Public Offerings May Less Profitable In Coming Years
IPO, generally defined as a privately run company becomes a public traded company by offering its shares to the public. In the last 3 fiscal years, up to 81 companies offered its shares to the public through the IPO. In which, 41 companies had launched their public offerings over the last fiscal. With this result, FY 2018 turned as a successful year for the Indian IPO market. At the same time, these 41 IPOs raised over Rs 76,200 crore in public debuts, said by a source.
According to the source, 26 companies had got listed in 2017 and 18 companies listed in 2019. In public debuts, these 18 firms raised about Rs 19,900 crore which down by a high of 74 percent compared to the previous result.
The market experts felt that further Indian IPO market becomes harder. Sebi has formed new norms for listing companies in the mainboard exchange platforms such as BSE and NSE. In the last Fiscal, it had concluded that the companies which want to list their name in stock exchange via IPO will submit 3yr of financial reports before going public.
Initially, SEBI had declared that the company should mention up to five years of financial record for launching the public offer. In 2019, the largest share of IPO launched in the financial sectors. At that time, the financial sector firms raised over Rs 11,000 crore. But, the other categories of sectors do not trade well in the current fiscal. From 2017 to 2019, the stock exchange platforms received public offerings from Financial services, Clothing & apparel, industries & manufacturing metals, construction, and materials, etc.