Vaib­hav Agrawal

Dalal Street Investment Journal - - SPECIAL REPORT -

How do you think IPOS have per­formed in 2017 so far?

We be­lieve that in 2017, the per­for­mance of the IPO mar­ket has re­mained sat­is­fac­tory. This year so far, close to ₹10,000 crore of funds have been raised through the pri­mary eq­uity of­fer­ings. This year, ₹8,200 crore have also been raised by the In­fra­struc­ture In­vest­ment Trusts, which is a new in­stru­ment in­tro­duced in the In­dian cap­i­tal mar­kets. These In­vits have also seen good in­ter­est from the in­vestors. The IPO list­ings were mostly sat­is­fac­tory and we be­lieve that the qual­ity of IPOS has also been good this year so far. One of the high­lights of this year’s pri­mary mar­ket was list­ing of Av­enue Su­per­mar­kets which gath­ered huge in­ter­est from the in­vestors dur­ing sub­scrip­tion as well as upon list­ing. CDSL has also seen huge sub­scrip­tion. One of the main rea­sons for the good per­for­mance of IPOS this year has been am­ple liq­uid­ity and high in­vestor con­fi­dence stem­ming from the fact the do­mes­tic macros are im­prov­ing and econ­omy is ex­pected to do well go­ing ahead.

Look­ing at cur­rent mar­ket sit­u­a­tion, what strat­egy should be adopted by the re­tail in­vestors for IPOS?

We be­lieve that in­vestors should stick to the busi­ness fun­da­men­tals and val­u­a­tions rather than get­ting car­ried away by mar­ket liq­uid­ity, which may lead to in­vest­ing in the poor qual­ity IPOS. One should keep fo­cus on the qual­ity of the busi­ness, fi­nan­cial per­for­mance, scal­a­bil­ity of the busi­ness model, pro­moter’s back­ground and valu­a­tion.

Will 2017 be a bet­ter year than 2016 for IPO in­vestors? Your thoughts.

Yes, so far good qual­ity IPOS have raised money in the mar­kets, and look­ing by the trend, we be­lieve that the per­for­mance of the pri­mary mar­ket is likely to re­main bet­ter this year as in­vestor con­fi­dence has re­mained very op­ti­mistic. If macro data con­tin­ues to im­prove, we ex­pect that the IPO per­for­mance will re­main healthy this year.

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