Hindustan Times (East UP)
India records 22 IPOs in Jan-Mar period
NEW DELHI: India witnessed 22 initial public offerings (IPOs) worth over $2.5 billion in the first three months of 2021 amid “high momentum” in the country’s capital markets and the trend is likely to stay bullish in the current quarter also, according to a report.
Leading consultancy EY India’s IPO (Initial Public Offer) report released on Wednesday showed that consumer products and retail, diversified industrial products, automotive and transportation were the most active sectors in terms of the number of IPOs in the 2021 first quarter.
The IPOs include both in the main as well as SME (Small and Medium Enterprise) markets.
“With a robust Q1, IPO market likely to stay bullish in Q2 2021,” it said, adding that India ranks ninth globally in terms of the number of IPOs Year-To-Date (YTD) 2021. There were 22 IPOs that mopped up $2,570.44 million in the first quarter, including five in the SME space.
During the first quarter, Indian Railway Finance Corp’s IPO—with an issue size of $634 million—was the largest.
“In the main markets (BSE and NSE), there were 17 IPOs in Q1 2021 versus 1 IPO in Q1 2020 and 10 IPOs in Q4 2020, representing an increase of 1,600% compared to Q1 2020 and an increase of 70% compared to Q4 2020,” the report said.
In the SME segment, there were 5 IPOs in the first quarter of this year versus 11 and 9 IPOs in the first quarter of 2020 and fourth quarter of last year, respectively. This represents a decrease of 55% compared to Q1 2020 and a decline of 44% compared to Q4 2020.
“We are witnessing high momentum in the Indian capital markets. Significant amount of activity is driven by huge dry powder awaiting investment and companies exploring a listing in India or overseas. The markets continue to reward companies with robust, scalable and technology-led business models,” Sandip Khetan, Partner and national leader of Financial Accounting Advisory Services (FAAS) at EY India said.
The IPO pipeline has over 20 firms that have filed DRHPs and more than 30 PE-backed companies are planning exits.