Little rain in the IPO desert: First dry spell since July 2022, shows data

Not a single penny got raised from initial public offerings and follow-on public offers (FPO) last month

ipo
Sundar Sethuraman
1 min read Last Updated : Feb 06 2023 | 6:15 AM IST
The market for new listings has shuddered to a halt.

Not a single penny got raised from initial public offerings and follow-on public offers (FPO) last month — the first month of drought since July 2022.

Spike in market volatility, India’s underperformance to other world markets, and sustained selling by foreign portfolio investors (FPIs) queered the pitch for share sales, say investment bankers.

Typically, companies look to sew up share sales ahead of the Union Budget. But most companies steered clear, with the exception of Adani Group’s flagship firm.

Adani Enterprises’ Rs 20,000-crore FPO, which closed on January 31, did manage to corral a full subscription. However, the incubator for new businesses withdrew the offer in the “interests of its subscribers”.

The extraordinary development came amid a massive market rout in Adani Group stocks, following the release of US short-seller Hindenburg Research’s report that accused the group of “brazen stock manipulation and accounting fraud”.

The episode, observe analysts, soured the mood for primary markets. They expect activity to remain subdued until the secondary market momentum turns positive and FPI flows see an improvement.


One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :IPOMarketsFPIs

Next Story