The rising tide

Markets are booming but high valuations can be a spoilsport

A rising tide is lifting all boats in the markets. The Nifty and the Sensex have hit record levels and the primary market is buzzing. In calendar 2021, 58 companies have already filed draft red herring prospectus (DRHPs), which exceeds the combined tally of initial public offers (IPOs) in calendar 2019 and 2020. The number of IPOs can easily exceed 100 in 2021 if this trend lasts. Supportive valuations across sectors have led to a wide variety of businesses targeting IPOs. Moreover, many IPOs have listed at a premium and, thus, have earned a quick buck for the allottees. The