India sees eight IPOs worth $850 m in Sept quarter: EY report

Hindu Business Line - India sees eight IPOs worth 850 m in Sept quarter: EY ... #septquarter #HinduBusinessLine - []

India sees eight IPOs worth $850 m in Sept quarter: EY report Photo

You have clicked on a link which leaves THBL website, and you will be redirected to a third party website.THBL makes no representations nor has any supervision or control over the content, reliability or security of the third party website, nor shall THBL be liable for its use.

Eight Indian companies came out with IPOs worth $850 million in the three months to September and the second half of this year is likely to be “significantly better” in terms of raising funds from the primary market, according to an EY report.

EY India IPO Trends Report Q3 2020 also showed that real estate, hospitality, construction, technology and telecommunications were the most active sectors with two IPOs launched in each sector.

In terms of volumes, the number of Initial Public Offerings (IPOs) at eight in the 2020 September quarter is lower than 12 recorded in the year-ago period. However, the amount involved in the 12 IPOs was only $651.98 million. At current exchange rates, $850 million is little over Rs 6,200 crore.

“In the main markets (BSE and NSE), there were four IPOs in Q3 2020 versus three IPOs in Q3 2019 and no IPO in Q2 2020, representing an increase of 33 per cent compared to Q3 2019 and a significant increase in IPO activity as compared to Q2 2020,” EY India said in a release on Sunday.

“We have seen Covid-19-backed under-performance in the first half of 2020, while the second half looks significantly better. IPO’s attraction might continue to allure investors in the primary market after successful IPO subscriptions in recent times,” Sandip Khetan, Partner and National Leader of Financial Accounting Advisory Services (FAAS) at EY India said.

He noted that Indian shares have rallied recently led by upbeat investor sentiment as businesses opened up and economic activities restarted after stringent lockdown restrictions due to the coronavirus.

Globally, the latest September quarter bucked the traditionally slow IPO period as the markets were awash with liquidity resulting in the most active third quarter in the last 20 years by proceeds, and the second highest third quarter by deal numbers.

“Globally, YTD (Year-To-Date) IPO activity accelerated, resulting in a 14 per cent increase in the total number of IPOs to 872, and an impressive 43 per cent rise in proceeds of $165.3 billion,” the release said.

Top Tweets About The Story

Top News Stories