Investment bankers say they avoid uncertain and volatile market conditions to launch IPOs as investors seek stability. With markets seeing a spike in volatility before the elections, issuers prefer to wait for a few months before going to the market.
” Election is not a big factor anymore this time. More importantly, we are seeing strong domestic inflows, with retail money pouring into the equity markets. This has given issuers the the strength to launch IPOs in May. The interest among retail and high net worth individual (HNI) investors is expected to remain high,” said experts
Also, a broader consensus amongst investors on the regime and policy continuity has boosted sentiment.
From the lows they made in March 2024, the Nifty Smallcap 100 index has rallied 20 per cent and the Nifty Midcap 100 has index 11.2 per cent. Vodafone’s FPO was subscribed 6.4 times, and the issue attracted over 1.1 million applications.
“Given the size of the issue and given the challenges the company has been facing, the kind of response adds confidence. Most of the companies coming with IPOs belong to the small and mid-cap segment. Any kind of stability in that segment gives a fiilip to IPOs,” said experts
Going forward , the interest rate scenario and geopolitical stability will be key factors investors and issuers will track to determine the IPO market trajectory. Market players said there are several companies sitting on regulatory approvals, which will also launch their offerings after observing the response to next week’s three issues.
“We need to watch out for some of these indications. As of now, the pipeline looks very robust,” said experts
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