India reaches the eighth spot for most IPOs

The June quarter witnessed six companies engaging in public offerings, encompassing fundraising endeavours by an infrastructure investment trust

August 8, 2023

Sectors of new entrants in the stock market were hospitality and construction, automotive and transportation, diversified industrial products, and real estate

During the June quarter, approximately 13 companies submitted draft red herring prospectuses to the Securities and Exchange Board of India (SEBI)

The Small and medium-sized enterprises (SMEs) registered 32 IPOs in the June quarter

An essential catalyst driving the heightened activity within the primary market landscape is the resurgence of foreign institutional investors (FIIs)

India has reached the 8th spot worldwide in terms of Initial Public Offerings (IPOs), devoid of any cross-border deals, according to a recent study conducted by consulting firm Ernst & Young (EY) India.

The June quarter of 2023 witnesses six companies engaging in public offerings, encompassing fundraising endeavours by an infrastructure investment trust. Although this figure surpasses the IPO count of the preceding March quarter, it lags behind the 14 issues observed during the corresponding period of the previous year.

During the June quarter, approximately 13 companies submitted draft red herring prospectuses to the Securities and Exchange Board of India (SEBI) in pursuit of approval for their impending IPOs. This suggests a relatively promising pipeline for the forthcoming months.

Among the sectors spearheading the influx of new entrants into the stock market were hospitality and construction, automotive and transportation, diversified industrial products, and real estate, as highlighted by EY India. Notably, the hospitality and construction sectors took the lead on the main board during the June quarter, unveiling two IPOs. When examining the year-to-date (YTD) context, the automotive and transportation, diversified industrial products, and real estate sectors each unveiled 2 IPOs within the primary markets.

In contrast, the SME segment experienced heightened activity, registering 32 IPOs in the June quarter, reflecting a remarkable 78% increase compared to the same period in the previous year. For reference, the corresponding quarter of the prior year saw a total of 18 issues. However, in sequential terms, this count fell short of the 38 issues noted in the March quarter.

An essential catalyst driving the heightened activity within the primary market landscape is the resurgence of foreign institutional investors (FIIs), who have consistently injected capital for a span of five months. 
Source: Economic Times

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