look news india
New Delhi: The Indian stock market has bounced back after a decline of about 6% on the day of election results, but companies entering the capital market with initial public offerings (IPOs) may take a little longer to enter the market. Market experts believe that companies will wait till the budget.
Most will want to assess the results of a coalition government at the Centre and wait at least until the budget in July before shaping their listed plans. With the BJP far from having a majority and relying on coalition partners, the new government is expected to focus more on consumption expenditure rather than capital expenditure.
The primary market does not like any kind of volatility. Hence, until there is some stability in the secondary market, the IPO market will not see much movement, Prime Database said.
Another investment banker agreed with this. According to investment bankers, at this time we are waiting because only after the budget will foreign institutional investors get clarity on the continuity of policy. Especially for sensitive sectors like infrastructure, it is important to know what policies are implemented there.
About 11 IPOs with an issue size of over Rs 9,200 crore have received approval from the Securities and Exchange Board of India in 2024 but are yet to be listed.
Investment bankers said new IPOs are likely to wait for at least two weeks until market volatility subsides and there is some clarity on policy continuity.
In 2024, 29 IPOs came out of the market till May. A total of Rs 27,651 crore has been collected. According to the data, in 2023, there were 57 IPOs in the country worth Rs 49,436 crore.
