IPO Market in January-March 2021: The first quarter of this year has been the IPO in the capital market. A total of 17 companies have launched their IPOs in the January to March quarter. 17 companies have raised a total of Rs 18803 crore from the IPO in the March quarter in terms of the issue size. This is the highest since the March 2018 quarter. During that time, 14 companies had raised Rs 19,275 crore from the IPO. The IPO market is buzzing this year in the hope of improving the economic outlook on the new year and better growth ahead. Last year too, there was a tremendous craze among the investors regarding the IPO in the last months of the year.
IPOs of these 17 companies came
(Company and issue size)
IRFC: 4633 Crore
Indigo Paints: 1171 Crore
Home First Finance: 1154 Crore
Stove Craft: 412.63 Crore
Brackfield India Real Estate: 3800 Crore
Nureka Limited: 100 million
RailTel: 819.24 Crore
Heramba Industries: 625 crores
MTAR Tech: 596.41 Crore
Easy Trip Planner: 510 Crore
Anupam Chemicals: 760 Crore
Lakshmi Argonics: 600 million
Craftsman Automation: 824 Crore
Suryoday Small Finance Bank: 582 Crore
Kalyan Jewelers: 1175 Crore
View Technology: 583 Crore
Barbecue Nation: 453 Crore
How much benefit to investors
Of the 17 companies that have launched their IPOs this year, 16 have been listed in the market. Investors made profits on the day of listing in 10 of these 16 IPOs. Indigo Paints gave 109 per cent returns on the same day of listing, meaning the money doubled in one day. MTAR Tech gave 88 percent return on the day of listing. While Listing Day returns of Nureca were 67 per cent and 43 per cent of Najara Tech. On the day of listing in Heramba, 29 per cent has been received, while in Laxmi Argonics, 27 per cent has been returned.
However, Suryoday Small Finance Bank, Kalyan Jewelers, Anupam Chemicals, IRFC, Craftsman Automation disappointed.
Why are companies bringing IPO?
Actually, companies need money to expand their business. In such a situation, companies raise capital through IPOs and use the capital raised to grow the business. This is why companies keep on bringing IPOs at the right time. Talking about the present time, due to the positive sentiment of the secondary market, there has also been a boom in the primary market. The stock has seen a continuous rally till mid-February. Sensex is still close to 50 thousand. Due to the increase in global liquidity, several companies have issued IPOs. In the March quarter of 2021, FII invested Rs 53,000 crore in the Indian stock market.
How can you invest
You can invest directly at your level in an IPO, for which you have to have a Demat account. It can also be invested through a broker. Every brokerage house maintains a separate section on its website for investing in IPOs, where you can apply for an IPO after filling in some information.