Mumbai: The recession is going on in the secondary market in the country and is currently under the initial public issue (IPO) process of Rs 1.10 trillion.
As a result of the recession in the secondary market, the interest of retail investors in the primary market is also declining. Keeping in mind the fact that in such a situation, the possibility of public offer is less likely to be successful, it seems that many companies that have already started the process of bringing IPOs will delay it.
Many companies are also preparing to cancel the approval received by them. After setting a strong record in 2024 by the country’s IPO market, notable recession has been observed in primary market activities in the first two months of the current year.
The data received shows that apart from a decline in the number of public filing, the number of filing of new draft letters has also decreased. The price of draft filing in February has been reduced to more than fifty percent as compared to January. The number of companies has also come down from 29 to 16.
In January-February this year, the number of mainboard IPOs was only nine, compared to 16 in the same period last year. However, activity in the SME area remains strong.
Many companies are planning to become public due to the last two and a half years of rise. An analyst stated that an estimated 69 companies with market capitalization of 1.10 trillion rupees have started the listing process, but now since the secondary market situation has changed, it remains to be seen how many of these proposed companies will move forward for listing. Due to the boom in the secondary market, the listing of many companies saw a good lead, which is unlikely to be seen again. In 2024, 157 companies will have public offers.
