Priyanka Tiwari
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Suspense crime, Digital Desk : India's stock market witnessed an unprecedented rush in June, as companies flocked to go public in one of the busiest months for Initial Public Offerings (IPOs) in recent history. A staggering total of nearly ₹19,000 crore was raised through 38 separate IPOs, signaling immense confidence in the Indian economy.
An IPO is when a private company offers its shares to the public for the first time, allowing it to raise capital for expansion. This boom was driven by both large corporations and smaller businesses (SMEs). In total, eight large companies launched their IPOs on the main exchanges, while thirty smaller enterprises went public on SME platforms.
So, why the sudden frenzy? The primary reason is the soaring stock market. With key indices like the Nifty and Sensex hitting all-time highs, there is a strong appetite among investors for new stocks. This "bull market" creates a favorable environment for companies to get a good valuation. The political stability following the recent general elections has also boosted investor confidence, encouraging more companies to enter the market.
To put the scale of this fundraising into perspective, the amount raised in June alone is nearly 30% of the total funds raised through IPOs in the entire calendar year of 2023. Some of the notable companies that went public include beverage giant Allied Blenders and Distillers, and premium furniture brand Stanley Lifestyles.
Investment bankers and market experts believe this trend is set to continue. With a robust pipeline of companies waiting to go public, July is also expected to be a very active month for the IPO market, reflecting a strong and optimistic outlook for India's corporate sector.
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