homemarket NewsQIP, IPO pipeline strong as equity market momentum continues: Experts

QIP, IPO pipeline strong as equity market momentum continues: Experts

Chirag Negandhi, from Axis Capital, stated that five IPOs have already been successfully launched since April, signaling the beginning of a cycle with many more to come in the future.

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By Nisha Poddar  Jul 13, 2023 7:18:16 PM IST (Published)

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Markets at record levels have given a window of opportunity to a flurry of deals in the Equity Market. Share sales worth over Rs 1 lakh crores have occurred this year, with more than half of them being accounted for by promoter-led and private equity-led blocks.

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Big Deal delves into the deal trends going forward and valuation dynamics with A Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC and Chirag Negandhi, Joint MD & Co-CEO of Axis Capital. Experts tell CNBC-TV18’s Nisha Poddar that QIP and IPO pipeline is strong but investors are selective about fresh investments.
Negandhi discussed the initial public offerings (IPOs) and expressed his optimism. He stated that five IPOs have already been successfully launched since April, signalling the beginning of a cycle with many more to come in the future.
"So far, we have primarily witnessed blocks and QIPs. There have been quite a few blocks that have taken place, but only five IPOs. However, this trend is expected to change, and we anticipate a significant increase in IPO activity. Nevertheless, it is unlikely to be as frenzied as it was in December 2021, where we completed nine deals alone. Therefore, we can expect a healthier market, with good companies and valuations finding interested buyers. Across sectors, such as capital goods, engineering, healthcare, and BFSI, there are numerous companies that have received SEBI clearance and are ready to enter the market."
Negandhi also emphasised that the current market conditions should not be misconstrued as a hyper-bull market with excessive deal activity. He believes that the returns investors have gained in the past three months, particularly in primary market deals, will drive their interest in new opportunities.
A Balasubramanian, highlighted that the recent surge in deals reflects an increased appetite for Indian investments and a positive sentiment prevailing in the market. Compared to other emerging markets, India has become a preferred destination for global investors, attracting significant flows into the equity market.

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