India Leads Global IPO Ranking Until June 2023: Report

While remaining unfazed by global downward trends, India has notched the top position in world rankings in terms of initial public offerings (IPOs).

The BSE and NSE have fuelled the country’s global ranking with 80 listings until June 2023. In fact, this was 33% higher than the 60 IPOs floated in 2022. These are the recent findings of Ernst & Young’s Global IPO Trends report.

The IPO graph of India at the global level has witnessed a steady growth trajectory. For instance, it was 6% in 2021, 11% in 2022, and now stands at 13% year-to-date in 2023.

The rise in IPOs received a fillip from small and medium-sized enterprises (SME) IPOs, which underscored the entrepreneurial activity, as per the report. A majority of these were small-ticket IPOs.

The funds raised in India totaled about $2.1 billion, a dip of 62% from the $5.5 billion raised in 2022.

As compared to the first quarter (Q1) of 2023, fundraising witnessed a spike in Q2. This was facilitated as a result of a shift toward larger deals. This shift was fueled by the industrial, technology, and healthcare sectors.

The surge in India’s IPO market mirrors the broader market sentiment, which is showing an inclination towards the bullish side.

The Sensex and Nifty have breached several milestones in the past three-month timeframe. There has been an overall positive sentiment in the market.

A push provided by foreign institutional investors (FIIs), consistent corporate growth, and steady monsoon predictions are some of the factors that have led to buoyancy in the market.

At the global level, too, IPO activity has witnessed an uptick. While the number of IPOs and funds raised is comparatively lesser in the first half of 2022, the Q2 of 2023 maintained an equal number with the corresponding quarter of the past year.