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The Great IPO Rush of 2021

MAS Team 24 December 2021
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As per a report in ‘The Economic Times’, fundraising through initial public offerings (IPOs) touched a record high in the year 2021. According to data, 63 companies have floated an initial share sale this year, raising Rs 1.19 lakh crore from public investors.
 
This is nearly 4.5 times higher than the IPO fundraising in 2020 and almost double that of 2017 which held the record until now for highest fundraising, data compiled by Prime Database showed. In 2020, 15 companies raised Rs26,613 crore from the public market while in 2017, 36 companies raised Rs68,827 crore.
 
Market participants expect this buoyancy in the primary market to continue despite some lacklustre listing in the recent past. Currently, 35 companies have received a nod from the Securities and Exchange Board of India (SEBI) to float IPOs worth Rs50,000 crore. Another 33 companies have filed their offer documents for raising around Rs60,000 and are awaiting SEBI approval. 
 
The year saw a slew of IPOs from the new age businesses. One 97 Communications - the parent company of Paytm - tapped capital markets to raise Rs18,300 crore making it the largest IPO of the year. Other tech companies including Zomato and Nykaa also made their debuts in 2021.
 
Even in terms of overall fundraising, 2021 has been a record year for the markets. India Inc raised capital of Rs 2.17 lakh crore through public markets against the previous record of Rs 1.85 lakh crore in 2020. Overall fundraising includes both debt and equity such as IPOs, follow-on offers, qualified institutional placements and bond issuances by state-owned and private companies.

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
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What changes:
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Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder