NEW DELHI: Reflecting sturdy momentum, India witnessed 19 preliminary public gives worth USD 1.84 billion in the fourth quarter of 2020 and market sentiment stays optimistic in what could possibly be a stellar 2021, in keeping with a report.
Leading consultancy EY’s India IPO Trends Report: This fall 2020 confirmed that there have been a complete of 10 Initial Public Offers (IPOs) in the principle market and 9 in the SME (Small and Medium Enterprises) section throughout this interval.
In the most recent December quarter, there have been 19 IPOs valued at USD 1.836 billion and the most important was that of Gland Pharma with a problem dimension of USD 869 million. There have been simply 11 IPOs in the year-ago interval.
India ranks ninth globally in phrases of the variety of IPOs in 2020 with 43 IPOs elevating USD 4.09 billion, as per the report.
“There is a robust momentum in the IPO markets, and we’re seeing an elevated curiosity from corporations throughout sectors seeking to increase capital in the close to time period. Additionally, corporations are keenly awaiting pointers for direct itemizing in abroad markets. The market sentiment stays optimistic for what could possibly be a stellar 2021,” (*19*) Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS) at EY India, mentioned.
During the 2020 December quarter, essential markets had 10 IPOs in comparison with 5 in the identical interval a yr in the past.
Real property, hospitality and building and diversified industrial merchandise have been probably the most lively sectors (in phrases of the variety of IPOs) with three IPOs launched in every sector (together with essential and SME markets), the report mentioned.
The report mentioned that in 2020, international IPO volumes continued to speed up, growing by 19 per cent to 1,363 whereas proceeds elevated 29 per cent year-on-year to a complete of USD 268 billion.
Last yr, IPO exercise proved resilient to the impression of the Covid-19 pandemic supported by low rates of interest and expansionary financial insurance policies, it mentioned.
“Despite a difficult yr, 2020 exercise in the Asia-Pacific area surpassed 2019, growing 20 per cent (822) by quantity and 45 per cent (USD 136.2 billion) by proceeds in 2020.
“In truth, the area noticed the best proceeds since 2010. Industrials led the sectors with 181 IPOs elevating USD 20.8 billion in proceeds, adopted by expertise with 180 IPOs and USD 38.7 billion in proceeds, and supplies, which noticed 95 IPOs elevating USD 7.4 billion,” the report mentioned.