India breaks records: Q3 2023 witnesses a 425% surge in IPOs, raising $1.77 billion, EY report says


India has emerged as the global leader in terms of number of IPOs in 2023 so far. According to an EY report, a remarkable 21 IPOs were launched in India’s main market in the third quarter of 2023, a stark contrast to the four IPOs in the equivalent quarter of 2022. The funds garnered in Q3 2023 reached US$ 1,770 million, marking a 376% growth from the US$ 372 million of Q3 2022.This translates to an impressive 425% surge in deal numbers. The Small and Medium Enterprises (SME) sector also showcased notable progress, accumulating US$ 165.76 million through 48 IPOs in the same quarter.
The top three IPOs in terms of funds during Q3 were: RR Kable Ltd, Concord Biotech Ltd, and SAMHI Hotels Ltd. The sectors primarily driving this IPO boom were diversified industrial products, consumer products and retail, and technology, the EY report said.
Adarsh Ranka, a partner at a member firm of EY Global, said, “The IPO landscape is witnessing a surge in activity driven by both an urge to tap the capital markets pre-or-post Indian general elections and strong economic activity, positive domestic and foreign investor sentiment towards India. This momentum is expected to continue well into H2 2024. To capitalize on this unprecedented growth, businesses must focus on maintaining transparency, robust governance, and innovation in their business models. Furthermore, staying attuned to changing regulatory and market dynamics will be crucial for sustained success. As we navigate this dynamic landscape, strategic planning, and prudent decision-making will be paramount to make the most of the opportunities that lie ahead.”
August 2023 saw an impressive US$5.2 billion in PE/VC investments, reflecting a 127% growth from August 2022 and an 18% rise from July 2023. PE/VC exits amounted to US $4.3 billion over 37 deals, indicating a 35% annual growth in value, the report said.
With the 2024 Lok Sabha elections approaching, companies are eager to launch their IPOs, leading to a heightened demand this year in comparison to 2022.
Over twenty-five firms submitted their Draft Red Herring Prospectuses (DRHPs) in the third quarter of 2023, signaling a robust inclination to gather funds in the forthcoming quarters. The market continues to favor enterprises that exhibit strong, expandable, and well-governed operational models, the report added.


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