August 16th 2024.
The excitement for initial public offerings (IPOs) is heating up as about 25 companies, who have been approved by the market regulator SEBI, are gearing up to enter the market and raise a whopping Rs 22,000 crore in the upcoming weeks. This information was shared by analysts on Friday, who also highlighted the resilience of the Indian primary market despite the turbulence in global stock markets.
The first week of August saw four companies successfully launch their IPOs, collectively raising over Rs 11,850 crore, according to Pantomath Capital Advisors. This success in India's IPO market comes at a time of great uncertainty and geopolitical tensions globally. The analysts noted that the future of this momentum will depend on various factors such as economic growth, regulatory policies, and global market trends.
The recent rally in Ola Electric Mobility shares has caught the attention of investors, with the stock hitting its upper circuit of 20 per cent at Rs 133.08 on Friday, reaching an all-time high. The company's current valuation stands at an impressive Rs 58,664 crore. This rally has led to a 75 per cent increase in the stock's value since its issue price of Rs 76 per share on August 9.
Another success story in the IPO market is Brainbees Solutions, the parent company of FirstCry, which listed at a premium of 40 per cent at Rs 651 against its IPO price of Rs 465. On the Bombay Stock Exchange (BSE), it started trading at Rs 625, reflecting a premium of over 34 per cent.
Amidst all this, the Indian market is currently in a consolidation phase, with a narrow trading range in the short term. On the economic front, the Wholesale Price Index (WPI) for the month of July has cooled down, primarily due to lower food prices and primary articles.
Market watchers also noted the impressive rise in Systematic Investment Plan (SIP) contributions, which reached an all-time high of Rs 23,331.75 crore in July as compared to Rs 21,262 crore in June. This reflects the growing financial discipline among retail investors, who are systematically building their wealth over time.
Such a strong inflow of funds is a positive sign for the Indian equity markets in the long run. In addition, India's foreign exchange reserves stood at around $674.9 billion in the first week of August, further boosting investor confidence.
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