New Delhi: Indian companies mopped up a whopping $8.3 billion through initial public offers (IPOs) in 2010, fourth largest in the world, according to Ernst & Young.
Global consultancy E&Y’s data shows the amount is more than double the amount mopped up in 2009. In 2009, the figure stood at $4.1 billion.
The entities were helped by a robust stock market.
“In terms of the number of IPOs, India, ranked sixth globally and saw an increase of 215 percent from 20 IPO deals in 2009 to 63 in 2010,” E&Y said.
The average deal size stood at $132.5 million as compared $203.4 million in 2009.
“Driving industrial IPO activity is India’s investment plan to modernize its infrastructure worth $1 trillion. This programme has led to many new listings in the energy and power, natural resources, building and construction sectors,” E&Y noted.
Country’s largest coal producer Coal India’s IPO had raked in a staggering $3.4 billion in October last year.
E&Y India’s partner and IPO leader R. Balachander said India’s IPO markets continue their dramatic recovery.
“Globally, although the first two months in 2011 has seen a good start, the current upward trajectory may not necessarily be smooth as global macroeconomic risks could yield further market volatility.
“However, barring another unforeseeable crisis, 2011 global IPO markets are expected to be stronger than in 2010,” Balachander added.