Impact of stock market crash: Not a single IPO for three weeks; Rs 1.6 lakh crore were raised in 2024
New Delhi| The effect of continuous decline in the stock market is also visible on IPOs. Last year, companies were heavily listed, but not a single company has entered the market for the last three weeks. Just five companies entered the capital market in January and four in February, compared to 16 IPOs in December. The final IPO of Quality Power Electrical came on February 14. The effect of the slowdown in the market is that three companies Advanced Systems, SFC Environmental and Vini Corporation had withdrawn the draft deposited in January and February. In 2024, companies had raised 1.6 lakh crore through 91 public issues.
Investors alert
Analysts say that the market decline negatively affected the share prices of many listed companies in January and February. Due to this, investors are avoiding investing money in IPO. However, companies are submitting drafts on a large scale.
45 companies got approval
At this time, 45 companies have received approval from SEBI to bring the issue, which will raise Rs 67,000 crore. 69 companies awaiting approval. Some 30 companies have submitted drafts in two months.
Tata Capital and Ather Energy are also in the race now
Tata Capital is about to submit the draft to raise Rs 17,000 crore. However, the company will submit the draft after getting final approval from NCLT for merger with Tata Motors Finance. Electric two-wheeler maker Ather Energy has converted its outstanding mandatory convertible preference shares into equity, making it easier to launch an IPO. The company may enter the market in April.
