67 businesses are prepared to go public, but are waiting for market sentiments to improve

5 Jul 2022 , 08:33 AM

Out of the 67 IPOs that gained approval, 16 have so far been issued in the first half of the year. 24 were launched within the same time frame the previous year.

The war between Russia and Ukraine, high oil prices, fears about inflation, tightening of policy by various central banks, and growing anxiety about a downturn in the United States are mentioned as the causes.

Compared to the 22—24% return from the prior year, the Sensex and the Nifty50 have declined by more than 9% this calendar year.
The benchmark indices have experienced a correction of more than 15% if the returns from the record-high levels are taken into account. The indices are actually trading substantially below their 200-day moving average (17,152 for the Nifty).

The capital market regulator Securities and Exchange Board of India has given approval to 67 companies, according to the most recent data from Axis Capital. For each IPO, Sebi reviews the draught red herring prospectus (DRHP) after submission and provides its findings. Any business that wants to introduce a public problem must do this.

API Holdings (the parent company of PharmEasy), One Mobikwik Systems, Go Airlines, Bharat FIH, TBO Tek, Suraj Estate Developers, Fedbank Financial Services, Archean Chemical Industries, Aadhar Housing Finance, Imagine Marketing (BoAt), Harsha Engineers, FabIndia, Capillary Technologies, Asianet Satellite Communications, and Syrma SGS Technology are among the businesses that have received Sebi observations that are still valid.

38 companies have submitted DRHPs and are seeking Sebi approval. They are Allied Blenders and Distillers, Biba Fashion, KFin Technologies, Hemani Industries, Joyalukkas India, Yatra Online, Vikram Solar, and Lava International. Snapdeal, Droom Technology, and OYO, are also among them.

The majority of experts predict that in the second half of 2022, several worries, notably inflation, may start to subside. Overall, that might serve to boost market sentiment, and some businesses might choose to go public during this time. They must, of course, consider their IPO pricing, which deterred the majority of investors from recently released IPOs.