Indian exchanges see just 4 IPOS in June qtr

NEW DELHI: India witnessed four initial public offerings worth $2.08 million in the three months ended June as the coronavirus pandemic impacted economic activities, according to an EY India report.

All the IPOS were in the Small and Medium Enterprises (SMES) segment and the median deal size was $0.38 million. Although there has not been much activity, companies are considering their long-term growth plan, and have started to engage in conversations towards their IPO preparation in this economic slowdown, leading consultancy EY India said on Sunday.

About April-june period, also the second quarter of 2020, the report said that consumer products & retail, and diversified industrial products were the active sectors in terms of the number of IPOS. Each sector had two IPOS on the SME market and they were worth around $2.08 million.

“Indian stock exchanges (BSE and NSE including SMES) ranked seventh in the world in terms of number of IPOS in Q2 2020. There were no crossborder deals and there were no IPOS in the main markets,” the report said. Sandip Khetan, Partner and National Leader of Financial Accounting Advisory Services at EY India, said the experience in the last three months has been unprecedented as COVID-19 has severely impacted both, human lives and the economy.

“Similar to global markets, there has been limited to no activity in the Indian IPO market. Investors and analysts are keeping a close watch on the latest updates provided by companies about their performance as valuations become attractive for deal making.