2016 is IPO year: stock exchange IPO to watch out in 2017

The year 2016 remained a blockbuster year from the primary market perspective. Almost more than two dozen companies have managed to raise more than Rs 26000 crore through IPOs in 2016, which is the best one for public offers since 2010. The money raising through IPOs has increased by 91.68 per cent in 2016 as compared to the previous calendar year. There are initial public offerings (IPO) worth Rs 12500 crore that are already at final stages of hitting the market.

There has been a robust show from IPOs, aided by a proactive regulatory environment coupled with general uplift in investor sentiment, following the best monsoons in two years and the resultant positive macro environment. Market regulator SEBI has taken numerous steps that have encouraged companies to sell shares. One key enabler was making ASBA (Application Supported by Blocked Amount) mandatory for all investors, including retail. Also, SEBI's proactive approach to the market has ensured investors need not fear about frauds. 

The IPOs issuance remained strong in 9MCY16, but has been hampered in last leap of the calendar year. The sluggish growth perceived by the primary capital market is attributed to weakness in secondary markets from the month of September. Going forward, the deepening uncertainty over the impact of the note ban may see a marked slowdown in the short term. 

There are more than 150 small companies on the BSE SME Exchange now, which have raised about Rs 721 crore in 2016 after SEBI made it easy for small companies to go public. The market capitalisation of these companies is over Rs 12325 crore.

The year 2017 is set to make history too, as Asia's oldest bourse BSE is set to hit the market with a Rs 1300 crore share sale. Meanwhile, the larger rival NSE may go public towards the end of the year.