the overall funding market may see a flow of around $50 billion.
Domestic funds can invest vigorously
According to the report, domestic funds invested US $ 25.8 billion in the market in the year 2023 and it could reach US $ 50 billion. The one-year forward premium of Nifty is at a record high of 20.1 times. This is the highest among emerging markets. Company managing director V Jaishankar said that he expects more large initial public offerings (IPOs) to hit the market this year. Election-related volatility is unlikely to have a long-term impact on primary market activity as election-related issues should generally subside within two-three months.
India ranks fourth in funds deposited through IPO
A total of 59 IPOs came in the year 2023 and around Rs 53,000 crore were raised from the main board. The record issuance in terms of numbers – 59 main board issues and 182 SME issues – made Dalal Street the fourth largest in the world in terms of funds raised (about ₹53,000 crore) after the US, China and Japan. When it comes to deals, he said purchases totaled US$55 billion between 2019 and 2023, surpassing the total value of the last 15 years.
This is why there is a positive sign
According to bankers, the main reason for this is that the promoter family is willing to give up control to create value. He said another reason behind his positive sentiment is that more and more corporates are strategically diversifying their fundraising efforts to set up investment opportunities, which include a mix of debt and equity. He said that 20 unicorns are likely to emerge in the domestic market in the next two years, which will generate revenue of about US $ 10 billion.
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