RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
Just 14 companies filed Draft Red Herring Prospectus (DRHP) forms in February as opposed to 29 in January, the lowest ever to show since November 2024.
Decline in Fundraising: The overall amount being sought for IPOs dipped to ₹9,695 crore, which is a low of 9 months.
What is Slow IPO Market?
The condition called the Slow IPO Market is attributed to the low DRHP applications, which observed a new low of 3 months.
What is Initial Public Offerings?
What is Behind the Slowdown?
- Market Volatility
- Since the beginning of October, companies have been extra cautious because of fluctuations in the market.
- Political Uncertainty
- The apprehension of investors has heightened since the likely return of Donald Trump to the White House in January.
- Wait and Watch mode
- IPO filings have been stopped by companies, in the hope that more stability and bullishness would follow.
Wider Market Effect
- Brokerage Stocks Suffered
- An onslaught of selling for a long period combined with possible SEBI changes in regulations related to the derivatives markets meant declines of up to 18% in a couple of brokerage stocks.
- RIL Weakens
- Stock of reliance industries (RIL) fell tracking weak earnings.
Source: BS