This year, driven by an abundance of liquidity and investor frenzy, Indian companies have raised more than Rs 27,417 crore through initial public offerings (IPOs) in the first six months, the highest in at least a decade. However, most of the funds raised through IPOs were used to offer an exit to existing PE or VC funds or existing shareholders and promoters.
With a large number of IPOs lined up for the coming months, Calendar 2021 is believed to be a record year for investing in IPOs in India. The IPO stocks that were listed in 2020 are now trading above their issue prices, with some having gained as much as 400% since listing. All these make IPO investing an exciting option for investors looking to enter the market. There are a few big names like Paytm, Bajaj Energy, Nykaa and LIC slated to hit the market before the end of this financial year.
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