Companies earn $9.7 billion via IPOs in January to September in India: EY report

Q3 2021 was the most active third quarter by deal numbers and proceeds in 20 years

October 11, 2021

72 IPOs worth USD 9.7 billion hit the stock market through initial share sales during the January-September period

750 IPOs were launched in the APAC region witnessing a YoY increase of 35%

India had 31 IPOs worth over USD 5 billion launched in the third quarter of 2021

The outlook for the next quarter is positive with several new economy and technology-driven IPOs expected

According to leading consultancy firm Ernst & Young (EY), 72 initial public offerings (IPOs) worth USD 9.7 billion hit the Indian stock market through initial share sales during January-September 2021. The global IPO market continued to grow through Q3 2021, resulting in the most active third quarter by deal numbers and proceeds in the last 20 years.

In the three months ended September 2021, India saw 31 IPOs worth over USD 5 billion. During this period, there were eight IPOs from diversified industrial commodities and five in the technology sector. The EY report also states that 750 IPOs were launched in the Asia-Pacific region, observing a year-on-year increase of 35%, worth USD 123.4 billion. Technology was the most active sector both in terms of deal numbers (154 IPOs) and revenues (USD 34.3 billion). Globally, the third quarter of 2021 recorded 18% more deals than the previous third-quarter record set in 2007.

India ranks 11th globally in YTD 2021, with the US at the top in terms of IPO earnings on the stock exchanges (NASDAQ and NYSE). It is followed by Shanghai (SSE and STAR), and Hong Kong (HKEx and GEM). Due to strong investor sentiments in recent months, the 30-share Sensex touched an all-time high of 60,412.32 points during intra-day trade on September 27. The benchmark index also crossed the 60,000-mark for the first time on September 24.

The outlook for the next quarter continues to be positive with several new economy and technology-driven IPOs expected to enter the fray. In addition, equity indices, that are at an all-time high, are giving a boost to the primary market. Much like global markets, it has been seen that investors are willing to finance companies that have attractive business models, fair valuations, robust corporate governance, and quality management.