IPO Street shines bright in 2023 on robust local demand, equity rally
IPO) in the world after China in 2023, according to data from Bloomberg. The world's most populous and fastest-growing economy recorded 240 IPOs during the year helped by a steady inflow from domestic investors amid a buoyant stock market.
Of these, 58 companies raised funds on the main board, while 182 used the platform meant for small and medium enterprises (SME). The total number of IPOs grew by 55.8% year-on-year, the highest in the world.
The number of IPOs in China fell by 28.5% year-on-year to 362 in 2023.
South Korea, with 112 companies, secured the third position, while Japan, with 98 companies, ranked fourth on the list.
Indian companies collectively raised $7.1 billion (around ₹54,000 crore) through the IPO route. Its share in the total money raised globally through IPOs expanded to 5.6%, up from 4.1% in the previous year.
China raised $60.5 billion, accounting for nearly 48% of the global funds raised compared with 56% a year ago.
India has sustained a robust IPO momentum signalling economic growth and improving market liquidity, according to a report by EY. «India could potentially benefit from greater flexibility in market entry and exit to drive international investment in IPOs.»
Domestic IPO investors had a lot to cheer for in 2023 as majority of the newly-listed companies were able to earn meaningful returns.
For a sample, of the 58 companies barring investment trusts that were listed on the mainboard (non-SME issues) through the IPO route during the year, 39 or two out of every three, companies outperformed the benchmark S&P BSE Sensex, which has gained 19% in 2023 so far. In addition, 23 IPOs gained 50% while nine of them earned more than two-fold returns.
In the top 10 list based on the 2023
