New-age tech firms to lead $13 billion IPO boom: Kotak's Jayasankar
MUMBAI : The Indian markets are poised to witness initial public offerings (IPOs) worth $12-13 billion in 2024, V. Jayasankar, managing director and a board member at Kotak Investment Banking, said. IPOs of new-age tech companies, such as Ola Electric, FirstCry and Swiggy, are likely to fuel a significant part of this activity, according to the company.
During its annual media round up, the firm’s investment banking team said it was expecting equity capital market activity to double from 2023. “With inflows from domestic institutional investors and foreign institutional investors put together we expect more than $50 billion worth of equity capital market demand in 2024." In 2023, DIIs contributed $22.3 billion, while FIIs added $20.5 billion, resulting in a combined inflow of around $42.8 billion. Kotak expects IPO volumes to surge in 2024 with a significant uptick in average deal size compared to 2023.
The momentum in sell-downs is also expected to persist, driven by private equity and venture capital (PE-VC) exits amid robust institutional flows. In 2023, around $6.35 billion was raised by companies, including Tata Technology, Mankind Pharma, Doms and Flair Writing, among others via public issues. However new-age technology companies made up 2% of IPO volumes, with beauty and personal care brand Mamaearth’s parent Honasa Consumer, making its debut on the stock exchanges towards the end of the year.
According to Kotak Investment Banking, India’s IPO market is evolving beyond the traditional banking, financial service and insurance (BFSI) sector, and expanding into emerging areas such as electric vehicles, fintech and consumer tech. The shift showcases a broader spectrum of investment opportunities, it added. However, in
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