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Business News/ Markets / Stock Markets/  India IPO activity picks in December quarter
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India IPO activity picks in December quarter

Subscriptions for 18 Indian companies opened for IPO in the last quarter, up from four in the previous quarter, according to IPO trends report by consulting firm EY

Companies such as KFin Technologies, Kaynes Tech, Bikaji Foods went public during the quarter. (iStockphoto)Premium
Companies such as KFin Technologies, Kaynes Tech, Bikaji Foods went public during the quarter. (iStockphoto)

Initial public offering (IPO) momentum in India picked up in the last quarter in comparison to the world, with the domestic market witnessing the highest number of the deals in three months ended December 2022.

Subscriptions for 18 Indian companies opened for IPO in the last quarter, up from four in the previous quarter, according to IPO trends report by consulting firm EY. With 11 IPOs, consumer products and retail was the most active sector followed by diversified industrial products with nine companies, and technology with eight companies opening for subscriptions.

“IPO activity in the fourth quarter increased by 4x as compared to the previous quarter, demonstrating the growing prominence that our country is gaining as a global investment hub," said Adarsh Ranka, Partner with an Indian member firm of EY Global.

Companies such as KFin Technologies, Kaynes Tech, Bikaji Foods went public during the quarter. The IPO of Global Health Ltd, which operates speciality hospital chain Medanta, had the largest issue size of $0.27 billion. It saw Anant Investments, an affiliate of private equity major Carlyle Group, among others offload stakes.

“While IPO issue proceeds by the companies are relatively small, the recent IPO activity is likely to welcome a brighter outlook for Indian capital markets this year," he added.

In what are further signs of a better IPO market in the country in 2023, more than 10 companies have filed their preliminary documents–Draft Red Herring Prospectus (DRHPs)-- with market regulator Securities and Exchange Board of India in the last quarter.

“We saw several IPOs concluding with good post-listing performance. Unlike earlier when capital markets significantly relied on foreign institutional investors, this robust growth pattern will continue because these companies are supported by domestic retail and institutional capital," said Prashant Singhal, Partner, EY.

“A few more quarters like this will hopefully bring back some buoyancy to the market," he added.

Amid a slowdown in mainstream IPO activity in 2022, the small and medium enterprises (SME) segment has been robust. The last three months saw 34 SME IPOs, compared to 33 in the previous quarter.

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Updated: 13 Feb 2023, 03:39 PM IST
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