<p>Bengaluru: As a result of the bearish sentiments in the stock markets, several companies that have recently filed papers for initial public offerings (IPOs) with Securities and Exchange Board of India (Sebi) might have to rework or even refile their Draft Red Herring Prospectus (DRHP), according to a webinar on Thursday by Emkay Investment Banking, the investment banking arm of Emkay Global Financial Services Limited.</p>.<p>This is because the sustained fall in markets has started showing its impact on fundraising activities as well, and thus may impact the anticipated valuation of these companies. For example, IPOs in January-February 2025 are limited to only 10 versus 15 in the same period of 2024, Emkay said.</p>.LG Electronics India gets Sebi's nod to float IPO.<p>Other risks may be having to wait longer or agreeing to a much lower valuation, cautioned Emkay. In fact, there may be an uptick in the number of companies filing confidential papers, in case companies are not sure if they will be able to achieve what they intend in the current market conditions. This was seen most recently in the case of edtech PhysicsWallah.</p>.<p>At the same time, the public sector is turning out to be a material client for investment banks in India, as per Emkay.</p>.<p>The Finance Ministry’s Department of Investment and Public Asset Management (DIPAM) has set a divestment target of Rs 47,000 crore for the next fiscal (FY26). This is a huge opportunity for investment banks in FY26 and beyond, it said.</p>.<p>The ongoing IPOs of various companies is likely to provide prospects to the industry going forward, as well.</p>.<p>On the bright side, systematic investment plan (SIP) inflows are supporting markets to a large extent. SIP flows have been over Rs 20,000 crore for the past 11 months (since April 2024). The SIP flows has risen to over Rs 25,000 crore for the past 5 months which is quite an encouraging sign, this despite negative returns from the market since September 2024.</p>.<p>Another redeeming feature is that domestic investors have been able to absorb a lot of foreign institutional investor (FII) selling, Emkay said.</p>
<p>Bengaluru: As a result of the bearish sentiments in the stock markets, several companies that have recently filed papers for initial public offerings (IPOs) with Securities and Exchange Board of India (Sebi) might have to rework or even refile their Draft Red Herring Prospectus (DRHP), according to a webinar on Thursday by Emkay Investment Banking, the investment banking arm of Emkay Global Financial Services Limited.</p>.<p>This is because the sustained fall in markets has started showing its impact on fundraising activities as well, and thus may impact the anticipated valuation of these companies. For example, IPOs in January-February 2025 are limited to only 10 versus 15 in the same period of 2024, Emkay said.</p>.LG Electronics India gets Sebi's nod to float IPO.<p>Other risks may be having to wait longer or agreeing to a much lower valuation, cautioned Emkay. In fact, there may be an uptick in the number of companies filing confidential papers, in case companies are not sure if they will be able to achieve what they intend in the current market conditions. This was seen most recently in the case of edtech PhysicsWallah.</p>.<p>At the same time, the public sector is turning out to be a material client for investment banks in India, as per Emkay.</p>.<p>The Finance Ministry’s Department of Investment and Public Asset Management (DIPAM) has set a divestment target of Rs 47,000 crore for the next fiscal (FY26). This is a huge opportunity for investment banks in FY26 and beyond, it said.</p>.<p>The ongoing IPOs of various companies is likely to provide prospects to the industry going forward, as well.</p>.<p>On the bright side, systematic investment plan (SIP) inflows are supporting markets to a large extent. SIP flows have been over Rs 20,000 crore for the past 11 months (since April 2024). The SIP flows has risen to over Rs 25,000 crore for the past 5 months which is quite an encouraging sign, this despite negative returns from the market since September 2024.</p>.<p>Another redeeming feature is that domestic investors have been able to absorb a lot of foreign institutional investor (FII) selling, Emkay said.</p>