80 companies will raise Rs 50,000 crore through IPOs

Mumbai, Ta. 19 September 2020, Saturday

Taking advantage of the current rally in the stock market, at least 20 companies plan to raise more than Rs 50,000 crore in the current financial year through the sale of equities. The country's benchmark index has seen a 20 per cent rise from its March low. Investors are also currently attracted to IPOs.

Indian companies are trying to raise money through initial public offerings (IPOs). Analysts are surprised to see such a large number of IPOs coming even as the country's economic growth rate has been hit by the Corona.

The country's economy has been disrupted but capital markets are currently looking strong. A report prepared by a research firm states that about 20 companies have submitted proposals to the Securities and Exchange Board of India (SEBI) for appropriate approvals.

These companies are expected to raise a total of Rs 31,412 crore. In terms of the primary market, 2016 was a very bad year. Last year, Rs 1,200 crore was raised through IPOs, which was at a four-year low.

The decline was due to the economic downturn and global trade tensions. However, the trend for IPOs has been changing over the last few months as investor sentiment has improved. The economy has been improving in phases since June.

The IPO is expected to raise between Rs 20,000 crore and Rs 2,000 crore in the near future.

The 20 per cent rise in benchmark indices suggests that investors' moods are improving. Out of the 15 listings on the stock market this year, 10 IPOs have opened strong and investors are getting good returns.