India Inc. outstrips China in Q2 IPO mop ups in US

India Inc. outstrips China in Q2 IPO mop ups in US


New York: At a time when the US markets are facing tough market conditions, the initial public offer (IPO) activity in the States reported a healthy second quarter with as many as 71 issues and the period also spelt good for overseas firms, including China and India.

Foreign registrants were in a strong position in the total value of the IPOs in the US with the volumes being driven by China which accounts for eight of the 13 issues, while India boasts of the single largest issue worth $1.8 billion, a latest report by global consultancy fund PricewaterhouseCoopers (PwC) has said.

Foreign registrants are firms from places other than the US making initial public offerings in that country and listing their shares on the US bourses.

“Non-US issuers were active in the second quarter listing 13 IPOs that raised $3.9 billion, a sharp increase from the five IPOs that generated $837 million in the same period the previous year," PwC said in its latest US IPO watch.

Other than Chinese and Indian offers, companies from Argentina, Greece, Israel and the Netherlands have floated non-US IPOs.

The US IPO watch is a quarterly survey of all IPOs listed on US exchanges, including those by domestic and foreign companies, business development companies and bank demutualisations. The survey captures IPOs listed between 1 April and 30 June this year.

Chinese IPOs account for 39% or $1.5 billion of the total proceeds raised by non-US issuers while India’s Sterlite Industries was the largest offering raising proceeds worth $1.8 billion on the New York Stock Exchange, the report added.

The number of listings by foreign companies doubled over the previous year’s figure. For the first six months of this year, foreign registrants listed 22 IPOs raising $5.7 billion against 11 IPOs amassing $3.7 billion in the same period last year.

Overall, the US IPO activity gained further momentum in the second quarter, amassing over $21 billion through 71 IPOs. Financial sponsor backed IPOs contributed half of it and generated more than 60% of the total proceeds. The Blackstone IPO, the largest offering contributed 20% or $4.1 billion.

Earlier this month, another Indian firm Genpact raised about $494 million and made a decent listing on the New York Stock Exchange (NYSE) despite hard market conditions.

Including the debut of Genpact on the US bourse, the number of Indian companies listed in the US now stands at 16. Total market capitalisation is nearly $120 billion.

Infosys is the biggest of all US-listed Indian firms with a market cap of $28.3 billion, followed by Wipro ($21.2 billion), ICICI Bank ($20 billion) and Sterlite Industries ($11.2 billion).

Genpact has joined two other Indian BPOs on US bourses — WNS on NYSE and EXLService on Nasdaq. The three command a cumulative market value of $5 billion.

Other Indian companies listed on NYSE are Wipro, Satyam Computer, VSNL, Tata Motors, ICICI Bank, HDFC Bank, Dr Reddy’s Labs, MTNL and Patni Computers.