IPO market gears up for busiest December with sale of 11 stocks

Industry experts said the unusual uptick in primary market activity towards the end of the year is mainly driven by companies looking to call off their fundraising plans before emerging macro concerns derail the market momentum. Huh.

Companies are rushing to launch their public offerings amid concerns about galloping rising inflation, the threat of interest rate hikes and a new highly permeable coronavirus variant.

Typically, December is a dull month for the primary market, with year-end holidays in the West making it difficult for IPO-bound companies to market their deals overseas.

However, primary market activity this December is not only much ahead of last year’s, but March and November have seen more IPOs than any other month this year, which saw nine IPOs each.

Data from the primary market tracker Prime Database shows that December has typically seen one to three initial public offerings over the past few years.

“We have seen a significant increase in IPO launches in December (compared to previous years), with the bidding period continuing till the end of the year. This reflects a resilient market, which allays investors’ apprehensions about non-availability,” said Ravi Dubey, partner at law firm IndusLaw.

“The IPOs launched during this period were in the range of from 500 crores 1,500 crore, with a big IPO it has been postponed to next year.”

Companies that have completed their preparations are ramping up their plans in the hope of avoiding potential market volatility in the near future.

“IPOs always come into the market when companies see a good window of opportunity. With the Omicron variant, concerns over foreign portfolio investment inflows, Fed taper plans and interest rate hikes coming from major central banks around the world, companies that are set to launch have tried to hit the market ahead of the year. – End. So a bunch have happened this month,” said a Mumbai-based investment banker, who spoke on condition of anonymity.

He added that the availability of domestic liquidity also means that small to medium-sized issuers do not have to depend as much on foreign investors and can largely cover the sale of their shares in the domestic market, allowing them to launch There is more flexibility in terms of time frame.

Companies that have already tapped the market this month include billionaire stock investor Rakesh Jhunjunwala-backed shoe retailer Metro Brands Ltd., pharmacy chain MedPlus Health Services Ltd., real estate developer Shriram Properties Ltd., wealth management services provider Anand Rathi Wealth Ltd. Huh.

The IPO of pharmaceutical raw material maker Supriya Lifescience Ltd will close on December 20, while the share sale of India’s largest cash management company CMS Info Systems Ltd will open for subscription on December 21.