Will The IPO Party Continue In 2022?

The year 2021 could be termed as the year of initial public offerings (IPOs). On the back of market euphoria, high liquidity and increased retail participation, over 60 mainboard IPOs (companies with a minimum post-issue paid-up capital of Rs 10 crore) have raised money from the primary market through IPOs. According to the EY Global IPO Trends Report of December 2021, “In India, year-on-year IPO activity increased 156 per cent and 314 per cent by deal numbers and proceeds, respectively. By proceeds, 2021 represented the best IPO year in India in the last 20 years. Ample global liquidity, strong earnings and increased retail participation were among the main factors driving the markets in 2021.” The Reserve Bank of India, in its State of the Economy report in August 2021, stated that “2021 could well turn out to be India’s year of the initial public offering...