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Buoyancy in IPO market due to increased retail participation: Aditya Birla Sun Life AMC

Updated : July 14, 2021 11:42:36 IST

Mahesh Patil, CIO of Aditya Birla Sun Life AMC, on Wednesday, said that the initial public offering (IPO) market is very vibrant with increased participation from retail.

Speaking in an interview with CNBC-TV18, he said, “IPO market, no doubt, has become very vibrant and buoyant. We have seen a lot of participation coming in, not only from institutions but also retail participation, this is probably what is driving the large subscription that we are seeing in the market.”

“Therefore, there is no doubt that India is at a turning point, where a lot of hi-tech companies are coming up, doing well and one would want to participate in that growth. So, take a small exposure and monitor how these companies do because they do not have earnings to value at this point of time, but there are other parameters which one would utilise when one is evaluating these companies,” said Patil.

On equity markets, he said, “The market has been ignoring all the negatives we are seeing on the domestic side and it is largely following what the global cues are. Globally, markets have been strong though we are seeing some kind of pressure and headwind here, markets are trying to consolidate here. Therefore, one needs to pause and take stock of the situation and be stock specific,” said Patil.

For the entire interview, watch the video.
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