IPO Update : India’s IPO market performed well in the year 2021. On the lines of last year, this year also the IPO market was expected to be strong. But due to the Russo-Ukraine war, the first quarter of the year was nothing special. Regarding the IPO market, Nomura has said that from the second half of this year, the primary market of India will also see increasing excitement. The rapid growth of the secondary market is showing signs of this.
Amit Thawani of Nomura has said in an interview that there has been a stir in the secondary market in India once again. QIPs are also showing momentum. So it is expected that from the second half of this year IPO The enthusiasm in the market will also be seen returning.
Raised about $1.1 billion from the market through IPO
According to a report by Live Mint, Russia’s invasion of Ukraine and hike in interest rates have affected the IPO market globally. The volatility in the market has affected the sentiments. So far this year, companies in India have raised around $1.1 billion from the market through IPOs. At the same time, in the same period last year i.e. 2021, $ 2.6 billion was raised in the Indian market through IPO.
Many technology companies preparing to bring their IPO
Amit Thawani further said in this conversation with Bloomberg that in the second half of the Indian capital market, apart from life insurance, many technology companies are preparing to bring their IPO. Fund raising activity will be very strong in the next 6 to 12 months. Most of the companies will give preference to listing in the domestic market instead of overseas listing.
Amit Thawani further said in this conversation that private equity funds will be seen supporting the merger and acquisition process in India. Apart from this, the focus on consolidation of their domestic business by big business groups will support the market.
Many will come to the fore in the financial sectors
He said that this month, India’s highest valued HDFC Bank has taken over the country’s largest mortgage lender Housing Development Finance Corp. The deal is worth about $60 billion. This merger may prompt some of the country’s largest financial institutions to think about what their business strategy should be for the coming years. Thawani believes that we may see many more such consolidations happening in the financial sectors going forward.