Is there an investment opportunity in PSP Projects shares?

The IPO season is not taking a pause anytime soon as around half a dozen companies received a go-ahead from market regulator Sebi (Securities and Exchange Board of India) to raise money via an initial public offer. Aptus Value Housing Finance, CarTrade Tech, Supriya Lifescience, Krsnaa Diagnostics, Vijaya Diagnostic Centre, and Ami Organics recently got Sebi’s nod.

So far in July, Clean Life Science & Technology, GR Infra Projects, Zomato and Tatva Chintan Pharma collectively raised Rs 12,385 crore through IPOs. Whereas the ongoing IPO of Glenmark Life Sciences and Rolex Rings IPO that’s slated to open on July 28 will raise Rs 2,245 crore through their public issue.

V K Vijayakumar, the chief investment strategist at Geojit Financial Services, said the performance of the IPO market usually has a strong correlation to the performance of the secondary market.

“If the stock market is bullish, it attracts a large number of investors into IPOs. Particularly, new investors lured by high potential profits, get attracted to new offers and the IPO market has always done well during market booms,” added Vijayakumar.

Earlier this month quick-service restaurant company Devyani International got Sebi’s green signal. The IPO would comprise of a fresh issue of Rs 400 crore and an offer for sale of up to 12,53,33,330 shares by a wholly-owned subsidiary of Temasek Holdings (Dunearn Investments Mauritius Pte) and RJ Corp. As per sources, the IPO is likely to hit the street in the first week of August and would be about Rs 1,400 crore.

The cement company owned by Nirma Group is planning to launch an IPO of Rs 5,000 crore in the first half of August. The offering will have a fresh issue of Rs 1,500 crore and a sale offer of Rs 3,500 crore.

Seven Islands Shipping, Utkarsh Small Finance Bank, Shriram Properties, Arohan Financial Services, Aadhar Housing Finance are at advanced stages of launching their IPOs.