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<ul><li>Even after the <keyword id="6473060" type="General" weightage="80" keywordseo="syrma" source="Orion">Syrma</keyword> SGS IPO received an overwhelming response, experts believe that another IPO season is not on the horizon.</li><li>The regulatory approval for at least 30 IPOs received in the last financial year will lapse by the end of the year. 31 IPOs received an approval this financial year.</li><li>Companies will watch the performance of the next few IPOs and the secondary markets before opening issues, say two market experts that Business Insider spoke to. </li></ul>Even before the public offer of <keyword id="14738256" type="General" weightage="50" keywordseo="syrma-sgs-tech" source="Orion">Syrma SGS Tech</keyword> was oversubscribed 33 times last week, three companies – Digit General Insurance, Concord Biotech and <keyword id="1126663" type="General" weightage="50" keywordseo="balaji-solutions" source="Orion">Balaji Solutions</keyword> – had filed their papers with the markets regulator in the third week of August to go public. Another IPO DreamFolks is all set to open for subscription this week. Yet, experts are not convinced that another IPO season is on the horizon. “It’s too early to say that the season of IPOs has started. A lot of companies in the pipeline will be watching for two things – the response that the next few IPOs get and also the market momentum. If the markets remain volatile, companies will allow their approvals to lapse,” Pranav <keyword id="3517398" type="General" weightage="80" keywordseo="haldea" source="Orion">Haldea</keyword>, managing director of Prime Database told Business Insider India. While a few companies like PharmEasy, Inox Green Energy and <keyword id="12727880" type="General" weightage="50" keywordseo="nandan-terry" source="Orion">Nandan Terry</keyword> withdrew their draft papers, scrapping IPO plans, at least four more companies’ approvals will lapse by the end of August. The approvals for another 15 will lapse by the end of the year. “IPOs are a once-in-a-lifetime event for companies and they would want to do it at the perfect time. If the market is not giving them the valuation that they expect, they will not go ahead,” said Haldea. Only <keyword id="4093871" type="General" weightage="50" keywordseo="utkarsh-small-finance-bank" source="Orion">Utkarsh Small Finance Bank</keyword> has re-filed its IPO papers, even as many more companies that planned to go for an IPO in the last financial year let it lapse. Over 32 IPOs that received a go ahead in 2021-22 have been put on hold, while 31 more received an approval in 2022-23. Of these 31 from the current financial year, only Syrma and DreamWorks have gone ahead and opened their issues to the public. A lot of companies file DRHPs assuming issues will sail through but a number of factors like valuations and demand for fresh issuances among domestic and foreign investors play a key role. “There are 10-12 conditions that they have in mind during the filing and many of these conditions may change,” said Arun <keyword id="6358183" type="General" weightage="80" keywordseo="kejriwal" source="Orion">Kejriwal</keyword>, founder of Kejriwal Research &amp; Investment Services. A lot of IPOs from last year that are still in the pipeline, had issue sizes between ₹400-800 crore. However there are a few like Emcure <keyword id="6363818" type="General" weightage="50" keywordseo="pharma" source="Orion">Pharma</keyword> which had plans to raise over ₹4,500 crore as well. The decision to go ahead with an IPO will not depend on the size of the issue, but on pricing, says Kejriwal. “When the momentum is good, subscriptions and listings are good, it’s possible to slip in a bad issue but not when the market is still picking up. After <keyword id="30067" type="General" weightage="50" keywordseo="rbi" source="Orion">RBI</keyword> capped the amount that HNIs (high networth individuals) can borrow to invest in IPOs to ₹1 crore, they will have to invest their own funds and that will make a huge difference to subscriptions,” says Kejriwal. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/meet-indias-real-gully-boy-vidit-aatrey-of-meesho-is-taking-the-entrepreneurial-dream-deep-inside-bharat/articleshow/93702491.cms">Meet India’s Real Gully Boy: Vidit Aatrey of Meesho is taking the entrepreneurial dream deep inside Bharat</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/upi-transactions-will-remain-free-government-says-it-has-no-plan-to-charge-them/articleshow/93702248.cms">UPI transactions will remain free, government says it has no plan to charge them</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-slips-517-points-goes-below-the-60000-mark/articleshow/93701486.cms">Sensex slips 517 points, goes below the 60,000-mark</a>

