In 2023, through an IPO of Rs. 1.4 lakh crore will be raised

- Regulatory crackdown is preventing many new age startups from taking the listing route

The year 2023 will witness a flurry of Initial Public Offering (IPO) activity. According to available data, around 89 companies will be listed on Dalal Street in 2023 at an estimated cost of Rs. 1.4 lakh crore will be collected. In 2021, a total of 63 companies through IPO in India raised Rs. 1.19 lakh crore was collected. While in 2022 Rs. 59,000 crore was collected.

Markets are making new highs with time. But the interesting thing is that in the last few years there has been an alpha generation in IPOs. However, some investors are now hesitant to invest in IPOs. Just looking at the fact that shares of some recently listed companies are trading below their issue price.

Many new age companies entered the stock markets at relatively hefty valuations only to see a quick correction and erosion of investor wealth as collateral losses.

The regulatory crackdown has prevented many new-age startups from taking the listing route. Differences in the regulator's perspective on the subject can be attributed to the increased likelihood of settling with lower-than-expected valuations as companies such as Nyka, Zomato and PB Fintech have significantly reduced shareholder wealth. Until the prices of recently listed companies return to their IPO price levels, there will be concerns.

Meanwhile, reports say bot has postponed its public stock sale plans and instead raised $60 million from private investors.