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Companies raised Rs 25,000 crore from IPO in 2020

The companies have raised around Rs 25,000 crore through Initial Public Issues (IPO) so far this year due to better liquidity position and encouraging investor response. Experts say the IPO market is expected to remain strong in 2021 as well. The IPO market has deepened in the period under review and companies from diverse sectors have entered the market. Now companies in the pharma, telecom, IT and financial services sectors are also entering the IPO market.

Burger King’s Rs 810 crore IPO to open on December 2

An analysis of the data available with the stock markets shows that around Rs 25,000 crore has been raised in 2020 through 12 IPOs. In the entire year of 2019, Rs 12,362 crore was raised through 16 IPOs. In 2018, 24 companies raised Rs 30,959 crore from the IPO. So far this year, in 2020, companies have raised Rs 25,000 crore from the IPO. This figure will increase further, as Burger King’s IPO of Rs 810 crore is going to open on December 2.

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Vinod Nair, head of research at Geojit Financial Services, said that the amount raised through IPO this year is higher than the previous year. The main reason is that despite the slowdown in the economy, companies and retail investors are showing interest in the primary market. Apart from this, companies also want to raise capital for their further needs due to uncertainties.

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