IPOS see 14% jump to $785 million in Q1 2018

NEW DELHI: Indian companies raised $785 million, up 14 per cent year-on-year, through 39 IPOS in the first quarter this year, says a report.

The value was $686.26 million in the first quarter of last year from 37 initial public offers.

BSE'S main and SME markets saw 23 IPOS, which raised $739.7 million in Q1 2018, while NSE'S main and SME segments had 16 IPOS, which together raised $45 million, said the EY Global IPO Trends: 2018 Q1 report. Industrials and consumer staples were the two most dominant industries for IPO activity in India with nine deals each followed by materials with seven deals.

With Indian markets performing well and the pipeline in the Middle East delivering a steady deal flow, prospects for the first half in Europe, Middle East, India and Africa (EMEIA) region are positive, the report added. Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India said: The Indian IPO market is expected to remain robust in 2018 due to the resilient nature of the economy and strong domestic liquidity. The IPO pipeline is healthy with dozens of companies looking to go public later this year."

These companies, dominated by finance, defense and construction sectors, are expected to raise over $4 billion this year, he said.

The divestment of stateowned enterprises by the government is also likely to propel IPO activity in the country, he added. Asia-pacific markets saw a decline in deal activity in Q1 2018 with 157 IPOS a 39 per cent drop when compared with Q1 2017, and the lowest quarterly total since Q2 2016.

Total proceeds this quarter stood at $11.4 billion, down 26 per cent compared to Q1 2017 and the lowest level since Q1 2016. However, despite the drop in IPO activity, Asia-pacific remained the world's busiest region for new listings in Q1 2018, the report noted.