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IPO mop-up fell 32% to Rs 35,456 crore in H1FY23

However, Prime Database reports that there is a solid IPO pipeline, with 71 issues totaling Rs1.05 trillion holding Sebi approvals and another 43 issues totaling roughly Rs70,000 cr still awaiting clearance

September 30, 2022 9:55 IST | India Infoline News Service
In the first half of the fiscal year, just 14 businesses generated Rs35,456 crore through the sale of main-board primary shares, a reduction of 32% from the same time the previous year when 25 offerings had collected Rs51,979 crore.
Prime Database reports that the IPO pipeline is robust, with 43 issues totaling over Rs70,000 crore and 71 worth Rs 1.05 trillion having received Sebi clearance. Ten of the 114 proposed offerings are from new-age technology startups seeking to raise around Rs35,000 crore.

If not for the Rs20,557 crore LIC issuance, which according to Prime Database accounts for up to 58% of the total cash generated during the first half of the year, the entire collection would have been significantly lower.
Initial public offering (IPO) fund-raising decreased by 32% in the first half of the current fiscal year, from Rs51,979 crore to Rs35,456 crore through 25 IPOs in the same period of FY22. Pranav Haldea, the managing director of Prime Database Group, stated in a note on Thursday that the LIC offer alone raised up to Rs20,557 crore, or 58%, of the total.

According to him, overall public equity financing decreased by 55% over that time, from Rs92,191 crore to Rs41,919 crore. At Rs 20,557 crore, the LIC issue surpassed all previous records in the nation; it was followed by the Delhivery (Rs 5,235 crore) and Rainbow Children's issues (Rs 1,581 crore). After the severe troubles with Paytm and a few other companies, just one of the 14 IPOs (Delhivery) was from a new-age technology business, signaling the slowing of issues in finthis industry.

Only four of the 14 first public offerings (IPOs) had a mega response of more than 10 times (one received more than 50 times), and three were oversubscribed by more than three times, indicating a moderating in the general market response to issues. The remaining seven seats had a 1–3 times higher demand. In contrast, SME issues showed significant growth in the first half, with 62 issues raising a total of Rs1,078 crore, compared to 30 issues raising Rs346 crore in the same time last year.


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