RBI Says September Sees Most IPOs in 14 Years With Over 28 Companies Entering Market
As Indian stock markets remain resilient amid global challenges, September is set to be the busiest month for initial public offerings (IPOs) in 14 years, with over 28 companies entering the market so far, according to the Reserve Bank of India (RBI).
New Delhi, September 21: As Indian stock markets remain resilient amid global challenges, September is set to be the busiest month for initial public offerings (IPOs) in 14 years, with over 28 companies entering the market so far, according to the Reserve Bank of India (RBI).
Financial markets are undergoing shifts. In the primary equity market, there is a surge of interest in small and medium enterprises (SMEs) IPOs, including from domestic mutual funds, with massive oversubscription. About 54 per cent of IPO shares allotted to investors were sold within a week of listing, according to the Central Bank’s monthly bulletin. Gross Inward FDI Grew by 23.6% to USD 27.7 Billion in April-July Period, Says RBI.
“A growing number of listed companies are turning to qualified institutional placements (QIPs) for raising capital, estimated at around Rs 60,000 crore in the first eight months of 2024,” it read. With intermittent corrections on global cues, benchmark indices in the secondary market have moved up, and the outlook remains bullish, said the RBI.
Global funds have been investing heavily in the Indian debt market for the fifth month in a row since May 2024. On the other hand, corporate debt issuances remained low during the financial year so far despite easing yields as issuers awaited the US rate cut. The RBI said that as large risk capital investors tread cautiously, the early-stage investment landscape is seeing an increasing number of micro venture capital firms and founder-led funds.
Despite guardrails and concerns about interconnectedness with the regulated financial system, the footprint of private credit – non-bank lending in high-yielding and illiquid debt-like instruments - is gradually expanding to cater to customised requirements of borrowers that are underserved by traditional sources of capital. RBI Confident of 7.2% Growth in FY 2025; India Poised To Become Third Largest Economy in the World, Says Shaktikanta Das.
Rough estimates place private credit assets under management at around $15 billion. “Fintech lenders, which are reported to have captured over 52 per cent of the market share of personal loans, are increasingly turning to private credit to raise funds and diversify borrowing sources. The resilience of private credit in a credit downturn, however, remains untested,” the Central Bank said.
(The above story first appeared on LatestLY on Sep 21, 2024 06:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).