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HomeBusinessKnow why the IPO market is dry, this year only 4 companies...

Know why the IPO market is dry, this year only 4 companies entered the stock market in 3 months

According to the Prime database, there are about 10 companies that were preparing to raise Rs 98000 crore through IPO from the stock market, but now many of them have either postponed their IPO or are preparing to shorten the IPO. So the bottom line is that till the time things don’t get better, there is hardly any revival in the deserted IPO market.

Lic IPO

Harsh Chauhan

stock market IPO (IPO) After the floods in the market last year, there have been drought conditions this year. Last year, on an average, every 5-6 days some new IPO used to come in the market and the players of the primary market used to get a chance to bet. But it has been 3 months this year and till now only 4 companies have taken the stock market (IPO) route.Share Market) has entered. During January to March last year, 16 companies were listed in the stock market through IPO and raised more than Rs 15,000 crore. That is, there has been a 75% decline this year. Fund raising has also declined by 57 percent to just Rs 6707 crore. In the latest IPO, Chennai’s Veranda Learning Solutions (Veranda Learning Solutions) whose IPO opened on March 29.

After all, what has happened that the IPO market is so dry. Market experts are counting many reasons behind this. On one hand the interest rates are rising, from above the inflation of crude oil and commodities is dominating the stock market. The war between Russia and Ukraine has also added fuel to the fire and the new wave of Corona in China has done the right thing. Due to all these reasons, there is an atmosphere of uncertainty in the stock markets and due to this uncertainty, companies are currently avoiding listing in the market.

The delay of LIC’s IPO has also left the IPO market unharmed. SEBI had asked merchant bankers not to show much haste in listing other companies until LIC’s IPO comes. Now investment bankers are also advising companies preparing for IPO to stay for a while. According to the Prime database, there are about 10 companies that were preparing to raise Rs 98000 crore through IPO from the stock market, but now many of them have either postponed their IPO or are preparing to shorten the IPO. So the bottom line is that till the time things don’t get better, there is hardly any revival in the deserted IPO market.

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Source: www.tv9hindi.com

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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