New Delhi: The IPO Boom! According to a research, Indian market had the most Initial Public Offerings (IPOs) internationally due to robust domestic inflows.
Wealth management firm Angel One Wealth said, “In the first half of 2024, more than 5,450 companies have been listed across the world, of which India’s share was about 25 percent.”
“Last year, a large number of IPO listings were also seen in India. The reason for this was the high inflow by domestic investors in emerging companies and sectors,” the report said.
Globally, IPO markets reached their peak in 2021. During this period, 2,388 companies were listed worldwide, raising $453.3 billion cumulatively.
This was the largest amount raised through IPOs in the last 20 years.
The report further said, “BSE IPO index with 348 per cent absolute gains has outperformed benchmark BSE 500 index’s 165 percent gain by a wide margin, thanks to strong listing gains.”
Small and Medium Enterprises (SME) IPOs have also performed well over the years.
“The average listing gain on the listing of SME IPOs in 2019 was around 2 percent, which has increased to 74 percent in 2024. Listing gains of mainboard IPOs reached their highest level in 2020 and have been range bound around 30 percent since then,” it added.
One reason for the boom in the IPO market is the positive returns of the Indian market.
Since the beginning of this year, Nifty rallied about 17 percent and Sensex approximately 16 per cent.
The rise in the stock market is due to India’s strong economy.
India’s GDP grew at 8.2 percent in FY 2023-24 and is expected to grow at 7.2 percent in the current financial year.
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–IANS
