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IPOs this fiscal largely from companies in sectors resilient to pandemic: Sebi chairman

Sebi chairman Ajay Tyagi said development of the bond markets is key to the Centre achieving its infra investment target.mintPremium
Sebi chairman Ajay Tyagi said development of the bond markets is key to the Centre achieving its infra investment target.mint

  • A total of 18 IPOs came out this fiscal on the main board till January 2021
  • Ajay Tyagi noted that the IPOs were largely from companies in sectors like technology, specialty chemicals, healthcare, certain financial sub-sectors, among others

NEW DELHI : Initial public offers (IPOs) in this financial year were largely from companies in sectors resilient to the pandemic or those which are recovering well, Sebi Chairman Ajay Tyagi said on Thursday.

A total of 18 IPOs came out this fiscal on the main board till January 2021.

He noted that the IPOs were largely from companies in sectors like technology, specialty chemicals, healthcare, certain financial sub-sectors, among others.

Besides, well-established market leaders too have raised funds through IPOs, Tyagi said while addressing a SEBI-NISM conference.

He also said there has been healthy investor interest in the IPOs.

"Every IPO saw a good amount of subscription with every issue being oversubscribed by atleast more than 2 times. Six of the total 18 IPOs, that is 1/3rd of the total number of IPOs were oversubscribed more than 100 times. Of these 6 IPOs, 5 were oversubscribed around or over 150 times," Tyagi said.

Talking about post-listing performance, he noted that 14 of the 18 IPOs listed at a premium to the issue price. Out of these 14, three listed at a premium of more than 100 per cent.

With the exception of two IPOs which listed in January this year, the other 16 IPOs are all trading above the issue price currently.

"Overall, till January 2021 in this financial year, corporate have already raised more than 8.4 lakh crore through equity and bond markets, around 40,000 crore more than the corresponding period in the last financial year.

"Funds raised from corporate bonds last financial year till January was almost double of the funds raised through equity. This year, the proportion is almost 3 times," Tyagi noted.

Tyagi also talked about the pandemic-induced major changes in corporate behaviour, including fund-raising.

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