Russia-Ukraine war: Due to negative investor sentiment due to Russia-Ukraine war, companies have postponed IPOs worth about Rs 77,000 crore amid a fall in the stock market.
According to a Livemint report, experts said that such a situation in terms of IPO may persist till the end of this financial year, as Russian President Vladimir Putin wants to go ahead with his plan at any cost.
51 companies have got approval for IPO
According to a capital markets researcher at Prime Database, around 51 companies were ready to raise Rs 77,000 crore through an IPO after getting approval from the market regulator.
This does not include 44 companies, including Life Insurance Corporation (LIC), which have submitted their IPO documents with the Securities and Exchange Board of India (Sebi) but are yet to get approval.
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Volatility may continue in the equity market
After Russia’s attack on Ukraine, companies have postponed their IPO plans due to heavy fall in India and global markets. Energy prices are seeing a jump due to the war and India’s currency has reached a record low.
Experts said the volatility in the equity market is likely to continue due to geopolitical tensions and India’s dependence on imported crude.
Only three IPOs were launched in 2022
Pranav Haldia, MD, Prime Database, said, “Historically, movement in the primary market is visible only when there is an atmosphere of excitement in the secondary market. Even though the market has been under pressure since October, volatility has increased significantly in the last two months. Due to this, only three IPOs have been launched in 2022.
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This year saw the IPO launch of Adani Wilmar, Vedanta Fashions and AGS Transact, which have raised Rs 7,429 crore.
IPO is coming for these big companies
Comparing it with the situation in 2013, Haldia said that during that period, market conditions had hit the Rs 80,000 crore IPOs, which had either got SEBI approval or had submitted share sale papers.
Some of the big companies waiting for IPO this year are Go Airlines (India) Ltd., API Holdings Ltd. (PharmEasy’s parent company), Delhivery, Emcure Pharmaceuticals Ltd., Gemini Edibles & Fats and Penna Cement. These companies plan to raise around Rs 25,000 crore.
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