Indian IPO Landscape in 2023: A review and future outlook
There have been 46 IPOs in 2023, raising a cumulative Rs 41095.36 crore. This marks a 30% decline from Rs 59301.7 crore raised through 40 IPOs in 2022.
The record-breaking blockbuster year of 2021, with 63 IPOs raising a whopping Rs 1,18,723.17 crore, set a high benchmark.
In comparison, 2023 falls short, with regulatory developments and economic factors influencing the market dynamics. India emerged as the global leader in the number of IPOs year-to-date in 2023.
The Jul-Sep period of 2023 saw a staggering 21 IPOs in the Indian main market, compared to just four in the same quarter of 2022.
The three largest IPOs in Q3 in terms of proceeds were RR Kabel, Concord Biotech, and SAMHI Hotels, with key sectors contributing to this surge including diversified industrial products, consumer products and retail, and technology.
While the most subscribed IPO for the year has been in Tata Technologies seeing applications of over Rs 1 lakh crore.
SME IPOs in India also recorded impressive listings.
In fact, many SME IPOs in2023 have significantly been oversubscribed, demonstrating strong investor appetite bolstered by strong after-listing performances of over 150 companies trading at a premium of range of 20 (109 companies) to 100% (59 Companies).
A total of 181 SME IPOs have been able to raise over 4,643 crore rupees this year. We are expecting this boom to continue next year with the upcoming elections keeping markets optimistic.
As India aims to become a $5 trillion economy, SMEs and startups will play a pivotal role given their significant economic contribution.
Equity investments in Indian SMEs present a major opportunity to help meet this growing credit need. Private equity firms are well-positioned to capitalize
