As India’s first public service (IPO) project rises with the introduction of more technology to the public, investment banks are paying more.
The recent listing of the first Indian food delivery Zomato to be listed on the stock exchange has cost banks Rs 2.4 billion, according to data compiled by Bloomberg.
“The balance of life of investment banks, especially small ones, is gone,” Vijay Vaishnav, founder of Indusion Consulting Services Pvt., A research firm in Mumbai, told Bloomberg. “They told us they were sleeping less because of some kind of fundraising pipe.”
Investor madness with initial public offerings (IPOs) that started to recover in the secondary stock markets and economic recovery in the second half of 2020 continued this year and appeared to improve in terms of revenue collected and number of IPOs.
To date by 2021, about 41 companies have raised Rs 64,244 crore, while the shares of 16 such companies traded above the issuance price, according to ACE Equity data.
The revenue collected by IPOs in FY22 to date is almost the same as that collected in FY21, which was Rs 46,000, said Securities and Exchange Board of India chairman Ajay Tyagi. Over the past 18 months, technology companies have grown 15,000 crores by IPOs.
An additional 25 to 30 companies are expected to come out with IPOs in the remaining months of 2021. Companies ranging from food delivery, digital services, payment banks, analytics, trading platforms and services to niche segments and chemists do not want to miss the opportunity to raise revenue and increase revenue, without giving their market investors the opportunity to exit.
Tyagi said the completion of the market regulator shows an IPO pipeline of Rs 30,000.
Due to travel restrictions between the COVID-19 epidemic, so-called roadblocks where banks jump from one city to another to follow investors have now moved to Zoom meetings.
To cope with the growing workload, companies including Citigroup Inc. increased the hiring rate to grow the local team by 25 to 40 percent, the report said.
