The top three IPOs in terms of funds during Q3 were: RR Kable Ltd, Concord Biotech Ltd, and SAMHI Hotels Ltd. The sectors primarily driving this IPO boom were diversified industrial products, consumer products and retail, and technology, the EY report said.
Adarsh Ranka, a partner at a member firm of EY Global, said, “The IPO landscape is witnessing a surge in activity driven by both an urge to tap the capital markets pre-or-post Indian general elections and strong economic activity, positive domestic and foreign investor sentiment towards India. This momentum is expected to continue well into H2 2024. To capitalize on this unprecedented growth, businesses must focus on maintaining transparency, robust governance, and innovation in their business models. Furthermore, staying attuned to changing regulatory and market dynamics will be crucial for sustained success. As we navigate this dynamic landscape, strategic planning, and prudent decision-making will be paramount to make the most of the opportunities that lie ahead.”
August 2023 saw an impressive US$5.2 billion in PE/VC investments, reflecting a 127% growth from August 2022 and an 18% rise from July 2023. PE/VC exits amounted to US $4.3 billion over 37 deals, indicating a 35% annual growth in value, the report said.
With the 2024 Lok Sabha elections approaching, companies are eager to launch their IPOs, leading to a heightened demand this year in comparison to 2022.
Over twenty-five firms submitted their Draft Red Herring Prospectuses (DRHPs) in the third quarter of 2023, signaling a robust inclination to gather funds in the forthcoming quarters. The market continues to favor enterprises that exhibit strong, expandable, and well-governed operational models, the report added.