Some very big IPOs are going to come soon in India. Investors in India are expecting the long awaited IPO of Jio Platforms and NSE (National Stock Exchange). However, the biggest feature of these IPOs is not their size, but the environment in which they are coming to the market. The big thing is that these IPOs are coming at a time when the market is under pressure. The big question is whether Jio and NSE IPOs will also be able to repeat history like Maruti Suzuki?
When Maruti Suzuki’s IPO came in the year 2003-04, the Indian market was going through many difficulties. Investor confidence had weakened after the dot-com bubble crash and the Ketan Parekh scam. At such a time, Maruti’s IPO came and it again attracted retail investors towards the stock market. After this, from 2003 to 2007, the Indian market witnessed tremendous growth. Simply put, Maruti Suzuki’s IPO had breathed new life into the market.
Market condition is same as before
The Indian stock market has not given much returns to investors in the last two years. On the other hand, foreign investors have reduced their stake in Indian shares. Not only this, the enthusiasm of retail investors also does not seem to be the same as before. Apart from this, many recent IPOs have not been able to impress investors. Experts believe that the IPO prices of Jio and NSE can remain balanced. That means their valuations will not be inflated too much. This may provide better opportunities to investors.
Will we be able to repeat history like Maruti?
Big investors from all over the world are also showing interest in these two companies. The reason for this is that Jio and NSE are very strong and influential companies in their respective fields. It is not easy for new companies to enter their business. Some market experts hope that the IPOs of Jio and NSE can breathe new life into the Indian stock market. They are comparing it with Maruti Suzuki’s IPO.
This is a big challenge for Jio and NSE
Overall, the real question will not be whether these IPOs are fully subscribed or not. The real challenge will be whether these IPOs will be able to bring foreign investors back to the Indian market. While Maruti’s IPO had restored the confidence of domestic investors, Jio and NSE will have the responsibility of re-enthusiastic investors from all over the world to invest in India.
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