A combination of smart pricing, introduction of companies from newer sectors to stock market investors and the push by private equity investors to exit investments helped 27 companies together raise nearly Rs.26,500 crore through initial public offers in 2016. The total fund raised from IPOs during the past 12 months was nearly double the 2015's figure. Also, it was close to what was raised during the previous five years put together.
In addition to the nearly Rs.26,500 crore through IPOs on the main board of the stocks exchanges, 2016 also saw Rs.495 crore raised through the SME platform and another Rs.13,000 crore through offer for sales by listed entities.
In comparison, in 2015, Rs.13,614 crore was raised through IPOs, Rs.260 crore through SME platforms and Rs.35,566 crore through the OFS channel.
Merchant bankers pointed out that unlike in several IPOs in the past, the current breed of promoters is willing to leave something on the table for investors who are buying their shares in these offers.
Positive market sentiment and investors' bullishness about India's growth story also helped Exits by private equity investors also helped this strong surge in IPOs this year.
Merchant bankers said in 2017, based on the IPO pipeline, some of the companies that are expected to hit the markets include NSE, BSE, SBI Life, UTI Mutual Fund, SIS, Continental Warehousing and CDSL. Telecom major Vodafone is also contemplating to go public. In addition, a large number of SMEs and OFS are also expected to come to the market in the next 12 months.