Retail subscription in the latest two IPOs – Zomato and Tatva Chintan Pharma – is an evidence of their voracious appetite. Both the issues saw more than 32 lakh applications each, almost 5% of the total demat accounts in India. In the case of much-awaited Zomato, the retail category was lapped up within a couple of hours of the issue last week despite mixed commentary about its prospects.
The earlier two IPOs – Clean Science and GR Infraprojects – saw 23.5 lakh and 20 lakh applications, respectively, from retail investors. IPOs of 2021 such as Indigo Paints, RailTel Corporation, MTAR Technologies, Laxmi Organic and Nazara Technologies saw more than 20 lakh applications each from retail investors, a consistent trend that was never seen before.
‘At least 50 digital technology companies may get listed in India over next few years’
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Synopsis At least 50 digital technology companies could be listed on the Indian bourses over the next few years, said Atul Mehra, managing director investment banking, JM Financial.
ET Bureau
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Mumbai: At least 50 digital technology companies could be listed on the Indian bourses over the next few years, said Atul Mehra, managing director investment banking, JM Financial. There is huge investor appetite for such new-age businesses, which are using technology to grow rapidly, in India and across global markets, he said.
“IPOs of such companies will not only add significantly to India’s market capitalisation but also notably improve the free float as most of these companies have 90% of their cap tables as investors, which in turn will attract more funds toward India,” said Mehra in an interview to ET.
Increasing IPO size to attract good quality investors: Atul Mehra
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Synopsis New-age businesses are using technology to disrupt existing business models and growing rapidly. There is a huge appetite for such high-growth businesses across the capital markets in the world, and in India, the scenario is no different.
ETMarkets.com
JM Financial. Mehra says that while we will continue to see massive traction in these IPOs, performance post listing over the following 6-8 financial quarter results will be very crucial.. Edited excerpts:
Few dozen companies have lined up to raise funds from the primary market. What is driving the IPO market in India?
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