August saw 20 companies raise more than ₹21,000 cr, the busiest month in a year.
With marquee names like NSE, Reliance Jio and Zepto in the pipeline, supply of new listings should remain elevated.
Of the 22 companies that listed in the latest period, 18 delivered positive debut-day returns.So, it's easy to start treating an IPO as a lottery ticket: subscribe, hope for a premium, and sell on listing day.
At the risk of being a wet blanket, it's worth emphasising that listing gains are not a substitute for due diligence.Strong listing gains can create a feedback loop - successful debuts attract more investors, which encourages more companies to come to market, and can make valuations increasingly aggressive.
A rising tide also lifts mediocre businesses.
