The coming week witnesses one of the most important follow-on public offers. Raising capital from the public is never easy for an existing company. Raising very large sums is certainly a huge risk.

The Adani group is seeking to raise large sums through a follow-on public offer. This issue is a test of the public market mood and overall sentiment. Given the rise of domestic investors in determining the markets’ direction, this issue is an indicator of how domestic investors feel about investing in IPOs. It is also a test of how investors want to position themselves in 2023 and to what extent they will carry their investing conviction forward.

Clearly, the size of the issue makes this a very significant market event in 2023. The budget is lined up on the day following the close of this issue which makes the coming week a double header of Indian equities. Investors are going to decide how the world will view Indian equities through the rest of 2023. Never before has the market been so event-centric. In that sense, we live in very interesting times.

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