India's economic resilience causing a strong influx of IPOs, says Mahavir Lunawat of Pantomath Capital Advisors

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Mahavir Lunawat, MD of Pantomath Capital Advisors believes India's economic resilience and its attractiveness as an investment hub are causing a strong influx of IPOs. In an interview with Mint, Lunawat said the IPO trend will continue in H2 2024, with a strong pipeline of over $9 billion. Edited excerpts: Compared to most of the other major economies, India stands out distinctly as one of the bright spots in the world today.

In the primary capital market, we have witnessed many successful IPOs. We are no longer dependent on foreign institutions, as domestic institutions demonstrate increasing depth and maturity. Moreover, 2023 was anticipated to be one of the prime years for IPOs, considering a long lineup.

The strong influx of IPOs can be attributed to India's economic resilience and its attractiveness as an investment hub. IPOs have become an entry point for first-time investors to venture into public offerings for listing gains. The capital market also showed a strong performance, largely supported by domestic capital accumulation.

Strong investor confidence can be seen in the secondary market, but it becomes even more evident in IPOs as new and interesting ideas come to the market. With 1.4 billion people, India has the largest population in the world and as per the 2011 Census of India, tier II and tier III cities constitute 16.9 per cent of the urban population of India. These small towns and cities play a pivotal role in the economic activity of the nation.