India leads global IPO chart with 80 listings in H1 of 2023

India has topped the world in terms of the number of initial public offerings (IPO) with 80 firms getting listed on the stock exchanges in the first half of 2023 calendar year, data compiled by global consulting firm Ernst & Young showed.

Till June end, the number of companies making debut at the stock exchanges in India jumped to 80 as compared to 60 recorded in the same period last year, a year-on-year growth of 33 per cent. The growth was led by small and medium enterprises (SMEs).

“Defying the global downward trend, India exchanges have sustained a vibrant IPO market with 80 listings in YTD 2023, a 33 per cent increase over the 60 IPOs in 1H 2022,” Ernst & Young noted in its Global IPO Trends Q2 2023 report.

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“The surge is largely due to SME IPOs showcasing the underlying entrepreneurial activity," it said.

Despite the increase in the number of IPOs, the amount raised by the companies through the primary market was less than half of what was raised in the same period last year.

Eighty companies raised a total $2.1 billion through the IPOs in the first half of 2023, which is 62 per cent lower when compared with the same period last year.

“After a slow start to the year, IPO activity could rebound in the second half. With major risk factors fading, volatility back to a reasonable level, and interest rate hikes priced in, IPO-bound companies are seeking the right window with higher market liquidity,” said Martin Steinbach, EY IPO leader for Europe, Middle East, India and Africa.

The number of IPOs jumped in Q2 of 2023 with buoyancy in stock markets. The Indian stock markets key indices have hit record highs. The benchmark Sensex of the BSE surged 205 points to close at a new record high of 66,795.14 points on Tuesday. The index has gained over 3,600 points or 5.7 per cent in a month.

The wider Nifty 50 of the NSE jumped 0.19 per cent or 37.80 points to hit a new closing peak of 19,749.25 points. The Nifty has gained over 1,000 points or 5.1 per cent in the past one month.

Globally in the first half of 2023 there was a decline in the number of IPOs, both in terms of the number of listings and the amount raised. The number of IPOs declined by 5 per cent to 600 in the first half of 2023 globally. While the amount of money raised through the IPOs in the January-June 2023 period was around $60 billion, which 36 per cent lower when compared with the same period last year.

In terms of the number of IPOs, India’s share in the global pie has increased sharply. In 2021, India’s share in the total number of IPOs globally stood at 6 per cent. It surged to 11 per cent in 2022. In the first half of 2023, India’s share in the number of global IPOs rose to 13 per cent.