This year, 16 companies raised Rs40,311 crore through IPOs

29 Jun 2022 , 09:08 AM

16 firms have raised up to Rs40,311 crore through initial public offerings (IPOs) so far this year, according to statistics compiled by the PRIME Database. The amount raised this year is 43% more than the same period last year, when Rs17,496 crore was raised.

In addition, information from the Securities and Exchange Board of India (SEBI) and media reports suggest that up to 52 companies have already submitted their draft red herring prospectus (DRHP) to the market regulator this year. This is the most since 121 businesses submitted their DRHPs in 2007.

Life Insurance Corporation IPO took the lion’s share of the IPO funds with a staggering Rs20,500 crore IPO.

21 of the 31 companies that went public this year posted profits on a listing day. However, because of the decline in their valuations since then, 19 of the mentioned are currently trading in the red.

Although there were many DRHPs filed in the first few months of the year, current data indicates that the number of submissions has decreased as businesses have grown more cautious in light of the difficult market conditions. This month, the benchmark indices for India reached a 52-week low.

While there were roughly 10 initial public offerings (IPO) filed each month during the first four months of the year, there were only four in May and six so far in June.

Additionally, no company was able to issue their IPO in June, even though May saw the issue of the most IPOs this year so far with eight.