IPO activity sees a slump in FY19; fund raising via IPOs down 82%

Market players said spike in volatility, particularly in the broader market, took a toll on the primary market activity

The initial public offering (IPO) market witnessed a huge slump during 2018-19 (FY19). Funds raised by the way of IPOs were down 82 per cent year-on-year (YoY) to Rs 14,674 crore. The number of issues to hit the market were just 14 — the lowest since FY15 — compared to 45 in FY18. The slump in primary market activity came even as the benchmark indices gained the most in four years, at 17 per cent.

Market players said a spike in volatility — particularly in the broader market —  took a toll on primary market activity. Typically, firms that come out