Markets likely to witness a robust capital raise next year as well. Of 65 IPO Documents, 25 have already received Sebi nod
FinTech BizNews Service
Mumbai, December 17, 2023: Last Friday, the RBI released its monetary policy. The
RBI kept its policy rate unchanged, and raised its GDP growth prediction for FY2024
to 7% from 6.5%.
Indian Market update:
The RBI maintained the 5.4% inflation target for fiscal year 2024. It underlined its
concern about rising Overall inflation in the coming months due to the potential risk
of inching up food Inflation.
CPI for the month of November came around 5.6% v/s 4.87% in the month of
October. IIP jumps to a 16 month high of 11.7% in October due to factory activity
rebounds aided by festival demand.
The Sugar sector remained in focus on government's ban on ethanol production from
sugar syrup/juice and B-heavy molasses procured by OMC for SY 2023-24. The
government move to curb ethanol production using sugarcane has come after erratic
monsoon in India harmed sugarcane crops, prompting India - the world's second
biggest sugar producer to extend restrictions on exports beyond October 31, 2023.
Global Market update:
Last week ends, we have seen Non-farm pay roll data in US came better than
expected. Non-farm pay roll employment increased by 199000 in November but it
was below the last one year average. This indicates less increase in job growth.
Unemployment rate edged down to 3.7%.
CPI for the month of November came around 3.1% in line with expectation. The
FOMC Policy Meeting concluded on Wednesday. The Federal Reserve kept interest
rates unchanged at 5.25%-5.5%, as expected, and indicated three rate cuts in
CY2024. "Inflation has eased from its highs, and this has come without a significant
increase in unemployment" stated FED Chair Jerome Powell. The FOMC anticipates
that the fund rate will reach 4.75% by the end of fiscal year 2024. The BOE and ECB
will also meet this week to discuss monetary policy.
Indian Primary Market Update:
In the primary market during the period 9-15 December, Mainboard IPO of Indian
Shelter Finance Corporation and DOMS Industries Limited opens to raise fund of Rs
2,400 crores.
A key reason for the strong interest in IPOs has been an increased focus on
profitability and reasonable pricing of deals, at least relative to prevailing higher
valuation multiple in listed peers.
Next week looks promising, more than half a dozen companies will hit the market
with their IPOs. IPO of Inox Limited, Muthoot Microfin, Motisons Jewellers, Suraj
Estate, Happy Forgings, RBZ Jewellers, Credo Brands and Azad Engineering are
slated to open next week. The cumulative amount that is being targeted to be raised
from these IPOs is around Rs 8,000 crore.
Markets are likely to witness a robust capital raise next year as well. There are more
than 65 IPO documents filed with Sebi. Of these, 25 have already received Sebi nod.
