Akash Jha
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have worked together to propel India to the top of the rankings for stock exchanges throughout the world in terms of the number of initial public offerings that have arrived at bourses.
The Indian stock markets have resisted the global economic slowdown by completing 80 listings so far this year. This represents a 33 percent rise over the 60 initial public offerings (IPOs) that were floated during the same period in the previous year. In a research, Ernst & Young stated that “the surge is largely due to SME IPOs showcasing the underlying entrepreneurial activity.”
The research house reported that the total amount of funds raised up to this point in the year was $2.1 billion, which is a decrease of 62 percent from the previous year’s total. The second quarter of this year saw a shift towards larger deals than the first quarter did, primarily coming from the industrials, health and life sciences, and technology sectors. One example of this is a fundraise that was held in April for the amount of $638 million by an emerging asset class that is related to an infrastructure investment trust.
According to the data, India has been experiencing an uptick in the number of new initial public offerings (IPOs), and the country is also continuing to increase its share of the overall global IPO market. India’s share of the global IPO market increased from 6 percent in 2021 to 11 percent in 2022, and then further increased to 13 percent year-to-date in 2023.
“Initial public offering (IPO) activity should pick up in the second part of the year after getting off to a sluggish start. “IPO-bound companies are seeking the right window with higher market liquidity,” said Martin Steinbach, EMEIA IPO Leader for EY. “With major risk factors fading, volatility returning to a reasonable level, and interest rate hikes priced in, IPO-bound companies are seeking the right window.” “Investors are becoming more selective in order to capitalise on the current buyer’s market,” he remarked.
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When compared to the first three months of the year, the number of initial public offerings (IPOs) that took place in the second quarter of the year increased, and the number of IPOs that took place in the second quarter of this year was comparable to the number that took place during the same period in the previous year. During the second quarter, there were a total of 310 public offerings, and the proceeds amounted to $39 billion. When compared to the previous year, this represented a decrease of 5%.
