2017 could be yet another marquee year for IPOs as some well-known names across telecom, financial services, retail and healthcare are looking to list. Among the companies (some of them already armed with a SEBI approval) coming to tap the primary market include India’s premier stock exchanges, National Stock Exchange and Bombay Stock Exchange and the largest depository participant, Central Depository Services (CDSL) which has already filed its prospectus, D-Mart’s parent company Avenue Supermarts (Rs.1,870 crore), and Aster DM Healthcare (Rs.1,600 crore). While 2016 turned out to be a good year for IPOs both in terms of funds raised and performance, will macro-economic and political factors play spoilsport and scuttle things in 2017 or will the pipeline of quality IPOs keep these concerns at bay and find ample buyers?
“If you are asking me to launch an IPO in the next ten days, I will be cautious. I would like to watch how FIIs allocations pan out for India, budget guidance and situation after demonetisation in terms of how business picks up,” says Girish Nadkarni, managing director, investment banking, Motilal Oswal Financial Services. The year 2017 began with a cautious note as there are increasing concerns on the impact of demonetisation on companies’ growth and earnings. With FIIs looking to exit emerging markets like India following the US rate hike and the uncertainty surrounding the domestic environment, markets have seen a huge sell-off in recent months. In the last three months alone, FIIs have sold close to Rs.35,000 crore of equities. In 2016, they have sold close to Rs.8,800