“The third quarter of 2023 saw a staggering 21 IPOs in the Indian main market, compared to just four in the same quarter of 2022. The proceeds raised during Q3 2023 amounted to US$ 1,770 million, a significant increase of 376% compared to US$ 372 million in Q3 2022. This represents a remarkable 425% increase in the number of deals,” EY said.
The small and medium enterprises (SME) segment also recorded significant success by raising US$ 165.76 million via 48 IPOs in Q3 2023.
The three largest IPOs in Q3 in terms of proceeds were RR Kable, Concord Biotech and SAMHI Hotels Ltd. Key sectors contributing to this IPO surge included diversified industrial products, consumer products and retail, and technology.
“The IPO landscape is witnessing a surge in activity driven by both an urge to tap the capital markets pre-or-post Indian general elections and strong economic activity, positive domestic and foreign investor sentiment towards India. This momentum is expected to continue well into H2 2024,” said Adarsh Ranka of EY Global.
Companies are striving to file for IPOs before the 2024 Indian elections, with the demand for IPOs surging this year compared to 2022, he said.
More than 25 companies have filed their Draft Red Herring Prospectuses (DRHPs) in Q3, demonstrating a strong intent to raise funds in the upcoming quarters.While the number of India’s IPOs are at a record, proceeds are down 15% year-on-year at $4.9 billion, according to Bloomberg.
In the meantime, August witnessed $5.2 billion in PE/VC investments, a 127% increase compared to August 2022 and an 18% increase from July 2023. PE/VC exits reached $4.3 billion across 37 deals, marking a 35% year-over-year increase in value.
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