By Proceeds, 2021 Marks the Best IPO Year in India in Last 20 Years

According to a survey by Prime Database, the Indian IPO market is unstoppable, with 63 firms generating about Rs.1.2 lakh crore (US$ 15.4 billion) through initial share sales so far in 2021, powered by a host of new-age tech companies.

According to an EY IPO trends research, strong retail engagement has aided the primary share sale market, with Initial public offering (IPO) activity increasing by 156% year-on-year and 314% in terms of deal volumes and proceeds.

In India, there is a robust pipeline of IPOs scheduled for 2022. In the fourth quarter of 2021, more than 15 firms filed draught red-herring prospectuses (DRHPs), with plans to complete their initial public offerings (IPOs) in the first half of 2022.

Key highlights of the EY IPO trends report

•  In the fourth quarter of 2021, there were twenty initial public offerings (IPOs) on the main exchanges (BSE and NSE), compared to ten IPOs in the fourth quarter of 2020 and nineteen IPOs in quarter three of 2021. This marks a 50% increase over quarter four of 2020 and a 5% increase over quarter three of 2021.
•  As regards SME markets, there were 16 IPOs in quarter four of 2021 versus 9 and 14 IPOs in quarter four of 2020 and quarter three of 2021, respectively, representing an increase of 78% and 14% as compared to quarter four of 2020 and quarter three of 2021 respectively.
•  In 2021, the markets were fuelled by ample global liquidity, excellent profitability, and rising retail involvement.
• Several start-ups completed their initial public offerings (IPOs) in the second half of 2021, ushering in a new era for local capital markets.
•  A number of enterprises, including important PE-backed and government-backed firms, have announced plans to exit.