Slumping Markets, Soaring IPOs: The Contrarian's Dream

In spite of the recent decline in stock market indices, analysts opine that IPO activity need not slow down. The Indian market has also witnessed a huge fall, with the Sensex and Nifty losing almost 13% of their highs. This has shaken IPO plans, with more than two dozen firms postponing their offerings. Nevertheless, long-term outlook for IPOs is favorable, with most companies such as Zepto and Reliance Jio set to go public.

The National Securities Depository Ltd (NSDL) plans to float a huge IPO in late March, worth Rs 3,000 crore. Unconcerned with volatility in the market, companies are encouraged to go ahead with IPOs to cash in on future growth opportunities. Analysts opine that though conditions at present are tough, they should not discourage companies from going for public offers.

Sources: Indian Express, Business Standard, Economic Times