IPO activity to see spillover effect from mid, smallcap weakness: Analysts

Overall, so far in calendar year 2024 (as of March 19), 10 of 21 new listings have been subdued despite decent subscription levels, shows data from PRIME Database

The ongoing weakness in the broader equity market is likely to weigh on primary market investor participation ahead, which has already begun showing signs of fatigue, analysts said.

The spillover effect, they say, will continue as long as the Midcap and Smallcap segments remain volatile.

“The effect will be felt in the IPO market. The subscription levels have come down in the last few days and recent 4-5 IPOs have not done well. Even in SMEs, the kind of grey market premiums that were being commanded earlier and the eventual listings are not in line,” said Ambareesh Baliga, an independent