EY: India - global leader in IPO market in 2023

India has emerged as the global leader in initial public offerings (IPOs) in 2023 with 21 IPOs launched in the third quarter of this year compared to just four in the same quarter last year, showing a 425% increase , according to an EY report, cited by timesofindia.indiatimes.com. According to the mentioned source, the funds raised in this way in the July-September 2023 period reached 1.77 billion dollars, an increase of 376% compared to the same period in 2022. The SME sector also made progress, raising $165.76 million through IPOs. The top three IPOs by amount of funds raised were of RR Kable Ltd., Concord Biotech Ltd. and SAMHI Hotels Ltd. The sectors driving this IPO boom in India were diversified industrials, consumer staples and retail, and technology respectively. Adarsh Ranka, partner at an EY Global member firm, states: "The IPO landscape is witnessing an increase in activity driven by both the urge to tap capital markets ahead of India's general elections and strong economic activity and positive domestic and foreign investor sentiment towards India. We expect this momentum to continue through the start of the second half of 2024. To capitalize on this unprecedented growth, companies must focus on maintaining transparency, sound governance and innovation in their business models. Strategic planning and prudent decision-making will be essential to make the most of future opportunities." In August 2023, there was $5.2 billion in private equity and venture capital investment in India, representing an increase of 127% from August 2022 and 18% from as of July 2023. Private equity/venture capital outflows totaled $4.3 billion in 37 deals, indicating a 35% year-over-year advance, according to EY. With the 2024 Lok Sabha (lower house of Parliament) elections around the corner, companies are eager to launch their IPOs, which has led to increased demand for offerings this year compared to 2022. More than 25 firms filed their offering prospectuses in the third quarter of 2023, signaling strong future IPOs. The market continues to favor businesses with strong, scalable and well-governed operating models, the report concludes.