India emerged as a global leader in initial public offerings (IPOs) for 2023, according to a recent report by EY, securing the top position worldwide with no cross-border deals reported.
During the last quarter of 2023, the Indian stock exchanges, the Bombay Stock Exchange (BSE), and the National Stock Exchange (NSE) experienced a notable increase in IPOs, totaling 92 launches.
In particular, the primary markets witnessed a significant uptick, with BSE and NSE recording 31 IPOs (including one InvIT) in Q4 2023, marking a remarkable 72% increase over the same period in 2022 and a substantial 41% increase over Q3 2023.
Additionally, the Small and Medium Enterprises (SME) markets demonstrated notable growth, witnessing 61 IPOs in Q4 2023, reflecting robust increases of 79% and 30% compared to Q4 2022 and Q3 2023, respectively.
Mr. Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader at member firm of EY Global, anticipates continued growth in the Indian IPO market in Q4FY24, driven by optimistic investor sentiment, a strong economy, and expectations of lower inflation and rate cuts in 2024.
The report highlights the fourth quarter of 2023 as a standout period, representing nearly 40% of the year’s total listings. Despite a slow start in the first half, IPO activity surged notably in the latter half, with over 18 companies filing their Draft Red Herring Prospectus (DRHPs) in Q4 2023, indicating a potentially brighter outlook for 2024.
