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Moneycontrol Pro Panorama | IPOs are flying thick and fast

In today’s edition of Moneycontrol Pro Panorama: The big question before RBI Governor, what SBI’s valuation says, mapping the recovery, Cummins India CFO interview and more

December 09, 2021 / 02:12 PM IST

Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.

A raft of initial public offerings (IPOs) are set to hit the Street this week. Beginning today, one IPO will open for subscription everyday till Friday. Two more public issues are slated to open next week.

The IPO count has already exceeded the levels of FY21. During April to November, 71 public issues raised Rs 85,600 crore and crossed the previous fund-raising record of FY18, show data collated by India Ratings and Research. If the much-touted IPO of the Life Insurance Corporation of India (LIC) materialises in this fiscal year, then FY22 may as well end up as the best year for primary markets in at least two decades (in terms of amount raised).

The buoyant primary, equity markets can have positive rub-off effect on the economy, though the beneficiaries can be limited. Note that new-age technology-based companies dominated the public issues in the current phase. The objective of promoters and strategic investors of several of these companies is investment monetisation. “The surge in issuances by new age tech-oriented corporates compared to traditional (companies) has more to do with value unlocking and brand recognition than the need for long-term assets capex or deleveraging,” adds India Ratings.

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Our research team analysed the IPO of the Software as a Service (SaaS) provider RateGain Technologies, which opened today. The pandemic has accelerated the digital transformation journeys of the organisations across the globe and this opens good growth opportunity for SaaS, IT services providers. But valuation appears expensive. Do read.

Meanwhile, equity markets have rebounded from the Monday sell-off. The NSE Nifty 50 index is up 1.6 percent at the time of writing this letter, tracking the gains in the global markets. China’s move to infuse more liquidity into its financial system and expectations of milder Omicron are fuelling gains.

The Reserve Bank of India is set to release its monetary policy update on Wednesday. Will the latest events, notably Omicron-induced uncertainty, delay the pace of policy normalisation by India’s central bank? The economic recovery is uneven while rising prices are stoking inflation beyond the central bank’s comfort zone. Read our curtain-raiser for the event.

More investing insights from our research team:

Deep Value Series: Will SBI stock's upward journey resume?

SIS: India security and facility management to lead growth

What else are we reading today?

Economic Recovery Tracker | Pausing for breath?

Is the bull market in natural gas over?

Interview | Cummins India to benefit from shift in capex to sunrise sectors: CFO

Insulin complements Eris Lifesciences' diabetes portfolio, market share gains key

Three tech giants control half of advertising outside China (republished from the FT)

Crypto Conversations: DAOs will take centre-stage in 2022, mostly in play-to-earn Blockchain Gaming

How remittances have shaped the socio-economic landscape of Kerala

Picks from our technical analysts: Talbros AutoHFCLDLF and GAIL (These are published every trading day before markets open)

R Sree Ram

Moneycontrol Pro

 
R. Sree Ram

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