CHART OF THE WEEK 📈
IPOs have dried up after last year’s IPO-boom.
In 2021, 65 companies got listed on the stock markets, raising a total of nearly Rs. 1.3 lakh crore. IPO conditions were ideal last year:
The markets were booming
Investors were confident
New investors were getting added into the markets
A lot of new-age internet start-ups got listed - names that people knew stories of, and products that people used and even maybe loved
Since the beginning of this year though, the IPO market has dried up. A lot of the IPO stocks are even trading below their listing - especially internet companies. What's with the reversal?
The markets have turned uncertain - there’s a war, central bank policies are reversing globally, and bearish sentiments are growing
Investors have turned risk averse, and have been moving from risky assets to less risky ones
Valuations for internet companies have halved, casting doubts on the minds of ones who had plans of getting listed