A great opportunity is coming for those who want to invest in the stock market. In July alone, initial public offerings (IPOs) of 11 companies are going to hit the market. This is the largest number of IPOs in any single month in 11 years. This year about two dozen companies have raised 32 thousand crores from the market. In July, more efforts will be made to raise Rs 31 thousand crores from the market. Talking about the applications that have come to the capital markets regulator SEBI, then in the next four-five months, IPOs worth 80 thousand crores can come from 40 companies. Investors will get an opportunity to invest in well-known companies like Zomato, Paytm, Ola, LIC. IPOs of Glenmark Sciences and Shriram Properties are also coming up this month.
SEBI is also cautious amid the increased commotion regarding IPO. In the past, some companies have run away by raising money from IPOs by taking advantage of the boom in the stock market. SEBI is now alert to not let such a situation arise. The investigation of companies has been tightened. Given the IPO of startups like Zomato, Paytm, Policybazaar, the regulatory agency is being more cautious. The size of Zomato's IPO is believed to be Rs 8000-9000 crore. This will be the biggest IPO after SBI Cards.
Manish P Hinger, the founder of wealth management company Fintoo (FINTOO), says that in 2021, there have been 23 IPOs so far. With this, the amount raised from the market can be raised in July alone. This will also reveal the liquidity position in the market, as half of this amount will be raised from retail or large wholesale investors. There is a danger of having so many IPOs at the same time that if the IPOs of one or two big companies fail, then it affects other IPOs and the entire market. He suggested retail investors choose a company only after studying instead of applying for every IPO.
Rahul Sharma, co-founder, Equity 99 Advisors, says retail investors should always base their investments on the company's business model and its past performance. In trying to earn money through IPO in a short time, many times there is a big loss. Also keep in mind that if the company is good, then after the IPO comes the price of its shares will reach its true value. Even then the investor can put money there.
The IPO of GR Infraprojects Limited closed on Friday and 108 times more applications have been received for its shares. Clean Science's IPO has also been subscribed 93.41 times. This shows that there is a lot of enthusiasm among the general investors about the IPO. This kind of IPO rush was seen in the market only in 2010-11.