12 new IPOs to come up in June-quarter, analysts remain positive

After raising Rs 843.57 bn through IPOs in FY18, 12 new companies are planning to garner Rs 170 bn in the next two months including names like HDFC Asset Management

After raising Rs 843.57 billion through initial public offers (IPOs) in 2017-18 (FY18), at least 12 companies are planning to garner Rs 170 billion through IPOs over the next two months, reports say, with some of the prominent ones being HDFC Asset Management.

Other companies that may launch their IPOs in the quarter are Devi Seafoods and Nekkanti Sea Foods. Timing of the launch for these two companies will be announced after they get regulatory approval.

Going ahead, analysts expect a good appetite from investors for these issues given the ample liquidity.

“IPOs will attract a lot of interest in the near future following last-year’s trend. Most IPOs in FY18 had attractive pricing and barring a few most were successful. Currently, there is enough liquidity in the market and from a short and medium-term perspective, good IPOs do well in the current scenario,” said Gaurang Shah, head investment strategist at Geojit Financial Services.

According to him, consumption, technology and auto ancillary- driven IPOs will be the top picks for FY19.

In the first quarter of 2018, 14 companies raised a total of Rs 185.91 billion through the IPO route, an over fourfold increase as compared to the same period a year earlier, reports suggest.

While there were 45 main-board IPOs during 2017-18 collectively raising Rs 821.09 billion, the preceding fiscal saw 25 of them together garnering Rs 282.25 billion.

Given the slew of IPOs, AK Prabhakar, head of research at IDBI Capital suggests investors need to be cautious while investing and look at valuations before putting in their hard-earned money.