Indian IPO activity thrives as global markets remain muted
While IPO activity in major markets such as the US and Europe remained muted, India saw a thriving IPO market with over 200 companies going public on the Bombay Stock Exchange and the National Stock Exchange in Mumbai. According to data from PitchBook, a total of 205 companies made their stock market debut in India, indicating the growing interest in the country’s stock market. In contrast, IPO activity in other parts of the world struggled to gain momentum.
A record 205 companies make stock market debut in India
The year 2023 witnessed a record-breaking number of IPOs in India, with 205 companies making their stock market debut. This figure includes 33 companies backed by private equity and venture capital investors, marking the second-highest annual count of such IPOs in the past decade. The substantial number of IPOs highlights the increasing attractiveness of India’s stock market for both domestic and international companies.
Total IPO value in India surpasses 2022 figures
Although the IPO activity in India was robust, the total IPO value was lower compared to the previous year. PE and VC-backed companies raised approximately $1.7 billion, contributing to the overall IPO value of just over $4.1 billion. While this amount represents a significant increase from 2022, it is still only about half of the record-setting $7.4 billion raised in 2021. Despite the slightly lower figures, the Indian IPO market remained robust and continued to attract capital from various sources.
Tata Technologies and Cello among notable IPOs in 2023
Several standout IPOs took place in India in 2023, contributing to the overall success of the country’s IPO market. One of the noteworthy listings was Tata Technologies, the engineering and research unit of Indian conglomerate Tata. The IPO, which marked Tata’s first listing in two decades, raised $365 million at a valuation of $2.4 billion. Another significant IPO was that of Cello, a household consumer products company that received funding from ICICI Venture. Cello raised $228 million at a valuation of $1.7 billion, making it the largest VC-backed IPO of 2023.
India poised to lead IPO activity in Asia in 2024
India’s IPO momentum is expected to continue in 2024, with the country predicted to lead IPO activity in Asia. Notable listings already in the pipeline include Ola Electric, an electric scooter manufacturer backed by prominent investors such as Temasek and SoftBank. Ola Electric aims to raise 55 billion Indian rupees (around $664 million) through its IPO. With a strong pipeline of IPOs and a favorable market environment, India’s stock market is set to remain a key player in the Asian IPO landscape in the coming year.
India’s thriving IPO market in 2023 showcases its resilience and attractiveness, even as global markets face uncertainties. With a record number of companies going public and a steady inflow of capital, India’s stock market continues to be a hub for companies seeking access to public funding. As we look ahead to 2024, India’s position as a leading IPO market in Asia appears poised to strengthen further.
Analyst comment
Positive news: India’s IPO activity thrives with a record-breaking number of companies going public in 2023, indicating growing interest in the country’s stock market.
Short analysis: India’s IPO market is expected to remain strong in 2024, leading IPO activity in Asia with a strong pipeline of listings and a favorable market environment. India’s stock market continues to be a hub for companies seeking public funding.
