IPOs in India likely to raise $5 bn in 2016

IPOs in India likely to raise $5 bn in 2016
Highlights

Initial public Offerings (IPOs) in India are set to hit a six-year high in 2016 and estimated to raise more than $5 billion, largely owing to a growing appetite for equities and positive sentiment on the growth front, says an EY report.

New Delhi : Initial public Offerings (IPOs) in India are set to hit a six-year high in 2016 and estimated to raise more than $5 billion, largely owing to a growing appetite for equities and positive sentiment on the growth front, says an EY report.

In the first quarter of 2016, India was ranked in the top six countries in terms of number of deals globally and BSE was featured in the top six exchanges in terms of funds raised within Europe, West Asia, India and Africa region, which amounted to $197 million from 8 deals.

The deal traction witnessed in the first quarter of this year is likely to continue in the coming months as well, largely due to positive sentiment on growth, government's plans to divest stake in state-owned enterprises and a robust pipeline built up over the past six years.

"IPOs in India are set to hit a six-year high in 2016 as the companies looking to go public, supported by a growing appetite for equities and an uptick in economic growth, are estimated to raise more than $5 billion," EY said.

Meanwhile, global IPO activity slowed significantly in the first quarter of 2016 with a total of 167 deals raising just $12.1 billion, registering a 39% drop in number of deals and a 70% decline in total capital raised as compared to the same period last year.

"2016 has already started on a positive note, with six IPOs having raised around $375 million in the first quarter. A number of firms have already received Sebi (Securities and Exchange Board of India) approval and we could see successful IPOs from some of these during the year," said Amit Khandelwal, national director and partner, Transaction Advisory Services, EY.

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