The fiscal year FY23 witnessed a lacklustre flow of initial public offerings (IPO) with 37 companies raising upto ₹52,116 crore through the main board. The latest fundraising halved compared to the all-time high performance of ₹1,11,547 crore in FY22. The largest life insurer in India, LIC's IPO accounted for around 39% of the total fundraising in FY23. Nevertheless, FY23 fundraising in FY23 is still the third highest ever in the IPO market.
It needs to be noted that, the number of companies that launched their IPOs was lower in FY23 compared to 53 IPOs in FY22.
Without LIC's ₹20,557 crore IPO, the overall fundraising could have been merely ₹31,559 crore in FY23 --- nearly 72% lower from FY22.
LIC is the largest IPO of FY23, and not just that it is the largest public offer ever in the history of this market.
According to Pranav Haldea, Managing Director, PRIME Database Group, ₹20,557 crore or a huge 39 per cent of the amount raised in 2022-23 was by LIC alone, without which the IPO fundraising would have been just ₹31,559 crore. To be sure though, the amount raised in 2022-23 is still the third highest ever in terms of IPO fund raise.
LIC's IPO was followed by Delhivery ( ₹5,235 crore) and Global Health ( ₹2,206 crore), as per Prime Database report.
The average deal size in IPOs was a high of ₹1,409 crore.
Haldea further mentioned that as many as 25 out of the 37 IPOs came in just 3 months of the year (May, November and December), which shows the volatile conditions prevalent through most of the year which are not conducive for IPO activity. In fact, the fourth quarter of 2022-23 has seen the lowest amount being raised in the last 9 years.
Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the testIPO fundraising halves to ₹52,116 crore in FY23, 37 firms go public | Mint - Mint
Read More
No comments:
Post a Comment