Anu­pam Singhi,

CEO, Mar­ket­smith In­dia (part of Wil­liam O'neil In­dia).

Dalal Street Investment Journal - - COVER STORY -

The IPO mar­ket has been on a tear so far in 2017. The In­dian ex­changes saw 57 new com­pa­nies get­ting listed on their plat­forms in the first half of 2017 rais­ing USD 2.3 bil­lion. This rep­re­sents a growth of 50% in terms of the num­ber of list­ings and 91% in terms of the amount raised, com­pared to the cor­re­spond­ing pe­riod of 2016. Most of the IPOS had the Of­fer for Sale (OFS) por­tion ex­ceed­ing the pro­ceeds from fresh eq­uity sale. This clearly in­di­cates that the growth in IPOS this year has been mostly due to pro­mot­ers/pri­vate in­vestors’ propen­sity to cash in on the surg­ing eq­uity mar­ket. Ma­jor­ity of the IPOS came from the fi­nan­cial ser­vices sec­tor. Global IPO Mar­ket Per­for­mance : This year has seen a strong start for the pri­mary mar­ket glob­ally with eq­uity mar­kets inch­ing higher on low volatil­ity. In H1 2017, the pri­mary mar­ket wit­nessed 772 IPOS glob­ally rak­ing in USD 83.4 bil­lion. This is an in­crease of 90% by pro­ceeds and 70% by num­ber of deals, com­pared with the first half of 2016. H1 2017 was the most ac­tive first half of a year by global num­ber of IPOS since H1 2007 (which saw 941 IPOS rais­ing USD 146 bil­lion). Re­gion-wise, Asia-pa­cific ac­counted for 61% of global IPOS and 44% of the to­tal pro­ceeds in H1 2017. China’s Shen­zhen and Shang­hai ex­changes led in terms of the num­ber of IPOS, ac­count­ing for 17% and 16% of all IPOS world­wide, re­spec­tively. The in­crease in China’s list­ings was partly a re­sult of the ef­fort by the mar­ket reg­u­la­tor, to speed up the IPO ap­proval process.

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