CHART OF THE WEEK 📈
IPOs have dried up after last year’s IPO-boom.
In 2021, 65 companies got listed on the stock markets, raising a total of nearly Rs. 1.3 lakh crore. IPO conditions were ideal last year:
- The markets were booming
- Investors were confident
- New investors were getting added into the markets
- A lot of new-age internet start-ups got listed — names that people knew stories of, and products that people used and even maybe loved
Since the beginning of this year though, the IPO market has dried up. A lot of the IPO stocks are even trading below their listing — especially internet companies. What’s with the reversal?
- The markets have turned uncertain — there’s a war, central bank policies are reversing globally, and bearish sentiments are growing
- Investors have turned risk averse, and have been moving from risky assets to less risky ones
- Valuations for internet companies have halved, casting doubts on the minds of ones who had plans of getting listed
