The markets, it seems, are in stratosphere and Dalal Street continues to witness new highs almost every day. The Nifty and the Sensex have gained almost 80 percent from their March lows.
V Jayasankar, Sr ED & Hd-Eq Cap Mkts of Kotak Mahindra Capital spoke to CNBC-TV18 to talk about the macro outlook and how the primary market action is picking up.
On IPOs Jayasankar said, “Burger King was a blockbuster IPO listing, beyond the imagination of subtly assesses bankers. The response has been fantastic. 2020 has been, I would say a year of great IPO performance, we are seeing that momentum really carry through forward.”
On IPO inflows next year he said, “If some of the large IPOs like LIC happens, I think you could have a record year.”
He expects new-age companies to lead the listing queue in 2021.
“This year I would say the interest would be across even more number of sectors. We would expect at least the first company to list from the new-age technology companies, some of the unicorns that we are all familiar with and that would probably open the floodgate and I would say over the next 2-3 years you should probably see 6-8 companies list in India. So that will be a trend that will begin with 2021.”
Tapping foreign inflows is crucial according to Jayasankar. “Lot of institutional investors are telling us that flows into the emerging markets is way too strong, India needs to have a lot more new paper coming in, not necessarily through IPOs but also through follow-on. India can certainly attract a lot more and it is all a function of how much of fresh paper we can get,” he explained.
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