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Investment experts anticipate a surge in IPO activities during the latter part of the 2023-24 fiscal year, continuing the trend observed in recent months. Out of the 31 IPOs scheduled for the first half of the fiscal year, 21 made their debut in August and September, as indicated by data from Prime Database. This was followed by an additional four IPOs in October.

As of the end of September, 28 companies, aiming to raise a total of Rs 38,000 crore, are awaiting approval from the Securities and Exchange Board of India (Sebi), while an additional 48 companies are in the queue for regulatory approval.

In the coming 4 to 5 months, investment professionals are anticipating a busy period before a potential hiatus due to the upcoming general elections. Mahavir Lunawat, the Chairman of the Association of Investment Bankers of India, noted that despite global concerns arising from geopolitical tensions, investors continue to view India as a dependable and stable market.

According to Prime Database figures, in the first half of the current fiscal year, foreign portfolio investors subscribed to 26% of the IPO amount, surpassing mutual funds, which accounted for 20% of the subscriptions. Lunawat emphasized that companies are eager to raise capital promptly and seize opportunities in light of the impending general elections and potential market volatility.

The reduced listing time for shares in public offerings, which now stands at three working days (compared to the previous six working days), following regulatory changes implemented by the Securities and Exchange Board of India (Sebi) in August, has provided investors with greater flexibility to explore concurrent IPOs. It has also bolstered confidence among both domestic and international investors in the effectiveness of the Indian market system.

The growth in the number of merchant bankers to 221 in recent years has prompted the association to initiate capacity-building efforts. They plan to enhance their due diligence manual, which exceeds Sebi’s requirements, and streamline the approval process. An internal committee has been established to revamp the due diligence manual, and another committee will focus on understanding Sebi’s uniform observations.

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