India records 22 IPOs worth over $2.5 billion in January-March period – Times of India

NEW DELHI: India witnessed 22 (*22*)preliminary public provides(*22*) worth over $2.5 billion in the primary three months of 2021 amid “high momentum” in the nation’s (*22*)capital markets(*22*) and the development is more likely to keep bullish in the present quarter additionally, in accordance with a report.
Leading consultancy EY India’s (*22*)IPO(*22*) (Initial Public Offer) report launched on Wednesday confirmed that shopper merchandise and retail, diversified industrial merchandise, automotive and transportation have been probably the most energetic sectors in phrases of the quantity of IPOs in the 2021 first quarter.
The IPOs embrace each in the primary in addition to SME (Small and Medium Enterprise) markets.
“With a robust Q1, IPO market likely to stay bullish in Q2 2021,” it stated, including that India ranks ninth globally in phrases of the quantity of IPOs 12 months-to-date (YTD) 2021.
There have been 22 IPOs that mopped up $2,570.44 million in the primary quarter of this 12 months, together with 5 in the SME area.
During the primary quarter, Indian Railway Finance Corp’s IPO — with a difficulty dimension of $634 million — was the biggest.
“In the main markets (BSE and NSE), there were 17 IPOs in Q1 2021 versus 1 IPO in Q1 2020 and 10 IPOs in Q4 2020, representing an increase of 1,600 per cent compared to Q1 2020 and an increase of 70 per cent compared to Q4 2020,” the report stated.
In the SME section, there have been 5 IPOs in the primary quarter of this 12 months versus 11 and 9 IPOs in the primary quarter of 2020 and fourth quarter of final 12 months, respectively. This represents a lower of 55 per cent in comparison with Q1 2020 and a decline of 44 per cent in comparison with This fall 2020.
“We are witnessing high momentum in the Indian capital markets. Significant amount of activity is driven by huge dry powder awaiting investment and companies exploring a listing in India or overseas.
“The markets proceed to reward corporations with strong, scalable and know-how-led enterprise fashions,” Sandip Khetan, partner and National Leader of Financial Accounting Advisory Services (FAAS) at EY India said.
As per the report, the IPO pipeline has over 20 companies that have filed their Draft Red Herring Prospectus (DRHPs) and more than 30 PE-backed companies are planning exits. InvITs worth almost $5 billion are in the pipeline.
However, the report also noted that there are reasons for caution in the near-term, given the slow start to vaccinations in India relative to the size of the population, renewed spike in Covid infections with the second wave and threats from new variants of the virus.
Globally, the report said that attractive market conditions in 2021 so far have resulted in the best-performing first quarter by deal numbers and proceeds in the last 20 years.
“Just as conventional IPO markets have been extremely energetic, the Special Purpose Acquisition Company (SPAC) IPOs in Q1 have additionally been breaking records, finishing extra offers and elevating extra in proceeds than in the entire of 2020.
“Through Q1 2021, the global IPO market saw 430 deals raising $105.6 billion in proceeds, increasing by 85 per cent and 271 per cent year-on-year, respectively,” it added.