India records 22 IPOs worth over US$ 2.5 billion in January-March period
- IBEF
- April 22, 2021
According to a survey, India reported 22 initial public offerings worth over US$ 2.5 billion in the first three months of 2021, indicating ‘high momentum’ in the country's capital markets, which is expected to continue in the current quarter.
Consumer goods and retail, diversified industrial products, automotive and transportation were the most significant sectors in terms of IPOs in the first quarter of 2021, according to a study released on Wednesday by leading consultancy EY India.
The initial public offerings (IPOs) include both the primary and SME (Small and Medium Enterprise) sectors.
With a strong first quarter, the IPO market is expected to remain bullish in Q2 2021, according to the study, which also states that India ranks ninth globally in terms of IPOs year-to-date in 2021.
In the first quarter of this year, 22 IPOs raised US$ 2,570.44 million, including five in the SME room.
The largest IPO in the first quarter was Indian Railway Finance Corp's IPO, which raised US$ 634 million.
In the first quarter of 2021, there were 17 initial public offerings (IPOs) on the key exchanges (BSE and NSE), compared to 1 IPO in the first quarter 2020 and 10 IPOs in the fourth quarter of 2020, a 1,600% jump over Q1 2020 and a 70% increase over in the fourth quarter 2020.
There were 5 IPOs in the SME category in the first quarter of this year, compared to 11 and 9 IPOs in the first quarters of 2020 and last year, respectively.
Mr. Sandip Khetan, Partner and National Leader of Financial Accounting Advisory Services (FAAS) at EY India said, “In India's capital markets, there is a lot of movement. Huge amounts of dry powder awaiting investment, as well as companies looking to list in India or abroad, are driving a lot of activity.”
He added, “Companies with solid, scalable, and technology-driven business models continue to be rewarded by the markets.”
According to the survey, over 20 companies have filed their Draft Red Herring Prospectus (DRHPs) in the IPO pipeline, and more than 30 PE-backed companies are preparing exits. InvITs worth nearly US$ 5 billion are in the development.
According to the survey, favourable business conditions in 2021 have so far resulted in the best-performing first quarter in terms of deal numbers and proceeds in the previous 20 years.
In the same way as conventional IPO markets have been brisk, Special Purpose Acquisition Company (SPAC) IPOs in Q1 have shattered records, closing more transactions and raising more money than the entire year of 2020.
It added that through in the first quarter 2021, the global IPO market saw 430 deals raise US$ 105.6 billion in proceeds, up 85% and 271% YoY, respectively.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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