Shares of all the companies that went public this year have returned gains so far over their issue price, tracking the rebound in equity benchmarks since the worst selloff in more than a decade triggered by the Covid-19 pandemic.
Since July, 13 major companies launched initial public offerings to raise funds. Three of these were subscribed more than 150 times as the benchmark indices surge to record levels. The Nifty 50 Index has gained close to 80% from its 52-week low on March 23.
“As the market turned positive, the excess liquidity and positive sentiment has resulted in even companies impacted by Covid-19 to raise funds,” Kotak Investment Banking said in its annual media presentation. Investors lapped up shares of companies ranging from shipbuilders to ready-to-eat food makers and technology solutions providers. Asset managers, broking firms and even biotechnology companies came out with IPOs.