New IPO fundraise record to be set in FY23: Report

The Indian primary markets had a banner year in 2021, with the highest-ever fundraising in a calendar year. And the momentum is likely to continue in FY23.

According to Prime Database, 54 companies, including the much-anticipated LIC IPO, seeking to raise a whopping 1.4 trillion rupees in the coming fiscal year.

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The Securities and Exchange Board of India (Sebi) has already given these 54 companies approval to raise funds.

According to the report, another 43 companies are aiming to raise roughly Rs 81,000 crore, but Sebi clearance is pending.

The previous record year was 2017-18 (FY18), with a total of Rs 81,553 crore raised.

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The amount raised in FY22 was more than 3.5 times the Rs 31,268 crore raised through 30 IPOs in FY21, according to Pranav Haldea, managing director of PRIME Database.

Other notable aspects of FY22 included IPOs from new-age loss-making technology companies, substantial retail engagement, and listing gains. However, he added, public equity fundraising fell to Rs 1.70 trillion from Rs 1.9 trillion the previous year.

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One 97 Communications (Paytm) had the largest IPO in FY22, as well as the largest Indian IPO ever, at Rs 18,300 crore.

Other significant companies were Zomato, Star Health, PB Fintech, Sona BLW, and FSN E-Commerce, Nykaa’s parent company.

According to the Prime Database report, the average number of retail applications was 14.05 lakh, up from 12.73 lakh in 2020-21 and 6.88 lakh in 2019-20.

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Glenmark Life Sciences, Devyani International and Latent View received the most retail applications in FY22.

Analysts predict that the secondary market will remain tumultuous in the months ahead owing to the conflict between Russia and Ukraine. They believe that this will have an impact on primary market behaviour as well. 

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G Chokkalingam, founder and chief investment officer of Equinomics Research, believes the Sensex will remain in the 56,000-57,000 zone till a solution to the Ukraine-Russia conflict is found.