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Year Ender 2022: Fall in shares of listed companies and volatility due to geo-political tensions affected sentiment in primary markets. Due to this, only Rs 57,000 crore could be raised in the year 2022 through Initial Public Offer (IPO). In the new year, these activities are expected to slow down even more.
IPO market got support in 2022 from the issue of LIC
Out of the funds raised through IPO this year, Rs 20,557 crore i.e. 35 per cent stake was from LIC’s IPO alone. If LIC’s IPO had not come this year, then the total collection from the sale of IPO’s listing shares would have been even less. The year 2022 was troublesome for investors due to the increase in interest rates and the fear of recession amid rising inflation.
1.2 lakh crore rupees were collected in the year 2021 – know the condition of the year 2022
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According to data from Prime Database, till December 16 this year, a total of 36 companies brought their IPOs, raising Rs 56,940 crore. IPOs of two more companies are going to come next week, after which this amount will increase further. In the year 2021, 63 companies raised Rs 1.2 lakh crore from the public issue, which was the best year of IPO in the last two decades (20 years). Earlier in 2020, 15 companies raised Rs 26,611 crore through IPOs. Apart from the IPO, Rs 4,300 crore was raised from Ruchi Soya’s own public offering.
Know what experts say
Nikhil Kamat, Co-Founder, True Beacon & Zerodha said, “2023 is going to be a difficult year amid slowing growth across the world. India will also see its negative effects. I anticipate that the market may remain soft in 2023.” And the activities of raising money through IPO may also decrease next year or it may remain at the level of 2022.
What do experts believe for 2023
Vinod Nair, Research Chief at Geojit Financial Services, said that the overall size of IPOs is expected to be low in 2023 amid fears of volatility in the stock markets. He said that the poor performance of the recent IPOs is also expected to affect investors and due to this there will be a weak reaction in the near future.
The situation worsened due to the outbreak of Russia-Ukraine war
Due to the outbreak of war between Russia and Ukraine in February, the environment for investors was troubled as the markets around the world including India fell. Apart from this, the central banks around the world increased the interest rates to control the rising inflation rate. The impact has been seen on the sentiments of the primary markets. This affected the price of shares and companies postponed the plan to bring IPO.
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