IPOs show no sign of capex revival, fresh issue component below 20%

Fresh issue component in total fund below 20% for a second year in a row

A turn in the capex cycle may not be around the corner if primary market activity is any indication.

Fresh capital through initial public offerings (IPOs), typically used to fund expansion and capex, continues to remain sluggish. For the second financial year in a row, fresh equity issuances have accounted for less than a fifth of total IPOs.

While the fresh issue portion of IPOs has been going down over the years, this financial year has been abysmally low at only Rs 2,663 crore, 82 per cent lower compared to the last financial year.

In fact, new companies have spent