At the Moneycontrol Global Wealth Summit in Mumbai on March 7, Saraf said – Around Rs.1.5 lakh crore worth of IPOs are lined up to launch this year, said Rahul Saraf on March 7, however, he also mentioned that, as of right now, the market is a bit unstable, and the main issue is the timing.
Rahul Saraf also added that the many companies that are planning to launch their IPO are comprised only of an offer-for-sale component, meaning the companies themselves do not require urgent funds. Currently, the market condition is weak, companies should launch their IPOs when the market condition improves. So, if the market condition is bad right now, the intelligent thing to do is to wait for 3-6 months, once the primary market gets better, it is safe to launch the IPO.
Given last year’s IPO rose strongly at first, but then let the investors down. In 2024, approximately 70% of the IPOs are currently trading below their listing price, while 45% of IPOs are trading even below the price at which they were first offered.
In a separate conversation on the panel, he also shed light on government IPOs this year and believes that the focus will remain on sell-downs rather than fresh listings for the government. He noted that most of India’s major state-owned enterprises, the Maharatnas and Navratnas, are already listed.
He also discussed this year’s government IPOs in a separate panel discussion, saying that the focus will be on selling current shares rather than launching new ones. Maharatnas and Navratnas, among other major states of India, are already listed, said Rahul Saraf.
According to Saraf, there are not many large government-owned companies left to be listed. He also confirmed that the government is planning to lower its ownership in the businesses and might continue to do so in the future.
Credit : Money Control
