‘Expect many large IPOs to hit the market in H2 of FY25’

livemint.com:

Edited excerpts from an interview: How does the equity capital market and M&A landscape look like to you? India is rapidly emerging as a top contender in global equity capital markets. The Indian equity markets have delivered consistently about 8-10% USD CAGR returns over the last 20 years. This momentum has strong tailwinds thanks to the strong macroeconomic environment, earnings growth trajectory, and equity market inflows especially from domestic mutual funds (MFs).

Apart from favourable demographics, various structural reforms in the past decade have also been strong pillars for the faith in this growth story. In FY24, JM Financial closed around 56 capital market transactions across IPO, QIPs, blocks and topped the equity league tables. In terms of primary market outlook, we expect strong momentum to continue over the next couple of years on the back of a strong pipeline of IPOs and QIPs across sectors.

With regards to M&A, robust global liquidity has provided strong buying power with financial sponsors and strategics alike. Financial sponsors are getting more comfortable to control deals as they now have multiple avenues to exit i.e. through M&As as well as blocks in the market.

Moreover, newer sectors are emerging. Deals are happening across multiple sectors like manufacturing, Industrials, specialty chemicals, digital and technology, healthcare, consumer and financials. We're witnessing a range of new businesses entering the market for example, we recently concluded IPOs of companies like Ixigo, a B2C mobile travel platform for the next billion users and TBO Tek, a leading travel distribution platform, both of which witnessed strong listing gains.