28 companies are aiming to raise a total of Rs38,690 crore through public listings. Is weakness in the markets prepared to absorb such liquidity now?
Who says IPO markets have cooled off or have lost their charm? A glance at the primary markets in September will show a picture that is just the contrary. In September, 14 companies launched their initial public offerings (IPOs) to cumulatively raise Rs11,821 crore, in one of the busiest months of the primary markets in 2023. However, the stock markets were weak, with the Sensex declining around 300 points in September.
Typically, strong secondary markets follow a gush of IPOs, when promoters remain confident of their companies’ valuations and their ability to raise funds. Healthy markets in July and August boosted that confidence, but the rally fizzled out soon, puzzling investors and promoters of companies, and may further pose a threat to the slew of IPOs waiting to open for subscriptions and subsequent listings.