Here is this Week’s Market Wrap 'The IPO Party is On' written by Shyam Sekhar The week saw IPOs collect Rs. 3.67 Lakh Crores. This clearly signals a euphoric response to IPOs from Indian investors. The investor appetite for equity seems unrelenting even as other asset classes take a back seat. This would mean that companies waiting on the sidelines to IPO will now hasten their issues. We will definitely see more OFS (Offer For Sale) issuances hitting the markets in the coming weeks. Tired Venture Capitalists will be more than happy to utilise the current exuberance in the IPO market to exit their stocks. But are the investors doing the right thing by being so positive on IPOs? Or are they simply playing the IPO rich like just another lottery? What investors really like now about IPOs, is their quick turnaround time. The IPO cycle has been shrunk to 7 days and investors are keen to utilise monies idling in their bank accounts to try for a quick trade in new issues. The ASBA mechanism makes it very simple to merely block your money for an IPO while retaining it in your own bank account. Based on the actual allotment to you, only the exact sum will be taken from your account after the issue allotment gets finalised. This completely eliminates the risks of refunds and simplifies the investor experience in new issues. While IPOs have been ruling the roost, private placements and QIPs have also had a strong appetite. Companies are in a hurry to raise whatever monies they can from investors utilising the current phase of elevated valuations. This would help them implement CAPEX plans, expand their infrastructure, enter new markets, and launch new products. Some companies also want to raise equity and repay debt. Clearly, the ease of raising capital and the elevated nature of valuations are causing this thinking to spread rapidly among promoters of companies. Overall, this seems like a great phase for issuers of equities and investment bankers. It remains to be seen how beneficial this phase will turn out for retail investors. For now, nobody is bothered too much as everyone simply wants to party on. #IPO #Investors #Investment #Equity #OfferForSale #OFS #VentureCapitalist #Stocks #ASBAMechanism #QIP #Valuation #CAPEX #Infrastructure #Debt #RetailInvestor #MarketWrap
ithought advisory’s Post
More Relevant Posts
-
SME IPO Boom: Growth or Speculation? Over 100 companies have debuted in India's stock market in just three years! From massive listing gains (up to 76.8%!) to sky-high oversubscriptions like Boss Packaging’s ₹8 crore issue attracting ₹1,000 crore in bids—SME IPOs are making headlines. Retail investor participation is surging too, but with this comes increased risk. SEBI is tightening regulations to keep speculation in check. Opportunities are huge, but so are the risks. Always research before diving in! #SMEIPOs #StockMarket #InvestingSmart #RetailInvestors #IPO #IPORisk #MarketTrends #SEBI #reels #ithought
To view or add a comment, sign in
-
Here is this Week's Market Wrap "Are markets turning!" written by Shyam Sekhar Global fund flows have shifted direction and gears. The result is seen in FII outflows from Japan and India. Under allocated global funds may now be forced to invest in China. Clearly, this means we are likely to see FII selling for a while in our markets. Money will probably move out more in the coming days and shift into China. This was hardly what the market expected a month ago. Meanwhile, the focus will shift to the US elections early next month. Domestic flows into equity mutual funds remain strong and this is a factor that's keeping our market from falling. The Hyundai IPO coming up next week will be an acid test of our market's liquidity. If the IPO gathers a massive sum from the public, ends up heavily over subscribed and witnesses a block buster listing, then we will see a rush of IPOs moving in. However, if the IPO fails to gather large sums as oversubscription, then the likelihood of a slew of future IPOs collecting monies would stand diminished. Overall, the markets are very interestingly poised and the coming week will be decisive in setting the market narrative and direction. #globalfunds #fii #fiioutflows #Japan #India #fiiselling #USelection #equitymutualfunds #mutualfunds #HyundaiIPO #IPO #Marketliquidity #oversubscription #marketwrap #shyamsekhar #ithought
To view or add a comment, sign in
-
Happy Dussehra To All! #HappyDussehra #DussehraFestival #DussehraWishes #DussehraCelebration #Dussehra2024 #Vijayadasami2024 #Festivals #India #ithoughtadvisory
To view or add a comment, sign in
-
Happy Vijayadasami To All! #HappyVijayadasami #Festivals #India #HappyDussehra #Vijayadasami2024 #ithoughtadvisory
To view or add a comment, sign in
-
Happy Mahanavami to all! #Mahanavami2024 #HappyMahanavami #NavratriCelebration #MahanavamiBlessings #FestiveVibes #VictoryOfGood #NavamiCelebration #GoddessDurga #JoyOfMahanavami #FinancialGrowth #MahanavamiSuccess #ithought
To view or add a comment, sign in
-
Navratri - Day 09 Empower Your Financial Journey! #Navratri #NavratriCelebration #navratrispecial #navratrinights #navratriutsav #NavratriDay9 #FinancialJourney #Navratri2024 #ithought
To view or add a comment, sign in
-
Happy Ayudha Pooja to All! Empowering Financial Growth and Stability! #AyudhaPooja #FestiveGreetings #ProsperityAndSuccess #AyudhaPoojaWishes #HappyAyudhaPooja #FinancialGrowth #AyudhaPooja2024 #ithoughtadvisory
To view or add a comment, sign in
-
Navratri - Day 08 Invest In a Bright Future! #Navratri #NavratriCelebration #navratrispecial #navratrinights #navratriutsav #NavratriDay8 #Navratri2024 #ithought
To view or add a comment, sign in
-
Navratri - Day 07 Royal Blue Vision: Pan For Wealth With Precision #Navratri #NavratriDay7 #NavratriFestival #NavratriUtsav #ithought
To view or add a comment, sign in
-
Navratri - Day 06 Fuel Your Financial Passion! #Navratri #NavratriCelebration #navratrispecial #navratrinights #navratriutsav #NavratriDay6 #Navratri2024 #ithoughtadvisory
To view or add a comment, sign in
3,114 followers