Why is it raining IPOs in 2021?

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The IPO bug seems to have bitten everyone. We are in the middle of the Covid-19 pandemic, and it is raining IPOs in India. Several companies ranging from tech startups to chemical manufacturing firms and restaurant chains have gone public in 2021 and more are lining up.

As many as 25 firms have already raised over Rs 27,000 crore via the initial public offering route in 2021 so far. This is also the highest amount raised compared to the first six months of the last decade.

But why are so many companies going public in 2021?

In this video, we have tried to decode all the reasons which are pushing companies to launch IPOs to raise funds, even if they are loss-making firms.

While we have seen a string of new companies hitting the street in the last few years, 2020 saw 15 companies launching IPOs, 2019 saw 16 new firms hitting the street, more companies were seen launching IPOs during a bull market scenario.

What is IPO?

IPO stands for Initial Public Offering. An IPO is a private company offering shares to the public in new stocks. When a company goes from public to private, it offers IPOs an excellent opportunity for public investors to invest in its stocks.

In the current scenario, though we are seeing companies from various sectors like infrastructure, speciality chemicals, quick service restaurants and healthcare, etc. coming to the fray, the investor community is focused on the new generation of digital companies entering the stock markets for the first time. After Zomato, Nykaa, PayTM, Delhivery  and many more are all gearing up to go public. It’s almost as if the Indian startup ecosystem met at once and decided this was the most opportune moment to IPO in India. In this video, we help you make sense of why is this all happening now