The correction in the equity market has started showing its impact on fund raising activities. CY24 saw 92 IPOs, raising over ₹1,62,261 crores, whereas companies raised over ₹1,36,424 crores via 91 QIPs, said a note by Emkay Global Financial Services.
Year over year, the IPOs in Jan-Feb 2025 is limited to only 10 versus 15 last year, whereas QIPs in Jan-Mar 2025 is limited to only 7 versus 18 last year, it said.
“Several firms may have to rework and re-file their draft prospectus given the steep drop in valuation of their listed peers. New age technology companies may be particularly impacted,” said Yatin Singh, CEO – Investment Banking, Emkay Global Financial Services.
- Read also: Markets extend gains as Fed rate cut hopes boost sentiment
Public sector is turning out to be a material client for investment banks in India. The Department of Investment and Public Asset Management (DIPAM) has set a divestment target of ₹47,000 crore for FY26. This is a huge opportunity for Investment Banks in FY26 and beyond, the brokerage said.
In the past 3 years, IPOs of LIC, IREDA and OFS of ONGC, IRCTC, HAL, Coal India, RVNL, NHPC, Hudco, Ircon, Cochin Shipyard has kept the deal street buzzing from the PSU segment. The IPOs of Bharat Coking coal, CMPDI, MNGL and QIP/OFS of IREDA, GRSE, Veedol, Central Bank, Uco Bank, IOB, Bank of Maha, Punjab & Sind is likely to provide prospects to the investment banking industry in FY26 and beyond.
The resilient SIP inflows are supporting markets to a large extent. SIP flows has been over ₹20,000 crore for the past 11 months (entire FY25, April 2024 till February 2025). “The SIP flows has risen to over ₹25,000 crore for the past 5 months which is quite an encouraging sign, this despite negative returns from the market since September 2024. The street was expecting a slowdown, fall in SIP flows, – which is quite normal in a falling market. A fall in SIP going forward could have a severe impact on overall market performance,” Emkay Global Financial Services said.
