In India, the allure of the stock market continues to grow, and recent times have seen the stock market provide not only good profits but also witnessed individuals losing money at times. This year, the IPO market is once again in the limelight, with many companies opting to go public. This surge can be attributed to several factors, including a robust economic environment, increased confidence among investors, and a growing appetite for risk among both retail and institutional investors.
In this article, we will delve into the IPO market extensively, exploring potential trends in the upcoming IPO market and highlighting crucial considerations for investors.
What’s Happening?
According to the Hindustan Times, the market saw seven new IPOs in November 2023, featuring names like Tata Technologies and IREDA. These IPOs showcased a strong performance in the stock market. According to the Economic Times, Tata Technologies had a bumper listing, with investors experiencing nearly a threefold increase in their investment on the first day. Following this, IREDA and Gandhar Oil saw increases of 100% and 61%, respectively, from their issue prices. Even shares of Flair Writing Industries are trading 34% above the issue price.
Investors are showing enthusiasm to capitalise on potential profits with the introduction of new companies in stock exchanges.
Upcoming IPOs in the Last Month of the Year
As mentioned in the Mint, as per EY’s report, India has emerged as a global leader in the number of year-to-date IPOs in 2023. In the third quarter of 2023, the Indian primary market witnessed 21 IPOs, compared to just four in the same quarter of 2022. The total funds raised during the third quarter of 2023 amounted to US $1,770 million, indicating a staggering 376% growth compared to the US $372 million raised in the third quarter of 2022.
After an active November, several new IPOs are poised to launch in both the mainboard and SME segments in December. Companies like DOMS Industries Limited, Muthoot Microfin Limited, Accent Microcell Limited, SJ Logistics, and India Shelter Finance are among those preparing to go public.
What Do Experts Say?
According to experts, investors should evaluate companies’ business models, financial positions, and growth prospects before making investment decisions. Additionally, keeping a vigilant eye on valuation metrics and market trends can help investors navigate the fine line between enthusiasm and overconfidence.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The companies mentioned are for information purposes only. This is not an investment advice.
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