Page 39 - The Insurance Times September 2022

PUBLIC

OFFERINGS OF

SECURITIES

INSURANCE

(POSI)

Indian Stock Exchanges (BSE, NSE, SMEs) ranked 12th in potential interest rate hikes, as well as the covid-19
the world in terms of the number of IPOs in YTD 2021. pandemic risk continuing to hold back full economic recovery.
Once the current scenario settles, a lot of IPOs may start
An Initial Public Offer (IPO) is the first sale of shares to the coming to the markets in the next 3-6 months, especially
public by a privately owned company. The companies going those who have chosen to park their public offerings until
public raises funds through IPO for working capital, debt the markets stabilize.
repayment, acquisitions, and a host of other uses. An investor
can apply for IPO Stocks in India by filling an online IPO Companies planning to raise funds through IPO are a mix of
application offered by the stockbrokers and banks. traditional companies with long track records as well as
newer age companies across various sectors such as
Though India is now more attractive for growth seeking consumer, pharmaceuticals, technology, logistics and
foreign capital given the recent decline in China's stature financial services.
as an investment destination, yet volatile market conditions
have led to a significant slowdown in the IPO market during IPOs are a marketing event for the issuer. Given the hype
the first quarter of 2022. The other factors contributing to pre-IPO with most companies, there is an increased scrutiny
the slowdown are geopolitical tensions, price correction in and accountability post-raising of capital. Paytm, Zomato,
overvalued stocks, growing concerns about a rise in Kalyan Jewellers India, Reliance Power, ABSL AMC are few
commodity and energy prices, the impact of inflation and of the popular IPOs which failed - the stock prices of the
company did not meet the valuation at which the stock was
About the author listed. More than 40% of IPOs this year have failed in the
first half of the year itself, more so, the START-UPs.
Sweta Agarwal
Is the management up to such challenge?
Underwriter - Credit & Liability
Ideal Insurance Brokers Pvt Ltd POSI is a specialist product which is tailored to indemnify

The Insurance Times, September 2022 39