IPO proceeds in India rises 61% in 2020, sentiments revive in Q4

Mumbai, Jan 24 : Proceeds from initial public offerings (IPOs) in the country surged 61 per cent last year to over $4.09 billion, showed an EY report on Sunday.
The ‘EY India IPO Trends Report: Q4 2020’ showed that the increase in IPO proceeds came despite the fact that the number of IPOs in 2020 was just 43, down 33 per cent from 2019.
It said that the fourth quarter of 2020 saw a strong rebound in IPO activity and market sentiment remains positive.
“Real estate, hospitality and construction, diversified industrial products were the most active sectors (in terms of the number of IPOs) with three IPOs launched in each sector (including main and SME markets),” it said.
In terms of the issue size, the IPO by Gland Pharma Ltd from the life sciences sector was the largest in Q4 2020 with proceeds of $869 million.
Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India, said: “There is a strong momentum in the IPO markets, and we are seeing an increased interest from companies across sectors looking to raise capital in the near term. Additionally, companies are keenly awaiting guidelines for direct listing in overseas markets.”