More IPOs set to hit market next week amid high liquidity
Three companies will launch initial public offerings (IPOs) worth ₹3,160 crore next week, hoping to benefit from an equity market awash with liquidity and a sharp increase in new retail investors.
Indian stocks have rebounded more than 50% from their lows in March when the government imposed one of the world’s strictest lockdowns to contain Covid-19. This rally has ended a long spell of dry primary markets this year with three major IPOs since the outbreak witnessing strong subscriptions.
“There is a flush of IPOs from mid-sized firms to take advantage of the buoyant market conditions and a significant rise in retail participation. More importantly, there is a willingness to pay premium valuation to firms with differentiated business models and a reputed management team,” said Gaurav Dua, senior VP and head of capital market strategy and investments, Sharekhan by BNP Paribas.
Two issues will open for subscription on Monday: Computer Age Management Services (CAMS) and Chemcon Speciality Chemicals Ltd, followed by Angel Broking on Tuesday.