Surge in SME IPOs amid liquidity boom, raises Rs 2,600 crore: Newspaper Round-Up, India

Date:

A surge in initial public offerings (IPOs) by small and medium-sized enterprises (SMEs) has been witnessed recently, raising a whopping Rs 2,600 crore. This influx of IPOs has been facilitated by a liquidity boom, as there haven’t been any major IPOs in recent months, and the secondary market has become less affordable. The SME board has witnessed 100 companies going public in 2023, surpassing the previous record set by 141 firms in 2018, which raised Rs 2,287 crore. In comparison, only 19 companies on the main board were able to raise around Rs 14,500 crore during the same period.

The demand for these SME IPOs has been remarkable, with approximately Rs 1.44 lakh crore being invested. Some IPOs were oversubscribed, with 11 of them being oversubscribed between 200 and 400 times, and 13 being oversubscribed between 100 and 200 times. This surge in demand highlights the attractiveness of SME stocks and the strong liquidity in the market.

In other news, the Reliance Industries board has announced the entry of the third generation of the Ambani family into the conglomerate. Isha Ambani, Akash Ambani, and Anant Ambani have been appointed as non-executive directors, while Mukesh Ambani will remain at the helm for another five years to mentor his children in running the business empire. This succession plan marks an important milestone in the journey of the Ambani family, who initiated the $200 billion business empire started by Dhirubhai Ambani.

The Indian government is set to review its capital expenditure plans for the current financial year during pre-budget meetings scheduled in October-November. While there are no plans to exceed the provisioned capital spending worth Rs 1.18 lakh crore stated in the 2023-24 annual budget, there are expectations that populist schemes might be launched ahead of the 2024 general elections, requiring additional fiscal support.

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IBM CEO Arvind Krishna has emphasized the importance for India to develop independent artificial intelligence (AI) infrastructure, including large language models. The rapid progress in AI has the potential to transform governance and business, making it crucial for India to develop robust data and computing infrastructure to keep pace.

Jio Financial Services, a disruptive force in the financial services space, is set to enter the insurance business in partnership with global companies. Reliance Industries chairman Mukesh Ambani mentioned that the company would leverage predictive data analytics to co-create contextual insurance products with its partners. However, the heavily regulated finance sector may pose challenges for Jio Financial’s foray into insurance.

The El Nino weather phenomenon has affected rainfall patterns in India, leading to scanty rains in August. According to the India Meteorological Department, El Nino will remain moderate and strong till at least December, potentially impacting the autumn harvest. The southwest monsoon’s erratic behavior this year could have implications for rural demand and food prices.

State-run Oil and Natural Gas Corporation (ONGC) is in talks with global entities, including Malaysia’s Gentari, to establish a joint venture in energy storage. ONGC aims to explore opportunities in battery storage and pump storage projects as part of its efforts to transition towards greener energy sources.

The market regulator’s investigation into the Adani group has uncovered technical breaches in disclosures and offshore fund holdings, which may result in a monetary penalty. Despite facing allegations from short seller Hindenburg Research, the conglomerate has firmly denied any wrongdoing.

Swedish furniture maker Ikea is set to begin online sales in the national capital region of India by December. This move comes ahead of the company’s plans to open two large shopping centers in the coming years. Ikea’s entry into the e-commerce space is expected to boost the rapidly expanding domestic market and provide momentum to its growth strategy in India.

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The Indian gaming industry is witnessing a substantial surge in in-app purchases, with gamers spending around $250 million annually. Popular games like Battleground Mobile India and Free Fire are driving this spending, surpassing the combined revenues of over-the-top streaming platforms in India. With a significant number of serious players spending heavily, India’s gaming industry has immense potential for growth.

These news stories provide a comprehensive overview of various sectors in India, ranging from IPOs in the SME segment to the entry of the next generation in one of India’s largest conglomerates. With discussions on capital expenditure, artificial intelligence, energy storage, and gaming, it is evident that India’s economic landscape is undergoing dynamic changes across multiple sectors.

Frequently Asked Questions (FAQs) Related to the Above News

What is the reason behind the surge in initial public offerings (IPOs) by small and medium-sized enterprises (SMEs) in India?

The surge in SME IPOs can be attributed to a liquidity boom, as there haven't been any major IPOs in recent months, and the secondary market has become less affordable.

How many companies went public on the SME board in 2023?

In 2023, 100 companies went public on the SME board, surpassing the previous record of 141 firms in 2018.

How much money was raised through SME IPOs in 2023?

Approximately Rs 2,600 crore was raised through SME IPOs in 2023.

Was there a high demand for SME IPOs?

Yes, there was a remarkable demand for SME IPOs, with approximately Rs 1.44 lakh crore being invested. Some IPOs were oversubscribed, with 11 of them being oversubscribed between 200 and 400 times, and 13 being oversubscribed between 100 and 200 times.

What is the significance of the entry of the third generation of the Ambani family into Reliance Industries?

The entry of Isha Ambani, Akash Ambani, and Anant Ambani as non-executive directors marks an important milestone in the Ambani family's journey and ensures the continuity of the $200 billion business empire started by their grandfather, Dhirubhai Ambani.

Will the Indian government review its capital expenditure plans for the current financial year?

Yes, the Indian government is set to review its capital expenditure plans during pre-budget meetings in October-November.

Are there expectations of launching populist schemes ahead of the 2024 general elections?

Yes, there are expectations of launching populist schemes ahead of the 2024 general elections, which may require additional fiscal support.

What is IBM CEO Arvind Krishna's focus for India in terms of artificial intelligence (AI)?

Arvind Krishna emphasizes the importance of India developing independent AI infrastructure, including large language models, to keep pace with the rapid progress in AI and to transform governance and business.

What does the entry of Jio Financial Services into the insurance business entail?

Jio Financial Services plans to leverage predictive data analytics to co-create contextual insurance products with global partners, aiming to disrupt the financial services space.

How is the El Nino weather phenomenon affecting India?

The El Nino weather phenomenon has led to scanty rains in August and is expected to remain moderate and strong till at least December, potentially impacting the autumn harvest and having implications for rural demand and food prices.

What are the plans of state-run Oil and Natural Gas Corporation (ONGC) in the energy storage sector?

ONGC is in talks with global entities to establish a joint venture in energy storage, exploring opportunities in battery storage and pump storage projects as part of its transition towards greener energy sources.

What has the market regulator's investigation revealed about the Adani group?

The market regulator's investigation has uncovered technical breaches in disclosures and offshore fund holdings of the Adani group, which may result in a monetary penalty.

When will Ikea begin online sales in the national capital region of India?

Ikea plans to begin online sales in the national capital region of India by December.

Which are the popular games driving in-app purchases in the Indian gaming industry?

Games like Battleground Mobile India and Free Fire are driving in-app purchases in the Indian gaming industry, surpassing the combined revenues of over-the-top streaming platforms.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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