IBEF: January 25, 2021
India witnessed 19 Initial Public Offering (IPOs) worth US$ 1.84 billion in Q4 2020 and market sentiment remains positive, according to leading consultancy EY's India IPO Trends Report.
The report highlighted that during the Q4 2020 there were a total of 10 IPOs in the main market and 9 in the SME (Small and Medium Enterprises) segment.
Out of the 19 IPOs, the largest was that of Gland Pharma with an issue size of US$ 869 million. There were just 11 IPOs in the year-ago period. India ranks ninth globally in terms of the number of IPOs in 2020 with 43 IPOs raising US$ 4.09 billion, as per the report.
Mr. Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS) at EY India commented on the progress, "There is a strong momentum in the IPO markets, and we are seeing an increased interest from companies across sectors looking to raise capital in the near term. Additionally, companies are keenly awaiting guidelines for direct listing in overseas markets. The market sentiment remains positive for what could be a stellar 2021.”
During the 2020 December quarter, main markets had 10 IPOs compared to 5 in the same period a year ago. Real estate, hospitality and construction and diversified industrial products were the most active sectors (in terms of the number of IPOs) with three IPOs launched in each sector (including main and SME markets), the report said.
The report said that in 2020, global IPO volumes continued to accelerate, increasing by 19% to 1,363 while proceeds increased 29% year-on-year to a total of US$ 268 billion.
"Despite a challenging year, 2020 activity in the Asia-Pacific region surpassed 2019, increasing 20% (822) by volume and 45% (US$ 136.2 billion) by proceeds in 2020. In fact, the region saw the highest proceeds since 2010. Industrials led the sectors with 181 IPOs raising US$ 20.8 billion in proceeds, followed by technology with 180 IPOs and US$ 38.7 billion in proceeds, and materials, which saw 95 IPOs raising US$ 7.4 billion," the report said.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.