More than 100 DRHPs filed with Sebi this year amid IPO fever: Report

IPOs have been the business buzz-word of 2021 with start-ups and companies going public in record numbers.

More than 100 companies have filed their red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) already this year, according to Business Standard.

The trend points towards favourable market conditions - an opportunity companies are hoping the make most of amid the Covid pandemic.

The likes of Zomato, Paytm and LIC have made much noise with their IPO announcements, but there are countless other who have filed for the same, leading to more than a century of IPO listings this year.

Zomato, India's very first start-up to list for its Rs 9,375-crore IPO in July, amassed over Rs 2 trillion.

Other than Paytm, Nykaa and Paisabazaar are the start-ups gearing to launch their IPO this year.

Read | IPOs slow down globally in Q3 after frenetic 2021 start

In August, 28 DRHPs were filed, and in Setember it was 21, according to a 'prime database'. The average DRHPs filed with Sebi every year usually clock at 40.

The latest companies to list with Sebi are Oravel Stays (operators of OYO) and Wellness Forever.

About 40 companies have raised nearly Rs 64,000 crore so far this year, which is close to the last record made in 2017 - Rs 67,147 - which was pre-pandemic.

Once LIC launches its IPO later this year, it may double the Rs 1 trillion goal companies that listed for IPOs in July are aiming for.

“Past several years of PE investments are finding their way to exit this year. As a result, the IPO activity we are seeing this year is more secondary-oriented,” Sumit Jalan, co-head of India Investment Banking & Capital Markets at Credit Suisse, was quoted telling Business Standard.

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