Good news is waiting for interested investors. Despite the long-pause in the COVID-19 hit 2020, the domestic initial public offering market has given a heroic performance, thanks to high liquidity and strong investors’ interest. It ended as a busy year, with more than seventeen companies raising more than Rs 30,000 crores from the market, more than Rs 12, 363 crores raised by sixteen companies in 2019.
Market Recapitulation 2020
2020 is marked with a pandemic outbreak that triggered nationwide lockdown that lasted many months. Without a doubt, it had a severe impact on the performance of the stock market. BSE and NSE both lost several points, and many companies shelved their IPO launching plan amid rising fear among investors. According to depository’s data, foreign investors pulled out more than Rs 1 lakh crores from the market in March. But the market made a strong turnaround during the second half of the year. Several companies have hit the Dalal Street with maiden offers to raise more than Rs 30,000 crores in total. Companies like Mrs Bector, Burger King, Mazdegon Dock Shipbuilders, Happiest Minds made a stellar debut in the bourses. IPO success of Happiest Minds has lifted the confidence of the emerging tech startups of India. According to a market report, several tech unicorns are eyeing the IPO route in 2021.
IPO 2021: Bumper Crop Waiting For Interested Investors
We can expect the market to spin a few surprises for investors in 2021. Most analysts agreed that the pace it gained from the current liquidity glut would continue in the new year and turn the Indian share market an exciting field for investors. Since a contraction in February and March, the market rallied strongly due to unprecedented support from the central banks.
While one can expect uncertainties from COVID-19 to spill into the next year, investors can make profitable investments with sound judgement.
Let’s look at the emerging trends that are going to shape investment and the market in 2021.
- The market will continue to feel hopeful with the arrival of COVID vaccine. It will continue to drive the shares of the associated companies higher
- Indian companies in the pharma sector will benefit from the global rise in interest in pharma sector shares
- Once again, global investors are turning their focus to Asian companies. With Joe Biden in office, America’s stance on international trade is likely to get a fresh direction, which will eventually benefit Indian businesses
- 2021 is finally could to be the year for Indian tech startup IPOs with companies like Zomato, Nykaa, Policybazaar, Grofers, Flipkart, and Delivery lined up to make a maiden offer
- Indian IPO market has finally realised the potential of startups, disrupting the ways of traditional businesses
Let’s take a look at the companies heading for IPO in 2021
- Indian Railways Finance Corporation limited
- RailTel Limited
- Home First Finance
- Kalyan Jewellers
- Narmada Biochem Ltd.
- Lodha Developers
- Muthoot Microfin
- NSE India
- VLCC Health Care
More than 30 companies are in line to debut in 2021, creating more investment opportunities for investors. It won’t be wrong to assume that businesses are currently feeling confident to test the water after investors subscribed enthusiastically to several IPOs in 2020.