Wednesday, January 1, 2020

Over Rs 30,000 cr worth of IPOs likely in 2020................

IPOs have started Hitting the  Market......i mean number of IPO issues are rising and this is a good sign for Market doing good..... confidence in stock market is coming back.....but current IPO issues are not always GIVING good returns..... also few of the issues are very good companies.....
When the table turns...... dubious companies waiting on the sidelines will bring their IPO issues to chipkavo to the Greedy Investors......also the opening issue day in market this company prices will shoot up 20%.....30% on the day of listing.......
Hopefully these phase should play out in the market in the future 2/4 years .....
This are the first signs that stock market is doing good psychologically.....and bad signs for the future when the Madness in IPOs will peak at the top.....
Market top in IPOs will come when there is a flurry of number of IPO issues coming and also the MOTHER OF IPO...ISSUE PRICE CAN BE EXPECTED AROUND 20,000 CRORE.....OR MORE....that will be the last and final psychological sign of Market Bubble....



Representative Image
Representative Image
With many big companies likely to hit the primary market, 2020 could be far better than 2019. In fact, it could be the best in the past five years, as suggested by experts who Moneycontrol spoke to.
Only 17 companies launched their IPOs in 2019. Dinesh Engineers withdrew its public issue due to weak market conditions during the year 2019. Hence, 16 firms (against 24 companies in 2018) raised Rs 12,362 crore in total.
The year 2020 is expected to be completely different as at least 20 companies will come out with their IPOs and the size could be far more than those launched in 2019, experts feel.
"2020 will be much better than last 5 years in terms of number of companies and size of IPOs. India is capital hungry and a good way to raise long term capital is through equities," Umesh Mehta, Head of Research, Samco Securities told Moneycontrol.
As per the Prime Database (as of December 20, 2019), the size of IPOs which already received SEBI approval or awaiting nod could be more than Rs 30,000-35,000 crore.VK Sharma, Head PCG & Capital Markets Strategy at HDFC Securities also sees substantially higher number of IPOs in the 2020 compared to 2019.
More than 30 companies filed their draft red herring prospectus since September 2018 (including 20 in 2019 itself), of which Mazgaon Dock Shipbuilders, Route Mobile (Rs 600 crore approved by SEBI on January 1, 2020), Samhi Hotels (Rs 2,000 crore), IREDA (Rs 750 crore), Shyam Steel, Bajaj Energy (Rs 5,450 crore), Powerica, Satyasai Pressure, Annai Infra Developers have already received approval from the SEBI for launching IPOs within a year.
The companies which filed their IPO papers in 2019 include SBI Cards & Payment Services (Rs 9,600 crore), Burger King India (Rs 1,000 crore), Puranik Builders (Rs 1,000 crore), Home First Finance (Rs 1,500 crore), Easy Trip Planners (Rs 510 crore), Equitas Small Finance Bank (Rs 1,000 crore), UTI AMC (Rs 4,000 crore), Montecarlo and Mukesh Trends Lifestyle.
Umesh Mehta said HDB Financial, SBI Cards, Burger King etc would be a few IPOs which are expected to gain limelight in 2020.
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HDB Financial, National Insurance Company, National Stock Exchange, RailTel and Indian Railways Finance Corporation are also expected to file their prospectus for IPOs soon.
"A lot of new issues (IPOs) are lined up in 2020, some of which could have the potential to create long term wealth," Siddhartha Khemka, Senior Vice President | Head-Retail Research at Motilal Oswal Financial Services said.
But again as usual, any weak market condition/sentiment can slow down or force companies to think many times to launch IPOs, experts feel.
"Though a lot of IPO are lined up. Sailing of IPOs would be depend on 2 main factors first is pricing of the issue & second is market scenario (Sentiments), If market scenario continue to remain positive than we may see more IPO than 2019," Hemang Jani, Head – Advisory, Sharekhan said

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