Too early to say primary market is seeing a revival

<ul><li>In the last six months, <a href="https://www.businessinsider.in/stock-market/news/12-equity-oriented-thematic-mfs-launched-in-the-last-6-months/slidelist/98900160.cms">12 new funds have been launched </a>in thematic schemes category with multinational companies (MNC) fund, <keyword id="347032" type="General" weightage="20" keywordseo="dividend-yield-fund" source="Orion">dividend yield fund</keyword> being and <keyword id="12557861" type="General" weightage="20" keywordseo="business-cycle-fund" source="Orion">business cycle fund</keyword> catching investor attention.</li><li>Such funds are popular as investors are looking for value creation across the board, beyond benchmark indices.</li><li>Such funds carry high risk and may not meet investor expectations of better returns in the long run, say experts.</li></ul><keyword id="917586" type="General" weightage="20" keywordseo="thematic-funds" source="Orion">Thematic funds</keyword> have created a buzz among investors given inflows into sectoral/thematic funds jumped more than three times from ₹903 crore in January, 2023 to ₹3,856 crore in February, 2023. In the last six months, <a href="https://www.businessinsider.in/stock-market/news/12-equity-oriented-thematic-mfs-launched-in-the-last-6-months/slidelist/98900160.cms">12 new funds have been launched </a>in thematic schemes category with multinational companies (MNC) fund, dividend yield fund being and business cycle fund catching investors attention. Such funds are popular because investors are looking for value creation options, across the board beyond benchmark indices. The fact that <a href="https://www.businessinsider.in/stock-market/news/back-to-square-one-nifty-circles-back-to-levels-last-seen-in-september-2021-markets-likely-to-end-2023-in-the-red/articleshow/98898424.cms">Indian markets have bled deeply </a>while underperforming global markets let investors look for sectors that are relevant in the current market situation. However, such funds carry high risk and may not meet investors expectations of better returns in the long run. “In recent months, performance of large and mid cap funds has not been optimal which can explain shifting investor interest towards alternate funds. We saw something similar a couple of years back when Indian investors invested heavily in international funds with an aim to get higher returns from indirectly investing in technology companies overseas. However, thematic funds are riskier in nature. So only a limited portion of portfolio allocation should be made in them,” said Pranav Haldea, MD at Prime Database Group. Thematic funds are investment funds focused on specific themes or trends. They invest in companies with specific themes like investing only in multinational companies, high paying dividend companies and so on to capitalize on growth opportunities and maximize returns. High risk thematic funds is a risky bet Meanwhile, since the sectors like PSU Banks and infrastructure have performed better in the volatile market, investors have been looking to invest in these categories. Also, the PSU Bank index emerged as the top sectoral winner in 2022, recording gains of nearly 73% – or about 16x the gains of the Nifty50 in 2022, as on December 15. “Some of the funds in categories like PSU/infrastructure/ and banking have done well, which naturally attracts more money from investors. In addition, there have been significant new launches, which creates buzz in the market and investors are enticed to invest,” said Dikshit Mittal, fund manager and senior equity research analyst at LIC MF Asset Management. Mittal also highlighted that the domestic banking sector is also in good shape as they have clean balance sheets, the growth runway is large, and valuations are reasonable. Infrastructure as a theme also seems to have a bright outlook considering government focus, budgetary allocations and resurgence of the manufacturing sector in India, says Mittal. Not to forget, thematic funds carry high risk so experts recommend investors to allocate only a part of their corpus to such funds. “In addition, thematic funds need timing to enter and exit so investors need to be agile in exiting these funds when their objective has been achieved,” said Mittal. Timing and theme of the fund is an important factor that derives the performance of the fund as if the theme goes wrong, investor returns will be hugely impacted. “The sudden popularity of thematic funds is largely driven by clients looking to invest in different pockets in the market. In this category, timings and wider themes are a challenging aspect to beat. Most of the existing funds have a narrow theme which ends up impacting their returns. We do not recommend thematic funds as it is not suitable for every investor,” said Kaustubh Belapurkar, director of fund research at Morningstar Investment Adviser India. As thematic funds revolve around a certain theme, they are much less diversified than other large cap equity funds that have a mix of large and mid cap stocks. Experts feel lack of diversification and high risk in thematic funds makes it not suitable for all kinds of investors. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-group-stocks-stage-a-rebound-led-by-adani-enterprises-group-market-capitalisation-rises-by-22011-crore/articleshow/99084630.cms">Adani group stocks stage a rebound led by Adani Enterprises: Group market capitalisation rises by ₹22,011 crore</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tax-hit-on-debt-funds-is-just-the-latest-punch-to-reeling-mutual-fund-companies/articleshow/99081740.cms">Tax hit on debt funds is just the latest punch to reeling mutual fund companies</a>

Can Thematic Funds Beat Market Blues? Time for a reality check amidst all the noise

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Too early to say primary market is seeing a revival

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Can Thematic Funds Beat Market Blues? Time for a reality check amidst all the noise

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