The fundraising activity through initial public offerings (IPOs) in India has seen a significant decline in the fiscal year 2022-23 as compared to the record high achieved in the previous year. According to recent data, the total amount raised through IPOs has more than halved to Rs 52,116 crore in FY23, as companies adopt a cautious approach in the current market scenario. The slowdown in IPO activity has been attributed to several factors, including the ongoing COVID-19 pandemic, regulatory changes, and a volatile stock market. However, analysts predict that the IPO market is likely to bounce back in the near future, as more companies look to raise capital through public offerings.
IPO market witnesses a significant drop in fundraising in FY23
The IPO market in India has experienced a significant decline in fundraising in the current fiscal year 2022-23, as compared to the record high achieved in the previous year. According to recent data, the total amount raised through IPOs has more than halved to Rs 52,116 crore in FY23, which is a substantial drop from the previous year’s figure of Rs 1,27,220 crore. The slowdown in IPO activity can be attributed to various factors such as the ongoing COVID-19 pandemic, regulatory changes, and a volatile stock market. As a result, companies are adopting a cautious approach towards IPOs and delaying their plans to go public. However, analysts believe that the IPO market will bounce back in the future as the economic situation improves, and companies seek to raise capital through public offerings.
Companies adopt a cautious approach towards IPOs in the current market scenario
With the ongoing COVID-19 pandemic and the volatile stock market, companies in India are taking a cautious approach towards initial public offerings (IPOs). The fundraising activity through IPOs has witnessed a significant decline in the fiscal year 2022-23, with companies delaying their plans to go public. While several companies had planned to launch their IPOs in FY23, they have postponed their offerings due to market volatility and uncertainty. Additionally, the regulatory changes introduced by the Securities and Exchange Board of India (SEBI) have also impacted the IPO market. The new regulations require companies to provide more detailed disclosures in their IPO prospectus, which has led to a delay in the launch of some public offerings. However, experts believe that with the gradual economic recovery and an improvement in market conditions, companies will once again start to show interest in going public.
Analysts predict a rebound in IPO activity in the near future
Despite the significant decline in fundraising activity through IPOs in the current fiscal year 2022-23, analysts predict a rebound in IPO activity in the near future. The IPO market in India has a strong history of bouncing back, and experts believe that this trend will continue. As the economy gradually recovers from the impact of the COVID-19 pandemic and the stock market stabilizes, companies will once again start to show interest in going public. Additionally, the SEBI has introduced several regulatory changes to improve transparency and protect investors, which will make the IPO market more attractive to investors. Furthermore, there is a pipeline of high-profile IPOs waiting to launch, which could drive renewed interest in the IPO market. Overall, while the current market scenario is challenging, experts remain optimistic about the long-term prospects of the IPO market in India.