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Why investors should be cautious of India s IPO boom

Why investors should be cautious of India’s IPO boom Stretched valuations of companies have caused some worry. Mar 11, 2021 · 07:30 pm Most of the companies that have gone public since last year have not only seen stellar listing gains but have also continued to soar to new highs over the following days. | Danish Siddiqui/Reuters A year ago, if someone had predicted that Indian stock markets were heading towards their lifetime highs, most economists and brokers would have scoffed it off. But the unbelievable has happened and it has triggered euphoric optimism. Between January 1 and March 2, nine Indian companies made their stock market debuts, garnering a total of $1.46 billion (Rs 10,950 crore). The funds raised via initial public offers during this period are the highest since the corresponding weeks in 2008, according to London-based financial market data provider Refinitiv.

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