IPO Situation in India - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

"SBI Cards and Payment Services IPO got a lacklustre listing on the exchange in March'20 against expectation due to COVID-19. Due to COVID-19 there was sharp correction in the market in February'20 and March'20. Even Antony Waste Handling Cell limited, the next lined up IPO post SBI Cards, withdrew its IPO. We have a drought like situation in the mainboard IPO. Company knew launching IPO at these times doesn't make sense as they won't get the desired valuation due to the uncertainty created due to the pandemic. Finally after a wait of four months after SBI Cards IPO, Rossari Biotech launched its IPO in July and it received good response as well as listing. In September also, Happiest Minds Technologies and Route Mobile have received good response and we expect a good listing also. As the market has also bounced well from the lows created in March'20, the economic situation is improving and clarity is also coming with respect to coronavirus. So looking at the current scenario we believe the remaining part of the year will have many IPOs."

Source : Equity Bulls

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