IPO proceeds in India rises 61% in 2020, sentiments revive in Q4

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SME Times News Bureau | 25 Jan, 2021
Proceeds from initial public offerings (IPOs) in the country surged 61 per cent last year to over $4.09 billion, showed an EY report on Sunday.

The 'EY India IPO Trends Report: Q4 2020' showed that the increase in IPO proceeds came despite the fact that the number of IPOs in 2020 was just 43, down 33 per cent from 2019.

It said that the fourth quarter of 2020 saw a strong rebound in IPO activity and market sentiment remains positive.

"Real estate, hospitality and construction, diversified industrial products were the most active sectors (in terms of the number of IPOs) with three IPOs launched in each sector (including main and SME markets)," it said.

In terms of the issue size, the IPO by Gland Pharma Ltd from the life sciences sector was the largest in Q4 2020 with proceeds of $869 million.

Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India, said: "There is a strong momentum in the IPO markets, and we are seeing an increased interest from companies across sectors looking to raise capital in the near term. Additionally, companies are keenly awaiting guidelines for direct listing in overseas markets."

"The market sentiment remains positive for what could be a stellar 2021," he said.

As per the report, Indian stock exchanges, BSE and NSE including SMEs, ranked ninth in the world in terms of the number of IPOs in full year of 2020. There were no cross-border deals during the year.

In the main markets, BSE and NSE, there were ten IPOs in Q4 2020 against five IPOs in Q4 2019 and four IPOs in Q3 2020.

As regards to SME markets, there were nine IPOs in Q4 2020 against six and four IPOs in Q4 2019 and Q3 2020, respectively.